Understanding Nostro, Vostro, and Loro Accounts in International Banking
IntroductionIn the realm of international banking, the terms Nostro, Vostro, and Loro accounts refer to how banks manage and record cross-border transactions and foreign currency holdings. These accounts are essential for facilitating international trade, currency exchange, and interbank settlements, particularly when banks do not have a physical presence in foreign jurisdictions. The terminology originates from…
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Correspondent Banking in India: Accounts and Financial Services
IntroductionCorrespondent banking in India refers to formal arrangements between domestic and international banks to provide a range of financial services, particularly in the context of cross-border transactions. These partnerships enable Indian banks to offer services such as international payments, trade finance, and clearing, even in jurisdictions where they do not have a physical presence. Such…
Read article Correspondent Banking Overview
Correspondent Banking OverviewCorrespondent banking is a financial arrangement wherein one bank, referred to as the correspondent bank, provides banking services on behalf of another bank, known as the respondent bank, typically across international borders. This framework facilitates access to global financial systems, enabling banks to serve customers in jurisdictions where they lack a direct presence.…
Read article SWIFT Financial messages: authentic and universal
The SWIFT financial messages are trusted as the most authentic and universal financial messages worldwide. SWIFT financial message is also the most convenient and fastest medium through which banks can meet customer’s requirements to send and receive messages to and from any country. Reasons for trusting SWIFT messages by banks and financial institutions: SWIFT stands…
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What are RTGS & NEFT transactions
Latest update: RBI on thursday (06.06.2019) informed banks that it has decided to waive charges levied on NEFT & RTGS transactions and accordingly instructed the bank to pass on the benefit to their customers. Instruction on this regard will be issued within a week. Process of RTGS and NEFT RTGS& NEFT transactions are the fastest…
What is ECS (Electronic Clearing system)?
Electronic Clearing Service (ECS) in bank transaction is a simple, faster and cost effective solution for repetitive bulk transactions. The system was first introduced by Reserve Bank of India in April 1995 to facilitate speedier bulk inter-bank transactions. It is most useful to facilitate repetitive payment transaction such as salary, pension, interest, commission, dividend etc. ECS…
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