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    Question

    What major amendment did the Banking Laws (Amendment)

    Act, 2025 introduce regarding ā€œsubstantial interestā€?Ā 
    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.Ā 

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