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Rupee trade: Understanding difference between Nostro and Vostro accounts

The RBI has allowed two Russian banks, Sberbank and JSC VTB, to open Vostro accounts for rupee trade. Read more to find out what a Vostro account is and how it is different from a Nostro account

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BS Web Team New Delhi
The Reserve Bank of India (RBI) has approved two Russian banks, Sberbank and JSC VTB, to open special Vostro accounts for rupee trade. The approval came months after India's central bank announced its norms for rupee trade.

In early September, UCO Bank had also received RBI's approval to open Vostro accounts with Russia's Gazprom.

What is a Nostro account?

A Nostro account is an account held by a bank in another bank. It allows the customers to deposit money in the bank's account in another bank. It is often used if a bank has no branches in a

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First Published: Sep 29 2022 | 11:03 AM IST

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