The government may bring fintech companies and non-banking financial companies (NBFCs) under the ambit of a new law that allows digital banking records to be used as evidence in courts, FM Nirmala Sitharaman said on August 10. She was replying to the discussion on The Bankers' Books Evidence Bill, 2026, in the Rajya Sabha, following which the House passed the bill.

Key Highlights

• FM Sitharaman says new banking evidence law may extend to fintech companies and NBFCs through government notification.
• Bankers' Books Evidence Bill 2026 allows certified digital and cloud-based banking records as evidence in courts of law.

FM Sitharaman noted that the banking and financial sector has grown well beyond traditional banks, with fintech firms and NBFCs now playing an important role in the broader financial system. To keep pace with this evolution, clause 4 of the bill gives the central government the power to extend the law's provisions to other regulated financial entities through notification, as and when required. She said clause 4 enables the central government to act and extend the law to other regulated financial entities by notification, ensuring a uniform evidence framework is available across the sector.

This provision effectively future-proofs the legislation, allowing its scope to be widened over time without requiring fresh legislation each time a new category of regulated entity needs to be brought under its ambit.

Digital Records to Be Admissible as Evidence

The bill, which comprises 16 clauses, provides a technology-neutral legal framework for bankers' books, Nirmala Sitharaman said. It allows banks to submit digital records as certified copies that can be admitted as evidence in a court of law, giving explicit legal recognition to electronic records. She stated that electronic or digital records of bankers' books shall be admissible and legally enforceable as evidence.

The definition of "bankers' books" has also been expanded under the new law to include not just records maintained in written or physical form, but also digital records stored at cloud locations. The Act will prescribe the specific conditions that must be satisfied before such digital records can be entered as evidence in legal proceedings.

Also Read: FM Sitharaman Presents Tax Amendment Bill 2026: Key Details

New Clause Allows Courts to Summon Bank Officers

The bill also introduces a special clause allowing a court to summon a bank officer to appear as a witness, even in cases where the bank itself is not a party to the proceedings. FM Sitharaman explained that this new clause can be invoked by a court to require banks to appear, even when they are not directly involved as a party to the case.

She added that legislation of this nature has become necessary given the rapid pace of digitization within the Indian banking sector, describing the Act as an important step in view of ongoing digitisation efforts across the industry.

Confidentiality Safeguards Built Into the Framework

The bill permits banking records to be presented before courts in either written or digital form. FM Sitharaman said the framework is expected to strengthen public confidence by offering a transparent and secure legal basis for using banking records in legal proceedings, while fully safeguarding customer confidentiality throughout the process.