What is Nostro Account with example

Nostro Account

What is Nostro Account

Nostro is a latin word that means ” ours.” A nostro  account is an account that a bank holds in a foreign currency in another bank. Nastro account are used to facilitate foreign exchange and trade transactions. A nostro account is bank account that a bank holds with a foreign bank in the currency of that country where the account are held.

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Nostro Account Meaning

Nostro accounts are maintained by  Indian banks in foreign countries where they have operations for facilitating easy clearing of their transactions.

 Nostro Account Example

Bank of Baroda  in India has an account with  Sberbank in Russia.  The currency in bank  of baroda account in   Sberbank is maintained in Ruble. This account with Sberbank is called a nostro account for Bank of Baroda.

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