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The Reserve Bank of India has granted in-principle approval to Emirates NBD Bank PJSC to establish a Wholly Owned Subsidiary in India
| Photo Credit:
FRANCIS MASCARENHAS/Reuters
The Reserve Bank of India (RBI) has granted Emirates NBD Bank PJSC “in-principle” approval to establish a Wholly Owned Subsidiary (WOS) in India.
Emirates NBD Bank PJSC will become the third foreign bank to have a presence in India via the WOS route. The RBI approved the bank under the “Scheme for Setting up of WOS by foreign banks in India.”
Earlier, SBM Bank (India) Limited (a subsidiary of SBM Group) and DBS Bank India Limited (a Subsidiary of DBS Bank Ltd.) were issued licences on December 6, 2017, and October 4, 2018, respectively, to carry on banking business in India through Wholly Owned Subsidiary (WOS) mode.
The aformentioned banks commenced operations as WOS with effect from December 01, 2018 and March 01, 2019 respectively.
The central bank said Emirates NBD Bank PJSC is currently conducting banking business in India in branch mode through its branches in Chennai, Gurugram, and Mumbai.
The bank has received in-principle approval to set up a WOS by converting its existing branches in India.
The RBI observed that it would consider granting Emirates NBD Bank PJSC a licence for commencing banking business in WOS mode under Section 22 (1) of the Banking Regulation Act, 1949, once it is satisfied that the bank has complied with the requisite conditions laid down by RBI as part of “in-principle” approval.
Under RBI regulations, the WOS will be treated on par with the existing branches of foreign banks for branch expansion in India.
As per the RBI’s roadmap for the presence of foreign banks in India and to allow Indian banks sufficient time to prepare for global competition, the entry of foreign banks through Wholly Owned Subsidiaries (WOS) will initially be permitted only in the private sector. In banks identified by the RBI for restructuring, foreign banks may be allowed to acquire a controlling stake in a phased manner.
Published on May 19, 2025
This article first appeared on The Hindu Business Line
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