Netherlands-based financial services provider Rabobank has received the go-ahead from the Reserve Bank of India to set up a fully-fledged banking business in the country.

The first branch, located in Mumbai, will have the right to accept deposits and use its balance sheet to provide working capital financing to clients. The bank will also be allowed to deal in foreign exchange, domestic fixed income products, and trade finance.

"India is a key country for Rabobank. We are now able to offer a broader range of products and services to our Dutch, Indian, and international clients," said Sipko Schat, a member of the executive board of Rabobank Group.

India is touted to be one of Asia's fastest growing economies, alongside China, over the next few years. The country presently enjoys annual GDP growth of 7 to 9 per cent. Prior to the new licence, Rabobank's presence in India had been limited to its subsidiary, Rabo India Finance, which functions as a non-bank entity, and the Rabobank Foundation, which provides micro loans.