According to the Banking Laws (Amendment) Act, 2025, the threshold for ‘substantial interest’ in a bank was revised from ₹5 lakh to which of the following amounts?

The correct option is ₹2 crore.

Key Information & Context:

Under the Banking Laws (Amendment) Act, 2025, the threshold for defining 'substantial interest' in a company or firm by a director or major stakeholder of a banking company has been updated to reflect economic growth and inflation since its original enactment.

Detailed Explanation:

1. Definition of Substantial Interest: "Substantial interest" refers to a financial interest held by an individual (or their spouse and minor children) in a firm or company, typically calculated as holding paid-up share capital exceeding a specific limit or 10% of the paid-up capital of that company.

2. Revision of Threshold: The monetary limit of ₹5 lakh was fixed back in 1968. To align with modern economic standards and ease regulatory compliance, the Banking Laws (Amendment) Act, 2025 revised this statutory threshold from ₹5 lakh to ₹2 crore.