Automated Trust and Retention Account (TRA) Escrow Platform for Transparent Fund Management

Castler’s TRA escrow automates cash flows with compliance, transparency, and timely disbursals across real estate and infrastructure.

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.

These are regulated entities which can be banks, NBFCs, Project finance organizations which are providing finance for such infrastructure related projects.

This is the entity/organization which is basically the borrower which has taken the credit from project lender to develop the infrastructure projects.

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

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.

All the transactions initiated are approved by the Secured trustee, which can be an individual members from the Trusteeship company.

A Trust Retention Account (TRA) Escrow is not optional. It is a contractually required safeguard for high-stakes finance. Its operation follows a strict agreement that ensures:

Ring-Fenced Revenue : Critical cash flows are legally separated.

Sequential Payments : A set order prioritizes debt service & necessary costs.

Enforced Control : The escrow agent independently manages the terms.

This mandate changes the escrow from a simple account into a strong, enforceable financial control system. It provides lenders with security and gives borrowers a responsible framework.

Secure your transaction on this foundation of trust.

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 don’t have visibility on which payments are processed and which of them are still yet to be processed on a real time basis.

If there is a recurring payment, then Project companies need to remind the TRA agent as per frequency of payment release

Project companies need to chase Trust agent to release their payments on time which sometime delays the payment.

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.

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.

All standing instructions need to be kept in an offline manner to make the respective payment for a project company.

Project lenders don’t have a single view where they can view all the project companies/Borrowers cashflow.

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 agent don’t have reconciliation report on a merchant level for financial recon activity which is used by Project companies & Lenders.