Escrow accounts for FDI allowed without prior RBI approval, subject to prescribed operational conditions and compliance. AD Category - I banks and SEBI authorised Depository Participants may open and maintain non-interest bearing Escrow accounts in Indian Rupees to hold consideration or securities for FDI transactions without prior Reserve Bank approval, subject to conditions: no credit facilities against balances; permitted credits are foreign inward remittances or rupee consideration from resident acquirers; permitted debits are remittance to beneficiaries or refunds on transaction failure; accounts limited to six months unless RBI permits extension; compliance with FEMA, SEBI regulations and KYC requirements is mandatory.