<h1>RBI Unveils New Framework for Foreign Banks to Establish Wholly Owned Subsidiaries in India, Ensuring Reciprocity and Stability.</h1> The Reserve Bank of India (RBI) has introduced a framework for foreign banks to establish Wholly Owned Subsidiaries (WOS) in India, aligning with the 2013-14 Monetary Policy. The framework emphasizes reciprocity and a single mode of presence, granting WOS near national treatment, allowing branch expansion similar to Indian banks, with some restrictions in sensitive areas. Existing foreign bank branches are encouraged to convert to WOS for financial stability and operational advantages. Safeguards are in place to prevent foreign dominance in the banking sector, including capital restrictions and corporate governance requirements. The framework also outlines entry conditions, capital requirements, and governance standards for WOS.