c)    Foreign banks which commenced banking business in India from August 2010 onwards were required to furnish an undertaking that they would convert their branches into wholly owned subsidiaries if so required by RBI. Accordingly, such banks shall convert their branches into a wholly owned subsidiary if the matters specified in paragraph 4 apply to them.

d)    Foreign banks which commenced banking business in India before August 2010 shall have the option either to continue their banking business through the branch mode or to convert those branches into a wholly owned subsidiary.

e)    The branch expansion of both the existing foreign banks and the new entrants present in the branch mode would be subject to India’s WTO commitments.

f)    In respect of foreign banks which are presently carrying on banking business in India and which are required to convert their branches into a wholly owned subsidiary or opt to do so, the conversion shall only be in accordance with a scheme mandated in the public interest to be approved by RBI under Section 44A of the Banking Regulation Act 1949 and which is in accordance with the conditions specified in paragraph 20. 

3.    Eligibility for setting up a wholly owned subsidiary

a)    Setting up of WOS by a fore­­ign bank in India should have the approval of the home country regulator/supervisor.

b)    A foreign bank applying for setting up a WOS in India must satisfy RBI that it is subject to adequate prudential supervision as per internationally accepted standards, which includes consolidated supervision in its home country.

c)    The factors taken into account while considering applications for setting up WOS in India would include the following: