18575118 cash mgmt in bank of india 3.pdf

8/19/2019 18575118 Cash Mgmt in Bank of India 3.PDF

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A

PROJECT REPORT ON

“CASH MANAGEMENT”IN BANK OF INDIA

SUBMITTED BY

Miss. DIPTI.V.DALVI

M.M.S (SEMESTER II)

Yerala Medical Trust & Research Center’s

Y.M.T COLLEGE OF MANAGEMENT P.G. INSTITUTE

INSTITUTIONAL AREA SECTOR - 4 KHARGHAR,

NAVI MUMBAI - 410210

ACADEMIC YEAR 2007-2008

UNIVERSITY OF MUMBAI


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Acknowledgement

It is my proud privilege to show my gratitude to my project guide who is also the ChiefManager 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.


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DECLARATION

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.

Ms. DIPTI V DALVI


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CERTIFICATE

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

M.M.S (Semester-II) has completed the project report on

“CASH MANAGEMENT BY BANK OF INDIA” in the academic

year 2007-2008. This information submitted is the true and

original.

Project Guide

Mr.Venkatsubramaniyan Mr. B.B.Senapati

Chief Manager AGM

SME Department SME Department Head

Head Office (BKC) Head Office (BKC)


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SR NO TOPIC PAGE NO

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


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100 YEARS OF FULFILLING

DREAMS

Relationships beyond banking


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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


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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


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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

MISSION & VISION

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"


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( R S . C R . )

2 5 4

4 4 7

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

HIGHLIGHTS FOR QUARTER ENDED MARCH 2007

Net Profit increased to Rs.447 crores

from Rs.254 crores for Quarter March 2006,

growth of 76%.

Domestic Net Profit improved to

Rs.364 crores from Rs.215 crores for

Quarter March 2006, growth of 70%.

Operating Profit increased by 42% to

Rs.895 crores from Rs.630 crores for Quarter

March 2006,

BANK’S NEW INITIATIVES

ACQUISITION

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.

2 1 5

3 6 4

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

( R S . C R . )

6 3 0

8 9 5

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

( R S . C R . )


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JOINT VENTURE

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.

BRANCH EXPANSION

Bank opened 63 new branches and converted 41 Extension counters to full-fledged

branches. Total number of domestic outlets is 2845.

INTERNATIONAL OPERATIONS

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

India.

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.

CORPORATE SOCIAL RESPONSIBILITY

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

resolution 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


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in select villages has revealed that there is 20-25% improvement in the household income

after the implementation of the scheme.

BACK OFFICE SERVICES OF BANK

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.

Reorganisation

In order to facilitate quick decision-making and to suit the changing requirements, the

organisational structure has been revamped. More specialised branches like Personal BankingBranches, 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.


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Cash Management


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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.


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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

risk.


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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


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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.


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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.


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CASH MANAGEMENT PROCESS

COLLECTIONS PAYMENTS

Collection of Cheques

Clearing and

Settlement

Funds Transfer to

Concentration A/C

Investment

Management

Reconciliation and

Reporting

Customer payment

Instruction

Debit Customer

Concentration A/C

Internal/External

Funds Transfer

Delivery/Clearing of

instrument


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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 receivethe 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


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Product and services of Nationalized Banks

BANK OF INDIA

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.

Payments

• 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)


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General:

• 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)


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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

Service.

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.PDC Hub

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.


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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

addition.

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.


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CANARA BANK

CORPORATE CASH MANAGEMENT SERVICES (CCMS)

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.

WHAT IS CCMS:

• 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.

WHAT CANARA OFFER:

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

Corporate.


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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.

PRIVATE BANKS

ICICI BANK

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.


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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

payments

• ECS credit facility at all available locations

UTI BANK

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


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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 PrintingPayment 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


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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.

NEFT

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

• NBFCs

• 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.


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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.


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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,

Reliance

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.


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HDFC BANK

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


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• 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

basis.

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

locations.

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")

locations.

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.


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• 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

accurately.

• 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


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each payment through timely reports that can be uploaded seamlessly into their company’s

system.

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.


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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.

Solution:

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 NetworkThe 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.


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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:


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• 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

HSBC BANK

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.


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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

processing.

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

invoices.

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

parameters

• 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.


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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

markets.

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.


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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.


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CITI BANK

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

Payables

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

from:

• 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


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• 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

solution.

• Efficiency. Standardize transaction initiation and reporting options for consistency across

all the corporate locations with Citigroup's advanced technology and local and global

network.

• 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.


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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.

Receivables

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


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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.


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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.


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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

payments.

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 tocustomer 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.


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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.

UTI BANK

• 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.


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18575118 cash mgmt in bank of india 3.pdf

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