freeapp

NOSTRO Account

Nostro is an Italian word meaning ‘ours’. So Nostro account means – “Our account with you”
Nostro accounts are generally held by a domestic bank (our bank) in a foreign country (with a foreign bank).
The account is maintained in that foreign currency.

For example, SBI account with HSBC in U.K.

VOSTRO Account

Vostro is an Italian word meaning ‘yours’. Hence, Vostro account means – “Your account with us”
Vostro accounts are generally held by a foreign bank in our country (with a domestic bank). It is generally
maintained in Indian Rupee (if we consider India)

For example, HSBC account is held with SBI in India.

LORO Account

Loro is an Italian word meaning ‘theirs’. Therefore, it means – “Their account with them”
Loro accounts are generally held by a 3rd party bank, other than the account maintaining bank or with whom
account is maintained.

For example, BOI wants to transact with HSBC, but doesn’t have any account, while SBI maintains an account with HSBC in U.K. Then BOI could use SBI account.

freeapp

LEAVE A REPLY

Please enter your comment!
Please enter your name here