GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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NOSTRO account means ____
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An account opened by a foreign bank in India with their corresponding banks in INR for settlements in INR.
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An account opened by foreign citizens other than NRIs in India with Indian banks in INR for their expenses in India.
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An account opened by an Indian bank in the foreign countries in their banks and in that country currency for settlement in that country’s currency.
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An account opened by foreign citizens other than NRIs in India with foreign banks in foreign currency to convert Indian rupee to that currency and remit back to their own country.
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Explanation:
Detailed explanation-1: -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: -A vostro account is an essential part of correspondent banking in which a foreign bank acts as an agent providing financial services on behalf of a domestic bank. Vostro accounts enable domestic banks to provide international banking services to their clients who have global banking needs.
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