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    • Question

      What major amendment did the Banking Laws (Amendment)

      Act, 2025 introduce regarding “substantial interest”? 
      A Threshold increased to ₹10 crore Correct Answer Incorrect Answer
      B Threshold reduced to ₹50 lakh Correct Answer Incorrect Answer
      C Threshold redefined from ₹5 lakh to ₹2 crore Correct Answer Incorrect Answer
      D Threshold removed entirely Correct Answer Incorrect Answer
      E Applies only to foreign shareholders Correct Answer Incorrect Answer

      Solution

      The Act revises the definition of "substantial interest" after decades—from ₹5 lakh to ₹2 crore. This aligns banking oversight with contemporary financial realities, aiming to increase transparency and depositor protection. 

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