At that time it was considered advisable to continue with the current policy and procedures governing the presence of foreign banks in India. 16. Building on the lessons from the financial crisis, Reserve Bank issued a Discussion Paper in January 2011 on the mode of presence of foreign banks in India.
Taking into account the feedback received on the Discussion Paper, the framework for setting up of wholly owned subsidiary (WOS) by foreign banks in India was released in November 2013. Those foreign banks which have commenced banking business in India through a branch mode after August 2010 shall convert into a wholly owned subsidiary if they meet the set conditions and prescribed regulatory thresholds.