Home › CA Inter › corporatelaws › Off-shore Banking Unit › An 'Off-shore Banking Unit' (OBU) under FEMA is:
An 'Off-shore Banking Unit' (OBU) under FEMA is:
AA branch of a foreign bank in India
BA branch of an Indian bank located in a Special Economic Zone
CAn NRI's bank account
DAn RBI representative office abroad
Answer & Solution
Correct answer: B. A branch of an Indian bank located in a Special Economic Zone
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_