Hey,
Vostro accounts are more common than we imagine them to be. Did you know that banks in India work with banks in other foreign countries to stabilise the Indian economy? Many times organisations and businesses from the US get a Vostro account here. I will tell you the meaning of the Vostro account meaning below.
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What is Vostro account?
It is an account which is held by a correspondent bank on behalf of another bank. The domestic bank which holds the money acts as an agent. They provide financial services on behalf of a foreign bank. The bank holds the funds and manages the account with a foreign counterpart.
Just to give you an example. If a French organisation opens a Vostro account in India. The Indian bank and French bank will work together in correspondence.
I think this account is widely used by people to fulfil their global banking needs. A few of the activities managed by the Vostro account are executing wire transfers, performing foreign exchange transactions, enabling deposits and withdrawals, and expediting international trade.
Continuing with what is a Vostro account. Just like any other bank service, the foreign correspondent bank charges the domestic bank for all the services. The funds held are done in the local currency. eg. In India, a Vostro account will be denominated in rupees instead of foreign currency.
I hope my explanation of the Vostro account meaning helps you.
Read more : What is Nostro account ?What is the difference between NRE And NRO Account? Can I deposit money in NRE account from India? How to Withdraw Money from NRE account?
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Authors Of The Question
What is vostro account ?
Reena
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2 Year
2022-08-25T18:54:24+00:00 2022-08-31T13:45:33+00:00Comment
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