New Delhi, July 30 -- Key provisions of the Banking Laws (Amendment) Act, 2025 including higher threshold for substantial interest, will come into effect on 1 August, the finance ministry said.

The amended legislation aims to enhance bank governance, safeguard depositors and investors, improve audits at public sector banks, and increase the tenure of directors (other than the chairperson and whole-time directors) in cooperative banks.

The Banking Laws (Amendment) Act, 2025 was notified on 15 April 2025, containing a total of 19 amendments across five legislations-the Reserve Bank of India Act, 1934, Banking Regulation Act, 1949,State Bank of India Act, 1955 and Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and 1...