ESCROW ACCOUNT

ESCROW ACCOUNT :
- Escrow account is an account where the moneys parked will be released only on fulfilment of some conditions of contract like export taking place or like power fed into the national power grid etc. (in the case of government getting power from independent power producers).
- The beneficiary of the account can get the money after fulfilling the prescribed conditions.
- It is an account placed in trust with a third party, by a borrower for a specific purpose and to be delivered to the borrower only up on the fulfilment of certain conditions.