Presence of a foreign bank is usually in one of the three recognized forms (viz., a branch, subsidiary or a wholly owned subsidiary) and only a particular form of organisation may be permitted usually with no choice to the foreign bank.
There are some restraints on the type of business permitted to a foreign bank (such as being restricted to foreign currency operations or non-acceptance of retail deposits or other specified operations) as also stipulations in regard to the minimum capital requirement for a branch or a subsidiary of a foreign bank.