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With reference to the rules imposed by the RBI for foreign banks in India, consider the following statements: 1. There is no minimum capital requirement for wholly owned banking subsidiaries in India. 2. For such subsidiaries, at least 50% of the board members must be Indian nationals. Which of the statements given above is/are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

Explanation: