What do you understand by "Offshore Banking Unit" under Special Economic Zone Act, 2005 ?

According to Section 2(u) of the Special Economic Zones Act, 2005, "Offshore Banking Unit" means a branch of a bank located in a Special Economic Zone and which has obtained the permission under Section 23 (1)(a) of the Banking Regulation Act, 1949. An application for setting up and operation of an Offshore Banking Unit in a Special Economic Zone may be made to the Reserve Bank, in the prescribed form and manner. The Reserve Bank may, by notification, specify the terms and conditions subject to which an Offshore Banking Unit may be set up and operated in the Special Economic Zone.