BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Account of a foreign bank in India
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Account of an Indian bank within another bank overseas
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Account of a non-resident Indian
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All of the above
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Detailed explanation-1: -What Is a Nostro Account? A nostro account refers to an account that a bank holds in a foreign currency in another bank. Nostros, a term derived from the Latin word for “ours, ” are frequently used to facilitate foreign exchange and trade transactions.
Detailed explanation-2: -Nostro Account Details | Union Bank of India.
Detailed explanation-3: -A bank ‘A’ in India has an account with Bank ‘Q’ in Australia, for example. And the currency in bank A’s bank account in Bank Q is maintained in Australian Dollars. This account with Bank Q is what is called a Nostro Account for Bank A.
Detailed explanation-4: -"Nostro” and “vostro” are two different terms used to describe the same bank account. The terms are used when one bank has another bank’s money on deposit, typically in relation to international trading or other financial transactions. 1.
Detailed explanation-5: -Let’s say a customer approaches a U.S. bank wanting to open a European bank account. The account will be treated as a Nostro account (our account) for the U.S. bank and a Vostro account (your account) for the European bank.