RBI/DOR/2025-26/233
DOR.ACC.REC.No.432/21.02.067/2025-26

March 10, 2026

Reserve Bank of India (Setting Up of Wholly Owned Subsidiaries by Foreign Banks) Amendment Guidelines, 2026

Please refer to the Reserve Bank of India (Setting Up of Wholly Owned Subsidiaries by Foreign Banks) Guidelines, 2025 (hereinafter referred to as ‘the Guidelines’).

2. On a review, consequent to the issuance of the Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividends and Remittance of Profit) Directions, 2026, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.

3. The Amendment Guidelines modify paragraph 13 titled ‘Declaration of Dividends’ as under:

13. The WOS of a foreign bank, being a company incorporated in India, may declare dividend like domestic banks subject to criteria laid down in Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividends and Remittance of Profit) Directions, 2025 Reserve Bank of India (Commercial Banks – Prudential Norms on Declaration of Dividends and Remittance of Profit) Directions, 2026, which may be repatriated as per the provisions of FEMA 1999.

4. The above amendments shall come into effect from Financial Year (FY) 2026-27.

(Sunil T S Nair)
Chief General Manager