In the world of foreign trade, cross-border payments and correspondent banking, you will often have heard the terms Nostro and Vostro account. What is a Nostro account and a Vostro account? Why are they needed and how do they work? In this blog, you will find out all that you need to know about Nostro accounts and Vostro accounts.

Both Nostro and Vostro accounts are associated with correspondent banks for cross-border payments. They serve the same purpose but differ in ownership who opens the account and in which geography or country.