Escrow agents in India have become essential for secure business transactions. Whether it involves real estate, mergers, fintech, or international partnerships, having a neutral third party hold funds until both sides fulfill their obligations adds a level of trust that businesses cannot overlook. Without escrow, deals can easily end up in disputes, delays, or even fraud.

Escrow agents in India play a crucial role. They do more than just hold money; they foster confidence between two parties who may not know or trust each other well. From startups needing smoother vendor payments to large companies managing multi-crore deals, escrow agents provide the necessary structure for fair transactions.

In this blog, we’ll look at the top five escrow agents in India, starting with Castler as the most innovative digital-first escrow platform. We’ll also examine how some of India’s largest banks operate as escrow agents by opening dedicated escrow accounts for businesses. Along the way, we’ll discuss the future of escrow, how APIs like the UPI Payout API are changing the flow of funds, and why businesses should think beyond traditional banking.

What Does an Escrow Agent Do?

Before we dive into the top names, let's clarify what an escrow agent is. An escrow agent is a trusted third party that temporarily holds funds, documents, or assets on behalf of two parties involved in a transaction. The agent disburses the funds only when all agreed conditions are met.

In India, escrow arrangements are commonly used in:

• Real estate transactions

• Startup funding and venture deals

• Franchisee and franchisor revenue sharing

• International trade and e-commerce transactions

• Digital payments and fintech platforms

By minimizing risks, escrow agents help businesses complete transactions more quickly without worrying about fraud or default.

The Top 5 Escrow Agents in India

1. Castler: India’s Largest Escrow Platform

Castler has established itself as India’s most trusted escrow-as-a-service platform, offering businesses a modern, tech-driven way to manage transactions. Unlike traditional banks that still heavily rely on manual processes, Castler provides an API-first escrow platform that integrates directly into business workflows.

For instance, fintech companies and enterprises can use UPI Payout APIs through Castler to automate real-time settlements into escrow-linked accounts. This allows for instant payments to vendors, customers, or employees without sacrificing compliance and control.

What sets Castler apart is its focus on scalability and compliance. Whether it’s a franchise managing revenue collections or a startup looking to automate vendor payouts, Castler ensures every transaction proceeds smoothly within a secure and regulated framework.

2. HDFC Bank – Escrow Account Services

HDFC Bank is one of the largest private banks in India and offers escrow account services for businesses involved in large transactions. Companies often use HDFC’s escrow setup for mergers and acquisitions, real estate projects, and structured finance arrangements.

While it may not be as agile as digital-first solutions, HDFC’s extensive presence and regulatory strength give businesses confidence when dealing with significant sums. Escrow accounts typically come with thorough compliance monitoring and are popular among corporates and institutions.

3. ICICI Bank – Escrow Solutions for Corporates

ICICI Bank provides escrow account facilities for corporations, particularly in structured transactions such as project financing, share purchase agreements, or regulatory needs.

Businesses working with ICICI rely on the bank’s solid compliance framework and established reputation. However, processes may be slower due to manual oversight, making it more suitable for larger deals rather than routine payouts.

4. Axis Bank – Transaction Banking and Escrow

Axis Bank offers escrow account solutions through its transaction banking division. These solutions are often utilized by real estate developers, corporate entities, and large partnership projects.

The bank ensures compliance with regulatory standards and provides trustworthy services for clients who require neutral fund management during contractual obligations. While Axis Bank’s escrow services are structured, they may not be as customizable for businesses seeking automated, technology-driven payouts.

5. State Bank of India (SBI) – Public Sector Escrow Accounts

As India’s largest public sector bank, SBI is frequently chosen for escrow arrangements in government contracts, infrastructure projects, and public-private partnerships. Its size and reach make it reliable for large transactions, although businesses must navigate longer documentation and approval processes typical of public banking.

For companies involved with government-linked projects or substantial infrastructure agreements, SBI’s escrow account facilities remain a critical option.

Why Escrow Agents Are More Relevant Than Ever

The growth of digital payments, global trade, and fintech ecosystems has made escrow agents more than just custodians of funds. They have become vital for building trust on a large scale.

Here’s what this means for businesses:

• Faster transactions: Escrow ensures both parties act quickly to fulfill their obligations.

• Reduced fraud risk: Funds are only released once all terms are verified.

• Regulatory compliance: Escrow agents help businesses meet RBI and other legal requirements.

• Scalability: With APIs like the UPI Payout API, escrow can now facilitate millions of micro-transactions instantly.

In summary, escrow services have expanded beyond high-value corporate deals. They are becoming the foundation of digital commerce in India.

The Future of Escrow in India

Escrow services are transitioning from being purely legal safeguards to becoming a central part of business infrastructure. With the rise of digital-first escrow platforms, businesses can now integrate escrow directly into their payment processes.

Consider this scenario: a lending platform wants to disburse loans straight into borrower accounts. By using an escrow agent equipped with the UPI Payout API, funds can transfer instantly while the escrow ensures compliance and protection for both lender and borrower. This is the direction Indian businesses are moving towards.

Regulatory bodies are tightening rules around payments, making escrow agents indispensable. Whether it’s startups, non-banking financial companies, or large businesses, everyone requires a trust layer to ensure money moves responsibly.

Conclusion

Escrow agents in India are essential today. While banks like HDFC, ICICI, Axis, and SBI continue to offer traditional escrow services, they are better suited for large, structured deals that require extensive manual oversight.

Today’s businesses need more. They need speed, scalability, and trust in real-time transactions. That’s where Castler excels. As India’s leading escrow-as-a-service platform, Castler combines the reliability of regulated escrow with the agility of modern technology. Whether for vendor payments, franchise collections, or fintech integrations, Castler ensures money moves instantly, safely, and transparently.

If your business is ready to embrace the future of secure transactions, it’s time to explore what Castler can offer.