The above is news from today's Indian Express along with my notes.
HDFC Bank and UCO Bank are basically 'Correspondent Banks' and they have opened account of foreign banks (like Gazprom, Sberbank, VTB Bank). These accounts with (HDFC, UCO) will be treated as 'Vostro' by HDFC and UCO and will be treated as 'Nostro' by Gazprom, Sberbank and VTB Bank.
If there is a surplus balance in these accounts, then it can be invested in Indian Govt. securities also.
