Nostro Account


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Nostro Account

An account at a foreign bank where a domestic bank keeps reserves of a foreign currency. A bank keeps a nostro account so that it does not have to make a currency conversion (which brings with it foreign exchange risk) should an account holder make a deposit or a withdrawal in that foreign currency. See also: Vostro Account.
References in periodicals archive ?
The RBI asked the top management of Indian banks to not only ensure that appropriate controls were in place, but also to reconcile their nostro account transactions - that is, to check that they matched their banks` internal records.
The Nostro account means an account that a bank holds in a foreign currency in another bank to enable foreign trade by its clients.
SBP, on receiving the instructions from BMJII, will credit the Nostro account of exporter's bank in Pakistan in FCY.
Some two years ago, the RBZ turned down requests from Standard Chartered Bank and Barclays Bank to keep their nostro account balances above the maximum permitted 25%.
The Islamic Euro Nostro account will allow NBD to earn Shariah-compliant profits on its account balances at Standard Chartered Bank Germany Branch in Frankfurt, said a statement from the bank after signing the agreement at the recent banking summit 'SIBOS 2012' in Osaka, Japan.
A Nostro account is one that is established in a foreign country and usually in the currency of that country for the purpose of carrying out transactions.
402] noted, the difference between a nostro account and a vostro account was clearly set out in a treatise in English by John Carpenter [1632, pp.
When initiating payment instructions, the bank credits our nostro account held in the local currency held by that bank.
The group claimed its Islamic Nostro Account was the first of its kind to be offered by a mainstream Western bank.
The bank says its Islamic Nostro Account is the first of its kind to be offered by a mainstream Western bank.
They said the overseas branches Canara Bank, Bank of India, State Bank of India, Allahabad Bank and Axis Bank had credited over Rs 11,400 crore into the Nostro account of PNB on the basis of the guarantees (LoUs) given by to Nirav Modi and Mehul Choksi.
Nostro account refers to an account that a financial institution holds in a foreign currency in another bank and is utilized in cross-border payments.