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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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