Professional Documents
Culture Documents
Switzerland
Indian Bank
Swiss Bank
Nostro Account of
Indian bank
India
Switzerland
Indian Bank
Swiss Bank
Vostro Account of
Swiss bank
Swiss Bank opened a Current Account with
Indian Bank in currency. This Bank account
is called Vostro Account by Indian.
Switzerland
SBI Bank opened a Current Account
with Swiss Bank in CHF currency.
Swiss Bank
Nostro Account of
Indian bank
Email: ca_npsah@icai.org
Page 2.18
FOREX
[Nov-05] [RTP-Nov-08]
General information:
- Currency of Switzerland is Swiss Franc (CHF)
- Zurich is a city of Switzerland
- Telegraphic Transfer or Telex Transfer , often abbreviated to TT, is an electronic means of transferring
funds overseas
Exchange position: (Think it as Bank book)
Exchange position (for CHF currency) of an Indian bank/dealer will affect by:
Purchase/sale of foreign currency, (the purchase/sale of currency may be spot or forward)
- Issue/cancellation of demand draft,
- Purchase/sale of Bills receivable,
Remittance of foreign currency [Remember that Indian bank do not remit foreign currency (say CHF) in Nostro account from India. All receipt in
Swiss franc (CHF) and all payment/remittances in CHF will be made through Nostro account maintained with Switzer land bank]
Cash Position (Nostro A/C): (As bank Reconciliation statement: think it as Pass book which is maintained by bank)
Nostro A/C of an Indian bank/dealer maintained with Switzerland bank will affect by:
Spot Purchase/Sale of foreign currency (CHF) (Forward Purchase/Sale of CHF do not affect Nostro A/C because there is no delivery of
currency as on today)
-
Receipt/payment in CHF.
Note: Spot purchase/Sales of CHF affects both exchange position as well as Nostro A/C (Cash Position). However, forward
purchase/sale affects only the exchange position.
Nostro A/C will decrease only after presenting DD by Mr. S to his banker
If before presenting DD it will cancel, then Indian Bank will increase its exchange position.
India
Indian Bank
Swiss Bank
Nostro Account of
Indian bank
Switzerland
DD in CHF
Import
Mr. Buyer
CHF
5
DD
Mr. Seller
4
Pay by way of DD
CA. Nagendra
Page 2.19
Switzerland
5
Indian Bank
Swiss Bank
Nostro Account of
Indian bank
B/R in CHF
Export
Invoice in CHF
CHF
Mr. Seller
Mr. Buyer
2
Today
Due date
2.
3.
4.
Automatic cancellation
Email: ca_npsah@icai.org
Page 2.20