International-Business-Dr-R-Chandran-E-book

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International Business- Dr. R. Chandran
more NRI owners. The facilities for investment into India, granted to
OCBs were almost similar to those granted to individual non-resident
Indians.
However, with effect from 16.08.2003, OCBs have been
completely derecognized as an investor class by the RBI. Now they
are not allowed to make fresh investments in India.
Correspondent Banking
Nostro Account: A foreign currency account maintained by a bank in
India with a bank abroad. “Our account with you”. E.g., State Bank of
India, Kolkata.
Vostro Account: A rupee account of a foreign bank with an Indian
bank. “Your account with us”. E.g., Citibank’s rupee account with
State Bank of India, Kolkata.
Loro Account: A bank’s account with another bank. “Their account
with you”. E.g., Citibank’s HK $ account with Hong Kong Bank,
Hong Kong.
Mirror Account: These are dummy accounts maintained by banks to
know the actual position of their accounts with the foreign
correspondent banks. We may call it a pass-book of our accounts
maintained with the correspondents.
Escrow Account: These accounts are maintained by citizens outside
the country or by the citizens residing outside the country, but
accounts maintained in the parent country. These accounts are being
maintained exclusively for business purposes and like current
accounts, do not carry any benefit of interest, overdrafts etc. Basically,
such accounts are opened to carry merchant trading activity with prior
approval from the RBI and general transactions are not permitted.
International Organizations as facilitators of International
Business:
International Organizations like the World Bank were set up to
maintain orderly international financial conditions and to provide
capital and advice for economic development, particularly of
developing countries. International Business Organizations are
required to understand the system and lending criteria of such
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