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DBCA failing with “Diskgroup XXX is not compatible for database usage”

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Today a friend of mine pinged me an error while he was trying to create database using DBCA from 11.2.0.3 RDBMS home on an exadata box.Screenshot of the error is below The error was easy to understand as compatible parameter set in the database initialization parameter was lower than the compatible.rdbms set for the diskgroup

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