Mumbai, Oct. 18 -- The deal between private sector lender RBL Bank and Dubai's Emirates NBD Bank PJSC highlights a growing ease at India's central bank to allow foreign banks to invest in local financial institutions.

On Saturday, RBL Bank said that Emirates NBD will acquire up to 50% of it for Rs.26,853 crore. It will require approval from the Reserve Bank of India (RBI), among others.

Mint reported on 13 October that the two were in talks with Emirates NBD Bank planning to buy a controlling stake in RBL Bank, citing two people with direct knowledge of the discussions.

The deal comes just weeks after Sumitomo Mitsui Banking Corp bought 24.2% in Yes Bank in two transactions. Mint had reported in August that the Yes Bank-SMBC deal may p...