what is Reconciliation-NOSTRO,VOSTRO?
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Answer / prasanna11149@yahoo.co.in
An accounting process used to compare two sets of records
to ensure the figures are in agreement and are accurate.
Reconciliation is the key process used to determine whether
the money leaving an account matches the amount spent,
ensuring that the two values are balanced at the end of the
recording period. At the end of every month it is a good
idea to reconcile your checkbook by comparing your receipts
with your bank statement. Among other advantages, this type
of account reconciliation makes it possible to determine
whether money is being fraudulently withdrawn from an
account.
The account a correspondent bank, usually U.S. or UK, holds
on behalf of a foreign bank. Also known as a loro account.
An account that a bank holds with a foreign bank.Nostro
accounts are usually in the currency of the foreign
country. This allows for easy cash management because
currency doesn't need to be converted.
| Is This Answer Correct ? | 102 Yes | 17 No |
Answer / anandsurya
Nostro A/c A banking term to describe an account one bank
holds with a bank in a foreign country, usually in the
currency of that foreign country.
Vostro A/c Local currency account maintained by a local
bank for a foreign (correspondent) bank. For the foreign
bank it is a nostro account
| Is This Answer Correct ? | 77 Yes | 6 No |
Answer / patel
SRI - prasanna is correct when he write "check" as in US
english this is same as "cheque" - STOP pestering. If you
know the answer than just reply otherwise let other's to
post it!
Peace!
| Is This Answer Correct ? | 39 Yes | 9 No |
Answer / arun
Reconciliation is a process of just tally (balancing) your
nostro account credits & debits with your mirror account.
| Is This Answer Correct ? | 28 Yes | 6 No |
Answer / sushi
Nostro Account is an Account Maintained by One bank with
another correpsonding forgiegn bank in its Local Currency.
The Reconciliations of our General Ledger Entries with
Corresponding Bank Statements with whom we open an account
is said to be Nostro Account Reconciliations. The main
advantage of Nostro Account Reconciliation is that there is
no chance of Excahnge rate between the transactions.
Vostro Account is totally in reverse to What Nostro Account
is. Vostro Means the Correspondent Bank Account which we
are Maintaining with us in forgien currency.
| Is This Answer Correct ? | 26 Yes | 5 No |
Answer / rajesh kumar
An accounting process used to compare two sets of records to
ensure the figures are in agreement and are accurate.
Reconciliation is the key process used to determine whether
the money leaving an account matches the amount spent,
ensuring that the two values are balanced at the end of the
recording period.
At the end of every month it is a good idea to
reconcile your checkbook by comparing your receipts with
your bank statement. Among other advantages, this type of
account reconciliation makes it possible to determine
whether money is being fraudulently withdrawn from an account.
Nostro Account: An account that a bank holds with a foreign
bank. Nostro accounts are usually in the currency of the
foreign country. This allows for easy cash management
because currency doesn't need to be converted. A nostro is
our account of our money, held by you
Nostro is derived from the latin term "ours."
Vostro Account: A vostro is your account of your money,
held by us. The account a correspondent bank, usually U.S.
or UK, holds on behalf of a foreign bank. Also known as a
loro account.
Vostro is latin for yours.
| Is This Answer Correct ? | 20 Yes | 4 No |
Answer / pinkesh kansara
Nostro & Vostro both are latin word means our & yours
respectively.
In gerneral term,
Nostro is A/c you hold for another entity &
Vostro is A/c another entity holds for you.
Let understand it form bank or any AD point of view:
A nostro is our account of our money, hold by you &
A vostro is our account of your money, hold by us.
| Is This Answer Correct ? | 19 Yes | 5 No |
Answer / jonida
Is risky if correspondent records of the Nostro account
does not recocnciled with our bank statement?
| Is This Answer Correct ? | 12 Yes | 6 No |
Answer / reshma.l
The process of ensuring that one's personal records of transactions on a bank account matches the bank statement one receives each month or quarter. That is, each time one writes a check, uses a debit card, or otherwise makes a withdrawal from or deposit into a bank account, one keeps a record of the transaction. Account reconciliation involves making sure that these records match the bank's of the same transactions. Account reconciliation helps avoid, or at least remedy, such problems as identity theft and bank errors.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / r s nageswar rao rapaka
Nostro: Our account and our money in foreign banks with
foreign currency.
Vostro: Their account and their money in our banks with our
currency.
| Is This Answer Correct ? | 3 Yes | 0 No |
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