Emirates NBD Gets Green Light to Enter India: What Does This Mean for Your Money?

The Reserve Bank of India (RBI) on Monday has given an "in-principle" approval to Emirates NBD Bank PJSC to set up a wholly-owned subsidiary in India.

The bank has also been given the approval to combine all its existing Indian branches into a single, locally incorporated entity, subject to fulfilment of all conditions given by the central bank.

What Is The Aim Behind This Green Light?

Currently Emirates NBD has branches in Chennai, Gurugram, and Mumbai and the bank, with this new sanction will now consolidate all these branches under one Indian subsidiary to provide more extensive services.

Emirates NBD can establish branches and enjoy full ownership under RBI's "Scheme for Setting up of WOS by Foreign Banks in India" which was introduced to give foreign banks more freedom to grow in India - while also ensuring they follow India's banking regulations.

How Will This Work?

RBI's in-principle approval means that Emirates NBD cannot begin operations as a subsidiary yet and the bank must fulfil various conditions laid down by RBI.

What Does This Mean For You?

While this development indicates a growing confidence of international lenders in the Indian markets, it also means that Indian bank-account holders can expect more branches, retail banking services at competitive rates and focus on certain sectors.

This may also eventually allow other banks to enter the country, with wholly-owned subsidiaries, introducing international standards, new technology and specialised services for customers.

Further it may also help non-resident Indians by providing more choices for global banking and money remittances.

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