One of the legislations related to Banking in India reads ldquo deemed foreign branch rdquo of the p...........

Economic Affairs Types of Banks and Banking

One of the legislations related to Banking in India reads: “deemed foreign branch” of the parent bank situated within India , and it undertakes international banking business involving foreign currency denominated assets and liabilities”

The above definition applies to which among the following?

Wholly Owned subsidiary of a Foreign Bank in India

An overseas branch of a Foreign bank in India

An Indian Bank branch located in a SEZ

A foreign Bank Branch located in SEZ

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Explanation:

A foreign Bank Branch located in SEZ.

Indian bank located in a special economic zone (SEZ), with a special set of rules aimed at facilitating exports from the region.
As laws define it, it’s a “deemed foreign branch” of the parent bank situated within India , and it undertakes international banking business involving foreign currency denominated assets and liabilities.
The concept comes from the practice prevalent in several global financial centers.