International Transfer Flow Using Nostro Account

Suppose:

• Mohan in India wants to send $10,000
• To a person/company having USD account XYZ in USA

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Step-by-Step Flow

Step 1 — Mohan’s Account Debited

Money is deducted from:

Mohan Savings Account
        ↓
ICICI Bank India

At this stage:

• Mohan pays in INR (or equivalent amount)

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Step 2 — ICICI Uses Its Own Funds

ICICI Bank now needs to send USD internationally.

So ICICI uses:

• its own foreign currency holding

This usually happens through:

ICICI Bank's Nostro Account in USA

Example:

ICICI USD Nostro Account
maintained in Citibank USA

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Step 3 — USD Transfer Happens

Now money moves:

ICICI Nostro Account (USD)
            ↓
Receiver USD Account XYZ

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Complete Simplified Flow

Mohan Account (India)
        ↓
ICICI Bank India
        ↓
ICICI USD Nostro Account (USA)
        ↓
Receiver USD Account XYZ

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Very Important Understanding

The Nostro account is:

• NOT Mohan’s account
• NOT receiver’s account

It is:

ICICI Bank’s own foreign currency account maintained abroad.

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Simple Analogy

Think like this:

• Mohan gives money to ICICI in India
• ICICI already keeps some USD money in USA
• ICICI uses that USD wallet to pay the receiver

That USD wallet abroad is the Nostro account.