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+--- Thread: Nostro Accounts: (/thread-nostro-accounts)
Nostro Accounts: - Muhammad Adnan Arshad - 07-15-2006
Please, tell me in detail, what does nostro accounts mean? what kind of accounts are these & how are they treated?
- inayat - 07-16-2006
The account maintained in foreign currency between two parties (Exchange House, Bank) of different jurisdicions.
- rememberence - 07-16-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Muhammad Adnan Arshad</i>
<br />Please, tell me in detail, what does nostro accounts mean? what kind of accounts are these & how are they treated?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
The accounts maintained by bank A with bank B is called Nostro in the books of bank A, whereas in the books of bank B it is called Wostro.
The credits balance of Nostro account shall not be confused with Wostro, because credit balance of Nostro shows balance owerdrawn.
- inayat - 07-17-2006
Suppose bank A from middle east has correspondent relations with bank B from Pakistan for the remittances.
Following the instructions of bank A(middle east), the bank B(Pakistan) pay the remittance amount to the beneficiaries of the middle east based bank A's customers. In this regard, the amount paid by the Bank B will be credited into the Pak Rs. A/c maintained by the Bank A in their books for Bank B.
Again the debit entry in the books of Bank A will occure when Bank A transfer the due amount to Bank B in order to clear the payable arisen due to payment made to beneficiaries by Bank B on behalf of Bank A.
- Muhammad Adnan Arshad - 07-18-2006
thanks very much INAYAT & REMEMBERENCE/ALI AKBAR for your kind answers..