Which of the following factors can be counted for smaller number of foreign banks in India? a) Single…

All four factors (a, b, c and d) constrain the entry and expansion of foreign banks in India. Under the Reserve Bank of India's regulatory framework for foreign banks, they must adhere to a single mode of presence (operating either through branches or through a wholly-owned subsidiary), meet local incorporation and capital requirements under the wholly-owned subsidiary model, and fulfil mandatory priority sector lending targets; combined with initial capital and compliance costs, these requirements lead to a longer gestation period before achieving profitability.