DBOD IBS BC 92 /23.13.004/2002-03

April 5, 2003

All scheduled commercial banks
(excluding RRBs and LABs)

Dear Sir

Offshore Banking Units (OBUs) in
Special Economic Zones (SEZs)

Please refer to our circular DBOD IBS BC 42/23.13.004/2002-03 dated November 11, 2002 forwarding therewith a scheme for setting up of OBUs in SEZs and circular DBOD IBS BC 80 /23.13.004/2002-03 dated March 19, 2003 clarifying various issues raised by banks.

2. On representations received, we further clarify that an OBU may lend to units and SEZ developers in other SEZs.

Yours faithfully

(B. Mahapatra)
Chief General Manager