de-Risk

de-Risk

CASH
MANAGEMENT
SERVICES
 Components of CMS de-Risk
de-Risk

Cash Management
Services

Collection or Payment or
Receivables Mgt Payables Mgt
 de-Risk
Cash Management Services de-Risk

 Process of optimizing receivables & payables

 Ensure predictability in cash flows
 Quick transfers, quick realisation of cheques, easy
disbursements
 Account reconciliation, controlled processes and
customized MIS
CMS eliminates the inherent delays of a traditional funds
transfer mechanism, enhancing liquidity and ensuring
optimum planning and utilization of funds at a price.
 Target customers de-Risk
de-Risk

 Manufacturing and trading companies

 Financial institutions
 Mutual funds
 Non-Banking Financial Companies
 government institutions etc.

 having a wide reach in terms of operations,

branches, locations, franchisees etc.,
 with customers distributed over the geographical
spread of India,
 have a major portion of their sales in domestic
market as against exports,
 Have annual sales over Rs.100 crores
 de-Risk
de-Risk

CMS Products
Partner Bank
Local
Prime Bank
Collections
Partner Bank
Outstation
Prime Bank

DDs/POs
Cheque Writing
Partner Bank
Disbursements Prime Bank
Remote POs
Debt processing
 MIS de-Risk
de-Risk

 Statement of Account
 Daily Presentations
 Daily Credits/Returns
 Credit Forecast
 Instrument Status Report
 Drawer Analysis
 Ageing analysis
 Charge Statement

Daily/Weekly/Monthly Reports through e-mail or Internet

Client Acquisition Process de-Risk
de-Risk

Customer Call Get the required line limit

approval from Product
Head (in case of Auto
Understand Lines) / Risk
requirements
Send the completed
Collect the document set to CMS
information CPU
required for pricing Send start up instructions
to the customer
Obtain the pricing once the setup is
approval from confirmed by Operations
product manager
Send the required deposit
Send the Offer slips to the customer
Letter to the client

Make some post delivery

Collect calls to ensure timely
Documentation execution of pickups/MIS
from the Client etc.
Pricing CMS Offer de-Risk
de-Risk

Pricing is a function of :
Float enjoyed or passed on as compared to
present arrangement by client
Express fees payable
Indirect benefits getting customers’
customers
Is CMS facing extinction because of
RTGS/NEFT?
 Prompt Pay Prompt Pay Plus
Bulk DDs on Bulk DDs on de-Risk
de-Risk
Quick Cheque Prime locations partner bank
Bulk Cheque locations
Priniting

Insta Pay
Remote Payout Disbursement PO on Prime Bank
PO / DD issuance Location, applicable
at Prime Bank Products only at Mumbai
Branches.

Expro Pay
Customised Instrument Auto Pay
Printing especially Auto Pay Plus Automated Fund
designed for High Automated Fund Transfers Transfers to
Value Customers. to partner Prime locations
bank locations
Debt Products de-Risk
de-Risk

1. Dividend Servicing
2. Interest Payment
3. Redemptions
4. Refund Payment
 de-Risk
Interest & Dividend Warrants de-Risk

 Interest or Dividend warrants and refund orders

are issued by companies with a prior funding
arrangement with a bank.
 The company funds an account with the bank with
a sum equal to at least the total value of the
interest warrants proposed to be issued
 Instruments drawn on that particular bank are
payable at par in selected branches of the bank as
also the branches of the correspondent bank at
various centers across the country
 Now mostly handled through ECS
Companies Act Guidelines de-Risk
de-Risk

 Dividend:
 Interim Dividend: Account to be funded within 5 days of
Board Meeting and paid within 30 days
 Final Dividend: Account to be funded within 5 days of
the AGM and paid within 30 days
 Account to be renamed Unpaid dividend account on
expiry of 7 days after 30 days ie 37th day.
 Account to be open for 7 years and any unpaid
dividend at the end of 7 years to be transferred to the
Investor Protection Fund. This applies to all payments-
interest, IPO refund, redemptions, except dividend
payments of Mutual Funds.
 MIS de-Risk
de-Risk

 Paid/Unpaid status on demand

 Periodical Reconciliation during the validity period
 Final Reconciliation of the entire deal at the end of
the validity period
 Submission of paid warrants
 Stop Payment/ Duplicate Issuance