With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements: 1. There is no minimum capital requirement for wholly owned banking subsidiaries in India. 2. For wholly owned banking s

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Submitted by examrobotsa on

Q: 12 (IAS/2024)
With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:
1. There is no minimum capital requirement for wholly owned banking subsidiaries in India.
2. 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?

question_subject: 

Polity

question_exam: 

IAS

The Reserve Bank of India (RBI) imposes a minimum capital requirement for wholly owned banking subsidiaries of foreign banks in India, which is ₹5 billion (₹500 crore). Therefore, statement 1 is incorrect. However, the RBI does require that at least 50% of the board members of these subsidiaries be Indian nationals, making statement 2 correct.