Consider the following statements about Offshore Banking Unit:

  1. It is located in the Special Economic Zone (SEZ) and deals with foreign currency
  2. It provides loan in the form of external commercial borrowing to exporters situated in the SEZ

  Which of the above statements is/are correct?

Answer: [C] Both 1 & 2

Both are correct statements
An offshore banking unit (OBU) is a shell branch located in an international financial centre. It provides loan in the form of external commercial borrowing to exporters situated in the SEZ.

This question is a part of GKToday's Integrated IAS General Studies Module