What is Vostro Account?
"Vostro" comes from the Latin for "yours". A vostro account is "your account with us": an account that a foreign bank maintains with a bank in India, typically in Indian rupees. It is the mirror image of a nostro account. From the foreign bank's point of view, the same account is its nostro in India; from the Indian bank's point of view, it is a vostro.
Why it matters for exporters
Most Indian service exporters invoice in US dollars, euros or pounds, and are paid through their bank's nostro accounts abroad. Vostro accounts become relevant when trade is invoiced and settled in rupees. In that case, the foreign buyer's bank can pay rupees from its vostro account in India straight to the exporter's account, without a foreign-currency conversion step for the exporter.
This links to the realisation rules. Under the 2026 export regulations, exports invoiced or settled in Indian rupees have 12 months from the invoice date to be realised, compared with 9 months otherwise. If a client proposes paying in rupees, confirm with your AD bank how it will be routed and reported. Our article on EDF for rupee invoices covers the rupee route.
Example
A client in the UAE offers to pay Kestrel Engineering Services in rupees through its bank's rupee vostro account with an Indian bank. Kestrel invoices ₹8,50,000 on 5 January 2027, files the EDF by 2 March 2027 and notes that the realisation deadline for this rupee invoice is 5 January 2028.
Common confusion
A vostro account is not something an exporter opens. It belongs to the foreign bank. A special type, the SRVA, was introduced for rupee trade settlement and is discussed separately.