The Reserve Bank of India (RBI) has issued “in-principle” approval to Emirates NBD Bank PJSC, allowing the establishment of a wholly owned subsidiary (WOS) in India.
This decision is part of the “Scheme for Setting up of WOS by foreign banks in India.”
Go deeper with GlobalData
Currently, Emirates NBD operates in India through branches located in Chennai, Gurugram, and Mumbai.
The approval permits the bank to convert its existing branches into a WOS.
Following this approval, the RBI will evaluate the bank’s application for a banking licence under Section 22 (1) of the Banking Regulation Act, 1949.
The issuance of the licence will depend on the bank meeting the conditions set forth by the RBI as part of the “in-principle” approval process.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataEmirates NBD and others are interested in acquiring a majority stake in IDBI Bank, as the government initiates its disinvestment process, reported Business Standard.
The government is offering a 30.48% stake, while the Life Insurance Corporation will sell 30.24%.
The RBI is assessing the suitability of potential investors, as noted by the finance ministry in February.
Last month, the RBI released final guidelines for the Basel III Liquidity Coverage Ratio (LCR) framework, incorporating some relaxations from the draft proposal presented last July.
A key change involves the classification of retail deposits facilitated by internet and mobile banking (IMB).
In a separate development in India’s financial sector, Findi subsidiary, Transaction Solutions International (TSI), received approval from RBI to acquire Tata Communications Payment Solutions (TCPSL), which operates the white-label ATM network Indicash.
