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    Question

    SBI has an account with Citi Bank in USA. If Bank of Baroda wants to use this account for a transaction, it is known as _______

    A Vostro Account Correct Answer Incorrect Answer
    B Nostro Account Correct Answer Incorrect Answer
    C Loro Account Correct Answer Incorrect Answer
    D Foreign Account Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Loro account refers to a correspondent bank account that a domestic bank maintains in a foreign bank in the foreign currency and is used by a third bank. It means “Our account of their money with you”. A Loro account is a current account that is maintained by one domestic bank for another domestic bank in the form of a third party account, unlike nostro and vostro which is bilateral correspondence.

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