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An 'Off-shore Banking Unit' (OBU) under FEMA is:
Answer & Solution
Correct answer: B.
1. OBU is defined as a branch of a bank located in a Special Economic Zone, undertaking permitted offshore banking activities.
2. Empowered under the SEZ Act and FEMA jointly.
3. Hence (A).
_Source: ICAI BoS CA Inter Paper 2 — FEMA 1999_