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Yerala Medical Trust & Research Center’s

NAVI MUMBAI - 410210



It is my proud privilege to show my gratitude to my project guide who is also the Chief
Manager of Bank of India (SME Department) Mr.S.Venkatsubramaniyan for all his valuable
guidance and encouragement that helped me to complete this project successfully and in time.
I sincerely thank from the bottom of my heart Mr. B.B Senapati Assistant General Manager
of SME Department who has given me an opportunity to study Cash Management in his
department. I cannot ignore the help, which I got from Mr.M.V.Gokhale, Relationship
Manager, C&IC Dept Head Office of BOI. Also I thank the entire SME Department Head
Office and other staff members of The Bank of India Head Office, Mumbai for giving me a
bagful of information pertaining to the topic. In addition to the co-operation extended by Mr.
S.Ravindranath DGM, BPR Department. All of them guided and explained me the concepts
of Cash Management in spite of their busy schedule they were always broad-minded in
helping me with valuable tips pertaining to the subject.

The support from the college and department is always crucial in completing the project. As
well as the unparallel support rendered by our beloved faculties.

Ultimately I would thank my friends who supported me and co-operated with me. I have
received a valuable support from them and for that I thank them again.
Yerala Medical Trust & Research Center’s
NAVI MUMBAI - 410210


I, Miss. DIPTI VIJAY DALVI, MMS (Semester-II), hereby

declare that I have completed the project report on “CASH
MANAGEMENT IN BANK OF INDIA ” in the academic year
2007-2008. The information submitted is true and original
to the best of my knowledge.


Yerala Medical Trust & Research Center’s
NAVI MUMBAI - 410210


This is to certify that Miss. DIPTI VIJAY DALVI student of

M.M.S (Semester-II) has completed the project report on
year 2007-2008. This information submitted is the true and

Project Guide

Mr.Venkatsubramaniyan Mr. B.B.Senapati

Chief Manager AGM
SME Department SME Department Head
Head Office (BKC) Head Office (BKC)

1 Bank Profile 1-7

2 Introduction of cash management 8-10

3 Cash Management Services-Indian Scenario 11-12

4 Framework of CMS 13

5 Cash Management Process 14

6 Product and services offered by various banks 15-40

7 Benefits and features of CMS 41-46

8 Conclusions 47-51

9 Bibliography 52

Relationships beyond banking

Bank Of India STAR HOUSE (BKC)

Bank Profile
History of Bank Of India

Bank of India was founded on 7th September 1906 by a group of eminent businessmen from
Mumbai. The Bank was under private ownership and control till July 1969 when it was
nationalized along with 13 other banks.
Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh and 50
employees, the Bank has made a rapid growth over the years and blossomed into a mighty
institution with a strong national presence and sizable international operations. In business
volume, the Bank occupies a premier position among the nationalized banks.
The Bank has 2644 branches in India spread over all states/ union territories including 93
specialized branches. These branches are controlled through 48 Zonal Offices . There are 24
branches/ offices (including three representative offices) abroad.
The Bank came out with its maiden public issue in 1997. Total number of shareholders as on
30/09/2006 is 2,25,704.
While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront
of introducing various innovative services and systems. Business has been conducted with the

successful blend of traditional values and ethics and the most modern infrastructure. The
Bank has been the first among the nationalized banks to establish a fully computerized branch
and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a
Founder Member of SWIFT in India. It pioneered the introduction of the Health Code System
in 1982, for evaluating/ rating its credit portfolio.
The Bank's association with the capital market goes back to 1921 when it entered into an
agreement with the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is an
association that has blossomed into a joint venture with BSE, called the BOI Shareholding
Ltd. to extend depository services to the stock broking community. Bank of India was the first
Indian Bank to open a branch outside the country, at London, in 1946, and also the first to open
a branch in Europe, Paris in 1974.The Bank has sizable presence abroad, with a network of 23
branches (including three representative office)at key banking and financial centers viz.
London, Newyork,Paris,Tokyo,Hong-Kong,and Singapore. The international business accounts
for around 20.10% of Bank's total business.
The Bank has a strong position in financing foreign trade. Over 270 branches provide export
credit. The expertise in this area has enabled the Bank to achieve a leading position in
providing export credit in certain areas like diamond export.
The Bank has identified specialized target groups to develop core advantage for future
growth. The Bank, has specialized branches comprising of Corporate Banking Branches to
undertake very large credit business, Overseas Branches specializing in Foreign Exchange
Business, NRI Branches which specially cater to the requirements of Non-Resident Indians,
Capital Market Branches which undertake all activities relating to capital market such as
collection of applications, processing of refund orders, Merchant Banking etc. Commercial &
Personal Banking Branches cater to the requirements of high net worth customers. Apart
from this, the Bank also has specialized Branches for Asset Recovery, Small Scale Industries,
Hi-tech Agriculture Finance, Lease Finance and Treasury.
To effectively meet the ever-growing challenges and competition, the Bank has made a good
headway in bringing about technological up gradation. MIS and critical functions of
controlling offices have been computerized. At present, the operations at about 2618 branches
are totally computerized. 26 branches operate in partially computerized mode besides these
1019 branches and 31 extension counters are migrated to Core Banking Solution. New
facilities such as, Telebanking, ATM & Signature Retrieval Systems have been introduced in
a progressing manner to add value to services. Telebanking facilities with Fax on Demand

facility, Remote Access Terminals for Corporate Customers are now available at many
branches. The Bank has installed ATMs in Mumbai and other centres in the country. The
Bank is a member of the RBI's VSAT Network and has installed 39 VSATs linking strategic
branches/offices. The Bank is making a paradigm shift from branch automation to bank
automation and is in the process of implementing a Multi-Branch Banking Project, that
facilitates City-wise Connectivity of Computerized Branches. The Bank is in the process of
installing BOINET, a Wide Area Network for providing a inter- and intra-city connectivity,
as a part of enhancing its decision support system.
The Bank's corporate personality and philosophy are fully reflected in the emblem, which is a
five-pronged Star -- a harmonious blend of traditional and the functional. The elongated prong
pointing upwards, conveys the Bank's drive to achieve ascending goals. The Star is a beacon
and guide to those in need of direction


Our Mission
"To provide superior, proactive banking services to niche markets globally, while providing
cost-effective, responsive services to others in our role as a development bank, and in so
doing, meet the requirements of our stakeholders".
Our Vision
"To become the bank of choice for corporate, medium businesses and upmarket retail
customers and to provide cost effective developmental banking for small business,mass
market and rural markets"


(R S . C R .)

Net Profit increased to Rs.447 crores
from Rs.254 crores for Quarter March 2006,
growth of 76%.

Q R . M A R .0 6 Q R . M A R .0 7

( R S . C R .)



Q R . M A R .0 6 Q R . M A R .0 7
Domestic Net Profit improved to
Rs.364 crores from Rs.215 crores for
Quarter March 2006, growth of 70%.

( R S . C R .)

Operating Profit increased by 42% to

Rs.895 crores from Rs.630 crores for Quarter
March 2006,

Q R . M A R .0 6 Q R . M A R .0 7


The Bank has finalised acquiring 76% stake in P T Bank Swadesi Tbk, a listed Bank in
Indonesia and the formalities to take over the management of the said Bank is in final stages.

Bank entered into an arrangement with Dai-Ichi Mutual Life Insurance Company, second
largest Japanese company in the field of Life Insurance (sixth largest in the world) and Union
Bank of India for setting up a Joint Venture Life Insurance Company with capital stake of
51%, 26%, and 23% respectively. Formalities for incorporation of JV Company are in
advanced stage.
Bank opened 63 new branches and converted 41 Extension counters to full-fledged
branches. Total number of domestic outlets is 2845.
With the opening of a branch at Antwerp (Belgium), number of overseas offices stand at
25 spread in 13 countries. Shenzen Representative Office in China was upgraded as a Branch
in March 2007. A new Representative Office was opened in Beijing (China).
Bank has taken over management of Almana Exchange House in Doha Qatar.
Arrangements with Bank Azizi, Kabul in Afghanistan made for money remittance to
Bank is holding approval of Reserve Bank of India for setting up
• Subsidiaries in Tanzania and Canada,
• Branches in DIFC (Dubai) and Dhaka (Bangladesh), and
• Representative Offices in Dubai, Johannesburg (South Africa) and Doha (Qatar).
Bank’s International Operations contribute 20% of Bank’s total Business.


Bank as part of its centenary celebrations promoted a Trust, ‘ABHAY’, to offer credit
counseling services, free of cost, with the following objectives:
Advising on gaining access to structured financial system including banking
Counseling people who are struggling to meet the repayment obligations and helping debt
Helping in rehabilitation of borrowers in distress
Bank has pioneered a Mega Project for Integrated Development of 129 villages in 78
Districts and 17 States covering 60,000 households, identified for holistic development and
showcased as Model Villages. The Bank has so far extended financial assistance over Rs.
150 crores to the rural households in the identified villages. An evaluation study conducted

in select villages has revealed that there is 20-25% improvement in the household income
after the implementation of the scheme.


Delegation of powers
Bank will ensure that authorities at various levels will be empowered with adequate powers
to take prompt decisions with regard to sanctioning of loans and advances, issuance of
guarantees, settlement of claims of deceased depositors, issuance of duplicate demand drafts,
deposit receipts, other claims and administrative matters concerning customer service.

In order to facilitate quick decision-making and to suit the changing requirements, the
organisational structure has been revamped. More specialised branches like Personal Banking
Branches, Corporate Branches, Small Scale Industries Branches, Hitech Agricultural Finance
Branches, Housing Finance Branches, Capital Market Branches, Overseas and NRI Branches
have been opened at important centers.

Transparency and secrecy

Bank will ensure that there would be transparency in all business operations at all stages.
Customers will be educated about the various products and facilities available. A uniform
strategy will always be adopted to eliminate any possibility of discrimination on caste, creed
and religion or economic status of the clients. Secrecy norms will be simultaneously observed
to protect the interests of our customers.

Surveys by outside agencies

All steps will be taken by bank to improve Customer Service and enhance customer
satisfaction. Towards this end, bank services will be got evaluated through outside reputed
marketing agencies with a view to assessing the quality of services extended at the branches
and to ensure that bank customer service match the expectations of bank’s various clientele.

Cash Management

Introduction of Cash Management

Manage your cash flow and liquidity-Effectively and Efficiently

For any organization, cash is the lifeblood that keeps the business going. That
is why, increasingly, Cash Management has been gaining importance with organizations
that view the services as a crucial part of their corporate strategies.

Cash Management is Efficient Management of cash (Outflows/Inflows) to improve liquidity and

returns while implementing adequate control and managing risks.
Cash Management can generally be defined as the efficient utilization of cash through coordinated
management of payments, collections and cash balances. The objectives are to reduce costs, enhance
control and optimize returns as well as reduce the inventory holdings.
Traditionally, cash management involved personalized services offered by the bank's staff to the
company's treasurer via mails, telephone, calls, faxes etc or visits to the bank initiated transactions. But
with the advent of computer technology, cash management services have been automated to a large
extent. Many banks now allow their corporate customers to perform online inquiries and transaction
services (payment, collection and liquidity management) through PC or Internet via a web interface.
With such a system in place, a company can perform most of the cash management functions
themselves without relying on a bank staff to act as the executor of their requests.

Cash Management helps the organization in:
Properly timing the disbursements.
Some payments must be made on a specified or legal date, such as Social Security payments.
For such payments, there is no cash management decision. For other payments, such as
vendor payments, discretion in timing is possible. Government vendors face the same cash
management needs as the Government. They want to accelerate collections. One way vendors
can do this is to offer discount terms for timely payment for goods sold.
Eliminating idle cash balances.
Every Rupee held as cash rather than used to augment revenues or decrease expenditures
represents a lost opportunity. Funds that are not needed to cover expected transactions can be
used to buy back outstanding debt (and cease a flow of funds out of the Treasury for interest
payments) or can be invested to generate a flow of funds into the Treasury’s account.
Minimizing idle cash balances requires accurate information about expected receipts and
likely disbursements.
Ensuring timely deposit of collections.
Having funds in-hand is better than having accounts receivable. The cash is easier to convert
immediately into value or goods. A receivable, an item to be converted in the future, often is
subject to a transaction delay or a depreciation of value. Once funds are due to the
Government, they should be converted to cash-in-hand immediately and deposited in the
Treasury's account as soon as possible.
Monitoring exposure and reducing risks
The Banks have the responsibility to use timely, reliable, and comprehensive financial
information and systems. To that end, banks encourage to improve their cash management
practices by using electronic funds transfer (EFT) whenever cost effective, practicable, and
consistent with statutory authority. So there is a need to monitor the exposure and reduce the

Cash Management Services - Indian Scenario

The need for cash management aroused two decades ago in the mid eighties when the Indian
corporates were facing various problems like the uncertainty as to when funds would be made
available to them, the problem of long transit period between banking cheques and receiving funds,
long period of administrative work in banking cheques and tracking progress and reconciliation
problems regarding uncertainty of inflows and lack of details on each credit to the account.
It is important to review the Indian scenario in this regard. As we are all aware, that the banks’ desire
for funds has lost because of the slowdown. Despite the offer of very soft terms corporates are
refusing to borrow, while bank deposits have been ballooning. Compelled to service the burgeoning
liabilities, but unable to lend hastily and allow their non-performing assets (NPAs) to grow, bankers
are forced to compete for the handful of safe bets among their borrowers. Banks chose to use the
opportunity to refocus their activities, seeking clearly defined identities in terms of services and
customer segments. Most of them concentrated on cleaning up their books by peeling down their
NPAs. All of them are attempting for freezing of costs, improving operational efficiencies, and
boosting productivity. The strategy of the banks, which are performing well, is to use fee-based
services to maintain their earnings growth. With interest rates falling, non-interest income is,
unsurprisingly, the fastest-growing component of the banks’ total income. Fee-based activities will
complement though not substitute the core business of lending. With rising interest rates too,
Corporate and others are not willing to borrow, fee-based services play again an active role in
boosting a Bank’s total income.
It is gratifying to note that a number of banks in India are offering wide-ranging cash management
services to their corporate clients. All the three categories of banks viz., nationalized banks, private
banks, and foreign banks operating in India are active in the cash management segment. SBI, PNB,
Corporation, ICICI Bank, HDFC Bank, Centurion Bank of Punjab and ING Vysya Bank, are some of
the active Indian banks in this segment. Citi Bank, Standard Chartered Bank, ABN Amro Bank, BNP
Paribus, and HSBC are the foreign banks operating in India, which are prominent among the cash
management services providers. Indian banks are offering services like electronic funds transfer
services, provision of cash related MIS reports, cash pooling services, collection services, debit
transfer services, guaranteed credit arrangements, sweep products, tax payment services, receivables
and payables management. Foreign banks operating in India are offering regional and global treasury
management services, liquidity management services, card services, electronic banking services, e-
commerce solutions, account management services, collection management services, cash delivery

management services and investment solutions. Banks realized that if they do not offer the services
required by corporate customers it would result in a net loss of clientele, returns and goodwill. Banks
in India need to continuously monitor international trends in innovations taking place in providing
cash management services and swiftly offer similar services to their corporate clients.
The Reserve Bank of India is taking a number of initiatives, which has facilitated the active
involvement of commercial banks in the sophisticated cash management segment. One of the pre-
requisites is to ensure faster and reliable mobility of funds in a country and to have an efficient
payment system. Considering the importance of a robust payment system to the economy, the RBI
has been taking numerous measures since mid Eighties to strengthen the payments mechanism in the
country. Introduction of computerized settlement of clearing transactions, use of Magnetic Ink
Character Recognition technology, provision of inter-city clearing facilities and high value clearing
facilities, Electronic Clearing Service Scheme , Electronic Funds Transfer scheme, Delivery vs.
Payment for Government securities transactions, setting up of Indian Financial Network are some of
the significant initiatives which highlight the seriousness with which the Reserve Bank has taken up
the reforms in Payment systems. Introduction of a Centralized Funds Management System , Securities
Services System , Real Time Gross Settlement System and Structured Financial Messaging System
are on the top priority items of the agenda to transform the existing systems into a state-of-the-art
payment infrastructure in India by the Reserve Bank. The current vision envisaged for the payment
systems reforms is one, which contemplates linking up of at least all important bank branches with
the domestic payment systems network thereby facilitating cross border connectivity. With the help
of the systems already put in place in India and which are coming into being, both banks and
corporates can exercise effective control over the cash management.

Framework for effective Cash Management Services
Companies seek to achieve synergies by implementing a simplified account structure and through
rationalizing the number of banks used. In advising companies on the optimal account structure, it is
important to bear in mind the nature of company’s funds flows. The aim is to maximize control,
efficiency and returns. Banks need to work with its clients to ensure that arrangements are in place to
assist them in maximizing returns from an otherwise idle fund. Experience of local banking regulations
and market practices can ensure client’s preferred structure. Greater challenges lie in tying together
multiple accounts into a cohesive structure to manage liquidity efficiently, often across numerous time
zones and currencies. To meet the needs of international corporate and institutional clients, banks
should have a wide range of customized products and services. Often companies should maintain
multiple banking relationships for their cash management. Movement of funds between accounts across
banks is generally inefficient, costly and time-consuming. Cash status is not readily available, often
causing unnecessary usage of overdrafts or return of issued checks. Untimely payments can also result
in penalty and other charges. With multiple accounts, account reconciliation is usually difficult to be
kept current, making control virtually impossible. So for effective cash management there is a need for
multiple banking relationships which is often due to the lack of comprehensive service offered by a
bank, the difficulty in accessing particular services of a bank, or the varying degree of efficiency across
services of a bank. Many companies, including medium-sized enterprises, are now implementing
Enterprise Resource Planning (ERP) systems to help manage the accounting process and gain better
control of their cash management. However, what several have found is that while internal processes are
more automated, the number of staff required to support their cash management operations has not
reduced. Without a comprehensive cash management solution from a bank, business finds it difficult to
reach the optimal operational and working capital efficiency level. Corporate treasurers cannot afford
to spend time worrying about routine payments and collections. So banks have to help clients to
successfully handle the large volumes of corporate client payments.
So in today's competitive market place, effectively managing cash flow can make the difference
between success and failure. And so the Banks offer a full range of receivables and payment services
to meet the complex cash management needs. Payments received from their buyers and made to their
suppliers are efficiently processed to optimize their cash flow position and to ensure the effective
management of their business' operating funds. The flow of receivables and payables can also be seen
through the web solution.



Collection of Cheques Customer payment


Clearing and Debit Customer

Settlement Concentration A/C

Funds Transfer to Internal/External

Concentration A/C Funds Transfer

Investment Delivery/Clearing of
Management instrument

Reconciliation and

Cash Management Services
The menu of cash management services offered by banks is indeed diverse and tempting. The
services broadly fall under collection services, disbursement services, information and control
services, services related to electronic data interchange commercial web banking services,
sweep services, fraud detection solutions, global trade solutions and investment solutions.
Collection Services accelerate receipt of payments from sales and quickly turn them into
usable cash in accounts. Disbursement Services make efficient payments by reducing or
eliminating idle balances in company’s accounts. Information and Control Services receive
the data and provide the management capability needed to monitor company cash picture,
control costs, reconcile and audit bank accounts, and reduce exposure to fraud. Financial
Electronic Data Interchange is a computerized exchange of payments between a company’s
business and its customers and vendors. Commercial Web Banking Services give a wide
range of services from any Internet connection, which can help streamline banking process
quickly and efficiently. Sweep Services maintain liquidity and increase earnings without
having to actively monitor accounts and move money in and out of them. Information
reporting solutions assist companies, which need to receive account data that is timely,
precise, and easy to access and interested in initiating online transactions. Investment
solutions help to minimize excess balances and maximize return on available funds.

Product and services offered by Banks

Nationalized Banks Private Banks Foreign Banks

Bank of India ICICI Bank Citi Bank
Corporation Bank HDFC Bank HSBC Bank
Canara Bank UTI Bank Standard Chartered

Product and services of Nationalized Banks

Collection of cheques
• Local Cheques & Upcountry cheques at places where Bank’s branches exist.
• Upcountry cheques at places where Bank’s branches do not exist.
• Instant credit as per arrangement on any day before realization.
• Customized MIS,including outstanding entries at any time.
• Pooling is possible ,including multiple pooling.
• Single point reference for any detail/data.
• Courier Pick-Up from Customer’s Collections.
Post Dated Cheques Collection:
• Post –dated cheques (PDC’s) vaulted, dispatched to drawee center three days in advance collected
on due dates and credited to account on due date or next day.
• Tracking of customer’s invoices with PDC’s possible.
• Auto Reconciliation.
• Unpaid/Returned PDC’s also properly tracked and accounted.
• All other advantages of collections.
• Centralized or Remote printing of payments (Cheques/Pay Orders/DDs/IWs/DWs/Ros-with
facsimile signatures)
• Printing of Cheques on continuous stationery.
• Interface with RTGS/NEFT/ECS.(Linkage to e-modes)
Correspondent Banking
• Issue of DDs by branches*of Correspondent Bank.
• Funding before issue/upon payment.
• Auto Reconciliation.
(* On places where Bank’s CBS branches situate or even places where Bank’s branches not
suitable-thro similar correspondent /courier arrangement)

• Customized MIS of data in whichever way desired.
• Interface between Finacle and CMS Software.

Corporation Bank
Banks has been always aiming to create values for its customers. Looking beyond traditional banking,
the Bank introduced an array of other products and services to different customer segments. Cash
Management Services is one such solution offered by the Bank to the Corporate customers. Every
organization has receivables to collect from its dealers/ depots/ customers. Every revenue collected by
the organization gets paid in one form or the other. Collection And Payment Services (CAPS)
provides customized solutions to corporates' needs in liquidity management.
Fast Collection Service
Fast Collection Service (FCS) is the premier product of the Bank under CAPS range of products. FCS
envisages elimination of one leg of movement of cheques from drawer to beneficiary’s place and
travel back to speed up the process. The corporates can access the collections effected at 301
LOCATIONS (OPERATING CENTRES) across the country covered under the arrangement within
24 to 48 hours at a location of corporate’s choice.
Corp Clear Services [ CCS ]
CCS ensures quick collection of outstation cheques. The product enables assured credit on pre-
determined day of corporate’s choice, in respect of upcountry cheques deposited with specialized
CAPS branches irrespective of the day of realization. The need-based product range under this
segment includes
Corp Clear Services - 8th* Day
Corp Express Services - 4th * Day
Corp Instant Services - Next Day

(* for cheques drawn on locations where CorpBank has branches)

Corp Collect Service [ CCT]
Corporates apprehensive of cheque realisations may use their Corp Collect Service that operates on
“Realise and Pay” basis. The Service is extended for both within and outside network locations. All
the benefits of other corp. clear services do come along with Corp Collect Service.
Corp Comfort Services
Waiting unduly and without certainty as to realization of outstation cheques would hamper the
business cycles. With an assured credit on 8th day in respect of outstation cheques falling outside
network, CorpComfort Service proves an effective blend of CorpClear Service and CorpInstant
Corp Remit Services
CorpRemit Service meets the corporates’ wholesale payment requirements such as statutory payments,
payments to vendors/suppliers, banking requirements, inter branch transfers etc., Corporates need just to
hand over the payout instructions file along with funding cheque to CAPS branch. Further Servicing
will be taken over by the CAPS outfit. One of the salient features of CorpRemit is that corporates get
confirmation on payout effected. Remittances can also be sent through RTGS to over 25000 bank
branches across the country.
Corp Pay Services
Corp Pay Service facilitates corporates’ to make retail payments very effectively. Some of the
payouts that can be very effectively and conveniently handled includes disbursal of incentives, equity
and debt servicing to the satisfaction of investors, salary and wages payouts etc. All that corporates
need to do is to furnish the payout details in magnetic media/mail and the funding therefor. Rest is
only client satisfaction. Value added service such as dispatch of payout instrument to beneficiary is
also made available. All these are available at a very competitive price exclusively for corporates.
Payment Processing Centre
Continuing the initiatives in re-engineering the Cash Management Process, Payment Processing
Centre was set up to replicate the success achieved in collections in payments too. At PPC,
capabilities are built to print exceptionally large number of Demand Drafts with advise. Value added
service such as dispatch of payout instruments to beneficiaries is being undertaken.
Considering the huge market available and market demand for collection of PDC cheques, PDC Hub
was setup exclusively for handling bulk PDC cheques received from Finance Companies, Banks etc
towards repayments loans extended by them.

CorpNet - an Internet banking facility
Symbolizing the commitment to deliver value added services to clients using CAPS with continuous
improvements year after year, the Bank has made the use of the state of the art technology.

CorpNet an internet banking facility is now available to all corporates using CAPS for their cash
management needs. CorpNet optimizes the efficiency of corporates cash management.

CorpNet provides for a host of advantages to corporates using CAPS. Convenience, information on
line, data modulation, cash inflow forecast, outstanding position of instruments sent for collection are
some of these distinct advantages coming without any extra cost. A very high level of security
features are incorporated to afford greater degree of client comfort using this technology driven value
Correspondent Banking Arrangement
Corporation Bank has developed structured products exclusively to the agency services requirements
of clients of correspondent banks under the umbrella of Correspondent Banking Arrangements. The
product can be used by top rated corporate houses within the country for effecting cash disbursal
across country.
Speed Remittance :
Under this arrangement, the NRIs can send remittances through exchange houses across globe. The
exchange houses send the details to our Nodal branch (PPC Branch) at Bangalore who in turn credit
the same to the beneficiaries accounts maintained in any of our branches. In case the beneficiary
account is not held in our Bank, a pay order can be issued at the destination, which can be collected
by the beneficiary.
Payment Gateway :
The Division, with futuristic view in mind where web trade is taking shape gradually in India
especially amongst urban population, has decided to offer payment gateway solutions to corporate
having its own trading sites on Internet. The product envisages providing buyers having account with
our Bank an opportunity to pay for the purchases made on the net. Through this product our corporate
customer will get wider base for selling their products
ECS payments / Collections:
The product envisages large volume, low value bulk collections and payments from various accounts at
select ECS locations. The same can be handled through select specialized CAPS branches.



The speedier Corporates are, its easier for them to address the challenges of globalization.
Corporate Cash Management Services (CCMS), an innovative service offered by Canara
Bank for speedy collection of cheques and other instruments, places Corporates on a faster-
track. In more ways than one-such as definite funds flow, better cash management and
deployment of funds, better monitoring of funds flow, optimum allocation of funds and
effective planning of investment functions.
• An innovative service specifically tailored to meet the requirements of
Corporates/Business houses/Partnership firms.
• Speedy collection of outstation cheques and other instruments.
• Pooling of funds at designated centers.
• More importantly, providing funds to the Corporates as per their need.
• Customized MIS reports.
Under CCMS they offer the state of the art technology products.
• SUPERFAST SERVICE - Local cheque collection services
• FASTRACK SERVICE - Upcountry cheque collection services
• BULK COLLECTION SERVICE - Bulk cheques collection services
Under 'SUPERFAST SERVICE', agents or offices of Corporates can deposit the cheques to
be cleared in the local clearing and funds will be pooled at any pooling branch designated by
the Corporates.
Under 'FASTRACK SERVICE', agents or offices of Corporate can deposit the cheques
drawn on outstation centers and proceeds will be pooled at any pooling branch designated by

Under 'BULK COLLECTION SERVICE', agents or offices of Corporate can deposit their
bulk (large number) instruments of small value to be cleared in the local clearing and funds
will be pooled at any pooling branch designated by the Corporate.


Collection Products
Local Cheque Collections
• One of the largest network spanning over 488 locations.
• Courier pick-up can be provided.
• Process flow can be structured to suit the company’s requirements.
Upcountry Cheque Collections
• Coverage of over 3919 locations with tie-ups with correspondent banks
• Capability to process cheques drawn on any location in India.
• Assured credit given with funds pooled at any ICICI Bank location. Instrument level tracking of
instruments to ensure faster realization.
Cash Collections
• Cash Collection from dealers and business associates on behalf of companies.
• Cash pick-up facility in 28 locations.
• Customized MIS for cash collection.
Payment Products
Anywhere Banking
• Cheques issued payable at par at various ICICI Bank locations .
• Single account to be operated at any ICICI Bank branch for this facility.
• Ideal for small value, large volume payments.
Fund Transfers
• Online transfer of funds between accounts maintained with any branch of ICICI Bank.

Issue of Bulk Demand Drafts/ Pay orders
• Capability to issue Bulk Demand Drafts/Pay Orders on various ICICI Bank and correspondent
bank locations
• Capability to accept online requests from the customers
• Capability to print beneficiary advice and despatch
• Remote printing facility
• Simple process with a low turnaround time and delivery .
Cheque Writing
• Cheques can be issued on behalf of companies
• Capability of processing large volumes of cheques in a short turnaround time
• Capability of printing facsimile signatures
• Capability to print beneficiary advice and despatch
• Ideal for bulk payments such as pension payments, gratuity payments.
At Par Payments
• Services can be availed for the ‘at par’ payment of dividend warrants /interest warrants/ refund
order/redemption payments/brokerage payments
• Simplified and streamlined procedures ensuring smooth process flow Online validation of
instruments before payment ? Regular reconciliation statements provided by the bank
• Covering over 100 major locations through own network (90%of the payments) Arrangement
with correspondent banks thereby covering over 200 locations through instruments based
• ECS credit facility at all available locations

Power Pay
The Power Pay products are designed to take maximum benefit of the Anywhere Banking through
their large network of branches with centralized database.
UTI Bank not only provides a clearing platform to process your payments but also have taken a step
ahead by enabling you to outsource your cheque writing and other time-consuming and routine manual
payment processes. The Centralized Payment system, connecting our entire branch network, is capable

to process any type of payment - physical instrument (with or without facsimile signature) as well as
electronic payment, bulk DD payment to vendors, salary payment or dividend/ interest payments of
large corporate houses.
.At Par Payment
They issue At Par payable cheque book to their Current Account customers. Par facility enables the
customer to maintain only one Account and issue cheques that would be payable at any UTI Bank
location as a local cheque. Further each cheque, if needed, can be validated against an issue file
before clearing the instrument to avoid fraudulent payment.
Dividend/Interest Payment
They also undertake Bulk dividend and interest payment of corporate houses through an At Par
facility. A central account,is maintained by the customers. The Bank, needs to be funded and they
would ensure that the dividend/interest warrant presented at any UTI Bank location is cleared under
respective local clearing. A validation process ensure that each warrant matches with the issue file
before it is cleared and thereby avoids fraudulent payment.
Power Remote-Remote DD Printing
To cater to the Corporate need for issuing bulk demand draft (DD) at various locations, they also
offer our remote printing services where in the corporate fund a central account and the bank would
print the DD at different UTI Bank locations and arrange for the dispatch of the same. Validation
against the issue file keeps a check on fraudulent payment.
Power Cheque-Customer Cheque Printing
Payment by Cheque still remains a popular payment method but involves time-consuming and
laborious manual processes. Payments outsourcing to UTI’s Bank would enable the customer
(corporate) to get the cheqeus and the cover note printed as per the payment file with the facsimile
signatures of the authorized signatories of their company. The cheques can be printed centrally
various remote locations as per your requirement.
Electronic Clearing Service (ECS Credit)
ECS Credit is an electronic clearing system that facilitates paperless transaction through an offline
system. UTI Bank facilitates ECS Credit at 46 locations. They accept the electronic file and then
arrange it to be uploaded at the RBI site for clearing. The funds gets debited from a centralized
account and a detailed MIS about the transactions is provided to the customer.
Electronic Fund Transfer
EFT is an expeditious system of funds transfer across around 13000 branches of designated EFT bank
at various locations. The bank offers this facility at all designated EFT Centres that are activated by

the clearinghouses. Further, the bank has recently launched the EFT under Internet Banking known as
"Power Transfer" which facilitates execution of fund transfer from anywhere through Internet.

To establish an Electronic Funds Transfer System to facilitate an efficient, secure, economical,
reliable and expeditious system of funds transfer and clearing in the banking sector throughout India.
The customer willing to avail the NEFT facility offered by the bank shall submit an "NEFT
Application Form" authorizing the sending bank to debit the sender's account and transfer funds to the
beneficiary specified in the NEFT Application Form. The Beneficiary's account will be credited on
the same day by crediting the specified account of the beneficiary or otherwise placing funds at the
disposal of the beneficiary.

Collection Solutions :
Power Collect
UTI’S Power Collect products are designed and developed to meet all of customers Collection needs
Cheques, Cash and Electronic Transfer. Whether the corporate customer do business locally or
throughout India, the bank can provide them with innovative, integrated cash management solutions
customized to their specific needs.
UTI Bank's Cash Management Services is based on an extremely robust technology capable to cater
to collection or payment requirements of:
• Large Corporate
• Small and Medium Segment
• Banks
• Mutual Funds
• Financial Intermediaries.

Power Speed-Local Cheque Collection

UTI Bank Locations:
With their large network of branches, they are able to collect Customers locally payable cheques
across the country. Their branches are equipped to handle large volume of instruments and ensure that
the funds are pooled as per the agreed timelines even before the same are realized.

Non UTI’s Bank Locations
Currently they have Correspondent Banking arrangement with multiple Banks to use their branch
network. They have also appointed their Co-coordinators at various locations to facilitate the
Customers cheque pick-ups and ensure that they are immediately processed in the local clearing
through a Correspondent Bank.
Power Reach-Upcountry Cheque Collection :
UTI Bank Locations
Their wide network of Branches ensures that most of Customers outstation Cheques would be
covered within UTI Bank network. This would result in faster realization of funds. Further, funds can
be pooled into the customers account even before the instruments are realized as per the arrangement.
Non UTI Bank Location
To further extend their offering to process customers Outstation Cheques at Non UTI Bank
locations, they have also tied up with other banks to act as their Correspondent Bank and ensure that
all of the customers Outstation Cheques are collected and immediately presented for clearing.
Remote Locations
There could be a possibility wherein the location where the outstation cheque is drawn on is not
covered under UTI’s extended network with correspondent banks. We still can offer you to collect
the same and send it directly to the Drawee location for realization.
Post Dated Cheque Collection
The Bank handles complete life cycle of the Post Dated Cheques till they are realized. All the
activities like maintaining PDC inventories, retrieval and depositing the cheque for payment, re-
presentation of a bounced cheque and exception handling (stop payment etc.) are conducted by the
Bank on behalf of its customers.
Bulk Collections - Utility Bills or PDC’s Management
UTI Bank, offer solutions to meet Bulk Collection Requirements i.e., Post Dated Cheques (PDC’s),
Bulk Collections through Cheque clearing or ECS debit services, etc. The Bank processes collections
in a convenient and efficient way to avoid any reconciliation issues. They have required
infrastructure, technology and capability to manage and handle PDC’s through our dedicated team
that manages inventory of Cheques and timely presentation of the same, well supported with MIS
ensuring maximum benefits to your organization.

Utility Bill Collection :
UTI bank offers ease & convenience to its customers and utility subscribers in their bill payment by
facilitating bill payments via online & offline modes for various utility service providers.
The various popular channels offered by Bank for bill payment are:
Online Mode:
Electronic Clearing Services (ECS) Collection through Internet and ATM for common customers
Collection through Bill payment Kiosks
Offline Mode:
Drop boxes at branches of UTI Bank/ Departmental Stores/Mobile Galleries, Onsite and Offsite
ATM’s.Pick-up from customer service centers and other authorized outlets.
Presently the bank has tied up with utility service providers like MTNL, BPL Mobile, AIRTEL,
Energy, Mahanagar Gas, and others in the pipeline.
The UTI bank's extensive network & prominently placed ATMs provide reach and access for
customers to pay their bills. Bill payment service from UTI bank has a robust and proven technology
to ensure reliability, security and performance and is aptly supported by a dedicated desk for efficient
functioning and customer service.
IPO Collections/Rights issue
Our wide network of Branches facilitates IPO collection across the country. Thus all the activities like
Collecting the Application Forms and the Instrument, Processing the Instruments, Pooling the funds
to the designated Account and Consolidated Report/MIS generation form part of our end to end
solution for IPO Collection.
ECS Debit
ECS Debit is an electronic clearing system that facilitates paperless debit transaction. UTI Bank
facilitates ECS Debit on all the locations that are activated by the respective local clearing houses.
They also accept the electronic file centrally for all the locations and arrange to upload it at the RBI
site. The realized funds gets pooled to a centralized account.

Payment Services
HDFC Bank can structure a number of Payment products to suit the corporates needs.
Payable at par chequebook
This product enable the corporate to issue local cheques at all HDFC Bank branch locations
through one chequebook thereby eliminating the hassles of obtaining demand drafts or
opening current account at each location.

At par facility for statutory payments

HDFC Bank branch locations - cover over 80% of shareholders / beneficiaries for most of
their clients. Hence reconciliation, query resolution and pricing are superior.
In order to provide adequate coverage, HDFC Bank also provides 100 locations of their
correspondent bank. However, there is sustained reduction in dependence on correspondent
bank due to continuously increasing branch network.
The maximum limit on warrant can be mutually agreed upon - substantially reducing draft
costs and efforts. It also has Ability to meet the customer’s requirement of large number of
drafts in a short time at very competitive rates.
An At Par chequebook is provided on branch locations, after revalidation thereby eliminating
the need for Demand Drafts on branch locations.
Pay Quick
• This product caters to the customers requirement of large volume of Demand Drafts/Pay orders
at over 1617 HDFC Bank and correspondent bank locations.
• It provides the Option to forward data in soft copy form (floppy) in a secure environment.
• It gives Easy data transferability from the Corporate office to HDFC Bank.
• Multiple payment instructions through one file.
• Upload option for bulk issuance resulting in quick and error free delivery.
• Payment instrument to include payment details.
• Facility to mail to beneficiary directly. Also the committed courier turn around time
enables you to make payments as close as possible to the payment date - resulting in
additional cost savings.
• Various value added MIS

• One Stop dedicated Service Desk at our Centralized Cash Management Operations Unit
for prompt attention to your queries
• Extensive coverage - over 500 locations.
• Status of DD - paid / unpaid - can be provided on HDFC Bank location on a case-to-case
Collection services
HDFC Bank’s Collection services are aimed at ensuring quick realization of local and
outstation cheques and providing the funds in a central collection account. This enables the
corporate to manage their funds flow position most effectively from a central location. This
service can be availed with/without a current account with HDFC Bank.
Local cheque collection
This product provides quick realization of local cheques deposited at the same location. This
product is available at all locations of HDFC Bank ("SPEED") and over 292 locations of their
correspondent Bank ("RAPID").
Outstation Cheque Collections
This product enables the customer to deposit outstation cheques drawn on any HDFC Bank
location at any HDFC Bank location ("SPRINT"). Similarly, cheques drawn on over 928
locations of their correspondent bank ("EXPRESS") can be deposited at any HDFC Bank
Transfer Cheque Collection
This product provides quick realization of local/outstation cheques drawn on any branch of
HDFC Bank Ltd. This product is available at all locations of HDFC Bank ("HDFCTRF")
Clean Collections
• Cheques drawn on any locations, which are not covered, by HDFC Bank or their
correspondent bank are also collected at any of their locations and proceeds credited to
Customers account as soon as credit is received by HDFC Bank.
HDFC Bank's comprehensive MIS includes:

• 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 cheques return statement.
• Customized reports as per mutual agreement.

Foreign Banks

Standard Chartered
Standard Chartered is highly recognized as a leading cash management supplier across the
emerging markets. Their Cash Management Services cover local and cross border Payments,
Collections, Information Management, Account Services and Liquidity Management for both
corporate and institutional customers.
With Standard Chartered's Cash Management services, the corporate will always know their
exact financial position. The corporates have the flexibility to manage their company's
complete financial position directly from the computer workstation. The corporates will also
be able to take advantage of the banks outstanding range of Payments, Collections, Liquidity
and Investment Services and receive comprehensive reports detailing their transactions. With
Standard Chartered, the corporates have everything it takes to manage their cash flow more
• Payments Services
• Collections Services
• Liquidity Management
Comprehensive Payments Solution
Standard Chartered’s Payment Solutions can help to reduce the companies overall processing
costs – for domestic and global payments – saving the time and money while providing a
value-added service to their suppliers. The Banks comprehensive payment services will be
tailored to enhance the Customers accounts payable process. This will eliminate many
manual tasks involved in making payments, allowing the corporate and their staff to spend
more time focusing on their core business needs.
The Bank understand that most of the corporates effort in the payment cycle is directed
towards initiation; difficulties in the subsequent reconciliation process can jeopardize the
whole process. With Straight2Bank Channels the customer can now track the exact status of

each payment through timely reports that can be uploaded seamlessly into their company’s
The Bank offers a full range of payment capabilities including:
Cross Border payments
• Telegraphic Transfers
• International Bank Cheques/ Drafts
Domestic payments
• Local Bank Cheques/ Drafts/ Cashiers Order
• Corporate Cheque
• Direct Credits - ACH/GIRO/Credit vouchers
• Local Bank Transfers (RTGS)
• Book Transfers (Account transfer between Standard Chartered branches)
• Payroll

Payments System Integration

Straight2Bank channels cater to different levels of customer payment sophistication,
including simple online transaction via Internet, bulk file payment via Internet or lease line,
and the ability to send industry standard messages directly to the bank. Their in-country
specialists are available to help customize a solution that would enable the corporate to
manage their working capital in a more efficient manner.

Collections Services
Comprehensive receivables management solution
Standard Chartered understands that operating and sustaining a profitable business these days
is extremely tough. In an environment of constant changes and uncertainties, most businesses
face challenges of costs and efficiency. Key concerns include:
• Receivables Management - ensuring receivables are collected in an efficient and timely
manner to optimize utilization of funds.
• Risk Management - ensuring effective management of debtors to eliminate risk of
returns and losses caused by defaulters and delayed payments.
• Inventory Management - ensuring efficient and quick turnaround of inventory to
maximize returns.
• Cost Management - reducing interest costs through optimal utilization of funds.

The Standard Chartered Collections Solution leverages the Bank's extensive regional
knowledge and widespread branch network across their key markets to specially tailor
solutions for the customers regional and local collection needs.
This Collections Solution, delivered through a standardized international platform, has the
flexibility to cater to the customers local needs, thus enabling them to meet their objectives of
reducing costs and increasing efficiency and profitability through better receivables and risk
management. The key components of the banks solution include the following:
• Extensive Clearing Network
• Guaranteed Credit
• Comprehensive MIS
• System Integration
• Outsourcing of Collection

Extensive Clearing Network

The Banks extensive branch network, complemented by their correspondent banks' network,
provides the customers with a wide coverage of clearing locations to ensure they get the
benefit of early availability of funds. This is further enhanced by the customer’s cheque
purchase and guaranteed credit services.

Guaranteed Credit
To help the corporate manage their cash inflow from their accounts receivable more
efficiently, Standard Chartered can arrange for guaranteed (subject to prior agreement) credit
to their account for cheque collections. The customers local and foreign currency cheques
will be credited to their account on a fixed date even if the Bank is not in receipt of the funds
from the clearing house or correspondent bank.

Comprehensive MIS
The Bank understand the importance of timely and accurate information regarding accounts
receivable to help the corporate effectively manage their receivables and debtors, and
minimize losses caused by delayed receipts and defaults. The Corporate can also better
manage their buyers' requirements and improve their inventory management.
Based on the customers choice of Straight2Bank channels, multiple, detailed reports are
delivered to them via email, fax, Straight2Bannk Access (Host-To-Host channel) or
Straight2Bank Web(Internet Banking Channel).
These reports are tailored to the customers needs and provide details such as invoice number,
drawer name, customer reference number, debtor code, special narration, remarks and any
other information the customer have requested for. Here are some of the comprehensive
reports the Standard Chartered solution provides the customer with:
• Activity Reports e.g. information on collections activity for the period
• Deposit Réconciliation Reports e.g. deposit confirmation
• Return and Reversals Report e.g. information on cheques returned
• Drawer Summary Report e.g. information on drawers
The Standard Chartered collection platform can be integrated with the corporates accounts
receivable system to enable auto reconciliation for their accounts receivable. They also get
fully reconciled receivables files with invoice details and amounts matched against receipts.
In addition, Straight2Bank Web (Internet Banking Channel) can also be used as an electronic
channel to transmit collection information such as DDI (direct debit initiation) files or invoice
number (Account Receivable) details to the Bank. We also provide the option of transmission
of files and MIS through Straight2Bannk Access (Host-To-Host channel).

Outsourcing of Collections
Standard Chartered supports the corporates complete collection cycle. These services cover:

• Courier pick-up service, which is available for cheques from the Corporates office,
dealers' and distributors' offices, from PO Boxes etc.
• Clearing of instruments whether local or foreign currency through the clearing houses,
directly by Standard Chartered or through their correspondent bank network.
• Electronic collection services through the ACH.
• Data capture of information.
• Reconciliation activities.

Types of Collections
The Bank provide collection services for:
• Local currency cheques
• Foreign currency cheques
• Lock box services – Retail and Wholesale
• Direct Debits
• Credit Card Collections
• Inward Telegraphic Transfers

Transactional Banking
HSBC has a range of transaction banking solutions for the corporates domestic or
international business. HSBC’s products and services will help corporate with their everyday
banking needs as they understand the importance of sound financial management.
Integrated Receivables Solutions
The Bank understands the importance of converting receivables into cash. HSBC delivers
sophisticated solutions that leverage their investment in technology, regional presence and
local knowledge.
Direct Debit
This service is ideal for businesses who want to receive on time payments from regular
debtors. By lodging a direct debit file with HSBC, their Corporate accounts are debited and
the customer account bulk credited. This way the corporate receive the money on time and
their customers enjoy an easier way of making payments.

What does it offer?
• On time payment from debtors (subject to availability of funds)
• Supply of date when funds are available. Debits can be for variable amounts or frequency
to align with billing requirements
• Reduced paperwork and preparation time
Wholesale Lockbox
This service, through HSBCnet, allows the corporate to outsource the processing of cheque
receipts. It's ideal for businesses with a large volume of cheques collected through the mail.
These cheques go to a designated post office locked bag and delivered to the bank for
What does it offer?
• Cheques are processed by the lockbox centre and deposited into the customers account
on the same day.
• Ability to view colour images of processed cheques and invoice items
• Ability to search for specific items or customers and generate reports via HSBCnet
• Reconciliation of Corporates Wholesale Lockbox transactions against their outstanding
Receivables Management System
This service, through HSBCnet, is an automated reconciliation and information management
module, which fully integrates the collections and processing services.
What does it offer?
• Consolidation of receivables information across electronic and paper collections
• Automation of accounts receivable reconciliation using corporates pre-defined matching
• Delivery of consolidated and summary reporting (online and data file) structured to meet
their specific needs
• Online transaction enquiry capabilities
• Can integrate with the corporates enterprise resource planning (ERP), accounting or
treasury systems.
Integrated Payment Solutions
As HSBC, understand that effective control of the corporate accounts payable process is
important to optimize their working capital management. Explore the full suite of accounts
payable services that meet the corporate domestic and international payment needs.

Direct Credit Payments
HSBC provides them with a great solution for regular purchases or payments such as
accounts payable and payroll and dividends.
What does it offer?
• Delivery of multiple payments in a single instruction
• Integration of corporates office system with electronic banking platform to reduce errors
and simplify reconciliation
• HSBC’s Payments Advising service through HSBCnet, notifies beneficiaries when they
have processed the corporates payment instructions

Priority Payments
HSBC offers this service for high value same day payments. Priority payments can be:
• International (Telegraphic Transfers)
• Domestic (Real Time Gross Settlement RTGS)
What does it offer?
• Use of our payment instruction templates to save time and reduce errors
• Delivery of payment instructions in a variety of currencies using HSBC in most offshore
Payment Advising
What does it offer?
• Customised, information-rich advices.
• Multiple invoice advising to deliver payment consolidation.
• Real-time advice issuance to multiple parties.
• Data delivered to your beneficiaries for easy receivables reconciliation
• Advice can delivered via email, fax or mail.

Account Management Solutions

They have a range of account and transaction services that will create practical and cost-
effective solutions for the corporates and their business. Manage the cash flow, eliminate idle
balances and enhance operational efficiency with the services below.

International Cash Management Account
This competitive interest account is ideal for international transactions, particularly for large
surplus local and foreign currency deposits.
What does it offer?
• High return for balances exceeding $AUD250,000
• The ability to conduct international transactions in foreign currency
• Regular statements for transaction reconciliation
• Funds available at call
• International electronic access through HSBCnet

Term Deposits
A Term Deposit account is perfect for when a company wants to maximise it's return of
surplus funds. With a Term Deposit account the money is locked in for a fixed term1 and
therefore, the corporate should only invest money that will not be required for that period of
time. Please note that there is an AUD5,000 minimum to invest.
What does it offer?
• A choice of terms and attractive interest rates
• Availability in major foreign currencies
• Guaranteed income stream

Business Cheque Account

This attractive interest-bearing account can meet all the customers daily banking needs, while
providing them with the flexibility of easy access and control.
What does it offer?
• Attractive interest rates
• Convenient cheque book access, customisable cheques and deposit books
• Competitive transaction and account keeping fees
• Easy to read transaction statements
• HSBCnet for easy access and control.

If the Corporates are looking to streamline their business processes to realize greater
operational efficiencies and to manage their company's working capital more effectively,
Citigroup has the solutions.
The banks Cash Management products include:
• Web-enabled payment and receivables solutions
• Vendor financing
• Commercial card solutions
Citi bank ACH
Citigroup has been providing high-quality Automated Clearing House (ACH) Payment and
Receivables Solutions to their clients for over two decades. They offer a full range of
solutions that include the collection of consumer payments via the telephone, Internet or
check-to-ACH conversion, as well as payments to employees and vendors.
ACH can streamline the customer’s payments and receivables processes for:
• Consumer-initiated bill payments and pre-authorized debits
• Direct deposit of payroll, pension payments and T&E reimbursements
• Vendor payments
• Mortgage and tax payments
• Dividend payments
• And a growing number of other ACH-facilitated applications

The use of ACH to make payments to employees and vendors, will benefit the company
• Cost savings
• Improved account reconciliation
• Resource re-deployment

By using ACH to receive payments from customers, the company will benefit from:
• Timely collection and cash flow
• Reduced processing costs

• Improved customer satisfaction

Citibank® Funds Transfer

Citibank® Funds Transfers is the ideal tool to remit payments that need same-day execution
and settlement, such as investments, treasury payments, foreign exchange settlements and
third-party settlements. The company gain same-day movement of funds and immediate
availability, with payments processed by our Funds Transfer Network, then executed via
CHIPS, FedWire or Book-to-Book transfer.
Citibank® Integrated Payments Service
The corporate can operate all over the world, making payments of all types—which can be
complex and time-consuming. The bank provide greater efficiency and control with a single
solution that meets the customers global and local payment needs.
Citibank® Integrated Payments Service offers information management and consistency
across all the customers locations and processes—from pricing and transacting through
reporting, customer service and billing.
It is basically designed for organizations looking to improve efficiency through
standardization, automation and centralization of their payment operations, Citibank
Integrated Payments Service provides:
• Cost savings. Minimize the costs by streamlining payment processes, outsourcing non-
core payment activities, and standardizing reporting.
• Convenience. Meet regional and country-specific payment requirements with a single
• Efficiency. Standardize transaction initiation and reporting options for consistency across
all the corporate locations with Citigroup's advanced technology and local and global
• Flexibility. Choose from a range of payment options, including funds transfers and cross
border checks. The corporate can also indicate specific payment needs for particular
regions and countries.
• Versatility. The bank also facilitate electronic and paper transactions in more than 100
currencies with a comprehensive package of payment products and services that are
tailored to the way the corporate do business.

World Link® Payment Services
For over 20 years, the WorldLink solution has been successfully enabling their clients to
issue payments in more than 135 currencies, right from their offices via a single window—
without having to maintain local currency accounts. WorldLink Payment Services is a
complete global transaction solution that makes cross-border payments simple and secure.

Citibank® Customer Initiated Payments enables the company to offer their customers Web
and telephone payment capabilities, integrated with optional online bill presentment.
Citi Banks integrated solution enables the company to offer their customers:
• An Internet payment application, hosted on the Citibank Customer Initiated Payments
system and branded to appear consistent with the companies own Web site, that provides
one-time or automated recurring payment initiation
• A touch-tone telephone (IVR) payment application for one-time payment initiation
• A customer service console to enable payment initiation by an operator
The system can provide the customers summary invoice information such as the amount due,
due date or other pertinent information based on data that the company provide.
Alternatively, the bank can present the companies invoice electronically on the Citibank
Customer Initiated Payments Web site, with integrated payment capabilities. The system’s
flexibility gives the choice to include bill presentment and payment, or payment only.
Payments can be made using ACH debits, credit cards, or debit cards. The company can
choose which access channels (Web, IVR, or voice telephone) methods and payment methods
they wish to offer. Full remittance detail is provided to company daily and can be combined
with remittance data from other Citigroup receivables streams, including our Lockbox or
Electronic Receivables Services.

Citibank® Electronic Check Deposit (ECD)

The U.S. Check Clearing for the 21st Century Act ("Check 21") gives the reprint of a scanned
check legal equivalence to the original paper check. That opens up opportunities for the
Corporates to enjoy more efficient, more cost-effective check deposits.
Electronic Check Deposit (ECD) service is the most effective way for the corporate to take
full advantage of Check 21. With ECD, the corporate can scan checks in their own office, and

then electronically transmit the images to Citigroup—eliminating the hassle of overnight
paper checks to the U.S. or physically preparing them and delivering them to the bank.

Liquidity and investments

To help the corporate optimize return on excess operating balances and minimize time spent
on execution, Citigroup offers an array of integrated investment options through multiple
channels. Investment transactions may be completely automated or actively initiated through
our desks and online investment options.
The investment options the corporate select will depend upon their organization’s operating
footprint and currencies—as well as on the company’s investment strategy and objectives in
terms of risk, return, convenience and timing.
A key offering within Citigroup’s Global Liquidity and Investments product suite, Notional
Pooling is ideal for corporations with decentralized operational structures that want to
preserve the autonomy of their subsidiaries and accounts.
Pool participant accounts in a single currency are aggregated for interest compensation
purposes. Funds are not physically moved, but are instead notionally combined. There is no
commingling of funds, and the integrity of the individual account position is maintained. Net
excess pool positions both in the U.S. and offshore may be fully invested using one of their
Automated Investments solutions.
Direct Debit
Citigroup offers two services that can enable the corporate to offer automated direct debits to
their customers as a convenient payment method. An automated direct debit program can
reduce their transaction costs, improve accounting efficiency, and accelerate their receivables
cash flows.
Citibank Direct Debit Services
Citibank® Direct Debit Services meets the needs of clients who manage their direct debit
program in house. They can collect authorizations and bank account information from their
customers, and subsequently send instructions to Citigroup to debit their customers' accounts
via ACH, in order to settle their outstanding obligations.

Benefits & Features of cash management services

Cash Management services are availed benefits to all from the manufacturer, retailer,
logistics to the supplier as well as global customer. The following are the benefits
provided by various banks.

Nationalized Banks
Corporation Bank has been always aiming to create values for its customers. Looking beyond
traditional banking, the Bank introduced an array of other products and services to different customer
segments. Cash Management Services is one such solution offered by the Bank to the Corporate
customers. Every organization has receivables to collect from its dealers/ depots/ customers. Every
revenue collected by the organization gets paid in one form or the other. Collection And Payment
Services (CAPS) provides customized solutions to corporates' needs in liquidity management.
The PRODUCT RANGE under the umbrella of CAPS, provide one point solution to corporates cash
management requirements in the area of receivables and payables management of the corporates.
The essence of CAPS is Speed, Accuracy, and Efficiency. Features of CAPS, - evolved in response to
corporates' needs - aim at providing significant TANGIBLE BENEFITS to corporates.
Collection And Payment Services are offered and managed by specialized exclusive Special Business
Units in the form of CAPS BRANCHES, Payment Processing Centre and FCS HUB using the state of
the art technology.

CAPS - Benefits to Corporates
CAPS ensures not just unlocking of funds in transit, it enhances liquidity in the Corporate’s system
and enables effective funds management. All these at a very attractive cost structure reducing the
burden on the corporate.
Detailed MIS along with payouts and customized MIS of corporate needs in soft form either through
Mail, floppy, CD ROM and through Internet eliminates all the hassles of reconciliation and enables
onward integration into corporate system.
Value addition such as courier pick up from clients’ desks enables operational convenience
Collection of service charges at monthly rests as opposed to check to check charges deduction
provides the operational comfort and reconciliation ease.

Unique payment products under CAPS makes payable processing very simple with tremendous
comforts in the areas of dispatch of payout instruments, tracking, paid/unpaid status, confirmation on
payouts etc.

Benefits and features of cash management services in private banks

ICICI Bank is a leading player in the field of Cash Management Services (CMS) market.
Their Cash Management Service is technology driven with a versatile software, hardware and
network support. Customized daily transaction reports and web-enabled reports are offered
regularly to their clients.
CMS solutions are designed to be company-specific allowing a corporate to efficiently
manage its treasury. Cash management products covers both.
Collections and payments.
ICICI Bank's Cash Management Services also helps the customer to make optimum use of
their working capital, leveraging the float between faster collections and just-in-time
Their vast network across the length and breadth of the country uses superior technology
based solutions to deliver speedy& efficient payments. Their solution is to customize to
customer needs.
So the customer can leave the burden of bulk demand drafts and pay orders, dividend and
interest warrants, fund transfers, cheque writing and more to ICICI Bank. They will also get
customized daily transaction reports and online reports for complete MIS.

At Par Payments – IsafePay

In this the customers can Make payments through dividend warrants, interest warrants, refund
orders, redemption warrants, etc. These warrants are payable at par at the centres/locations
selected by them. The customer can avail of this service through over 300 ICICI Bank
locations and 200 correspondent bank locations. They also get monthly reconciliation
statement showing the account status and unpaid list of warrants on a monthly basis.I-
SafePay offers them a complete solution for executing their payments.
Through different modes including Warrants, Demand Drafts / PO, ECS, Direct Credit, Swift
Remittances and Foreign DD.

• Extensive Network
UTI Bank has its own branches in various locations. Above this their arrangement with
reputed correspondent banks covering more than 900 locations ensures that most of the
customers cheques are covered under their network and the realization status can be known at
the earliest.
• Lower Interest Costs & Improved Liquidity
A dedicated HUB ensures that the customers receive funds in their designated account within
transit time thereby reducing interest costs and improving their liquidity position.
• Centralized Service Desk
A dedicated service desk has been started at their Centralized Collection and Payment HUB
to ensure that the customers queries are resolved quickly and efficiently. The Customers can
contact CCPH regarding any query about the MIS or the process flow.
• Web CMS
Web CMS provides the customers with all the information at a click. Detailed MIS like
location wise collection and return, product-wise pooling, pooling in pipeline (due credit
report) etc. can be viewed and downloaded from web interface through Internet.

• Comprehensive MIS
The bank provides comprehensive MIS reports like daily report, transaction report future
credits reports and cheque returned unpaid report. On the payments side they provide daily
paid - unpaid status for the demand drafts, cheques or warrants issued by the Organisation.

• Payment Solutions
UTI Bank brings to the customer Payment Solutions. Save on effort, time and worry. Plus,
their Electronic Clearing Services help serve customer even better.
• Collection Solutions
With the UTI Bank's collection service, the firms can collect regular and recurring payments
from their customers more efficiently. The centralized CMS solution allows in getting
quicker access to the company funds with matching MIS/reports through emails/web
solution. These deposits are directly credited to a designated account, regardless of where
they are made.

Benefits to Corporates
If the organisation is multi-locational, managing outstation funds collections and payments
can often be time consuming and expensive. Delays of days or even weeks in realizing
outstation cheques, constant tracking and follow-up to transfer funds from outstation
collection accounts, uncertainty and delays regarding information on the fate of cheques etc.,
are common.
At HDFC Bank they offer a comprehensive range of Collections and Payments solutions
under their Cash Management Services (CMS) umbrella to meet Corporate needs and put
them in control of their cash position.
HDFC Bank's Cash Management Services will enable the customer:
• Lower Interest Costs
Their collection services enable the customer to receive funds in their main (concentration)
account with the bank with a minimum transit time thereby reducing interest costs.
• Improve Liquidity
Saving on transit time enables the customer to realize cheques and use funds earlier and
therefore gives them enhanced liquidity.
• Better Accounting and Reconciliation’s
Detailed information on cheques deposited are made available on a daily / weekly
basis/periodically thus simplifying accounting, reconciliation and query resolution. HDFC
Bank also provide customized MIS as per the customers requirements

• Achieve Overall Operational Convenience
HDFC Bank's Collection Services enable the customers to derive convenience in banking
operations thereby facilitating management of cash positions through a central treasury. Also,
the same may be used for improved control over different business segments. The advantages
of their Collection products can also be availed without opening a Current Account with
HDFC Bank.
• Interconnectivity:
Experience real-time online banking on E-Net with your CMS account. E Net is an Internet
based software, which allows you to view current a/c balances, download statements, view
CMS collections, effect payments / receive payments online, plus a host of other activities
• Centralized Service Desk:
HDFC Bank provides a dedicated service desk to ensure that the queries are resolved quickly
and efficiently.

Foreign banks
Based on the corporates needs and the regulatory environment that they are in, they can
choose any of the following features:
• Physical Sweeping
• Notional Pooling
• Interest Reallocation
• Investment

Physical Sweeping
Subject to regulatory considerations, Standard Chartered offers both domestic and cross-
border physical sweeps. To maximize yield on corporate daily cash, these solutions help them
concentrate all surplus balances and deficit balances at a pre-defined period into one
concentration account. Under a physical sweep structure, balances in multiple accounts are
physically transferred from participating accounts to a designated concentration account.
Main Features:
• Multiple-layer sweep;
• Standing instruction;
• 1-way Sweep; 2-Way Sweep;

• Zero-balancing Sweep; Target Balancing Sweep;
• Debit Sweep; Credit Sweep;
• Sweep with Back Value transactions;
• Comprehensive MIS reporting.

Notional Pooling
If regulatory considerations permit, the corporate can utilize Standard Chartered's Notional
Pooling to help maximize yield on their daily cash by offsetting accounts with deficit
balances against accounts with surplus balances in different entities. They also enjoy all the
benefits and features of Physical Sweep, except that under Notional Pooling, there is no daily
physical movement of balances from the participating entities to the designated cash
concentration account.

Interest Reallocation
Standard Chartered provides corporates with a flexible Interest Reallocation Programme
whereby the interest component can be reallocated back to the participating entities from the
designated cash concentration account based on their instruction. They also get a detailed
report, tracking the daily cash balance from each entity and the interest computation based on
the interest reallocation formula that they have defined.

To help corporate maximize their surplus balances, they make use of Standard Chartered's
overnight investment instruments. With this, they can instruct excess balances to be invested
to yield a return that is based on the overnight market driven rate. Alternatively, for longer-
term core balances, they have a choice of investing in short term 'AAA'credit rated Money
Market funds.

Conclusions regarding cash management services
In today’s competitive world the key differentiator between a successful bank and other bank
is the stress each lays on technology.

Infrastructure PSU Private MNC

Network High High High

Technology High High High

Corporate High High High


Scalability Low High High

Marketing Low High High

Service High High


The above chart gives a clear explanation regarding the Cash Management infrastructure
provided by all the three sectors. The network, technology and the corporate relationship
services provided by all the three sectors are highly sophisticated and good but the scalability,
marketing provided by the Public sector is low in terms of the Private and MNC sector. As
well as the services provided by the public sector is not fairly good and up to the standard.

As Cash management is constantly changing to meet the needs of the corporate treasurer. The
challenge for both corporation and provider is to keep up with developments, technology,
changing regulations and fitting these in with normal business. A changing regulatory
environment, new technology and mergers that expand the scope of traditional banking are
redefining the traditional treasury management paradigm for both banks and corporations.
Electronic commerce is evolving far beyond simply ordering goods online or buyer-to-
supplier commerce.
In a vast country like India Providing Cash Management Services do posses a challenge to
the Cash Manager as well as the banks. Considering the present Indian scenario, where
Cheques are the basic form of payment and cheque clearing takes a long time, cash
management services need to devise innovative methods and means to expedite the clearing
to benefit the corporate customer. As the Indian economy becoming an open market
economy, residents may maintain accounts in other countries and non-residents may hold
accounts in India. As a result, Indian treasurers may often find themselves managing cash
across geographies and time zones. In India the transaction types run from the classic paper
cheque to the latest Internet initiated electronic payment. Corporations initiate and receive
paper-based transactions, as well as high value and low value electronic transactions on a
daily basis. Expectations from new services may not eliminate or fully replace the older
traditional services. Change will be gradual but, probably, it will be firm. Fee structures for
cash management services in India vary from bank to bank and also from customer to
customer. Many banks price the services based upon the overall relationship, especially for
multiple product solutions. As Indian banks become more consultative and total solution-
oriented rather than product-driven, pricing will become even more customized. Corporate
treasurers will consider the amount they can save on banking fees and the level of efficiency
in their departments as a sequel to the new cash management services. After they have
negotiated the best possible price, treasurers then focus on the return on excess balances.
They are no longer content to leave large balances in return for no fees charged. Treasurers
will look for true partnership with banks to build systems that will take them into future.

SWOT Analysis of Competition in the CMS Market

Product PSU Private MNC

Available Available Available

Available Available Available

Cash Not
Available Available Available

Available Available Available

Available Available Available

Payment Not Available Available

outsourcing Available

The above Chart gives the explanation of the SWOT analysis and the competition in the
cash management services in the market. It tells about the products offered and the
services it provides.

Importance of Cash Management for a Corporate Entity
There is a need to put in place a specialized cash management system by Corporates. Good
Cash Management is a conscious process of knowing when, where, and how a company’s
cash needs will occur; knowing what the best sources for meeting additional cash needs; and
being prepared to meet these needs when they occur by keeping good relationships with
bankers and other creditors. Cash management results in significant savings in time decrease
in interest costs, less paper work and greater accounting accuracy. Proper cash management
creates more control over time and funds; provides timely access to information; enables easy
employee related payments; supports electronic payments; produces faster electronic
reconciliation; allows for detection of bookkeeping errors; reduces the number of cheques
issued and earns interest income or reduces interest expense. Corporations with subsidiaries
worldwide can pool everything internationally so that the company can offset the debts with
the surplus monies from various subsidiaries. The end result will transform treasury function
as a profit-centre by optimizing cash and put it to good use. Creative and pro-active cash
management solutions can contribute dramatically to a company’s profitability and to its
competitive edge. The ultimate purpose of proper management of liquidity, needless to
emphasize, is to improve the overall productivity of funds.

How Corporate Select a Bank for Sourcing Cash Management Services?

Probably, it is important to consider what the companies expect from their bankers in this
regard. It is normally the client-bank relationship, which is a main consideration in choosing
a bank for cash management. Pricing, obviously, is a very dominant factor. Making a choice
between the local banks and the more highly priced foreign banks usually depends on how
cost savings are presented by the banks. Multinational corporate with complex treasury
operations admire their respective banks’ expertise and ability to offer creative solutions.
There are some common requirements related to basic cash management systems. Flexibility,
reliability, security and stability have been cited as vital parameters for any electronic
banking system. The systems should be tailored to provide pertinent reports and the ability to
upgrade easily in future. The technology should allow real-time cash management with
strategic banking partners. It should integrate easily with legal framework in place. It should
lower operating costs and resolve disputes quickly by providing secure and legally
enforceable audit trails. It should be capable of reducing risk of fraud in electronic funds
transfers and other treasury activities. It should also be able to use a low-cost public network
infrastructure like Internet, which eliminates the need for dedicated leased lines.

For instance, availability of requisite bandwidth for Internet connection is still a problem
faced by various financial institutions. With a highly technology savvy there are several
exciting new opportunities for both user and provider in the cash management arena. Cash
management worldwide is constantly evolving to meet the needs of the corporate treasurer,
take advantage of new technology and support customers as they move into new markets.
The challenge for both company and service provider is to keep up with developments in
technology and changing regulations and espouse them to their normal business. The key to
success will be active partnerships between corporations and their providers as no one will be
able to keep up with all developments on their own.
Because of the mounting importance of fee-based financial services, all banks need to fine-
tune their strategies, if they want to harness the potential in this area. They need to appreciate
the dynamics of the new fee-based market, which is driven by the growth of the Internet and
inter-connect applications.
But it won’t be easy for all banks to capture their share and profit of the swiftly expanding
fee-based market. Taking advantage of the opportunities and avoiding the threats of
unprofitable products, insufficient customer service, and diverse IT applications entails an
understanding of the market place, the needs and expectations of the customer and of course
the competition. It is an important point to note that offering fee-based services is no longer a
choice today to the beleaguered banker. It is a desirable compulsion to thrive. Managing cash
in the emerging milieu will require a new mind-set of banker and his client.
With a comprehensive cash management solution, companies are able to compete with low
operating and administrative costs, with more focus on better control of their cash flow and
efficient use of working capital .The right solution can even enhance the relationships with
customers and suppliers by helping them to be more efficient and reducing non-productive
activities .It is therefore important to select a cash management bank that offers a complete
and proven solution to deliver the results the customers expect to achieve.


Bank of India Cash Management Training Programme Notes