A "Nostro" account represents "Our money held with You" (e.g., an Indian bank holding a US Dollar account with a bank in New York), while a "Vostro" account represents "Your money held with Us."




"Nesting" (or Downstream Correspondent Banking) occurs when a respondent bank provides services to other financial institutions, effectively allowing third-tier banks to access the correspondent's network anonymously.




In a "Cover Payment" method, the detailed information about the originator and beneficiary is sent directly between the banks, but the actual funds move through intermediary banks using a stripped-down message, potentially hiding the identities from those identities from those intermediaries.




"Loro" accounts refer to the central bank's reserves held at the IMF and are not used in commercial correspondent banking.