RBI Greenlights Emirates NBD Bank's Subsidiary in India

The Reserve Bank of India (RBI) has granted 'in-principle' approval to Emirates NBD Bank for establishing a Wholly Owned Subsidiary (WOS) in India. The approval falls under the 'Scheme for Setting up of WOS by foreign banks in India', signaling a crucial development for UAE-based banks.

Currently, Emirates NBD Bank operates in India through branches located in Chennai, Gurugram, and Mumbai. With the new approval, these branches may transition into a wholly owned subsidiary, reflecting a strategic shift in how the bank manages its Indian operations.

The RBI plans to issue a final license under Section 22 (1) of the Banking Regulation Act, 1949, upon ensuring compliance with stipulated conditions. This initiative underscores the importance of local incorporation, providing a separate legal identity and allowing better oversight by Indian regulators.

(With inputs from agencies.)