1. Cash management is a broad term that refers to the collection, concentration, and disbursement of cash.
2. It encompasses a company’s level of liquidity, its management of cash balance, and its short-term investment strategies
3. The objective of a cash management system is to improve revenue, maximize profits, minimize costs and establish efficient management systems to assist and accelerate growth.
4. In India, the cash management business primarily involves collections and payments services.
5. Products Offered by Banks Under Collections (Paper and Electronic)
6. Products Offered by Banks Under Payments (Paper and Electronic)
7. In a dynamic economy, markets need to play a key role in guiding the development of infrastructure, including mechanisms like payments systems.
8. This means that innovation and competition will be central to the future development of the payments system - as they are in other areas of the economy.
9. Efficient cash management is a must to support an institution’s growth, and therefore, adopting the best cash management practices is necessary.