The 'Nostro' and 'Vostro' words are Latin terms which refer to the accounting terms used to distinguish an account of a bank held in another bank for inward cheque clearing and remittance transactions purpose. 'Nostro' means 'ours', while 'Vostro' means 'yours' in English terms.

Speaking from the perspective of a bank, or financial institution that requires an agent bank for cheque clearing and remittance transactions purposes, a 'Nostro' account contains the money of a bank, or financial institution which is kept by another bank, or financial institution (the agent bank).

While from the perspective of an agent bank, a 'Vostro' account contains the money of another bank or financial institution which is kept in the bank, or financial institution (the agent bank). Thus, when an account is considered a 'Nostro' account from the perspective of a bank, or financial institution, it would be considered a 'Vostro' account from the perspective of an agent bank or financial institution.

As such this function basically allows user to define the relevant 'Nostro' banks or financial institutions for his bank or financial institution and its main details such as, the Nostro ID, current account number held in the agent bank, and the general ledger code to be used in the bank, or financial institution and other related information, e.g., corresponding address, transaction limits and charges or commissions.

In addition, this function also allows user to maintain the related Nostro Bank’s GL account number, Cash GL account number, GL segment and Cheque GL in order to capture the related transactions' accounting entries, e.g., Front Desk transactions of the journal GL mode, cash mode and cheque mode.