(i) 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 will be considered by the Reserve Bank. All imports and exports under the arrangement should be at international prices and all transactions routed through the account should be in conformity with the Indian trade and Exchange Control regulations. 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 up to a total period of three months in a year (i.e. in a block of 12 months) and the banks may pay interest at the applicable rate. No overdraft will be permitted in the Escrow Account nor any loans will be permitted to be granted against funds in the account.

(ii) 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 under whose jurisdiction the authorised dealer is functioning.

(iii) Reserve Bank will also consider counter trade proposals from Indian exporters with Romania involving adjustment of value of goods exported from India to Romania against value of goods imported from Romania into India in terms of an arrangement voluntarily entered into with a party in Romania through an Escrow account in U.S. Dollar maintained with a bank in Romania for the purpose. The Indian exporter should utilise the Escrow account funds within three months from the date of credit to the Escrow account for import of goods from Romania into India. Application for necessary permission to open a U.S. Dollar Escrow Account may be submitted by an Indian exporter through an authorised dealer to the concerned office of Reserve Bank under whose jurisdiction the applicant is situated. The concerned authorised dealer will be required to monitor the transactions in the U.S. Dollar Escrow Account with banks in Romania through a mirror account.