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The number of nostro accounts that can be maintained by a bank in a particular currency is
Answer & Solution
Correct Answer:
Option
D
The number of nostro accounts that can be maintained by a bank in a particular currency is no such limit. Nostro account is maintained by Indian banks in foreign countries where they have operations for facilitating easy clearing of their transactions. These accounts are maintained with their correspondent banks overseas who in turn act as their clearing bank in the foreign country where the Indian bank has its base.
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