Nostro Account

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Related to nostro accounts: Vostro Account

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 ?
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.
The Zimbabwe Revenue Authority (Zimra) has indicated that it is scouring the globe for nostro accounts held by local banks, a move that is likely to send jitters across the financial services sector.
Egypt's National Bank for Development (NBD), in co-operation with Abu Dhabi Islamic Bank Group has signed up to Standard Chartered's Islamic Euro Nostro account, which enables Islamic banks to earn Shariah-compliant profits on their account balances at the bank's Frankfurt branch.
MANAMA: Standard Chartered Bank yesterday launched the industry's first Islamic Euro Nostro account.
Here, I use the term two-currency accounts or nostro accounts.
Although, different components show that QoQ decline in borrowings was mainly contributed by secured borrowings, unsecured borrowings especially, the overdrawn Nostro accounts increased.
Morgan, which provides RMB Nostro accounts through its Shanghai branch and clearing services to its clients globally, was one of the first foreign locally-incorporated banks in China to function as a domestic agent bank offering RMB international settlement services.
As per the FIR lodged with the CBI, Shetty and Kharat had transmitted SWIFT instructions to the above-mentioned banks for raising buyers credit and for funding the Nostro accounts of PNB, without due procedure.
The PoC was designed to validate whether the technology could be used by banks to reconcile their international nostro accounts in real time.
SWIFT's proof of concept will determine if distributed ledger technology can help banks reconcile their nostro accounts in real time.
Global financial messaging network SWIFT has selected six international banks to take part in a proof of concept (POC) that will test whether banks can use distributed ledger and blockchain technology (DLT) to enhance the reconciliation of their Nostro accounts in real time.