CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI) on Monday allowed HDFC Bank Ltd and Canara Bank Ltd to open a special “vostro account” for trade in Rupees with Russia, according to media reports. Vostro accounts are accounts a bank holds on behalf of another, often foreign bank, and this forms a key part of correspondent banking.

Detailed explanation-2: -Kolkata-based UCO Bank was the first Indian bank to receive the RBI’s approval to open a special Vostro account with Russia’s Gazprombank, which was set up by the world’s largest gas producer and exporter, Gazprom.

Detailed explanation-3: -It is learnt that the Reserve Bank of India (RBI) gave its approval for Russia’s Bank Zenit PJSC to open a special rupee vostro account with state-owned SBI, India’s largest lender.

Detailed explanation-4: -Starting January 1, 2022, customers will have to perform a transaction online by providing the OTP that is generated after adding complete card details, including card number, expiry date and CVV number. They will have to repeat this process every time they make a transaction online.

Detailed explanation-5: -What Is a Vostro Account? A vostro account is an account a correspondent bank holds on behalf of another bank. These accounts are an essential aspect of correspondent banking in which the bank holding the funds acts as custodian for or manages the account of a foreign counterpart.