Trust and Retention Accounts
TRA
Automated Escrow Workflows for Trust and Retention Accounts (TRAs)
Automated Escrow Workflows for Trust and Retention Accounts (TRAs)
Automated Escrow
Workflows for Trust and Retention Accounts (TRAs)
Castler’s TRA escrow solution enables lenders, infra developers, and project owners to automate cash flow management with regulatory compliance and control. The platform supports purpose-bound fund allocation, milestone-based releases, and stakeholder visibility. Built for complex financial structures, Castler ensures transparency, risk mitigation, and timely disbursals—simplifying project finance across EPC contracts, real estate, and infrastructure ecosystems
Castler’s TRA escrow solution enables lenders, infra developers, and project owners to automate cash flow management with regulatory compliance and control. The platform supports purpose-bound fund allocation, milestone-based releases, and stakeholder visibility. Built for complex financial structures, Castler ensures transparency, risk mitigation, and timely disbursals—simplifying project finance across EPC contracts, real estate, and infrastructure ecosystems
Castler’s TRA escrow automates cash flows with compliance, transparency, and timely disbursals across real estate and infrastructure.
Trust & Retention account is a combination of multiple accounts or an ecosystem of account which is used to manage the cashflows of an organization which is building/managing a high-value infrastructure project. These infrastructure projects can be Solar power plants, large construction sites, Hydro power plants etc. These projects are usually budgeted at high values. Trust & retention accounts seek to protect the project lenders against the credit risk (the risk of debt service default) by insulating the cash flows of the project company.
Trust & Retention account is a combination of multiple accounts or an ecosystem of account which is used to manage the cashflows of an organization which is building/managing a high-value infrastructure project. These infrastructure projects can be Solar power plants, large construction sites, Hydro power plants etc. These projects are usually budgeted at high values. Trust & retention accounts seek to protect the project lenders against the credit risk (the risk of debt service default) by insulating the cash flows of the project company.
Waterfall Model Mechanism in India
Waterfall Model Mechanism in India
Waterfall Model
Mechanism in India
The waterfall payment mechanism ensures structured and sequential fund allocation, prioritizing payments based on predefined rules. Widely used in Trust and Retention Accounts (TRA) in India, it streamlines cashflow management for infrastructure projects and debt repayments. Payments are automated based on priorities like taxes, dues, and high-interest debts, enhancing compliance, transparency, and risk mitigation while ensuring budget adherence and operational efficiency.
The waterfall payment mechanism ensures structured and sequential fund allocation, prioritizing payments based on predefined rules. Widely used in Trust and Retention Accounts (TRA) in India, it streamlines cashflow management for infrastructure projects and debt repayments. Payments are automated based on priorities like taxes, dues, and high-interest debts, enhancing compliance, transparency, and risk mitigation while ensuring budget adherence and operational efficiency.
Project Lender/Sponsor/Financer
Project Lender/Sponsor/Financer
These are regulated entities which can be banks, NBFCs, Project finance organizations which are providing finance for such infrastructure related projects.
Borrower/Project Company
Borrower/Project Company
This is the entity/organization which is basically the borrower which has taken the credit from project lender to develop the infrastructure projects.
TRA Agent/ Lender’s agent
TRA Agent/ Lender’s agent
All the cashflows required to develop/manage this project will be executed from the hands of borrowers by TRA agents. These agents are mandated by Project Lenders
Special Project Vehicle
Special Project Vehicle
All these infrastructure projects are executed through a separate company which is created for a special purpose by Project company. Shares of this SPV is held by the sponsors/Lenders of the project.
Secured Trustee
Secured Trustee
All the transactions initiated are approved by the Secured trustee, which can be an individual members from the Trusteeship company.
Here's why Waterfall Mechanism is a game-changer for TRA (Trust and Retention Account)
Here's why Waterfall Mechanism is a game-changer for TRA (Trust and Retention Account)
Key Challenges in Managing Trust and Retention Accounts
Key Challenges in Managing Trust and Retention Accounts
Increased Turn Around Time
Increased Turn Around Time
Project Companies (SPVs) currently manage all their payments/cashflows with TRA agents in an offline mode which basically increases the TAT required to complete the Payment.
Project Companies (SPVs) currently manage all their payments/cashflows with TRA agents in an offline mode which basically increases the TAT required to complete the Payment.
No Real time Payment Tracking
No Real time Payment Tracking
Project companies don’t have visibility on which payments are processed and which of them are still yet to be processed on a real time basis.
Project companies don’t have visibility on which payments are processed and which of them are still yet to be processed on a real time basis.
Manual reminders for Recurring Payments
Manual reminders for
Recurring Payments
If there is a recurring payment, then Project companies need to remind the TRA agent as per frequency of payment release
If there is a recurring payment, then Project companies need to remind the TRA agent as per frequency of payment release
Delay in Payments
Delay in Payments
Project companies need to chase Trust agent to release their payments on time which sometime delays the payment.
Project companies need to chase Trust agent to release their payments on time which sometime delays the payment.
Manual Payments Between Subaccounts and External Parties
Manual Payments Between Subaccounts and External Parties
TRA Agents work in an offline setup where they make payments between multiple TRA subaccounts for a borrower and payments to outside parties of the borrower. Multiple payments can make a manual error for payments.
TRA Agents work in an offline setup where they make payments between multiple TRA subaccounts for a borrower and payments to outside parties of the borrower. Multiple payments can make a manual error for payments.
Complex Prioritization and Budget Management
Complex Prioritization and
Budget Management
To define the Prioritization of payments based on Amount & Usecase and maintain Budget of Heads of payment, TRA agent need to keep track of all these in an offline manner to manage the cashflow for an infra project.
To define the Prioritization of payments based on Amount & Usecase and maintain Budget of Heads of payment, TRA agent need to keep track of all these in an offline manner to manage the cashflow for an infra project.
Manual Management of Standing Instructions
Manual Management of
Standing Instructions
All standing instructions need to be kept in an offline manner to make the respective payment for a project company.
All standing instructions need to be kept in an offline manner to make the respective payment for a project company.
No Unified Cashflow View Across Borrowers
No Unified Cashflow View
Across Borrowers
Project lenders don’t have a single view where they can view all the project companies/Borrowers cashflow.
Project lenders don’t have a single view where they can view all the project companies/Borrowers cashflow.
Fragmented Platforms for Payment Processing
Fragmented Platforms for
Payment Processing
TRA agents handle diverse payments like taxes, salaries, and operations, requiring multiple platforms. There's no unified solution to manage or record all transactions.
TRA agents handle diverse payments like taxes, salaries, and operations, requiring multiple platforms. There's no unified solution to manage or record all transactions.
Lack of Automated Reconciliation Reports
Lack of Automated
Reconciliation Reports
TRA agent don’t have reconciliation report on a merchant level for financial recon activity which is used by Project companies & Lenders.
TRA agent don’t have reconciliation report on a merchant level for financial recon activity which is used by Project companies & Lenders.
Castler’s Escrow Solution for Trust and Retention Account (TRA)
Castler’s Escrow Solution for Trust and Retention Account (TRA)
Castler’s Escrow Solution for Trust and Retention Account (TRA)
Castler provides an end-to-end Solution to add, manage TRA accounts for enterprises. Some of our features are
Castler provides an end-to-end Solution to add, manage TRA accounts for enterprises. Some of our features are
Castler provides an end-to-end Solution to add, manage TRA accounts for enterprises. Some of our features are :
Unified account view for all your Master & sub TRA Accounts
Unified account view for all your Master & sub TRA Accounts
Standing Instructions
Standing Instructions
Waterfall Payment/ Prioritization payment framework
Waterfall Payment/ Prioritization payment framework
Configurable Budget on Accounts
Configurable Budget on Accounts
Customized Payment frequency
Customized Payment frequency
Retention amount configuration
Retention amount configuration
Balance Breach & reminder system configuration
Balance Breach & reminder system configuration
Unified Reports section for all Statements
Unified Reports section for all Statements
Budget breach & payment reminder Notification
Budget breach & payment reminder Notification
Escrow Party based access
Escrow Party based access
Customised Approval mechanism
Castler’s Escrow Solution for Trust and Retention
Account (TRA) benefits both parties
Castler’s Escrow Solution for Trust and Retention
Account (TRA) benefits both parties
Secured and transperant Fund transfer mechanism
Secured and transperant Fund transfer mechanism
Notifications to relevant parties on the Payment status & payment approval reminder
Notifications to relevant parties on the Payment status & payment
approval reminder
Notifications to relevant parties on the Payment status & payment approval reminder
Customizable & configurable escrow mechanism in the CASTLER's dashboard
Customizable & configurable escrow mechanism in the CASTLER's dashboard
Long standing Partnership with Multi Trustee for ensuring Payment safety
Long standing Partnership with Multi Trustee for ensuring Payment safety
Let’s work together to create a safer, more resilient future for your business.
Let’s work together to create a safer, more resilient
future for your business.
Let’s work together to create a safer, more resilient future for your business.
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