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?

As per the RBI framework for setting up of wholly owned subsidiaries (WOS) by foreign banks in India, the initial minimum paid-up voting equity capital is prescribed at Rs. 500 crore — so statement 1, which says there is no minimum capital requirement, is incorrect. The RBI guidelines also require that not less than 50% of the directors on the board of the WOS should be Indian nationals/residents — statement 2 is correct. Hence only statement 2 is correct.