The Rajya Sabha on Monday (August 10, 2026) passed a Bill that seeks to replace a British-era law, paving the way for the inclusion of digital and virtual records as admissible evidence in a court of law, in line with the banking system's digital dependence.

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The Bankers' Books Evidence Bill, 2026, already passed by the Lok Sabha on August 5, seeks to provide for law relating to evidence with respect to bankers' books and to align it with contemporary digital banking practices.

The Bill was passed in the upper house by a voice vote.

Replying to a debate on the Bill, Finance Minister Nirmala Sitharaman said the banking and financial sector has evolved significantly in this country over the past few decades with the emergence of NBFCs, payment aggregators, fintech companies and other service providers, having a pan-India presence.

These entities, she said, perform an important role in fulfilling the banking and financial needs of the common people. It is, therefore, necessary that whenever and wherever required, they are provided a similar evidential framework.

The Finance Minister informed that Clause 4 of the Bill enables the Central Government to act and to extend the Act to other regulated financial entities through a notification, ensuring that a uniform evidential framework across the financial sector is available.

The Bill permits banking records to be produced either in physical or in electronic form as the case may be, Ms. Sitharaman said.

"The Bill strengthens public confidence by providing a clear, secure and transparent legal framework for the use of banking records in legal proceedings while fully safeguarding the privacy and the confidentiality of customers," she added.

Earlier in the day, as the Finance Minister moved the Bankers' Books Evidence Bill, 2026, in the House for discussion, Opposition parties staged a walkout after the Chair disallowed their attempts to raise issues, including the alleged donation theft at the Ayodhya Ram temple and the use of pellet guns against protesters during the July 20 Sansad march.

The Opposition has been demanding that Union Home Minister Amit Shah come to Parliament and respond to the alleged use of pellet guns against students and other protesters during the July 20 march by students, besides seeking accountability over the alleged theft or misappropriation of donations at the Ram temple.

Published - August 10, 2026 05:45 pm IST