Cash management services

Cash management is the proper use of an entitys cash/fund resources.

It serves as the means to keep an organisation functioning by making the best use of cash
or liquid resources of the organisation.
CMS is the process of optimizing receivable and payables ensuring predictability in the cash
flows of CMS clients.
In a large country like India with a complex financial clearing system, corporates find it
increasingly challenging to process collections & payments across dispersed business
locations.
Cash Management thus means getting funds in time, quick transfers, quick realization of
local and outstation instruments, easy
Managing liquidity could be a complex affair. For a business spread across various locations,
managing outstation fund-collections and disbursements can often be a time-consuming,
expensive proposition.
CMS includes Collection Services
Local Cheque Collection
Upcountry cheque collection
Collection through branches
Collection through correspondent (where branch is not there)
Cash management services
CMS also includes Payments Services
Local Payment
Cheques
Pay orders
Upcountry Payment
Demand Drafts
Anywhere or Payable at Par cheques
Electronic Fund Transfer

Cash management helps the organisation in:

Monitoring exposure and reducing risks.
Ensuring the timely deposit of collections.
Proper timing of the disbursements

MIS
Daily report of deposits made at various locations
Location-wise report
Credit forecast report
Monthly cumulative report - date-wise/location-wise
Monthly charging statement
Monthly cheque return statement
The customized reports as per mutual agreement
Customer Benefits:
Lower Borrowing Costs: CMS enable the customer to receive funds in the customer
concentration account with the bank with the minimum transit time thereby reducing
interest cost and hence the cost of borrowing.
Improved liquidity Position: Quick realization results in improve liquidity position thereby
improving bottom line and financial ratios.
Better Accounting and reconciliations: Detailed information on cheques deposited is made
available on daily/weekly basis/periodically thus simplifying accounting, reconciliation and
query resolution.
customized MIS as per the customer requirement.
A centralized operation provides a dedicated service to ensure that the customer queries
are resolved quickly and efficiently.
Dividend Payments:
Execution of the payments on due date is the essence of Dividend Payment.
employing technology and using various modes of remittance as required by the Corporate/s
such as RTGS/NEFT/NACH-Credit/Demand Drafts/Dividend Warrants.
Periodical reconciliation statement is ensured as per the need of the Corporate/s.

Present day scenario in Banking has undergone tremendous change and the stress is on
availability of banking facilities at customers doorstep. With this in mind, providing Door
Step Banking facilities to premium clients.
Services provided:
Cash Pick / Delivery on Daily/Call basis
Cheque pick up
Delivery of DD/Pay-order
Cash management services

Bulk Cheque Printing Facility is provided to Corporates/Institutes needing to pay large

number of beneficiaries frequently/on regular basis.
The cheques are printed by the Bank on behalf of the client on the basis of soft copy
containing the name of the beneficiary, date, amount, instrument No. received in encrypted
password protected format.
Additional details such as covering schedule and structured acknowledgement are also
printed, if requested by the client.
The digital signatures of the authorized signatories are also printed making the instrument
alteration proof.
Large companies will have a diversified distributors and dealers.
There could be a need to collect funds on a daily basis.
Dealer issues a cheque after receipt of goods.
Realizing the cheque might take 10-15 days (incl transit)
To avoid such delay, companies could insist on blank cheques (duly signed) so that they
could be lodged without loss of time on dispatch of goods.
Some companies insist for DDs to reduce the clearing time because DDs are payable locally.
But company cannot avoid transit time and also it causes inconvenience to dealer in terms
of effort & charges.
The charges levied for CMS consist of two elements viz. service charges and interest for
early credit.
The following factors influence the CMS charges.
Client background
Relationship value
Credit rating of the company
Volume and value of expected transactions
Geographical spread and number of locations
MIS requirement