RBI allows SMBC Banking for Local Unit: The Reserve Bank of India (RBI) has given ‘in-principle’ approval to Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to set up a Wholly Owned Subsidiary in India. The central bank gave this information in a statement issued on Wednesday.

Approval of Bank of Japan subsidiary company

Currently SMBC is operating banking business in India under branch model through its four branches – New Delhi, Mumbai, Chennai and Bengaluru. RBI said that the bank has been given in-principle permission to set up a wholly owned subsidiary by converting its existing branches.

However, RBI has also clarified that SMBC will be given the final license to commence banking business as a subsidiary in India only after it fully fulfills all the regulatory conditions and requirements stipulated under the in-principle approval.

Bought stake in Yes Bank

It is noteworthy that in the year 2025, SMBC had purchased 24.22 percent stake in the private sector Yes Bank, after which it became the largest shareholder of Yes Bank. At the same time, State Bank of India (SBI) still has a significant stake of more than 10 percent in Yes Bank.

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