On January 14, 2026, the Reserve Bank of India (RBI) granted ‘in-principle’ approval to Sumitomo Mitsui Banking Corporation (SMBC), Japan, to establish a Wholly Owned Subsidiary (WOS) in India, according to the Reserve Bank of India (Setting Up of Wholly Owned Subsidiaries by Foreign Banks) Guidelines, 2025. SMBC currently operates four branches in New Delhi, Mumbai, Chennai, and Bengaluru. The ‘in-principle’ approval allows the bank to establish a WOS by converting its existing branches. The RBI will consider granting a license for commencement of banking business in WOS mode under Section 22 (1) of the Banking Regulation Act, 1949, upon satisfaction that the bank has complied with the conditions laid down by RBI as part of the ‘in-principle’ approval.
Press Release: 2025-2026/1924. Contact: Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001 Phone: 022 - 2266 0502, email : helpdoc@rbi.org.in. Brij Raj, Chief General Manager. Website: www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India (RBI): The central bank, granting 'in-principle' approval and potentially granting a license.
Sumitomo Mitsui Banking Corporation (SMBC), Japan: The bank seeking to establish a Wholly Owned Subsidiary (WOS) in India.
Reserve Bank of India (Setting Up of Wholly Owned Subsidiaries by Foreign Banks) Guidelines, 2025: The guidelines under which the RBI is granting approval for the WOS.
Section 22 (1) of the Banking Regulation Act, 1949: The section under which the RBI would consider granting a license for commencement of banking business in WOS mode.
India: The country where the Wholly Owned Subsidiary (WOS) is to be established.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
January 14, 2026
RBI grants ‘In-principle’ Approval to Sumitomo Mitsui Banking Corporation
(SMBC), Japan for setting up a Wholly Owned Subsidiary (WOS) in India
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 (WOS) in India, under the Reserve Bank of India (Setting Up of Wholly
Owned Subsidiaries by Foreign Banks) Guidelines, 2025.
SMBC is currently carrying on banking business in India in branch mode through its
four branches located in New Delhi, Mumbai, Chennai and Bengaluru. The ‘in-principle’
approval has been granted to the bank for setting up a WOS through conversion of its
existing branches in India.
The RBI would consider granting a licence for commencement of banking business
in WOS mode under Section 22 (1) of the Banking Regulation Act, 1949 to SMBC on
being satisfied that the bank has complied with the requisite conditions laid down by
RBI as part of ‘in-principle’ approval.
(Brij Raj)
Press Release: 2025-2026/1924 Chief General Manager