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A wholly owned subsidiary of a foreign bank must hold, for three years:
A30 per cent
B40 per cent
C10 per cent
D20 per cent
Answer & Solution
Correct answer: C. 10 per cent
1. A new subsidiary is held to a stricter bar at first.
2. The requirement runs from the start of operations.
3. It must keep a capital adequacy ratio of 10 per cent.
_Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_
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