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<h1>Offshore Banking Units Can Only Transact Directly with Authorized Dealers in India via Principal-to-Principal Exchanges</h1> An Offshore Banking Unit is permitted to conduct foreign exchange transactions exclusively with authorized dealers in India, strictly on a principal-to-principal basis. This regulation defines the specific transactional scope and interaction parameters for offshore banking entities within the Indian financial regulatory framework, limiting their operational engagement to direct, principal-level exchanges with authorized financial intermediaries.