OBS_VALUE: A foreign entity can only carry out banking activities in India through a branch, a wholly-owned-subsidiary or a subsidiary with an aggregate foreign investment of up to 74%. Furthermore, in order to gain a banking licence, a private company needs to be 'owned and operated by a resident of India'. It is only after five years of operation that a bank can be fully owned by a foreign entity. This indicates the necessity of some sort of commercial presence in India to operate.