The Reserve Bank of India (RBI) has approved a proposal by Emirates NBD to acquire an aggregate of up to 74% stake in private lender RBL Bank.

As part of the approval, Emirates NBD will need to maintain at least 51% stake in RBL Bank, which will be classified as a foreign bank operating in India through a wholly owned subsidiary structure.

The RBI has also permitted Emirates NBD to be classified as the promoter of RBL Bank, subject to applicable SEBI regulations.

The voting rights of Emirates NBD, however, will be capped at 26%, in line with the Banking Regulation Act, 1949.

The RBI has given to Emirates NBD a period of one year from 1 April 2026 to complete the acquisition. During this period, Emirates NBD Bank has been given temporary exemption from the requirement of ‘single mode of presence’ until its Indian branches are amalgamated with RBL Bank or within one year, whichever is earlier.

With this, Emirates NBD has received approvals from the Central Bank of the UAE and the Competition Commission of India (CCI) for the stake acquisition in RBL Bank. A few other approvals, including that of market regulator SEBI, is remaining.

Last year in October, Emirates NBD Bank and RBL Bank's boards had cleared entering into definitive agreements for a stake purchase deal through a primary infusion of approximately $3 billion.