Types of Accounts

Question 1

What are some important type of accounts ?

Answer 1

1) Nostro account

2) Vostro account

3) NRE account

4) NRO account

Question 2

What is a Nostro account ?

Answer 2

Account of a bank in India with a Foreign bank abroad in Foreign currency

ex – PNB with City Bank of New York

Question 3

What is a Vostro account ?

Answer 3

Account of a bank in India with a Foreign bank abroad held in Indian currency

Question 4

What are NRE accounts ?

Answer 4

Non resident External accounts – These accounts allow only foreign credits from outside India

Question 5

What are NRO accounts ?

Answer 5

Non resident Ordinary accounts – These allow both foreign currency credits and rupee credits