RBI Grants In-Principle Approval to Emirates NBD to Set Up Subsidiary in India

On Monday, May 19, the Reserve Bank of India (RBI) announced that it has granted in-principle approval to Emirates NBD Bank PJSC, based in the United Arab Emirates, to establish a wholly owned subsidiary (WOS) in India. This decision aligns with the RBI’s policy framework for foreign banks to operate in India through a WOS model.

Operations of Emirates NBD

Currently, Emirates NBD operates in India under a branch-based model, with offices in Mumbai, Chennai, and Gurugram. The newly granted approval paves the way for the bank to transition its Indian operations into a WOS structure, which offers enhanced operational flexibility and a level playing field with domestic banks.

According to the RBI, a full banking licence under Section 22(1) of the Banking Regulation Act, 1949, will be issued once Emirates NBD fulfils all regulatory requirements outlined in the in-principle approval.

The move is part of the central bank’s broader strategy to deepen foreign bank participation in India's financial ecosystem while ensuring robust regulatory oversight through the WOS framework.

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About Emirates NBD

Headquartered in Dubai, Emirates NBD Bank PJSC was formed in 2007 following the merger of Emirates Bank International and the National Bank of Dubai, originally established in 1963. The bank is majority-owned by the Investment Corporation of Dubai and is chaired by Sheikh Ahmed bin Saeed Al Maktoum.

Emirates NBD is the second-largest banking group in the UAE and has been present in the Indian market since November 2017, when it launched its Mumbai branch—its fifth international branch outside the UAE.

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