The correct option is "Neither 1 nor 2" because, according to the Reserve Bank of India's guidelines, there is indeed a minimum capital requirement for wholly owned banking subsidiaries, typically set at ₹500 crore. Additionally, at least 50% of the board must comprise Indian nationals, reflecting the RBI's emphasis on promoting domestic governance and representation in the banking sector to ensure alignment with local regulations and economic priorities. These stipulations are aimed at maintaining the stability and integrity of India's financial system while facilitating foreign investment.