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Captive bank is an institution intended to provide services to a promoter and his/her associates. Usually, a captive bank is wholly owned subsidiary of a multinational group of companies. The purpose of a captive bank is to provide banking service to the group or to the parent organization. A captive bank works only for the parent, its customers and suppliers. In order to avail low capital requirements and freedom from exchange control, captive banks are usually located in a tax haven. Services provided by a captive bank include safe keeping of deposits, merchant banking, financing, and other services in association with commercial banks.