Correct answer: (d) Neither 1 nor 2
Explanation
- A
1 only
1 only. Wholly owned subsidiaries do face a minimum capital requirement.
- B
2 only
2 only. The 50% Indian-national board rule is not the RBI WOS rule as stated.
- C
Both 1 and 2
Both. Both statements fail on this paper.
- D
Neither 1 nor 2
Neither. Minimum capital applies; board composition is not “at least 50% Indian nationals” as the statement puts it.
Summary. Official key is (d) neither. RBI requires substantial minimum capital for a wholly owned banking subsidiary. The board rule in the statement (at least 50% Indian nationals) is not accepted as a correct statement of the WOS regime on this paper. So both 1 and 2 are false.
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