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?

1. Incorrect. RBI's framework for foreign banks operating as Wholly Owned Subsidiaries (WOS) in India prescribed a minimum capital requirement (paid-up voting equity capital), so saying there is no minimum capital requirement is wrong.

2. Correct. RBI required that in such WOS, at least 50% of the directors on the board should be Indian nationals/NRIs/PIOs subject to conditions, and overall Indian presence on the board was mandated.

Therefore, only statement 2 is correct.