Counter Trade proposals involving adjustment of value of goods imported into India against value of goods exported from India in terms of an arrangement voluntarily entered into between the Indian party and the overseas party through an Escrow Account opened in India in U.S. dollar is considered by Reserve Bank. All imports and exports under the arrangement should be at
international prices in conformity with the EXIM Policy and Foreign Exchange Management and the Rules and Regulations issued thereunder. No interest will be payable on balances standing to the credit of the Escrow Account but the funds temporarily rendered surplus may be held in a short-term deposit upto a total period of three months in a year (i.e. in a block of 12 months) and the hanks may pay interest at the applicable rate. No fund based / or non-fund based facilities would be permitted against the balances in the Escrow Account.
Application for permission for opening an Escrow Account may be made by the overseas exporter / organisation through the authorised dealer with whom the account is proposed to be opened, to the office of Reserve Bank of India under whose jurisdiction the authorised dealer is functioning.