What changed
RBI has officially communicated that Abu Dhabi Commercial Bank PJSC no longer qualifies as a banking company under the Banking Regulation Act, 1949. This cessation was formalized through a prior notification dated February 23, 2023, and published in the Gazette of India between March 25-31, 2023.
What it means for you
For Indian banks, this means Abu Dhabi Commercial Bank PJSC is no longer subject to the regulatory framework applicable to banking companies under the BR Act. Lenders should update their records and ensure any transactions or exposures with this entity are reviewed for compliance with non-banking regulations.
What you must do
- Update internal systems to reflect that Abu Dhabi Commercial Bank PJSC is no longer a banking company under the BR Act.
- Review any existing exposures, contracts, or relationships with this entity for regulatory implications.
- Ensure compliance with any applicable non-banking regulations for transactions involving this entity.
Who it affects
All banks regulated by RBI, Lenders with exposures to Abu Dhabi Commercial Bank PJSC, Compliance and legal teams handling foreign entity classifications
What does 'ceased to be a banking company' mean for Abu Dhabi Commercial Bank PJSC?
It means the entity is no longer considered a banking company under the Banking Regulation Act, 1949, and thus not subject to the same regulatory requirements as banks in India.
When did this cessation take effect?
The cessation was effective from a notification dated February 23, 2023, which was published in the Gazette of India between March 25-31, 2023.
Do Indian banks need to take any immediate action?
Yes, banks should update their records and review any dealings with this entity to ensure compliance with non-banking regulations.