Synopsis

Objective: To Study the process involved in Capital Account Transactions at Axis Bank (Forex Branch / MG Road)

The Study will cover the following: 1) FDI- Foreign Direct Investment There are two entry routes for FDIs into India: Automatic Route: Under this route, the foreign investor or the Indian company does not require any approval from the Reserve Bank or Government of India for the investment.

Government Route: Under this route, the foreign investor or the Indian company should obtain prior approval of the Government of India, Ministry of Finance, and Foreign Investment Promotion Board (FIPB) for the investment.

Post Transaction Reporting Process: Intimation of inflow of funds to Regional RBI within the stipulated period Process of Reporting of FCGPR Part A to Regional RBI within the stipulated period

2) ODI- Overseas Direct Investment There are two entry routes for FDIs into India: Automatic Route Government Route

3) ECB- External Commercial Borrowings 4) Liaison office or branch The Study will also cover the following: RBI Guidelines pertaining to Capital Account transaction Documentation involved in Capital Account transactions Role of Axis Bank in ensuring the RBI guidelines and thereby ensuring smooth functioning of Forex Transactions

Modes of Investment under Foreign Direct Investment Scheme Foreign Currency Account and Escrow Account