RBI grants in-principle nod to Emirates NBD to set up wholly owned subsidiary

The Reserve Bank of India (RBI) on Monday, May 19, said it has granted an in-principle approval to Emirates NBD Bank PJSC, UAE, to establish a wholly-owned subsidiary (WOS) in India. The move is in line with the RBI’s Scheme for Setting up of WOS by Foreign Banks in India.Emirates NBD currently operates in India through a branch model, with offices in Chennai, Gurugram, and Mumbai. The in-principle approval allows the bank to convert its existing branches into a WOS structure.The central bank stated that it will grant a final banking licence under Section 22(1) of the Banking Regulation Act, 1949, once Emirates NBD meets all the conditions stipulated in the in-principle approval.Also Read: Why the RBI dividend this year may be eye-poppingThe WOS model allows foreign banks greater operational flexibility and is part of the RBI’s broader efforts to encourage foreign bank participation in India’s financial sector while enhancing regulatory oversight.Emirates NBD Bank PJSC is headquartered in Dubai, United Arab Emirates. Established in 1963 as the National Bank of Dubai, it merged with Emirates Bank International in 2007 to form Emirates NBD. The bank is majority-owned by the Investment Corporation of Dubai and is chaired by Sheikh Ahmed bin Saeed Al Maktoum.It is UAE’s second-largest lender and has been operating in India since November 2017. The bank opened a branch in Mumbai, which was its fifth international branch outside of the UAE.Also Read: RBI removes key investment caps in corporate debt for FPIs with immediate effect(Edited by : Shoma Bhattacharjee)

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