A ______ account is one which is maintained by an Indian Bank in the foreign countries usually in the currency of that country for the purpose of carrying out transactions there.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. NOSTRO.
A NOSTRO account is one which is maintained by an Indian bank in a foreign country, usually in the currency of that country, for the purpose of carrying out transactions there. The word "Nostro" means "ours" in Latin, reflecting that the account represents the Indian bank’s money held abroad. These accounts help facilitate international trade, remittances, and settlements of foreign exchange transactions. By maintaining a Nostro account, Indian banks can efficiently manage and process cross-border payments, reduce transaction costs, and improve the speed of international operations. It ensures seamless financial connectivity between India and other countries.