Cox & Kings, travel service provider is likely to start Nostro operations by May-end as it got license from the RBI for using foreign currency account. It is in the process of creating different currency accounts and as soon as they are set up, it will begin transactions.
With this Nostro account Cox & Kings will get better currency rates and it will be able to manage exchange rate fluctuations more efficiently, use credits available in the account to make remittances and issue foreign currency demand drafts or telegraphic transfers on its own.
Prior to this entity used to remit currency through banks. With a Nostro account, it can directly buy and sell from the banks, which will help the travel service provider in getting better rates.
