<h1>Wholly owned subsidiary framework enables near national treatment for foreign banks while imposing capital, governance and conversion safeguards.</h1> The Reserve Bank of India establishes a framework for Wholly Owned Subsidiaries by foreign banks, granting near-national treatment to locally incorporated WOSs while mandating WOS entry for banks with complex structures or deficient home-jurisdiction disclosure. The framework conditions optional branch or WOS presence, requires conversion when systemic or when specified criteria apply, sets minimum capital/net worth thresholds, requires parental letters of comfort, limits parental guarantee usage to arm's-length custodial and international operations, prescribes board composition and priority sector lending targets, and contemplates dilution and listing in line with FDI policy.