UPSC PRELIMS · ECONOMICS · INDIAN ECONOMY: BANKING

Consider the following statements regarding foreign banks operating in India: 1. There is no minimum capital requirement for a wholly owned banking subsidiary. 2. At least 50 per cent of the directors of the board must be Indian nationals. Which one of the following is correct?

Take a breath. Choose one. Press A–D on your keyboard if you like.

EXPLANATION

Foreign banks establishing a wholly owned subsidiary in India are subject to prescribed minimum capital requirements. The stated 50 per cent board requirement is also not correct as framed, so neither statement is correct.

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