The Reserve Bank of India (RBI) has given the green light for Dubai’s Emirates National Bank of Dubai (NBD) to acquire a stake of up to 74% in RBL Bank, which could allow RBL to be classified as a foreign bank. This approval was issued on April 1, with an expiration date set for a year later, as confirmed in a regulatory announcement from RBL Bank on April 2, 2026.
This decision follows Emirates NBD’s interest in obtaining a majority stake, which they expressed back in October 2025, offering Rs 26,853 crore for a 60% share in RBL Bank.
As per the RBI approval, Emirates NBD must hold at least 51% of RBL Bank’s paid-up capital, which will classify it as a foreign bank subsidiary with Emirates NBD acting as the parent institution.
The letter also noted that while foreign banks operating as wholly owned subsidiaries typically have different governance standards, the requirement for half the board to be independent directors does not apply in this case.
RBL Bank needs to alter its articles of association accordingly and seek further approval from the RBI, which they are expected to do.
Moreover, the RBI has indicated that it does not oppose Emirates NBD becoming a promoter of RBL Bank, as long as they adhere to the respective Securities and Exchange Board of India (SEBI) regulations.
According to the Banking Regulation Act of 1949, Emirates NBD’s voting rights will be capped at 26% of RBL Bank’s total voting power.
The bank will also enjoy exemptions from certain requirements until its Indian branch merges with RBL or within a year, whichever comes first.
This approval is contingent on obtaining necessary government approvals for investments exceeding 49% under the approval route, as well as compliance with various regulations, including those pertaining to the Foreign Exchange Management Act (FEMA) and the Banking Regulation Act.
Previously, in January, the Competition Commission of India (CCI) had already cleared the way for Emirates NBD’s majority stake acquisition in RBL Bank.
issued – April 3, 2026 11:57 AM IST
