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.
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.