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Correspondent Banking and NRI Accounts
What is correspondent banking?
Correspondent banking is an arrangement where one bank (correspondent) provides services on behalf of another bank (respondent) in a different country or location, facilitating cross-border transactions, payments, and trade finance.
What is the primary purpose of a correspondent banking relationship?
To facilitate cross-border payments and banking services internationally.
What is a NOSTRO account?
A NOSTRO account is an account maintained by an Indian bank in a foreign country in the currency of that country, used to settle foreign exchange transactions; the term comes from Latin meaning 'our account with you'.
What is a Vostro account and in whose books is it maintained?
Account maintained in domestic bank's books for a foreign correspondent bank.
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