Important Terminology In International Banking


 
 
Concept Explanation
 

Important Terminology In International Banking

Offshore Banking Units (OBUs)

  • As per RBI policy of Nov 12, 2002, within SEZs, the OBUs would be virtually foreign branches of Indian banks located in India The major aspects of the guidelines are:
  • Eligibility Criteria: Banks operating in India viz.. public Sector, private sector and foreign banks authorized to deal in foreign exchange arc eligible to set up OBUs,
  • Capital: Parent bank to provide a minimum of USD 10 million to its OBU.
  • Currency Accounts

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