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    Question

    Which statement about IFSC Banking units is

    INCORRECT?
    A They are required to maintain a Statutory Liquidity Ratio (SLR). Correct Answer Incorrect Answer
    B They are required to maintain a Cash Reserve Ratio (CRR) on all deposits. Correct Answer Incorrect Answer
    C They can engage in foreign currency transactions. Correct Answer Incorrect Answer
    D They are exempt from domestic regulations. Correct Answer Incorrect Answer
    E They offer banking services to non-residents primarily. Correct Answer Incorrect Answer

    Solution

    The incorrect statement regarding IFSC Banking units is that they are required to maintain a Cash Reserve Ratio (CRR) on all deposits. IFSC Banking Units operate under different regulations that exempt them from certain domestic banking requirements, including the CRR.

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