In a move for foreign banking in India, the Reserve Bank of India (RBI) has granted “in-principle” approval to Emirates NBD Bank PJSC to establish a wholly owned subsidiary in the country, as per Reuters.
Emirates NBD — Dubai’s largest bank by assets — currently operates in India through branches in Mumbai, Chennai, and Gurugram. With this new approval, the bank will be able to consolidate its operations by converting these branches into a wholly owned unit.
This move marks a key milestone, as establishing a wholly owned subsidiary enables foreign banks to operate with the same privileges as local banks, while also insulating their India operations from overseas risks — a process known as “ring-fencing.”
The development follows earlier reports by Reuters stating that Emirates NBD was among a group of foreign lenders cleared by the RBI to bid for a majority stake in IDBI Bank, a public sector lender undergoing divestment.
The RBI’s approval is expected to strengthen Emirates NBD’s presence in India’s growing financial services landscape, offering it more operational flexibility and a stronger local footprint.
