The Reserve Bank of India (RBI) on November 28, 2025, issued a notification regarding the Reserve Bank of India (Setting up of Wholly Owned Subsidiaries by Foreign Banks) Guidelines, 2025.
The following has been stated: -
•RBI has issued the 2025 Guidelines for setting up Wholly Owned Subsidiaries (WOS) by foreign banks in India, aimed at improving financial stability and ensuring better regulatory control.
•Foreign banks may operate either through the branch mode or WOS, but banks meeting specific risk or supervisory conditions must operate only through WOS.
•The guidelines lay down eligibility norms, minimum capital of ₹500 crore, governance rules, and stricter supervision, including KYC/AML compliance.
•WOSs will follow domestic bank regulations on branch expansion, priority sector lending, capital adequacy, and dividend declaration.
•They must maintain strong governance, submit a viable business plan, and receive parental support, ensuring safe operations within India.
The detailed notification is given in the document below.
[Notification No.: RBI/DOR/2025-26/144]
