RBI nod for Emirates NBD Bank PJSC to set up wholly owned subsidiary in India

The Reserve Bank of India (RBI) has granted its “in-principle” approval to Emirates NBD Bank PJSC, a leading banking group based in the UAE, to establish a wholly owned subsidiary (WOS) in India. The move is part of the RBI’s Scheme for Setting up of WOS by Foreign Banks in India.

Currently, Emirates NBD operates in India through branches in Mumbai, Chennai, and Gurugram. With the RBI approval, the bank can now convert these existing branches into wholly owned subsidiaries, subject to regulatory compliance.

The central bank stated that a final licence to commence banking operations in WOS mode will be issued under Section 22(1) of the Banking Regulation Act, 1949, after the bank meets all prescribed conditions.

What does it take to qualify?

To be eligible for setting up a wholly owned subsidiary, a foreign bank must:

*Obtain approval from its home country regulator.

*Be under prudential supervision and consolidated oversight in its home jurisdiction.

*Satisfy the RBI on parameters such as financial soundness, global rankings, international presence, and strength of risk management and internal controls.

*Ensure reciprocity in banking access and align with broader political and economic ties between the two nations.

*The RBI also considers ratings from globally recognised agencies such as Moody’s, S&P, and Fitch while assessing such applications.

Why a WOS?

The RBI mandates a WOS structure for foreign banks wishing to enter India after August 2010 under certain conditions, particularly if the home jurisdiction gives preferential treatment to local depositors, lacks sufficient regulatory transparency, or if the bank is considered systemically important due to its size and operations.

By converting its branch operations into a WOS, Emirates NBD will be able to offer a wider suite of banking services, expand its footprint, and participate more fully in India’s financial system—all while complying with the RBI’s local regulations and supervisory frameworks.

This development comes as India continues to attract global banking giants, reinforcing its position as a vital player in the international financial landscape.