The Reserve Bank has permitted wholly-owned subsidiaries of foreign banks to acquire domestic private sector banks as well as set up branches anywhere in the country. In certain sensitive locations, RBI's permission will be required to open branches. It has also allowed foreign bank subsidiaries to list on the local stock exchanges. However, they will not be allowed to hold more than 74 per cent in the private banks they may acquire.

A RBI press release stated that foreign banks that commenced banking business in India before August 2010 will be given an opportunity to convert into a wholly owned subsidiary.