RBI gives nod to Sumitomo Mitsui Banking for wholly-owned subsidiary

The Reserve Bank of India (RBI) has decided to grant in-principle approval to Sumitomo Mitsui Banking Corporation (SMBC), Japan, for setting up a wholly-owned subsidiary in India.

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The approval has been granted under the Reserve Bank of India (Setting up of Wholly Owned Subsidiaries by Foreign Banks) Guidelines, 2025.

At present, SMBC does its banking business in India through four branches located in New Delhi,

Mumbai, Chennai and Bengaluru.

As per the decision communicated by the RBI, the approval has been granted to the bank for setting up a wholly-owned subsidiary through conversion of its existing branches in India.

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The RBI stated that it would consider granting a licence for the commencement of banking business in wholly-owned subsidiary mode under Section 22(1) of the Banking Regulation Act, 1949, if it was satisfied that SMBC has complied with the requisite conditions laid down as part of the in-principle approval.