Nostro Account
A Nostro Account is a bank account that a domestic bank holds in a foreign bank in the foreign currency. It is used to facilitate international transactions and manage foreign exchange.
For example, SBI opens a USD account in JPMC in New York is an example of Nostro Account. However if JPMC opens an INR account with SBI in Mumbai is Vostro account.
Nostro accounts help banks conduct cross-border payments and settlements efficiently, maintaining liquidity in foreign currencies and simplifying the process of international trade.
