banner-logo

We have lots for you in store 

Indian oil card1
no data

About Capital Account Transactions

Capital Account Transactions at HDFC Bank encompass a range of financial activities, including Direct Investments by Residents in Joint Ventures (JV)/Wholly Owned Subsidiaries (WOS), Foreign Direct Investments in India (FDI), and External Commercial Borrowings (ECB).

Perks you deserve

Features tailored for you

Foreign Direct Investment (FDI)

"FDI" or "Foreign Direct Investment" denotes equity investments made by non-residents in unlisted Indian companies or at least 10% of the fully diluted post-issue equity capital of listed Indian companies. Overseas investors can invest in India through two routes:

  • Automatic Route: An FDI entry route where investments from non-residents outside India do not need prior approval from the Reserve Bank or Government

  • Approval Route: An FDI entry route where investments made by non-residents outside India necessitate prior approval

Smart EMI

Overseas Direct Investment (ODI) in India

  • Overseas Direct Investment involves investing outside India in a Joint Venture (JV) or Wholly Owned Subsidiary (WOS), either through the Automatic Route or Approval Route.

  • The investment includes contributing to capital, subscribing to the memorandum of a foreign company, or acquiring existing shares through market purchase, private placement, or stock exchange.

Key Image

External Commercial Borrowings (ECBs)

  • External Commercial Borrowings are commercial loans accessed by eligible resident entities from recognised non-resident entities. ECBs must meet a minimum maturity period, maximum all-in-cost ceiling, permitted end-uses and more. 

  • ECBs can be raised in INR or any freely convertible foreign currency under both the automatic and approval routes within the ECB framework.

Smart EMI

Automatic Route

  • The AD Category-I Bank reviews and approves the application. Entities seeking to raise ECB under the automatic route can submit their proposal and a completed Form ECB to an AD Category-I Bank. 

  • After approval by the AD Category-I Bank, the application and Form ECB are forwarded to the RBI to issue a Loan Registration Number (LRN).

Contacless Payment

Approval Route

  • Borrowers submit their requests to the RBI via their AD Category-I Banks for evaluation.

  • These requests are processed upon RBI approval.

Fuel Surcharge Waiver

Frequently Asked Questions

Yes, there are restrictions on Capital Account Transactions at HDFC Bank. These transactions must adhere to criteria like the minimum maturity period, maximum all-in-cost ceiling, permitted and non-permitted end-uses, etc.

Yes, individuals can participate in Capital Account Transactions at HDFC Bank.

Changes in currency value can affect the cost of foreign investments and borrowings. For instance, if the Indian Rupee depreciates against the foreign currency, the cost of External Commercial Borrowings in Rupees increases, impacting the borrower’s repayment capacity.

Capital Account Transactions at HDFC Bank include activities like Direct Investments by Residents in Joint Ventures (JV)/Wholly Owned Subsidiaries (WOS), Foreign Direct Investments in India (FDI), and External Commercial Borrowings (ECB). These transactions help diversify your business in global markets through investments (FDI/ODI) or borrowings (ECB).

Yes, you can modify or cancel capital transactions after initiation. HDFC Bank provides a dedicated helpdesk to manage and resolve queries related to such transactions.

More about Capital Account Transactions

  • Services
  • Access to Modern Equipment
  • Enables healthcare providers to acquire state-of-the-art medical equipment, enhancing diagnostic and treatment capabilities.
  • Automatic Route: An FDI entry route where investments from non-residents outside India do not need prior approval from the Reserve Bank or Government
  • Approval Route: An FDI entry route where investments made by non-residents outside India necessitate prior approval
  • Overseas Direct Investment (ODI) in India
  • Overseas Direct Investment (ODI) involves investing outside India in a Joint Venture (JV) or Wholly Owned Subsidiary (WOS), either through the Automatic Route or Approval Route.
  • The investment includes contributing to capital, subscribing to the memorandum of a foreign company, or acquiring existing shares through market purchase, private placement, or stock exchange.
  • External Commercial Borrowings (ECB)
  • External Commercial Borrowing are commercial loans accessed by eligible resident entities from recognised non-resident entities. ECBs must meet a minimum maturity period, maximum all-in-cost ceiling, permitted end-uses, and more. ECBs can be raised in INR or any freely convertible foreign currency under both the automatic and approval routes within the ECB framework.
  • Automatic Route
  • The AD Category-I Bank reviews and approves the application. Entities seeking to raise ECB under the automatic route can submit their proposal and a completed Form ECB to an AD Category-I Bank. After approval by the AD Category-I Bank, the application and Form ECB are forwarded to the RBI to issue a Loan Registration Number (LRN).
  • Approval Route
  • External Commercial Borrowing are commercial loans accessed by eligible resident entities from recognised non-resident entities. ECBs must meet a minimum maturity period, maximum all-in-cost ceiling, permitted end-uses, and more. ECBs can be raised in INR or any freely convertible foreign currency under both the automatic and approval routes within the ECB framework.