With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements

Explanation

1 There is no minimum capital requirement for wholly owned banking subsidiaries in India: This statement is incorrect. The RBI imposes minimum capital requirements for foreign banks establishing wholly owned subsidiaries in India. As per current regulations, foreign banks are required to initially bring in a minimum capital of USD 20 million or its equivalent in any freely convertible currency. 2 For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals: This statement is correct. As per RBI guidelines, at least 50% of the directors of the board of wholly owned subsidiaries of foreign banks in India must be Indian nationals. This is aimed at ensuring local representation and governance. https://www.civilsdaily.com/news/payments-banks-a-closer-look-at-their-features-and-objectives/