The Reserve Bank of India (RBI) on March 10, 2026, issued the Reserve Bank of India (Setting Up of Wholly Owned Subsidiaries by Foreign Banks) Amendment Guidelines, 2026, to further amend the Reserve Bank of India (Setting Up of Wholly Owned Subsidiaries by Foreign Banks) Guidelines, 2025.
The following has been stated:
• The amendment revises paragraph 13 relating to the declaration of dividends by wholly owned subsidiaries (WOS) of foreign banks in India. It clarifies that such subsidiaries, being companies incorporated in India, may declare dividends in the same manner as domestic banks, subject to the prudential norms prescribed by RBI under the 2026 Directions.
• The declared dividends may be repatriated in accordance with the provisions of the Foreign Exchange Management Act, 1999.
• The amended provisions will come into effect from Financial Year 2026–27.
[Notification no. - RBI/DOR/2025-26/233 DOR.ACC.REC.No.432/21.02.067/2025-26]
