Opening of Escrow a/c

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Chinnappan D M (Querist)
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25 January 2011 For importing of a ship/trawler, I have been asked by my supplier to open an escrow account where I need to deposit advance payment in our joint names. Whether RBI permission is required for opening of escrow a/c? whether escrow account is needed at all. can we not take a counter guarantee from the suppliers bankers and send the advance remittance?. Can anyone clarify under what rule of FEMA/RBI guidelines it is stated.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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25 January 2011 YES ,
Reserve Bank may consider applications from overseas buyers for opening foreign currency accounts with authorised dealers in India provided they are funded by remittances in any permitted currency from abroad for making payments to Indian exporters. Authorised dealers should refer such requests to Reserve Bank with full particulars viz., name and address of the overseas party, sources of credits and the purpose of opening the account, etc.

Foreign Currency Accounts by Airline/Shipping Companies

14F.3
Authorised dealers may open foreign currency accounts in the names of airline/shipping companies

or their agents in India for crediting freight collections from local exporters/importers (cf. paragraph 8C.4). Withdrawal of funds from such accounts may be permitted for meeting local expenses of the concerned airline/shipping company, payment of taxes, etc. or for making remittances abroad towards surplus passage/ freight collections, operating expenses, etc. to the extent permitted by Reserve Bank (cf. Part B of Chapter 8).
LINK IS:-http://www.rbi.org.in/scripts/ECMUserChapterDetail.aspx?Id=421&CatID=13

FOR MORE INFO LINK IS :-

http://rbidocs.rbi.org.in/rdocs/notification/PDFs/77484.pdf

Chinnappan D M

Chinnappan D M (Querist)
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25 January 2011 It is not for exports from India and what we need is imports into India. Can a corporate open a Escrow account with the overseas supplier for imports into India. If under what provisions and does it require RBI approval or whether it can be opened by ADs with out reference to RBI

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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25 January 2011 EEFC ACCOUNT

FOR MORE INFO:-

http://business.gov.in/doing_business/sources_overseas.php

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