CURRENT AFFAIRS

Detailed explanation-1: -A Vostro account is defined as an account that a correspondent bank holds on behalf of another bank. Vostro is a Latin word that means “your”, therefore, a vostro account implies that it is “your account”. An example of such an account would be HSBC vostro account is held by SBI in India.

Detailed explanation-2: -Nostro and vostro are terms used to describe the same bank account; the terms are used when one bank has another bank’s money on deposit. Nostro and vostro are used to differentiate between the two sets of accounting records kept by each bank.

Detailed explanation-3: -Loro Account ‘ In bilateral correspondence between any two given banks, the words Vostro (Your) and Nostro (Our) are used, that is, the bank whose book the account is maintained and the one who is maintaining the account.

Detailed explanation-4: -A vostro account is a bank account held by a domestic bank for a foreign bank, denominated in the domestic currency of the former. The Rupee Vostro Account specifically holds the foreign entity’s deposits in Indian rupees at the Indian bank.