ESCROW Account

Overview

Escrow is a special bank account maintained by the contracting parties with a bank, whereby the funds are held in banking accounts and the operation of the same are governed by the agreement executed between the parties involved in the transaction.

With Escrow, both the parties are assured that a transaction can be carried out in a way that funds are set aside for the transaction and funds are released only after completion of terms of the contract. The service assumes tremendous importance for high value transactions where there are higher risks for both parties,

Salient Features

  • Provides greater security & comfort
  • Regulatory requirements
  • Custody of cash / documents
  • Transaction should be processed in the account as per the instructions provided in the agreement.
  • Only INR Current account will be offered

Eligibility

  • Escrow accounts are typically used for project finance, securitization, mergers and acquisitions, buy-back of shares, litigations, purchase and sale of property, source code (used in software) custody, IPO's, etc.

Documentation

  • All extant KYC guidelines applicable to opening Current Accounts shall be adhered to.
  • In addition, the Escrow Agreement needs to be provided.
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