Rapid Fire
Nostro and Vostro Accounts
- 17 Apr 2024
- 1 min read
Recently, the payment mechanism for traders importing pulses from Myanmar has been simplified by the government.
- The importers have been asked to utilise the Rupee/Kyat direct payment system using a Special Rupee Vostro Account (SRVA) through Punjab National Bank.
About Nostro/Vostro Account:
- A Nostro account is an account held by a bank in another bank. It allows the customers to deposit money in the bank's account in another bank.
- It is often used if a bank has no branches in a foreign country.
- Nostro is a Latin word that means “ours”.
- A Vostro account is an account that a correspondent bank holds on behalf of another bank.
- Vostro is a Latin word that means “your”.
- Nostro and Vostro accounts are held in a foreign denomination.
- Vostro accounts enable domestic banks to provide international banking services to clients with global banking needs.
- Vostro account services include executing wire transfers, performing foreign exchange transactions, enabling deposits and withdrawals, and expediting international trade.
Read More: Vostro account
