ORA-23501: refresh template cannot be instantiated for database with compatibilty equal to or less than 8.0
Cause : Instantiation of a refresh template is not supported for database compatibility 8.0 or less.
Action - How to fix it : DBA Scripts :: www.high-oracle.com/scripts
Be sure the database compatibility is 8.1 or above.
Well, the reason for above error is that i have taken the above script from a 11g database and running it on 10g database. 11g has bring some changes in password management. Below code is executed on 11g and user created successfully, which is expected result.