Question
With reference to the rule/rules imposed by the Reserve Bank of India 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?
Correct Answer — D
Explanation
As per the official UPSC key, neither statement is credited as correct — RBI does prescribe a minimum capital requirement, and the board-composition claim wasn’t accepted either.