Bank of India Escrow Account

What are benefites of Escrow Account? My father wants to open Escrow Account in Union Bank of India, so will you provide General Rules to open Escrow Account in Union Bank of India?

[Rajkumar Agarwal]

As you are looking information about Escrow Account in Union Bank of India, so here I am providing following details.

Union Bank of India Escrow Account

Opening of Escrow Account requires prior permission of RBI.

Application for permission for opening Escrow accounts by overseas importing organisation
under counter-trade arrangements should be made to the concerned Regional Office of the Exchange Control Dept. of RBI.

Documents required to open Escrow Account
Request letter from the foreign party for opening an account with a bank in India

Copy of Memorandum of Understanding (MOU) if any, entered into between the Indian exporter and the counter-party abroad.

List of items for export and import.

‘No Objection’ letter from the Central bank of the country of the overseas counter-part.

General Guidelines and Procedure
The account will be maintained in a foreign currency as approved by RBI [currently in US Dollars].

The account will be without cheque facility.

Current account Balances in Escrow accounts are not eligible for payment of any interest.

Operations in the account should be conducted in accordance with the specific instructions of Reserve Bank.

Items exported under counter trade arrangements should not be from the ‘Negative/restricted list’ of commodities.

Exports from EOU/EPZ will not be eligible for the purpose of counter trade credit.

Exports and imports should be at international prices in accordance with the current Foreign Trade policy.

No overdraft facility would be allowed in the account.

Banks/branches (in India) maintaining Escrow accounts can also issue LC favouring Indian exporters covering exports to Russia/any other country.




Here I am attaching a file that has complete details related to Union Bank of India Escrow Account.