Vostro Account

'Vostro' is Latin for 'yours', meaning 'your account with us'. If an Indian bank opens a Nepali rupee account with a Nepali bank to make payments in Nepal, that account is a vostro account from the Nepali bank's point of view, and a nostro account from the Indian bank's point of view.

Vostro accounts allow foreign banks and remittance companies to make payments in the domestic currency without each transaction being converted through other routes. For example, foreign banks and money transfer partners may fund vostro or settlement accounts with Nepali banks, from which payouts are made to beneficiaries in Nepal.

The domestic bank holding the vostro account must apply KYC and correspondent banking due diligence on the foreign bank, since correspondent accounts can be misused for money laundering. Under FATF standards, banks should not maintain correspondent relationships with shell banks.

A related term, the loro account ('their account'), is used when a bank refers to an account that a third bank holds with another bank.

'भस्ट्रो' ल्याटिन शब्द हो, जसको अर्थ 'तपाईंको' अर्थात् 'हामीकहाँ तपाईंको खाता'। भारतीय बैंकले नेपालमा भुक्तानी गर्न नेपाली बैंकमा नेपाली रुपैयाँको खाता खोलेमा नेपाली बैंकका लागि भस्ट्रो र भारतीय बैंकका लागि नस्ट्रो हुन्छ।

भस्ट्रो खाताले विदेशी बैंक र विप्रेषण साझेदारलाई स्थानीय मुद्रामा भुक्तानी गर्न सघाउँछ। खाता राख्ने स्वदेशी बैंकले विदेशी बैंकको KYC र संवाददाता बैंकिङ सम्बन्धी उचित सावधानी गर्नुपर्छ, किनकि यस्ता खाता सम्पत्ति शुद्धीकरणमा दुरुपयोग हुन सक्छन्। FATF मापदण्डअनुसार सेल बैंकसँग संवाददाता सम्बन्ध राख्न मिल्दैन। तेस्रो बैंकको खातालाई जनाउँदा लोरो खाता शब्द प्रयोग हुन्छ।