FM Sitharaman moves Bill to replace 135-year-old banking law. Here's what will change
The proposed law expands the definition of "bankers' books" to cover all records maintained by banks, whether in physical, digital, electronic, cloud-based or any other form
- Aug 3, 2026,
- Updated Aug 3, 2026 2:32 PM IST
Finance Minister Nirmala Sitharaman on Monday moved the Bankers' Books Evidence Bill, 2026 in the Lok Sabha. The Bill seeks to replace the 1891 colonial-era law governing banking records with a framework that recognises digital, electronic and cloud-based records.
According to the introductory note accompanying the Bill, the proposed law expands the definition of "bankers' books" to cover all records maintained by banks, whether in physical, digital, electronic, cloud-based or any other form, in order to "align it with contemporary digital banking practices".
The Bill also empowers the Central government to extend its applicability to all entities operating in the financial sector.
COURT POWERS, LEGAL PROVISIONS
The proposed legislation defines "special cause" under which a court may require a bank officer to produce bankers' books or appear as a witness in legal proceedings in which the bank itself is not a party.
The government says the change is intended to provide greater legal clarity on when banking records can be summoned in court.
Once enacted, the Bankers' Books Evidence Bill, 2026 will replace the Bankers' Books Evidence Act, 1891, ending the operation of a colonial-era law that has governed the admissibility and production of banking records in judicial proceedings.
Indian Statistical Institute Bill, 2026
The Centre also introduced a bill - Indian Statistical Institute Bill, 2026 - in the Lok Sabha to widen the remit of the Indian Statistical Institute. The Bill seeks the institute's incorporation as a 'body corporate' to strengthen its governance, promote academic excellence and research, and allow it to serve the emerging needs in the field of statistics and allied fields.
The bill says the President of India will be the Visitor of the institute and provisions for a Board of Governors that will be its principal policy executive body.
(With inputs from Informist)
Finance Minister Nirmala Sitharaman on Monday moved the Bankers' Books Evidence Bill, 2026 in the Lok Sabha. The Bill seeks to replace the 1891 colonial-era law governing banking records with a framework that recognises digital, electronic and cloud-based records.
According to the introductory note accompanying the Bill, the proposed law expands the definition of "bankers' books" to cover all records maintained by banks, whether in physical, digital, electronic, cloud-based or any other form, in order to "align it with contemporary digital banking practices".
The Bill also empowers the Central government to extend its applicability to all entities operating in the financial sector.
COURT POWERS, LEGAL PROVISIONS
The proposed legislation defines "special cause" under which a court may require a bank officer to produce bankers' books or appear as a witness in legal proceedings in which the bank itself is not a party.
The government says the change is intended to provide greater legal clarity on when banking records can be summoned in court.
Once enacted, the Bankers' Books Evidence Bill, 2026 will replace the Bankers' Books Evidence Act, 1891, ending the operation of a colonial-era law that has governed the admissibility and production of banking records in judicial proceedings.
Indian Statistical Institute Bill, 2026
The Centre also introduced a bill - Indian Statistical Institute Bill, 2026 - in the Lok Sabha to widen the remit of the Indian Statistical Institute. The Bill seeks the institute's incorporation as a 'body corporate' to strengthen its governance, promote academic excellence and research, and allow it to serve the emerging needs in the field of statistics and allied fields.
The bill says the President of India will be the Visitor of the institute and provisions for a Board of Governors that will be its principal policy executive body.
(With inputs from Informist)