Branch of a bank located in special economic and which has obtain the permission under clause of subsection 1 of section 23 of banking regulation act 1949 is called which unit
Answers
Answer:
is central government
Answer:
The ‘Branch of a bank’ located in the special ‘economic zone’ and which has obtained the permission under the clause of ‘subsection 1 of section 23’ of banking regulation act 1949 is called the Offshore Banking Unit (OBU).
Explanation:
These banks are located in a special ‘economic zone’. It extends to the whole of India. They are a banking unit which could be located in another international financial center. They accept deposits from foreign banks and also give loans in the Euro currency markets.
The local ‘financial authorities’ and ‘governments’ do not restrict the OBUs' activities. But they are not allowed to accept domestic deposits or make loans to residents of the country, in which they are staying.