Vostro Account Explained for Freelancers, Exporters & MSMEs
A Vostro account is a bank account in Indian Rupees that an Indian bank holds for a foreign bank. It helps process international payments coming into India.
You don’t need to open or manage one yourself, but every time a client from abroad pays you, a Vostro account might be quietly working in the background. It affects how quickly you get paid, how much you lose in fees, and how easy it is to get compliance documents like FIRA or e-BRC.
In this blog, we’ll break it down simply, what a Vostro account is, how it works, and why it matters if you get paid from international clients.
What Is a Vostro Account?
“Vostro” is a Latin word, meaning “yours.”
In banking, a Vostro account is an account that a domestic bank in India maintains on behalf of a foreign bank, in Indian Rupees, to settle international payments. So it is essentially "your account" in "my bank". A Vostro account makes it possible for international clients to pay Indian freelancers, exporters, or businesses directly in INR.
Here’s how it works in practice:
- Imagine a UK-based marketing agency wants to pay an Indian freelance graphic designer for a project.
- The UK agency’s bank, let’s say Barclays, doesn’t have a branch in India. But Barclays holds a Vostro account with HDFC Bank in India.
- When the UK agency sends payment, Barclays uses its Vostro account at HDFC to transfer the money in INR to the Indian designer’s local account.
- This way, the Indian recipient gets paid quickly, in local currency, and without the hassle of complicated international transfers.
Why Vostro Accounts Matter for Indian Exporters, Freelancers and MSMEs
1. Smoother, Faster Payments
Vostro accounts allow Indian banks to hold foreign payments on standby. Instead of going through multiple intermediate banks (which delays transfers), the funds move directly into your INR account, reducing settlement time and uncertainty.
2. Reduced Costs & Better Rates
Since Vostro transactions bypass some SWIFT intermediaries, there are fewer cuts taken out. That often means better effective exchange rates and lower fees compared to traditional SWIFT transfers.
3. Compliance Made Easy
Because the money arrives through official Vostro channels, your payment qualifies for RBI-compliant documents like FIRA and e-BRC, essential for taxes and export subsidy claims. No more manual follow-ups with the bank.
4. No Need for a Foreign Account
With Vostro infrastructure, you can get paid in foreign currencies like USD, GBP, EUR, even though you only hold an INR account in India. It’s the easiest way for Indian users to receive international payments.
How Does Skydo Leverage Vostro Accounts to Simplify International Payments?
You may not see it, but every time you get paid via Skydo, there’s a powerful Vostro-backed infrastructure working for you behind the scenes.
We’ve built our infrastructure on top of Vostro accounts held with globally trusted banks, like Barclays (UK/EU), Community Federal Savings Bank (US), and Digital Commerce Bank (Canada). These accounts let us receive international payments directly in local currencies and settle them to your Indian account seamlessly.
Here’s why that matters:,
- Fewer Intermediaries, Faster Payouts: When a client pays you, the money routes through our Vostro relationships, not a long chain of middlemen. That means fewer delays and fewer deductions.
- Cleaner Compliance: Because your payments land directly into Skydo’s regulated Vostro rails, we can instantly generate a FIRA and help you claim your eBRC without any back-and-forth with your bank.
- More Currency Coverage: Vostro-backed infrastructure lets us offer local-style virtual accounts in USD, GBP, EUR, CAD, and SGD — all set up from India, no paperwork or travel needed.
So, while most businesses and freelancers don’t ever see a Vostro account, at Skydo, it’s what keeps your payments fast, compliant, and frustration-free.
What’s the difference between Nostro and Vostro?
Nostro account is your bank's foreign currency account abroad. A Vostro account is a foreign bank's INR account with your bank. They work like two sides of the same global payment pipeline.
How does a Vostro account help me as a freelancer?
an fintech platforms use Vostro accounts?
