Discuss various modes of payment allowed for receiving Foreign Direct Investment (FDI) to an Indian Company.

Modes of payment allowed for receiving Foreign Direct Investment to an Indian company are as under: Inward remittance through normal banking channels; Debit to NRE/FCNR (B) account of a person concerned maintained with an Authorised Dealer (AD) Category I bank; Debit to non-interest bearing escrow account in Indian Rupees in India which is opened with the approval from AD Category - I bank and is maintained with the AD Category I bank on behalf of residents and non-residents towards payment of share purchase consideration; Conversion of royalty/lump sum/technical know-how fee due for payment or conversion of ECB; Conversion of pre-incorporation/pre-operative expenses incurred by the a non-resident entity up to a limit of five percent of its capital or USD 500,000 whichever is less; Conversion of import payables/pre incorporation expenses/can be treated as consideration for issue of shares with the approval of competent authority; Against any other funds payable to a person resident outside India, the remittance of which does not require the prior approval of the Reserve Bank or the Government of India: and Swap of capital instruments, provided where the Indian investee company is engaged in a Government route sector, prior Government approval shall be required.