Updated as of 1st Apr, 2004 

The sources for raising foreign currency funds by an OBU would be only external and that funds can also be raised from those resident sources to the extent such residents are permitted under the existing exchange control regulations to invest/maintain foreign currency accounts abroad.

Banks had been seeking clarifications, as to whether under the "Liberalised Remittance Scheme US $ 25000 for Resident Individuals", the OBUs set up in India can be allowed to open and maintain foreign currency accounts of resident individuals. The RBI has decided that the OBUs in SEZs will not be allowed to open foreign currency accounts of residents. The banks are advised to ensure that the OBUs do not accept/ solicit deposits or investments from residents or open their accounts.