RBI Grants In-Principle Approval to Japan's SMBC for Indian Wholly Owned Subsidiary

The Reserve Bank of India (RBI) has granted in-principle approval to Japan's Sumitomo Mitsui Banking Corporation (SMBC) to establish a wholly owned subsidiary in India by converting its existing four branches in New Delhi, Mumbai, Chennai, and Bengaluru. This move will provide SMBC greater operational flexibility and treat it on par with domestic banks, including branch expansion freedom. SMBC, which acquired a 24% stake in Yes Bank in 2024, awaits final licensing after meeting RBI conditions under the 2025 guidelines for foreign bank subsidiaries.