Mumbai, May 19 -- The Reserve Bank of India (RBI) on Monday said it has decided to grant in-principle approval to Dubai-based Emirates NBD Bank PJSC to establish a wholly-owned arm in India.

India allows foreign banks to operate either as a branch or wholly-owned subsidiary of the parent. All except two - DBS Bank India and SBM Bank India - work as branches. A local unit gives more flexibility to the bank than when operating as a branch.

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The RBI, in a statement, said that Emirates NBD Bank PJSC currently operates under the branch mode through its branches located in Chennai, Gurugram and Mumbai. In India, it reported a loan book of Rs.4,641...