RBI Issues Revised Guidelines For Wholly Owned Subsidiaries (WOS) Of Foreign Banks – 2025

The Reserve Bank of India (RBI), through Circular No. RBI/DOR/2025-26/144 dated November 28, 2025, has issued a significantly updated framework governing the establishment and operation of Wholly Owned Subsidiaries (WOS) by foreign banks in India. The revised guidelines mark an important regulatory shift aimed at strengthening financial stability, improving supervisory control, and ensuring enhanced protection for Indian depositors in an increasingly interconnected global banking environment.

The updated norms draw heavily from global experience following the 2008 financial crisis, which exposed the challenges regulators face when dealing with large multinational banks operating across jurisdictions. Complex cross-border structures, inadequate disclosure standards in certain countries, and the absence of effective resolution mechanisms had contributed to systemic vulnerabilities worldwide. In this context, RBI highlights that local incorporation of foreign banks