The Reserve Bank of India (RBI) has decided to grant in-principle approval to the UAE's Emirates NBD Bank PJSC for setting up a wholly-owned subsidiary in India. Emirates NBD Bank PJSC is Dubai's government-owned lender.
The Indian central bank's nod is under its scheme for setting up wholly-owned subsidiaries by foreign banks in the country. The development comes at a time when Emirates NBD Bank PJSC is carrying out banking operations in India in branch mode.
Currently, the UAE-based lender has its branches located in Chennai, Gurugram and Mumbai in India. The in-principle clearance will enable to Dubai-based lender to to establish the subsidiary by converting its existing branches in India.
The RBI will now consider granting a licence to the UAE-based lender to enable it to commence banking business in wholly-owned subsidiary mode under Section 22 (1) of the Banking Regulation Act, 1949.
The issuance of this licence will be subject to the bank complying with the RBI's requisite conditions, according to the central bank.
