Payment

Banking Accounts

Posted by Sagar A

Nostro Account, Vostro Account & Loro Account

Nostro Account :

In very simple terms “A Nostro is our account of our money, held by you

Nostro is derived from Latin word which means “ours”

A banking term to describe an account one bank holds with bank in a foreign country in their currency.

Eg.

CITI BANK ,MUMBAI                                             CITI BANK ,NEW YORK

(Open our a/c with you)                                        (Open a/c in USD in our Country)                           

Vostro Account:

In very simple terms “A Vostro is our account of your money, held by us

Nostro is derived from Latin word which means “yours”

Local currency account maintained by local bank in foreign (Correspondent) bank

Eg.

CITI BANK ,MUMBAI                                                     CITI BANK ,NEW YORK

(Open a/c in INR in India Country)                             (Open our a/c with you)   

LORO Account

Suppose Indian bank does not have any branch in US .

Could use Nostro account CITI bank Mumbai for transaction, Then it is called LORO account.

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