With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:
- There is no minimum capital requirement for wholly owned banking
subsidiaries in India.
- For wholly owned banking subsidiaries in India, at least 50% of
the board members should be Indian nationals.
Which
of the statements given above is/are correct?
(a). 1 only
(b). 2 only
(c). Both 1 and 2
(d). Neither 1 nor 2
Explanation:
Statement 1: Incorrect - The Reserve Bank
of India (RBI) has a minimum capital requirement for wholly owned banking
subsidiaries (WOS) in India.
Statement 2: Correct - This is a
requirement imposed by the RBI on WOS of foreign banks in India
Therefore, option (b) only 2 is correct.