"Marketing Ofbaroda Cash Management Services by Neelam Nivedita

Baroda CASH MANAGEMENT SERVICES
A Report on
MARKETING OF BARODA CASH MANAGEMENT SERVICES
Under the guidance of
Mr. R.L.GUTTIKAR
ASSISTANT GENERAL MANAGER Bank of Baroda
Submitted by NIVEDITA.D.NEELAM N.L.Dalmia Institute of Management Studies and Research Mira Road (E), Mumbai-401104
N.L.Dalmia institute of Studies and Research.
Certificate
This is to certify that Miss Nivedita.D.Neelam, student of N. L. Dalmia Institute of Management Studies and Research has successfully completed her summer training under my guidance in the Wholesale Banking Department, at Bank of Baroda, Corporate Office, Mumbai. The duration of the summer project entitled Marketing of BARODA CASH MANAGEMENT was two months, from 27th April 2009 to 4th July 2009. I have gone through the report and certify that it has been prepared to my satisfaction.
Project Guide
_______________ Mr. Guttikar Assistant General Manager Bank of Baroda
Acknowledgement
N.L.Dalmia institute of Studies and Research. 2
Working on the Project with the Bank of Baroda has been a wonderful experience over a period of the last two months. It was a great privilege working with the Bank and getting a first hand knowledge of some of the functions performed by them. I am grateful to Mr. Sarkar General Manager (Wholesale Banking) for allowing me to work on this project. I am extremely thankful to Mr. Mukul Ranjan Chief Manager (CMS) for his encouragement and guidance throughout the project. I acknowledge with special thanks the help of my project guide Mr. Guttikar for his valuable guidance and assisting me in completion of the project. I also thank him for sharing lots of his knowledge and ideas, which were useful for my project. I am thankful to all the officials of Bank of Baroda, especially who were forthcoming and enthusiastic to answer all my queries and explain the working of their department. I would like to take this opportunity to thank them for their kind cooperation and patience.
Nivedita.D.Neelam N. L. Dalmia Institute of Management Studies and Research
Sr.No .
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TABLE OF CONTENTS
EXECUTIVE SUMMARY COUNTING ON FEES THE MAHARAJAS BANK THE ULTIMATE WAY TO BE THE MARKET LEADER:TECHNOLOGY INTRODUCTION CASH MANAGEMENT SERVICES SERVICES OFFERED BY BCMS CASH@WILL PILOT RUN PROJECT MEETING WITH CLIENTS SERVICES OFFERED BY CORPORATION BANK ICICI STANDARD CHARTERED HDFC PNB SUMMARY OF PECULIAR SERVICES OFFERED EFFORTS TOWARDS INTERNAL MARKETING EXTERNAL MARKETING: CUSTOMIZATION IS THE KEY RECOMMENDATIONS CONCLUSION BIBLIOGRAPHY
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EXECUTIVE SUMMARY
N.L.Dalmia institute of Studies and Research. 4
Corporations, the world over are jettisoning antiquated cash management practices and opting to put in place sophisticated cash management structures to garner the associated economic benefits and due to reasons of expediency. Conversely, banks have taken note of the enormous revenue potential in the fee-based services segment to prop up their sagging bottom lines. The fundamental objective of cash management is optimization of liquidity through an improved flow of funds. In todays highly competitive environment, where time is considered as money, deployment of staff to render basic routine tasks does not make economic sense. As a sequel, cash management today is not what it used to be. Electronic banking, which began as a passive desktop access to bank balances, is emerging into complex processes of liquidity management through numerous techniques. Almost all of the corporations in advanced countries are now planning to use the services of banks to help them collect payments on monthly bills they issue to consumers and other types of cash management services. Commercial banks in the Western countries realised the tremendous potential in providing cash management services to vastly improve their profitability. It is apposite to review the Indian scenario in this regard. Banks desire for funds has lost under the onslaught of the current 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 attempted freezing of costs, improving operational efficiencies, and boosting productivity. The strategy of the banks, which performed well, is to use fee-based services to maintain earnings growth. With interest rates falling, non-interest income was, unsurprisingly, the fastestgrowing component of the banks total income. Fee-based activities will complement though not substitute the core business of lending.
Baroda CASH MANAGEMENT SERVICES In the process, the aim of the PSBs should not be that of just breaking even and surviving the competition but taking bold steps towards trying to be the MARKET LEADERS of the Indian Banking System.
COUNTING ON THE FEES!

Deregulation and new technology have eroded banks comparative advantages and made it easier for non-bank competitors to enter into hitherto exclusive banks domains. In response, banks have shifted their sales mix toward non-interest income by selling non-bank feebased financial services by charging explicit fees for services. The fall in treasury income, due to volatility in interest rates, is the reason pushing banks towards fee-based income. MOST banks have seen a rise in fee-based income, as interest income continues to be under pressure and profits from trading keep declining. Marketing products like mutual funds and insurance policies, offering credit cards to suit different categories of customers and services such as wealth management and equity trading, are proving to be more profitable for banks than plain vanilla lending and borrowing.
Statistical Overview
In fee-based income (other income), private sector banks continue to outperform PSU banks. A comparison between 10 private sector banks operating in the country and 26 PSU banks shows that private sector banks performed better in terms of fee-based income to total income ratio during 2006-07. In the case of private sector banks, fee-based income to total income ratio at the aggregate level showed a marginal decrease during 200607, against that of 2005-06. In case of PSU banks, fee-based income to total income ratio also showed a decrease but significant. And the ratio was higher in magnitude in private sector banks compared to PSU banks during both the time period. Adjusted for this, PSBs show a growth in other income, though not as robust as that of private banks, whose fees from the retail business remained very strong. The aggregate total income of 10 private sector banks have increased by 51.7% from Rs 33,871 crore in 2005-06, to Rs 51,375 crore in 200607.
Baroda CASH MANAGEMENT SERVICES Their total fee-based income has increased by 41.7% during the study period, lowering the fee based income to total income ratio from 20.0% in 2005-06 to 18.7% in 2006-07. State-run banks, in contrast, appeared less concerned about fee-based income. State-run Banks achieved a 18.2% growth in total income during 200607, and the fee based income has decreased by 4.9% to Rs 19,601 crore during 2006-07, from Rs 20,604 crore during 2005-06. And the fee-based income to total income ratio decreased significantly from 13.96% in 2005-06 to 11.24% in 2006-07. Significant increase in the ratio was seen in the case of Bank of Maharashtra. The fee based income to total income ratio of Bank of Maharashtra increased from 2.07% in 2005-06 to 8.87% in 2006-07. In Indian Bank, the ratio increased significantly from 12.10% in 2005-06 to 14.61% in 2006-07. Largest PSU bank, SBI registered a significant decrease of 22.4% in fee-based income whereas largest private sector bank namely ICICI Bank showed 41.8% increase in fee-based income. Among private sector banks, Bank Of Rajasthan showed significant improvement in the ratio. The fee based income to total income ratio rose from 9.21% in 2005-06 to 14.06% in 2006-07. Similarly, in the case of DCB, the ratio improved from 16.62% to 21.05% in 2006-07. One interesting thing is that, all private banks showed a rise in feebased income during 2006-07, while only 46% of PSU Banks showed an increase in the fee-based income during the same period. Banks want such services to be their primary profit source for certain reasons. This revenue is more stable over time, assures a steady income and more importantly, leads to a strong relationship with the corporate client.
The Maharajas Bank

It all started with a visionary Maharaja Sayajirao Gaekwads uncanny foresight into the future of trade and enterprising in his country. On 20th July 1908, under the Companies Act of 1897, and with a paid up capital of Rs 10 Lacs started the legend that has now translated into a strong, trustworthy financial body, THE BANK OF BARODA. It has been a long and eventful journey of almost a century across 25 countries. Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai is a saga of vision, enterprise, financial prudence and corporate governance. It is a story scripted in corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent of Bank of Baroda to the formidable heights of corporate glory.
Mission statement
To be a top ranking National Bank of International Standards
committed to augmenting stake holders' value through concern, care and competence.
Marketing Initiatives
The mid-eighties marked the beginning of the shift to a buyers` market. The Bank orchestrated its business strategies around the centrality of the customer. It diversified into areas of merchant banking, housing finance, credit cards and mutual funds. A string of segment specific branches entrenched operations in the profitable markets. Overseas operations were revamped and structural changes intensified in the territories to cater to second generation NRIs. Slowly but surely, the move to become a one stop financial supermarket had been set in motion. Service delivery standards were stipulated. Technology was adopted to add punch. Employees across the board were inculcated with the marketing concept. Aggressive marketing became the new business philosophy.
Digital Initiatives
Bank of Baroda pioneered the shift from manual operating systems to a computerized work environment. Starting with ledgers, to ledger posting machines, through ALPMs, the Bank graduated to the use of UNIX based systems to Mainframes, to client server based Total Branch Mechanization Systems. Today, the Bank has 1918 computerized branches, covering 70% of its network and 91.64% of its business. Alive to the growing complexities of an intensely competitive marketplace and the mounting expectations of customers fuelled by this competition, the Bank reworked its distribution strategy. It ventured beyond the brick and mortar delivery channel into ATMs and the OmniBOB range of anytime, anywhere electronic channels of PC banking, telephone banking. The e-banking products used state of the art technologies like digital certificates, smart card authentication and secure networking. The new IT strategy, in the process of implementation will see the deployment of Core Banking Systems, Multi Service Transaction Switch, Payment Gateways - all geared to deliver convenience banking.
The Future
Revolutionary and discontinuous changes in the operating environment are a stark reminder that business success is 'impermanent'. The emergence of IT as a major driver for change, has accentuated the need to initiate a major transformation program. The conversion to an IT savvy, market driven bank will be a prerequisite to survival and growth. A major and strategic step in hi-tech, was the establishment of the Integrated Treasury branch, as a forerunner to full-fledged global treasury operations. Towards creating a future Bank of Baroda, the Bank has adopted a revolutionary new business strategy that will be enabled by a revolutionary new IT strategy. This strategy will position Bank of Baroda as India's uncontested premier bank. At Bank of Baroda, change is a journey. It has a beginning. There will be no end. It will be a long and difficult march. And the Bank will emerge stronger, more resilient and positioned to become India's first bank of truly global standards. The relocation to the imposing Baroda Corporate Centre is a true reflection of the Bank's resolve to move ahead of the times. It will not be out of place now, as it stands on the threshold of a digital era, to echo the same sentiments that guided the
Baroda CASH MANAGEMENT SERVICES Bank in its platinum jubilee year -'a promising future is the sequel to a glorious past'.
The ultimate way to be a Market LeaderTECHNOLOGY

In India, till the eighties, the banks operated in a protected environment characterized by administered interest rates, high levels of pre-emption in the form of reserve requirements and directed credit. Financial and Banking sector reforms were initiated in India in 1991 against the backdrop of challenges faced by the Indian banks from within and outside the banking system in the country as well as forces of globalization operating worldwide. The accent of the reform process was to improve productivity and efficiency of the financial system and to provide a highly competitive environment. In the present scenario of banking industry, competition among the banks is very severe. The banks have been trying to find new avenues not only to retain the present customer strength but also attracting new customers by offering hassle-free services. In the process, strategies of certain banks, especially Public Sector Banks, are aiming to divide customers into different segments on the basis of the type of service they would like to render and also trying to segregate their servicing counters in their respective branches to enable customer to have easy access to a particular transaction. On the other side, Foreign Banks and old and new Private Sector Banks in India, have progressed well in the areas of technology up-gradation in operations, extending the business hours, introduction of new products and services like "Any Where Banking", "Any Time Money", "Electronic Fund Transfer", "Electronic Clearing", "Tele-Banking", etc.. These new tools enabled them to improve the quality of service and introduce Value Added Products. For technology to drive the competitive advantage in a sustainable fashion, banks need to have clearly defined strategic goals and translate them into appropriate IT goals. To support the IT goals, banks would need to invest in building architectures, infrastructure, processes, IT organizations and governance frameworks. This means, N.L.Dalmia institute of Studies and Research. 10
Baroda CASH MANAGEMENT SERVICES Ensuring business benefits expected from IT are clearly identified Having governance structures in place including Policies and procedures around data quality, metadata management, disaster recovery, business continuity planning et al. Ensuring governance has enterprise-wide coverage Ensuring core transactional applications are in place Having a plan and solution in place for Infrastructure management, and Finally, Having a clearly defined IT organization with appropriate skill sets
Banking leaders of tomorrow would focus on establishing the following technology foundations to deliver the business benefits: 1. Flexible and scalable IT organizations to support organic and inorganic growth options. 2. An architectural framework to enable flexibility in anticipation of customer needs to aid banks in gaining market share and increasing profitability from a more demanding customer base 3. Technology Infrastructure to support multiple delivery channels Enabling increasing distribution capabilities while reducing costs, 4. Ensuring security to protect reputation and operational risks, and 5. IT systems to support effective management of risk The Reserve Bank continued to function as a business facilitator for developing new products and services by banks. Some of the systems developed by the Reserve Bank for use by banks are NDS, RTGS, CFMS and SFMS over the INFINET. The RTGS system has stabilized and the use of the facility for transfer of funds, especially for large value and for systemically important purposes, has been on the rise. The number of members using the
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Baroda CASH MANAGEMENT SERVICES system has gone up to 110 with nearly 25,000 bank branches offering RTGS based fund transfers to their customers. Over the past few years, the banking sector has witnessed a large increase in the use of IT based delivery channels and internet banking activity. Some of the new facilities provided include: Funds transfer options to cover third party customer accounts within the same bank; Funds transfer across banks; Utility bill payments and other regular periodical payment facilities; and Integration with 3rd parties for transactions such as for booking of tickets for Rail and air.
Mobile banking is another activity, which is gaining ground. Many customer-friendly facilities from short messaging service (SMS) alerts to action based on mobile instructions are being incorporated. These technological advances could have far reaching implications for the financial sector. As per the recent RBI report, the public sector banks incurred an expenditure of Rs.10,676 crore on computerization and development of communication networks between September 1999 and March 2006. It also mentions that more than 95% branches of public sector banks at end-March 2006 were fully or partially computerized. Out of 27 public sector banks, branches of as many as 10 public sector banks were 100% computerized, while branches of another 12 banks were more than 50% computerized. Branches of only five PSBs were less than 50% computerized.
Technology Readiness Dimensions

How ready is technology in Indian banks to support the strategic goal of the Enterprises? When trying to analyze the readiness of the Indian Banks to adopt technology. They are: 1. Infrastructure & Data This dimension examines some critical issues with regard to size of enterprise data, volume of historical and
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Baroda CASH MANAGEMENT SERVICES future growth, factors driving this growth and models used by banks for vendor management. 2. Organizational structure & IT spend This dimension examines IT organization structure, team size, degree of centralization in IT decision making, IT budgets and distribution amongst various budget heads. 3. Governance & Architecture This dimension examines various questions such as what are the types of governance frameworks within a bank, whether they have been defined clearly, which team is responsible for maintaining data accuracy and what is the degree of centralization maintained by the banks. 4. Applications This dimension examines different applications present in the bank and their coverage focusing specifically on degree of coverage under core banking applications. Going forward it also examines presence of business intelligence platforms within banks and regulatory compliance.
DIMENSION 1: Infrastructure and Data

IT Infrastructure today is the back-bone of the banking industry. It is becoming extremely critical with the growing business pressures of managing explosive data volume and transaction growth along-with high uptime needs. The core banking infrastructure for a bank typically consists of business application software, systems software, delivery channels, hardware, networks, security, office equipment, communication systems, storage, power back-up, helpdesks and contact centres, and various other evolving elements. In the Indian context, banks appear to have skipped out on the mainframe-driven trend of computing, owing to a dearth of skilled resources, costs, and being a comparatively late adopter of technology. The technology adoption by the Indian banking industry has assumed a big-bang approach. This has resulted in the replacement of disparate systems to the state-of the-art core banking solutions and appropriate infrastructure to go along with it.
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DIMENSION 2: Organization Structure and IT Spend

IT spend has been growing in the banking sector but at the same time there has been identification of areas of cost improvement in the noncore areas through outsourcing. The IT Organization structure in private sector banks has a major chunk of Business Analyst / Domain Experts which is not the case in the public sector banks. This is a trend which will catch up at an aggregate level as well with the growing importance of understanding business within the IT department. The private sector has been early adopters of Outsourcing for support and maintenance operations which reflects in the vast difference in the number of people hired by the Public Sector in Support and Maintenance as compared to the private sector. Also, due to higher number of legacy systems in the public sector banks; there exists a greater number of support and maintenance staff.
DIMENSION 3: Governance & Architecture

In context of technology readiness, this dimension would cover policies and processes that provide the framework within which IT organization functions in the organization. Governance and architecture in a bank have been viewed under different perspectives such as existence of policies and procedures to support governance initiatives, responsibility for data quality, degree of centralization of governance initiatives and coverage of business under IT governance framework These perspectives establish maturity of policies and frameworks to support a sustainable technology strategy. Amongst plans and policies, business continuity plan, disaster recovery plan, data security, IT infrastructure management and IT development standards and procedures were more clearly defined than ownership of master data and enterprise architecture framework. This indicates the fact that, within governance and architecture, Indian banks have covered ground on hygiene factors of setting the foundations and going forward would need to focus on issues such as master data, data quality and metadata frameworks for supporting systems which would fuel business insights. Furthermore, with regard to data quality, all the banks surveyed agreed that business units would have the responsibility for maintaining quality of data. Some of the banks had cross functional special teams for defining, implementing and monitoring data quality systems and processes.
Data quality frameworks
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DIMENSION 4: Applications
In the backdrop of a rapidly growing Indian economy and international dynamics, banks would be under pressure on two fronts: 1. from regulatory compliance requirements 2. from the need to perform against competitive forces The overall technology landscape of the banks thus should be driven by the requirement for efficient and reliable regulatory compliance applications as well as a strong transaction coverage as well as analytics bandwidth to ensure Customer Centricity, Performance Management and Revenue Growth. There is a striking difference in the way asset size influences the total number of systems for both public and private sector banks. While in the case of private sector banks, the number total number of systems goes down with decreasing asset size, quite the opposite behavior is seen with the public sector banks. It seems on first glance that private sector banks have been dabbling with technology for a longer time resulting in a larger number of systems. Public sector banks being later entrants seem to be either moving steadily or consolidating their systems from ground up. This observation is strengthened by the fact that the private sector banks that have the largest number of systems are the ones that have a large asset base and have been around for a longer time. On the face of it a larger number of systems extant could be an indicator of greater readiness with respect to technology. However, a question that remains to be answered however is whether a large number of systems are a temporary phase that will ease out in time. Banks that are moving towards increased automation and spending on IT might want to keep this in mind.
Introduction
During the 1980s, if a call was to be made, it had to be booked. There were different categories on the basis of the urgency- normal, urgent, most urgent and lightening. More the urgency higher the rates. However, with the development of technology things have changed drastically. In fact computer to computer connections have become free of cost. Similarly in banking there have been drastic changes. Earlier in the 1980s everything was done manually right from calculating interest rates, to maintaining different ledgers. Everything was done by employees. Computers had not yet made an entry in banking. Gradually, the use of computers made an entry into the banking
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Baroda CASH MANAGEMENT SERVICES system. Instead of computing manually the computers were used to do the same functions. This saved energy, cost and time. Also, the staff became more stress free. The technology kept on improving and LAN (Local Area Network) was introduced which connected all computers within the branch. This brought in a lot more flexibility. Earlier one computer was used for only one specific purpose viz., savings, current, interest calculations, etc. However, now with the introduction of LAN this problem was eliminated. Then came the concept of Anywhere Banking with the introduction of WAN (Wide Area Network). Thus, all branches got connected. An individual could make payments/ withdrawals at any branch irrespective of where his/her account is. Thus a branch transformed into a SERVICE OUTLET. Then came the Era of specialization. The current age is nothing but an advanced stage of specialization and internet. There are service outlets specializing in certain services namely Retail Loan factory, SME Loan factory, CFS 1 (100-500 cr) and CFS 2 (> 500 cr). Those, the banking system has become a highly competitive market, where every bank is trying to capture/attract customers namely individuals, small and medium scale corporates, high value corporates by developing services keeping in mind their specific needs. Private Banks have an edge over PSUs because they have the technology.
One such product is CMS CASH MANAGEMENT SERVICES. This product as the name suggests is not management of cash but it is the management of cashflows i.e. Receivables and payables of corporates. Examples of corporates who can avail of this product are FMCG companies, Pharmacy companies, Insurance Companies, Corporates listed on the exchanges can avail this service to pay dividends to their share holders and also all the corporates which have to receive EMIs
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WHAT ARE CASH MANAGEMENT SERVICES? Cash management services

Basic understanding: Cash management services are essentially management of payables and receivables of the corporates. The basic meaning of cash management is management of funds that the corporate is to receive from dealers/clients or is liable to pay to the dealers/clients.
Adoption of Web Based Cash Management Systems Technology
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PERSPECTIVE
The Internet and web technologies have already left their indelible mark on the way the world functions. The rise of the Internet towards the end of the 1990s, followed by the dot-com boom and eventually the dot-com bust, was not surprising. After all, in those heady days, strategies were disregarded, business plans were thrown out of the window and the need for business models was redundant. It was tempting to dismiss the Internet as an idea whose time had not come. Fortunately, common sense prevailed. Introspection resulted in one deafening conclusion we need the Internet. However, we also need business plans, business models and a good understanding of how we can leverage the power of the Internet. Retail customers quickly accepted Internet banking. It was no surprise that it was only a matter of time before banks and their corporate customers began jointly exploring the mutual benefits that could possibly accrue to them by leveraging the Internet. The central role that financial institutions play in the activities of their corporate customers has never been disputed. From the traditional role of being financiers, to holding cash and investments, to handling payments and settlements, banks today are closely linked with the activities of their corporate clients. While it may be argued that the role of banks as lenders is becoming somewhat diluted, there is no questioning the increasingly important role that they play in managing cash and handling payments. Businesses and treasurers in large corporates like to have control over their Cash operations. With businesses being globalised and corporate clients increasingly feeling the need to manage operations efficiently, clients are Evolution of web-based cash management Systems placing a much greater emphasis on the need to have access to anytime and anywhere information. It is not surprising, therefore, that banks and their corporate clients have quickly realised the role that the Internet can play in this regard. Over the years, we have seen a strong shift, in some parts of the world at least, from text-based systems to computer-based solutions and finally to the present situation, namely, web based cash management systems. Many of us may be surprised that the rate of growth in the small business segment is higher than that in the large corporate segment. This is not really surprising and there is more than one reason for this the fast increasing opportunities for small businesses through the globalisation of corporate and business banking, the rapid integration between cash management and trade services, and high-end technology no longer being the exclusive domain of large clients. What are the benefits from a customers point of view?
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As the demand to move from a thick-client to a thin-client system increased among corporate clients, and the advantages of doing so were somewhat obvious, no corporate or small business wanted to lose functionality in the bargain. Therefore, it was natural to expect that customers would want to have and retain every bit of functionality around the traditional services of collections, payments and reporting. The main features typically offered through web based cash management can be classified into: payment management, liquidity management, electronic collections and information reporting. Large multinational corporates need multilocational collaborative environments, given Banks and corporates are moving from corporate Internet banking solutions to web based cash management systems. Web-based cash management systems allow banks to offer a wider range of products and more integrated solutions to their customers. For banks to do this successfully, enabling an integrated view of the client relationship is the key. Standards-based technology and open architectures are enabling banks to address the challenges and provide flexibility. This is especially true for companies with regional treasury centres or the ones operating out of shared service centres, where transactions are initiated in one location and exception approvals are done elsewhere. By web-enabling their cash management service, banks are able to offer them operational flexibility. An obvious advantage that corporate customers want to derive in their adoption of Internet-based systems is the efficient management of funds and risk management. Corporate treasurers are highly conscious of carrying idle cash and want to do everything possible to make judicious use of the funds available. This necessitates the integration between the cash management system deployed within the organization, and the general ledger, accounts receivables and accounts payables systems within the company. The more seamless the integration between these systems, the more timely and accurate will be the reporting function effective cash management requires integration and availability of information, not just from sources within the organization but from external sources too. It also demonstrates that cash management today assumes a highly strategic dimension for customers. Just as in the case of corporate clients, banks also want to move to web-based solutions but not at the expense of functionality. Large corporates usually concentrate their business with two banks and use a third alternate bank for specialty products. Creating customer stickiness through one-stop-shop features, such as providing consolidated information, can be very rewarding for banks. As banks become more familiar with technological advances, they too have become more demanding of N.L.Dalmia institute of Studies and Research. 19
Baroda CASH MANAGEMENT SERVICES their vendors. The crux lies in leveraging technology without compromising on the functionality available. The requirement is to make available tools and services that make the task of the user much easier. There are several new technology features that are demanded by the banks from a web-based cash management systems vendor: What are the benefits from a banks point of view? Single sign-on integrated information reporting from various back-end systems such as treasury, cash management, commercial loans, and trade finance, etc; Segmentation of customers traditionally in the retail area, but now increasingly being used to understand and cater to the needs of the corporate and business banking segments; Integration with multiple channels of delivery, as we move into an era of possibly making all functions available to customers across all touch-points; and Real-time reporting and others. The drivers for the adoption of web-based systems may slightly differ between banks and its corporate customers. However, both banks and their corporate and business clients see sufficient value in web-based systems to adopt them. Banks, to a certain extent, achieved the above benefits by moving their systems from PC banking thick-client solutions to webbased business e-banking solutions. However, what is prompting banks to differentiate by upgrading their solutions into a fully fledged webbased cash management offering? Lets dig a little deeper. Banks everywhere have been criticised for only seeing a part of the large client relationship picture. Banks are aware of the total relationship approach, however they are saddled with antique back offices, complicated by myriad ad hoc surround systems, and they found themselves tied up in a situation where flexibility was hard to come by. Relatively new and flexible business e-banking solutions and advancement in technology offered the hope of integrating silos and the base for extending fully fledged cash management through the web. Additionally, the changing dynamics of the end customers increasing awareness of cost means the margin for error is slowly reducing. Today, it is common for a correspondent bank to levy an STP-fee for non-compliance of straight-through processing (STP) standards. Margin and price compression are increasing. The pressure needs to be warded off and web-based cash management is helping the banks to ensure STP compliance at source. This is because webbased cash management engines are ensuring that the payment and collection data entered by the corporate are STP-ready. Also, it is easier to pass on the charges for a mistake committed by the corporate than an error committed by a bank staff member. A fully fledged offering in the form of web-based cash management also helps banks to increase fee-based income through value-added offerings and segment customers, N.L.Dalmia institute of Studies and Research. 20
Baroda CASH MANAGEMENT SERVICES through adjustment of the offering base. On the cost side, automatic entry and STP reduce cost. Centralized handling and consolidations help the banks to scale up without significantly increasing headcount. Thankfully, the available technology is allowing banks to take giant steps in devising and implementing new business models. The standards-based technology and open architectures are allowing banks to address the challenges and provide more flexibility. So instead of a rip-and-replace policy, new standards-based technology is enabling a less painful and smooth transition to a more efficient processing architecture. Web-based cash management, the direct channel for customers to request payments and collection processing, forced the banks to decouple the back-end payment systems from their operational systems and use web services to connect to the central payment hub. Quickly, banks realised that these web services, designed initially for their cash management system, can be used for multiple operational front-end systems such as customer relationship and branch banking. Banks, are able to integrate seamlessly the customers back office and provide tremendous value. It is easy to imagine that a corporate will be more than willing to pass on a part of the benefits or cost savings achieved, in the form of paying the bank fees. Integration of the back offices within a bank premises also holds promise of large savings and will require innovative application of the web based cash management system capabilities. Trends show that elimination of silos not only helps banks to create customer stickiness, but also reduce the cost of operations substantially. For example, web-based cash management can help a bank to process payments seamlessly for its corporate customers through centralized handling and distributed payment processing. Banks can take advantage of the capabilities of web-based cash management systems to generate multiple files based on destination countries. Subsequently, they can use either local offices or partner banks to go through the local payment system. This would ensure substantial savings on time and cost. Those banks that manage to implement this successfully through distribution processing will be Innovation is Key one step ahead and will likely become payment processors to other banks. Fully fledged web-based cash management offerings are a reality in several countries in Asia. In Saudi Arabia for example, many banks have taken the first steps to offer cash management services through the Internet. The web was the natural choice for Saudi banks as the use of paper instruments is rare, and the central bank has established a robust and advanced payment gateway solution. Banks offer payment services including transfers, direct debits, bill settlement, account aggregation and liquidity management.
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Baroda CASH MANAGEMENT SERVICES The Finacle web-based cash management solution from Infosys Technologies has been deployed to offer these services in several banks including the National Commercial Bank, Banque Saudi Fransi, the Arab National Bank and the Saudi Hollandi Bank. Some of these banks have operations across several countries, specifically in the Gulf, and it is expected that soon, cross-country liquidity management services will also be offered through the Internet. Direct integration with the corporate ERP systems helps a bank to manage large volumes of corporate payments. Many banks have adopted standards-based technology solutions and are ready to reuse the set-up for multiple applications. In India, ICICI bank has enabled direct interaction with the ERP systems of large corporate clients through Finacle. The Asia Pacific region is fast emerging as one of the global nerve-centres in the financial services marketplace. A large number of leading companies from different industries are investing heavily in this region. It stands to reason that banks will not be left behind in ensuring that they work closely with their corporate and business banking customers. Experts foresee heavy technology adoption by banks and corporate customers alike in countries such as China, India, the Philippines and South Korea, to name just a few. Precisely for the reasons that have been highlighted, it is widely expected that web-based cash management systems will be making their mark? Asia is Taking Large Strides
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Services generally offered by banks:
Account Reconcilement Services: Balancing a checkbook can be a difficult process for a very large business, since it issues so many checks it can take a lot of human monitoring to understand which checks have not cleared and therefore what the company's true balance is. To address this, banks have developed a system which allows companies to upload a list of all the checks that they issue on a daily basis, so that at the end of the month the bank statement will show not only which checks have cleared, but also which have not. More recently, banks have used this system to prevent checks from being fraudulently cashed if they are not on the list, a process known as positive pay. Advanced Web Services: Most banks have an Internet-based system which is more advanced than the one available to consumers. This enables managers to create and authorize special internal logon credentials, allowing employees to send wires and access other cash management features normally not found on the consumer web site. Armored Car Services: Large retailers who collect a great deal of cash may have the bank pick this cash up via an armored car company, instead of asking its employees to deposit the cash. Automated Clearing House: services are usually offered by the cash management division of a bank. The Automated Clearing House is an electronic system used to transfer funds between banks. Companies use this to pay others, especially employees (this is how direct deposit works). Certain companies also use it to collect funds from customers (this is generally how automatic payment plans work). This system is criticized by some consumer advocacy groups, because under this system banks assume that the company initiating the debit is correct until proven otherwise. Balance Reporting Services: Corporate clients who actively manage their cash balances usually subscribe to secure webbased reporting of their account and transaction information at their lead bank. These sophisticated compilations of banking activity may include balances in foreign currencies, as well as those at other banks. They include information on cash positions N.L.Dalmia institute of Studies and Research. 23
Baroda CASH MANAGEMENT SERVICES as well as 'float' (e.g., checks in the process of collection). Finally, they offer transaction-specific details on all forms of payment activity, including deposits, checks, wire transfers in and out, ACH (automated clearinghouse debits and credits), investments, etc.
Cash Concentration Services: Large or national chain retailers often are in areas where their primary bank does not have branches. Therefore, they open bank accounts at various local banks in the area. To prevent funds in these accounts from being idle and not earning sufficient interest, many of these companies have an agreement set with their primary bank, whereby their primary bank uses the Automated Clearing House to electronically "pull" the money from these banks into a single interest-bearing bank account. Lockbox services: Often companies (such as utilities) which receive a large number of payments via checks in the mail have the bank set up a post office box for them, open their mail, and deposit any checks found. This is referred to as a "lockbox" service. Positive Pay: Positive pay is a service whereby the company electronically shares its check register of all written checks with the bank. The bank therefore will only pay checks listed in that register, with exactly the same specifications as listed in the register (amount, payee, serial number, etc.). This system dramatically reduces check fraud. Sweep Accounts: are typically offered by the cash management division of a bank. Under this system, excess funds from a company's bank accounts are automatically moved into a money market mutual fund overnight, and then moved back the next morning. This allows them to earn interest overnight. This is the primary use of money market mutual funds. Zero Balance Accounting: can be thought of as somewhat of a hack. Companies with large numbers of stores or locations can very often be confused if all those stores are depositing into a single bank account. Traditionally, it would be impossible to know which deposits were from which stores without seeking to view images of those deposits. To help correct this problem, banks developed a system where each store is given their own bank account, but all the money deposited into the individual store accounts are automatically moved or swept into the company's main bank account. This allows the company to look N.L.Dalmia institute of Studies and Research. 24
Baroda CASH MANAGEMENT SERVICES at individual statements for each store. U.S. banks are almost all converting their systems so that companies can tell which store made a particular deposit, even if these deposits are all deposited into a single account. Therefore, zero balance accounting is being used less frequently.
Wire Transfer: A wire transfer is an electronic transfer of funds. Wire transfers can be done by a simple bank account transfer, or by a transfer of cash at a cash office. Bank wire transfers are often the most expedient method for transferring funds between bank accounts. A bank wire transfer is a message to the receiving bank requesting them to effect payment in accordance with the instructions given. The message also includes settlement instructions. The actual wire transfer itself is virtually instantaneous, requiring no longer for transmission than a telephone call. Controlled Disbursement: This is another product offered by banks under Cash Management Services. The bank provides a daily report, typically early in the day, that provides the amount of disbursements that will be charged to the customer's account. This early knowledge of daily funds requirement allows the customer to invest any surplus in intraday investment opportunities, typically money market investments. This is different from delayed disbursements, where payments are issued through a remote branch of a bank and customer is able to delay the payment due to increased float time.
Cash management services can be costly but usually the cost to a company is outweighed by the benefits: cost savings, accuracy, efficiencies, etc.
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Services offered by Bank of Baroda:

Handles transactions in large volumes. There is no limit on the number of transactions that CMS can handle. However, there is a limit on the amount payable per transaction. This limit is determined by the bank on the basis of the credit worthiness of the customer. Provides detailed MIS reports to the customers. When a transaction happens through CBS the only detail that is given is by clearing or by cash. However, under CMS lot of other information is provided to the customer namely the name of the depositor, the location, name of the bank, account number, cheque number, invoice detail, type of product i.e. rtgs, neft or ift or any other paper instrument,etc. Tracks instruments deposited and payments effected end to end. The function of tracking involves giving information to the customer regarding the type of instrument and also whether or not the payment is made and if not what is the reason for the same. Reasons could be something like insufficient funds, misplacement of cheques, PDC mixed with local cheques, etc. Quick realization of receivables and processing of payables. Earlier a corporate had to wait for period of 4-7 days for his account to be credited. Thus he lost interest for those many days. However, with CMS the customers account is credited immediately within a period of 1-3 days and if an instrument is returned the amount is then debited from the customers account and information regarding the defaulting customer is given. Helps customers in management forecasting and scheduling. of funds by cash
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Baroda CASH MANAGEMENT SERVICES Since the funds are available within a few days it is easy to plan the use of these funds. Also it is easy to forecast the amount that would be credited in future. Helps better accounting and reconciliation. Since all the information about the instruments and the invoice is available it is very easy to reconcile and also it makes accounting very simple.
Transactions are captured with additional details. Bank of Baroda provides 5 enrichment fields to all its customers. The customers can determine the details they require. Can be used for all types of instruments paper as well as electronic. It cab be used for all types of instruments paper as well as electronic. Paper instruments like Cheques, Demand drafts, Post dated cheques, Demand cheques, etc. electronic instruments include RTGS (Real Time Gross Settlements), NEFT(National electronic funds transfer) and IFT (Internal Fund Transfer) Instant information about the reason for default in payments can be provided to the client.
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CASH@WILL
Services offered are in the form of solutions provided to the corporate clients. These solutions can be categorized into the following: Collections Payments Liquidity management Pricing, Accounting and Reporting Engine Collections module Instrument based collections. Post Dated Cheques Invoice management Electronic Collections
Instrument based collections This includes Local currency, foreign currency, In-house Cheques, Local Cheques, and Outstation Cheques. Post dated Cheques This includes bin management (sorting and vaulting), discounting with limit checking, misplaced and recovered PDCs. Invoice management Capturing data related to the invoice, credit note and debit note, etc. It also includes reconciliation. Electronic collections This includes inward IFT (internal funds transfer), inward RTGS (real time gross settlement) & SWIFT (fund transfer to international entities) Benefits To corporates
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Baroda CASH MANAGEMENT SERVICES Ensures quick realization of receivables. Once integrated with payments system, provides a better cashflow forecast. Lesser administrative overheads incurred. Detailed information on cheques deposited is made available.
To Banks Banks get better treasury management by the way of reports as Cash forecast reports, daily cash inflows received from Collections System. Charges received from the customers for the services provided by the bank. Float savings that are generated due to efficient workflow can be passed on to the customer as an additional benefit. Payments module A system that aims to provide a framework leveraging which anyone can make payments be it a corporate customer or the bank itself. Its a platform for executing payments in any mode quickly and efficiently anywhere in the world, with minimal cost incurred. Different modes of payments Instrument/electronic based payments Paper based payments
Instrument/electronic based payments This involves Payment verifications at Bank followed by Instrument Generation (local/remote) and printing of the same and in the end dispatching the same to the customer/beneficiary. Electronic Payments This also involves Payment Processing verification at Bank followed by message generation which in turn is sent to the interface of the Banks Core Banking System, the Local RTGS interface. Benefits To the corporates
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Baroda CASH MANAGEMENT SERVICES Corporate need not maintain its own payments system as it is expensive to handle a separate department for payments Enable controls on payments Ensures settlement of payments in a cost efficient environment Once integrated with Collections system, provides a better cashflow forecast
To the banks Bank gains on better treasury management by the way of reports as Cash Forecast Reports, Daily Cash Flows received from Payments System, which helps in understanding the reasonably predictable patterns of accounts. Charges received from Customers for the services provided by Bank Inventory Control for stationary required for payments is in place. Better services for both Retail and Corporate customers.
Liquidity Management This module includes the following Cash Concentration Pooling Services Netting Services
Cash Concentration It is a method of consolidating money from various accounts (may be at various locations or the same location) into a single account. It involves physical movement of funds between accounts. Methods Sweep Accounts This includes Zero Balance Balance Account. Reverse Sweep Accounts Advantages Automatic transfers- requires no monitoring or instructions
Account and Pegged/Threshold
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Baroda CASH MANAGEMENT SERVICES Low-cost mechanism for availability of the cheapest source of capital to fund day to day cash requirements Maximize liquidity in order to invest in highest yield opportunities Enables centralized account management i.e. manage one account instead of many Huge savings/earnings on interest costs
Disadvantages Physical movement of funds (if different legal entities), may be considered as an inter-company loan which may be subjected to country regulations. Difficulty in allocating earnings/costs.
Pooling A technique for Liquidity Management which notionally (virtually) offsets debits and credits of individual accounts and either pays/charges interest on the resulting net balance i.e. cash-rich pool members will be paid interest and deficit members will be charged. Since a physical funds transfer does not take place, there is no mingling of funds thus maintaining intact, the integrating of individual accounts for tax, legal and accounting purposes. Pricing, Accounting and Reporting Engine Pricing engine This engine would allow client/product/location/cluster level billing/ pricing fir different products subscribed. Features Highly Flexible Facility to calculate receivable and payable charges Auto/Manual Credit/Debit facility to the client accounts Facility for Partial/Full Waive-off Facility for ad-hoc charges on any business partner Multiple charge types applicable Charge calculation stage is user-definable Cross-Currency charge calculation Charge calculation method definable
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Baroda CASH MANAGEMENT SERVICES Charge calculation stage definable Candidate attributes for a charge is flexible Charge Calculation frequency and Charge posting frequency is defined by the user. Calculation frequency and application frequency can be different. Pricing Engine handles receivable and payable charges across Customers, Correspondent Banks and Couriers. Charge Calculation Methods can be Flat amount, Rate based, Multiple and Slab Basis.
Benefits There are no pre-defined charges in the system. Flexible charge definition and calculation facilitates the bank to define various charges/prices as per his convenience.
Accounting Engine When a transaction takes place, the accounting definition is read from the template. The GLs affected are read and suitable amounts are debited/credited against them. The vouchers can be generated in online mode or batch mode. Entries can be gate-wayed into the Banks GL an intra-day or end of day activity. Features Flexible Definition of the Charts of Accounts (CoA) CoA allows definition of GL codes, GGL type and cost centres Based on the definition provided in Chart of Accounts, Accounting Templetes can be defined. Accounting Templates encompasses the structure of the Accounting entries that needs to be generated Different templates could be defined for different products Balances can be reported at cost centres, profit centre and subledgers. Has seamless integration with banks GL System.
Accounting Template Accounting template is a definition of method in which an entry should be generated in Cash@Will Template is defined in a 3-tier structure Tier -1 defines the product of the template and contains the narration of voucher to be generated
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Baroda CASH MANAGEMENT SERVICES Tier-2 defines the various GLs affected Tier-3 defines the various accounting amounts to a given lag. Reporting Engine Three types of customer outputs are provided Standard Reports Query Reports Customized Reports Reports can be invoked by user or scheduler Customizable reports can be provided by inclusion of a thirdparty tool External reports and MIS through Web FAX E-mail
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PILOT RUN PROJECT The trial run for Payment module in BCMS Payments module started with w.e.f. 15.12.2008 at Central Operational Hub, Mumbai. Following transactions have been carried out till 31.03.2009 and is Sr.No. 1 2 3 Product IFT NEFT RTGS TOTAL No. of transactions 1,04,042 72,296 1,291 1,77,629 Amount lacs) 15,573.68 7,922.26 2,756.66 26,252.60 (in
The trial run for Collection module in BCMS (for local clearing in Mumbai) is started w.e.f 17.02.2009 at COH, Mumbai. Following transactions have been carried out till 31.03.2009. Sr.No 1 2 3 Products No. of Amount transactions lacs) Value 407 1,216.09 1659 95 2161 1,900.36 337.50 3,463.95 (in
High Clearing Local Clearing House Cheques TOTAL
It may be noted that Service Branch Mumbai in not doing outward clearing and this work is to be carried out through Central Operational Hub in Mumbai. At other centres, Service branch can be identified for Collection Module for BCMS customers. The Bank is also generating MIS reports as per customer requirement and forwarding it to customer on daily basis. These products are running smoothly in Pilot run and can be launched at other centres such as Delhi, Bangalore and Ahemdabad. The bank has also started a trial run for Direct Debit Instructions (DDI) in Collection Module in the following accounts in April 09:
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Baroda CASH MANAGEMENT SERVICES M/s Hindustan Unilever Ltd. (HUL) M/s Bajaj Auto Finance Ltd. M/s Tata Motors Ltd. (Vehicle Finance Division)
Following are the issues concerning the operations at Mumbai.

ISSUES There is need to address the issue of Band-width at identified branches Service Branch (S/Br) Mumbai is not doing outward clearing Finalization of Courier Service Provider for Pick-up of instruments from customers location. Solutions/Suggestions Present Status Project Office has Issue in taken up the issue consideration. with M/s HP. Outward clearing is to be carried out by COH in Mumbai till S/Br starts entering outward clearing. Zonal Head may be authorized to identify Courier Service Provider Preference may be given to agency engaged in collecting and delivering clearing instruments from Branches to S/Br. Cost has to be borne by Banks. under
Outward clearing is being carried out by COH in Mumbai Presently we have engaged M/S Progressive Services Pvt Ltd (who are collecting and delivering clearing instruments from service branch to various branches in GMZ) on pro-rata basis for Pilot customers. The cost is born by us and is Rs.1800/-pm+ service tax. Collection and Payment module is running smoothly with pilot customers.
Identification customers
of We may arrange a meeting with Zonal/Regional Heads of Greater Mumbai Zone and identify Potential BCMS Separate letters are customers. The sent to different zones N.L.Dalmia institute of Studies and Research. 35
Baroda CASH MANAGEMENT SERVICES identified BCMS to identify prospective customers may avail customers in their route their voluminous zones. Collection/Payment module through COH till Band-width problem for Branches in GMZ is resolved. The above mentioned issues are pertaining to Mumbai. There is an additional issue observed at Delhi/Banglore/Ahemdabad that is identification of branch.
MEETING WITH THE CLIENTS (OILCo. Services Pvt. Ltd.)

OILCo is a company which provides services such as the maintenance of petrol pumps. It has 17 main centres across India Their main clients include IOC, Hindustan Petroleum, Bharat Petroleum, etc. services are provided on a monthly basis. Oil companies pay on monthly basis using either electronic payment instrument RTGS or physical instrument Cheques. On an average they receive 500 cheques per month spread over a month and spread across the country. They were already using the cash management services of the HDFC. Services provided by HDFC were satisfactory yet not fulfilling thus they had approached Bank of Baroda. HDFC provided adequate MIS reports however they didnt provide information on the Invoice Number. Thus, they obviously were attracted to the unique feature offered by Bank of Baroda called the Enrichment Details. The software used by Bank of Baroda cash @ will allows the clients to choose 5 statements of MIS as per their requirement. Thus this feature would help them get details of the invoice issued. Another question they had was if the MIS could be rearranged in a way to suit their convenience. When enquired with the data centre it was confirmed that the MIS details could be given to the clients in their own format. Thus this saved the efforts they had to make to sort the useful information from the useless. Thanks to the informative chief manager the clients managed to resolve all their concerns and much more. They were told about the mandate that HUL has with its dealers. The HUL dealers have signed a mandate with HUL to allow direct debit from their accounts to make payments to HUL. Thus all the transactions are carried out using the
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Baroda CASH MANAGEMENT SERVICES electronic instruments alone reducing the efforts to a great extent. They decided to have a similar mandate with their clients who continue to make payments through the physical mode of cheques. During the discussion they were informed about the courier facilities that the Bank plans to provide free of charge. This additional service is offered to collect from clients who stay in remote areas which do not have CBS equipped branches. Thus the overall outcome of the meeting was very positive with the only disadvantage being the current stage of the launch of the BCMS. From the experience that I had I could conclude that CUSTOMISATION is the best Marketing strategy that a Bank can adopt.
Services offered Corporation Bank

Fast Collection Service: Corporation Bank has 301 centres. E.g. Client in Chennai makes payment through a cheque to Bajaj in Chennai. The Dealer in Chennai sends the cheque to Bajaj head officer in Mumbai. Then again Mumbai office sends it to a branch in Chennai to get it cleared. Thus making it difficult for the corporates to collect and manage cash. Corp clear services: Ensure quick collection of cheques. Enables assured credit on a predetermined day of corporates choice irrespective of the day of realization. These services were customized on the basis of the requirement of the customer. Realization could take place the next day or the 8th day, earlier the realization higher the fees. Corp collect services: If the customers are apprehensive of the cheque realizations, this service can be used. On the basis of realize and pay. Corp comfort services: Mainly when customers are uncertain of the realization of outstation cheques this service can be used. Irrespective of the realization, cash is credited on the 8th day. Corp Remit Services:
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Baroda CASH MANAGEMENT SERVICES Meet the wholesale payment requirements such as stationary payments, payments to vendors/suppliers, banking requirements, branch transfers. Corp Pay Services: This service facilitates corporates to make retail payments very effectively. Payouts include disbursal of incentives, equity and debt servicing to the satisfaction of investors, salary and wages payout. Payment Processing Centre: Capabilities are built to print exceptionally large number of DDs. PDC Exclusive PDC hubs are setup to collect PDC cheques.
CORPnet: Internet banking facilities provided to the corporates exclusively. Information online, data modulation, cash inflow forecast, outstanding position of instruments sent for collection (no extra cost). Only thing required registration with any of the CAPS branches. Correspondent Banking Arrangement To meet agency services requirement of clients of correspondent banks Speed cash Under this service Remittance of cash up to 50000 to beneficiaries through any of the branches is possible. Under the product, the remitter can remit to his relatives a sum of Rs. 50,000 through any exchange (UAE exchange or Wall Street exchange) which can be paid in cash instantly to the beneficiary through an account in any bank. Speed Remittance: NRIs can send remittances through exchange houses across globe. The exchange houses send the details to our Nodal branch at Banglore who in turn credit the same to the bank account maintained in any of our branches. In case bank account is not held in our Bank, a pay order can be issued at the destination, which can be collected by the bank.
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Baroda CASH MANAGEMENT SERVICES Payment Gateway: The product envisages providing buyers having account with corporation bank an opportunity to pay for the purchases made on the net. Corporates will thus get a wider base for selling their products. ECS Payment/ collection: Large volume, low value bulk collections and payments.
Services provided by ICICI

ICICI Bank's Cash Management Services helps you make optimum use of your working capital, leveraging the float between faster collections and just-in-time payments. Our vast network across the length and breadth of the country uses superior technology based solutions to deliver speedy, efficient collections. You get customised daily transaction reports and online reports. CMS solutions are customized to your specific needs for the most productive use of your cash flow. Our collection services are of two types: Local cheque collections (LCC). Upcountry cheque collections (UCC). Local Cheque Collections (LCC) IClearCollect & ISwiftCollect Under LCC, we offer collection facility for local cheques from more than 340 own branch locations apart from over 315 tie-up locations and providing funds centrally on guaranteed basis. This service includes location wise MIS, which is available online too. We offer courier pick-up facility, flexible day arrangement, competitive pricing and customized MIS. .
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Baroda CASH MANAGEMENT SERVICES Upcountry cheque collection IquickCollect & IAnywhereCollect (UCC) IsmartCollect,
Under UCC, we offer collection facility for upcountry cheques, which a customer can draw on any location in India and deposit at more than 340 ICICI Bank centers. We offer a huge network of more than 4,900 locations covering the length and breadth of the country. This network includes our own branch network at more than 340 locations apart from our tie-up locations. Under this product, we offer flexible day arrangement, competitive pricing and customized MIS.
Processing Fees & Other Charges

Processing Fees for CMS Facilities: 3% Other Charges: Charges would be subject to volumes & value of collections / disbursements & Locations for pickup with a maximum limit of Rs. 10/- per 000 subject to minimum charges per instrument. Minimum Charges - Rs 10/- to Rs 30/- per instrument. Courier Charges - maximum of Rs 50/- per instrument Cheque Return Charges - maximum of Rs 500/- per instrument
Services offered by Standard Chartered

Payment Services We can help you save time and money by reducing processing costs while providing a value-added service to your suppliers. Comprehensive payments solution Standard Chartereds payment solutions can help to reduce your overall processing costs for domestic and global payments saving you time and money while providing a value-added service to your suppliers. Our comprehensive payment services will be tailored to enhance your accounts payable process. This will eliminate many manual tasks involved in making payments, allowing you and your staff to spend more time focusing on your core business needs. We understand that most of your effort in the payment cycle is directed towards initiation; difficulties in the subsequent reconciliation process can jeopardize the whole process. With Straight2Bank Channels you can now track the exact status of each payment through timely reports that can be uploaded seamlessly into your companys system.
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Baroda CASH MANAGEMENT SERVICES We offer a full range of payment capabilities including:
Cross-border payments o Telegraphic transfers o International bank cheques / drafts Domestic payments o Local bank cheques / drafts / Cashiers order o Corporate cheque o Direct credits ACH / GIRO / credit vouchers o Local bank transfers (RTGS) o Book transfers (account transfer between Chartered branches) Payroll
Standard
Payments system integration Straight2Bank channels caters 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. Our in-country specialists are available to help customize a solution that enables you to manage your working capital in a more efficient manner. Collection Services
Comprehensive receivables management solution

Standard Chartered understands that operating and sustaining a profitable business these days is extremely tough. Your key business concerns could be:

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 maximise returns Cost Management - reducing interest costs through optimal utilization of funds.
Our solution
The Standard Chartered Collections Solution leverages the Bank's extensive regional knowledge and widespread branch network across
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Baroda CASH MANAGEMENT SERVICES our key markets to specially tailor solutions for your regional and local collection needs. This Collections Solution, delivered through a standardized international platform, has the flexibility to cater to your local needs, thus enabling you to meet your objectives of reducing costs and increasing efficiency and profitability through better receivables and risk management. The key components of our solution include the following:
Extensive clearing network

Our extensive branch network, complemented by our correspondent banks' network, provides you with a wide coverage of clearing locations to ensure you get the benefit of early availability of funds. This is further enhanced by our cheque purchase and guaranteed credit services.
Liquidity Management
Solutions for efficient management of your funds

A corporate treasurer's main challenge often revolves around ensuring that the company's cash resources are utilized to their maximum advantage. You need a partner bank that can help you:
Maximise interest income on surplus balances; minimize interest expense on deficit balances for domestic, regional and global accounts Minimise FX conversion for cross-currency cash concentration Customize liquidity management solutions for different entities in different countries Centralize information management of consolidated account balances
Our Solution With our global experience and on-the-ground market knowledge, Standard Chartered will help you define an overall cash management
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Baroda CASH MANAGEMENT SERVICES strategy which incorporates a liquidity management solution that best meets your needs.
Issues:

Regulatory considerations Tax implications Single v/s multiple entities Single currency v/s multiple currencies
Customer benefits: Maximise float management Minimise funding cost Account balance information MIS reports on inter-company settlements
Outsourcing
Physical sweeping Subject to regulatory considerations, Standard Chartered offers both domestic and cross-border physical sweeps. To maximise yield on your daily cash, these solutions help you 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.
Clearing Services Making the right connections for financial institutions

With increasing business globalisation, your banking network may not have sufficient reach. You may not want to put in the extra infrastructure or resources to expand your network but still want to ensure your clients' transactions are serviced efficiently. Clearing is one of the important services in which your bank would need support to facilitate your clients' smooth international trade and cross-border transactions.
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Our solution
Standard Chartered international network and multi-currency capabilities are well placed to provide you with a seamless service for all your clearing requirements worldwide. Our network extends across Africa, the Middle East, South Asia, Latin America, the USA and the UK. You can count on our over 150 years of on-the-ground experience to tailor a clearing solution that meets your needs. Standard Chartered is a correspondent banking partner you can trust to make this potentially complicated process much easier for you. . We tailor clearing solutions to address your specific needs whether in one or multiple countries, or to complement our other services.
Continuous Linked Settlement

Standard Chartered offers "Best in Class" technology and processes in our clearing services wherever you are, in whichever country you do business and in whatever currency: Continuous Linked Settlement (CLS) is the new private sector response to increasing regulatory pressure to reduce foreign exchange settlement risk exposures. The initiative has been live since the end of 2002 and is endorsed by the G10 central banks and lead regulators. The primary objectives of CLS are to eliminate the inherent settlement risk from the current foreign currency settlement processes and to provide a mechanism for containing any systemic risk arising from the failure of a major market participant. Standard Chartered at the forefront Standard Chartered Bank has been deeply committed to this industry initiative since its inception in 1997 and holds full shareholder status in the new bank. Standard Chartered operates as a full settlement member within CLSB and extends comprehensive third party services to our clients, enabling them to take full advantage of the settlement risk benefits associated with FX settlement through CLS. How it operates? CLS has already changed the way banks conduct and settle their FX settlement business. For the first time, it introduces, 'payment-versuspayment' (PvP) into the foreign exchange settlement process.
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Baroda CASH MANAGEMENT SERVICES The CLS Bank (CLSB) provides the necessary account structure and mechanism through which the separate payment legs of an eligible foreign exchange trade are simultaneously exchanged (using a payment-versus-payment process), thus eliminating the associated settlement risk. Similarly, all funding obligations are discharged by the use of an overlapping window for the RTGS systems in the CLS countries. CLS started with seven currencies AUD, CAD, CHF, EUR, GBP, JPY and USD, but during this year the three non-Euro Scandinavian currencies will be added, as well as the Singapore Dollar. CLS is expected to extend its reach thereafter, adding new currencies, and an increasing number of participants through an expansion of third party services, whereby non-settlement members of CLS may access the benefits of the system, without incurring the start-up costs.
Gateway Banking
When was the last time you were offered a continent and more? Need to expand your network to support your clients? Standard Chartereds Gateway Banking makes all the right connections. Your clients gain: Immediate access to comprehensive corporate banking services in over fifteen key countries in Asia and the Middle East, including core growth markets such as China, India, UAE, Thailand, Malaysia, Hong Kong and Singapore. You gain: Broader client relationships, client retention and the ability to support your clients wherever they want to go in Asia and the Middle East. Global trends Corporations that were once focusing only on domestic markets are now going international. Your clients, who once only dealt with suppliers and customers in your network territory, now deal with trading partners in dozens of countries around the world, especially in the high-growth, resource-rich zones of Asia, Africa and the Middle East.
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Baroda CASH MANAGEMENT SERVICES Your challenges As your clients grow their businesses and expand their footprints, they look to you to do the same. With only a domestic or regional presence, how do you:

Support your clients in regions where you do not have a network footprint? Broaden and deepen your existing customer relationships? Attract new business by participating in global RFPs? Defend your client base from international competitors?
Finally, how do you do all of the above without being distracted from your domestic capabilities and core competencies?
We have the answer

Standard Chartereds Gateway Banking programme gives your network an immediate extension into the most active regions on the global trade map. Today, our programme delivers premium services in:

Bahrain Bangladesh China Hong Kong India Indonesia
Jordan Malaysia Pakistan Philippines Qatar Singapore
South Korea Sri Lanka Taiwan Thailand United Arab Emirates
With a whole range of corporate and commercial banking capabilities, we aim to complement your relationship with the client. You will have a single point of entry to Standard Chartered and its product network in Asia, Africa and the Middle East through our team of dedicated coordinators, relationship managers, and customer service teams in each country, but with a one bank view.
Services provided by HDFC:

Collection Services HDFC Bank's Collection services is aimed at ensuring quick realization of local and outstation cheques and providing the funds in a central collection account. This enables you to manage your funds flow
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Baroda CASH MANAGEMENT SERVICES position most effectively from a central location. This service can be availed with/without a current account with HDFC Bank. Local Cheque Collections 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 180 locations of our correspondent Bank ("RAPID"). Outstation Cheque Collections This product enables you to deposit outstation cheques drawn on any HDFC Bank location at any HDFC Bank location ("SPRINT"). Similarly, cheques drawn on over 900 locations of our correspondent bank ("EXPRESS") can be deposited at any HDFC Bank locations. Transfer Cheque Collections 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 our correspondent bank are also collected at any of our locations and proceeds credited to your 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 Customised reports as per mutual agreement. Monthly cheque return statement
Payment Services HDFC Bank can structure a number of payment products to suit your various needs. Structures could include: Payable at Par Cheque Book
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Baroda CASH MANAGEMENT SERVICES This product enables you to issue local cheques at all HDFC Bank branch locations through one cheque book thereby eliminating the hassles of obtaining demand drafts or opening current account at each location. At Par Facility for Statutory Payments This facility can be utilized by you to make various statutory payments such as dividend, interest / redemption of debentures, IPO refunds etc. This facility is available for all HDFC Bank locations and 100 locations of our correspondent bank. This product includes the following features: HDFC Bank branch locations - cover over 80% of shareholders / beneficiaries for most of our clients. Hence reconciliation, query resolution and pricing is superior. In order to provide adequate coverage, HDFC Bank also provides 100 locations of our 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. Ability to meet your requirement of large number of drafts in a short time at very competitive rates.
An At Par cheque book is provided on branch locations, after revalidation thereby eliminating the need for demand drafts on branch locations. Pay Quick This product caters to your requirement of large volume of demand drafts/pay orders at over 500 HDFC Bank and correspondent bank. This product includes the following features: Option to forward data in soft copy form (floppy) in a secure environment Easy data transferability from your 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.
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Baroda CASH MANAGEMENT SERVICES 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 top 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. Eliminating idle cash balances. Monitoring exposure and reducing risks. Ensuring timely deposit of collections. Properly timing the disbursements.
ECS Credit & Debit RBI offers Electronic Clearing System (ECS) for faster collections (ECS Debit) and payments (ECS Credit). ECS Credit can be utilized for payments like interest / dividend etc. ECS Debit is normally used for collections which include payment of utility bills (electricity, telephone), collection of taxes etc. ECS Credit/Debit facility can be availed at all available locations. Following broad steps are common for both ECS Credit and ECS Debit: The company needs to obtain a mandate from the beneficiary / payee which would provide all the details as stipulated by Reserve Bank of India. The company will have to route the ECS through a Sponsor Bank. The company is required to submit a E1 form to get a User code from RBI through the Sponsor Bank. One user code is obtained for ECS at all RBI locations. The company then submits the data in soft form for effecting the ECS. The data is provided in separate files sorted city wise. The data has to be provided to the Sponsor Bank atleast 7 working days before the settlement date. The settlement date is the date on which the account of the beneficiary will be credited (ECS Credit) or payee's account will be debited (ECS Debit). ECS Credit: Within 2 days of the settlement date, RBI provides a list of uncredited / returned items. N.L.Dalmia institute of Studies and Research. 49
Baroda CASH MANAGEMENT SERVICES ECS Debit: Within 1 day of the settlement date, RBI provides the final list of accounts debited and as per RBI regulations, no late rejects are accepted by RBI. (The above are indicative steps and schedules, as per current rules. Please refer to guidelines issued by RBI for more detailed and exact schedules.)
Punjab National Bank

Punjab National Bank had taken a major initiative for managing the funds of Corporates. In our endeavor towards achieving customer satisfaction, we propose to offer you an enhanced version of Cash Management Services (CMS) with latest features and User Friendly Technology. The enhanced version of CMS provides you the better platform to have a web access to the collection proceeds being pooled into your account along with the future stream of funds for the better liquidity management on one side and efficient co- ordination with your sales department for planning their delivery schedules and recovery options. On the other hand, Bank will offer the facility to execute your payment options on different platforms like RTGS, NEFT, and ECS while working in your office. In brief, Bank is offering you a solution capable of handling your all requirements of collections and payments from your Desk Top itself.
The salient features of this product are as under: It will handle large transactions of all Cash Management functions, including, Payments, Collection, Receivable Management, Liquidity Management, Bulk Payment, Post Dated Cheque Management, Remittances etc. This will be a Web Based System which is to reside on a central server. Accessible by all Core Banking branches, non CBS Branches and Corporate customers. Corporate customers can view/monitor their accounts, generate reports and pass instructions to Bank by accessing the services over the internet.
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Baroda CASH MANAGEMENT SERVICES Capable of being integrated with all payment systems/networks like RTGS/NEFT/ECS/EFT/SWIFT/CTS (Cheque Truncation System)/Payment Gateways & Banks Corporate Data Ware House etc. Collection Module will take care of Local/ Upcountry instruments, Cash and PDC collections. Payment Module will cater to the payment needs of the corporates by using RTGS/NEFT/ECS. MIS generated will have full flexibility of generating a customized MIS by the Corporate Customer himself.
Summary of Peculiar Services offered by the following selected banks

Corporatio n Bank ICICI HDFC Standard Chartered 51
Baroda CASH MANAGEMENT SERVICES Network of Service Outlets
301
4900
(340 ICICI branches Outstation the rest are tieups)
180 900
Local
Informatio n not available
Separate Desk at every Service Outlet Cross border transaction s (Payments) Exclusive PDC Hubs Courier Pick-up Service Remote Deposit Capture
Efforts towards INTERNAL MARKETING
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Baroda CASH MANAGEMENT SERVICES Internal marketing means generating awareness amongst the employees about the Bank, its products or services, its growth rate and its future growth prospects. This is extremely important because the employees are solely responsible for helping the bank grow its client base. When the employees have the knowledge they will be in a position to help out the customers. They would be in a position to provide customized solutions to the clients. In recent times most Banks have emphasized on the provision of Web based services. Thus, it has important that the employees be trained in using the softwares required. Bank of Baroda has taken the appropriate steps towards the same. It has taken the following steps: The Principal Stall College at Ahemdabad has been requested to impart training to end users at identified branches and city Bank Offices through Local Training Centres covering all the Regions of the Bank. Regional Training Centre Delhi has also conducted training for identified staff of Delhi Branches. The Zonal Heads have been requested to identify/nominate staff from identified branches in their jurisdiction for imparting training by Local Training Centres to keep themselves familiar with application and requirement of Baroda Cash Management Services products. BCMS product is to be launched in 100 branches (including 10 CFS branches and 19 Service branches/City Bank Offices) in first phase.
However, just basic training is not enough. Every client requires a different type of service or a different feature. This leads to modification or upgradation of the existing product. Thus, all the employees must be aware of these modifications. So that, if they encounter a client with a similar requirement he/she can immediately know how to act. Thus this on the whole fastens the speed of the service provided.
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EXTERNAL MARKETING: CUSTOMIZATION is the key!

External marketing efforts include Advertising, promotional tactics and sales. But these tactics usually apply to Business to Consumer Markets. However, when it comes to marketing products in business to business markets such tactics are not entirely effective. We can call the Retail Banking as a B2C market. On the other hand Wholesale Banking is a B2B market where the client base is narrow also the needs of each of the clients differ. In such a case Customization is a key to External Marketing. The concept of mass customization is attributed to Stan Davis in Future Perfect and was defined by Tseng and Jiao as "producing goods and services to meet individual customer's needs with near mass production efficiency". Andreas Kaplan and Michael Haenlein concurred, calling it "a strategy that creates value by some form of company-customer interaction at the fabrication and assembly stage of the operations level to create customized products with production cost and monetary price similar to those of mass-produced products". Mass Customization is a new paradigm based on creating variety and customization through flexibility and quick responsiveness. A company engaged in Mass Customization actually seeks to fragment the market through economies of scope. This is in contrast to a mass producer who seeks to consolidate and reduce choice through economies of scale. At its core is a tremendous increase in variety and customization without a corresponding increase in costs. At its limit, it is the mass production of individually customized goods and services. At its best, it provides strategic advantage and economic value. Joseph Pine II (1992) described four types of mass customization:
Collaborative customization -firms talk to individual customers to determine the precise product offering that best serves the customer's needs (see personalized marketing and personal marketing orientation). This information is then used to specify and manufacture a product that suits that specific customer. For example, some clothing companies will manufacture blue jeans to fit an individual customer.
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Adaptive customization - firms produce a standardized product, but this product is customizable in the hands of the end-user (the customers alter the product themselves) Transparent customization - firms provide individual customers with unique products, without explicitly telling them that the products are customized. In this case there is a need to accurately assess customer needs. Cosmetic customization - firms produce a standardized physical product, but market it to different customers in unique ways.
He suggested a business model, "the 8.5-figure-path", a process going from invention to mass production to continuous improvement to mass customization and back to invention. The type of customization that Banks follow is that of Collaborative Customization. In the Pilot run HUL wanted its dealers signing a mandate which would give permission to Bank of Baroda to debit their account and credit a specified HULs Bank of Baroda account. Similarly, when Birla Sun life Mutual fund was approached they needed a service different from that of HUL. They wanted the MIS reports within a specified period of time. Also for dealers who stayed in remote areas a free courier service for collection of cheques at their doorsteps. The OILCo services Pvt Ltd wanted the MIS reports in a different format. Also, they wanted a customized MIS report which included information about the Invoice number. Thus, every company wanted a different type of service which the bank could provide them. Thus, these differences in the services make it difficult to advertise this product to the corporate. Also the basic service offered by the banks is the same. Keeping this in mind, the additional facilities given i.e. the speed, flexibility and technological upgradation is what will give a company an edge over its competitors.
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RECOMMENDATIONS Let the MARKETING department make its presence felt.

There is a difference between the Private sector Banks and Public sector Banks. That is the Marketing efforts are much more aggressive and innovative when it comes to Private sector Banks. In Public Sector Banks, employees often head the Services Operational Hub. However, they are not in a position to make special efforts towards marketing. This is because he/she is already burdened with the day-to-day branch working. Thus, it is essential that an employee be assigned with the work of approaching clients with the products and offer them customized solutions. Thus, if Bank of Baroda has recognized 100 service outlets as their BCMS centres then each of these service outlets must be assigned at least 2 employees. One of them would engage in carrying out the day-to-day CMS related transactions and the other one should be assigned with the task of approaching the corporate clients having an account with that particular service outlet. Thus, around of 200 existing employees with some IT background should be trained in using CASH@WILL.
Record of the past experience and the recommended solutions

Since every client requires a different customized service, a record should be made which would include the experience had before and the solution recommended then. Thus, if the employees encounter clients with similar requirements they can refer to the record of case studies of the past and can recommend a customized solution with ease and without wasting too much time. Thus, the services will be rendered quickly. The record of case studies should include details about the client, the nature of its business, the peculiarity of the customized service demanded by the client and also it must
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Baroda CASH MANAGEMENT SERVICES include the solution offered in the past. A Record of case studies must be provided to all the Service Outlets.
A unit of IT professionals
HDFC and ICICI banks have a unit of IT professionals headed by their own CEO. The unit keeps a track of the Technological innovations taking place on the Global Frontiers. They perform a number of functions like: Tracking the performance of international banks and the services offered by them. Watching out for technological upgradations. Maintaining records of already offered IT services. Tracking the progress of all the products of the Bank and coming up with possible improvements in the same. Spending quality time over Research and development of new applications that can be developed from the existing softwares. Recognizing and training employees with the latest technologies.
A separate desk at every Service Outlet

HDFC has allotted a separate Desk at every Service outlet which caters to the needs of the Corporate Clients of that particular CMS Service Outlet. This divides the tasks to be performed. Thus, it lessens the burden on the employees.
Remote Deposit Capture (RDC)

RDC is a service that enables you to scan paper checks and have them captured electronically from a device right at your desk. The scanned Cheque images are then transmitted to the bank to be deposited directly into your checking A/Cs without ever leaving your office. Steps: 1. Log on to the Banks Deposit Capture Site 2. Enter amount and number of cheques 3. Feed the cheques in a scanner 4. Submit the images of the cheques
Tie-up locations
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Baroda CASH MANAGEMENT SERVICES ICICI has a network of 4,900 locations when it comes to providing collections services. Out of these 4,900 locations just 340 are ICICI branches the rest are just Tie-up locations.
Conclusion
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. A vast country like India presents a challenge to the Cash Manager. 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. With the Indian economy becoming an open market economy, residents may maintain accounts in other countries and nonresidents 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 productdriven, pricing will become even more customised. 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.
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Baroda CASH MANAGEMENT SERVICES In our collective endeavors to propagate cash management services in India, there are other wider external issues like availability of necessary critical infrastructure. For instance, availability of requisite bandwidth for Internet connection is still a problem faced by various financial institutions. No doubt, these issues will be addressed by all concerned in the days to come. With a highly technology savvy talent in the country, India can outshine others without much difficulty. Notwithstanding the issues raised by me, looking forward, 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. There is positively a need to give up old beliefs. But it wont 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. You all will agree 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.
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BIBLIOGRAPHY Books, Reports and Magazines

Effective Cash Management- Concepts and Cases ICFAI University Technology Readiness of Indian Banks A CII-PWC Research report Released at the Banking tech Summit 2007 Indian Banking System: The current state and the road ahead. Federation of Indian Chambers of Commerce and Industry. Services Marketing Christopher Lovelock and Jochen Wirtz 5th edition Pearson Education Documents provided by the Wholesale Banking Department (BOB)
Websites
www.rbi.org www.theeconomictimes.com www.financialexpress.com Official websites of the following Banks ICICI, HDFC, PNB, CORPORATION BANK, BANK OF BARODA
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