Parliament on Monday passed the Bankers' Books Evidence Bill, 2026, clearing the way for a new legal framework that explicitly recognises electronic and digital banking records as admissible evidence in court proceedings.The Rajya Sabha passed the Bill on Monday after the Lok Sabha approved it on August 5. The legislation will repeal and replace the Bankers' Books Evidence Act, 1891, bringing the legal framework governing bank records in line with the way banking and financial transactions are conducted today.Also Read: Lok Sabha passes Tribunals Reforms Bill 2026 without debateThe Bill largely retains the provisions of the existing law, including allowing certified copies of bankers' books to be produced as evidence without requiring the original records to be submitted in court.Its key change is the explicit inclusion of electronic and digital records within the definition of admissible banking evidence, subject to safeguards to ensure their authenticity and integrity.Union Finance Minister Nirmala Sitharaman said the Bill "provides for a technology neutral legal framework for Bankers Books" and "recognizes electronic and digital banking records."Under the new framework, an electronic or digital copy can be admitted as evidence if it is a true copy of the relevant entry or information and accurately represents, or has been appropriately derived from, the original record.The legislation also requires safeguards against unauthorised alterations and tampering. A digital record would need to be supported by circumstances showing that its integrity and accuracy have not been compromised and that no unauthorised changes have been made to the underlying data or system.The Bill also retains restrictions on compelling bank officials to produce bankers' books or appear as witnesses in proceedings where the bank itself is not a party.Also Read: Parliament not functioning because of Modi, Shah; they're afraid of coming to House: Mallikarjun KhargeUnder the existing framework, such production or appearance can generally be ordered only by a court or judge for a special cause. The 2026 Bill sets out circumstances that can constitute such a cause.These include situations where the accuracy or genuineness of an entry or information is in doubt, where an event suggests that the normal process of maintaining records has been disrupted, or where a bank does not comply with a court order concerning inspection of its books.Sitharaman said the legislation would also provide greater statutory protection to bank officials. She said it "strengthens the statutory protection available to the bank officers where the bank is not a party to the proceedings."The Finance Minister said the changes were necessary as India has undergone rapid digitisation, with banking and financial transactions increasingly moving to electronic platforms."India has shown exemplary speed in digitizing its economy," she said.The Bill also gives the Centre the flexibility to expand the framework to other entities in the financial sector through a notification. The government can prescribe conditions, exceptions or modifications while extending the law to such entities.For now, the legislation covers entities carrying on banking business, along with post office savings banks and money order offices. The provision to extend its scope to other financial-sector entities provides room for the framework to evolve as the financial system changes.