View
220
Download
0
Category
Preview:
Citation preview
8/9/2019 CMS Report 1
1/101
Project on:
The Cash Management Services Market in India
Presented to:
ICICI Bank
&
N. L. Dalmia Institute of Management Studies and
Research
Presented By:
Kamal Purohit
P.G.D.B.M
Batch: 2009-11
1
8/9/2019 CMS Report 1
2/101
DECLARATION
I,Kamal Purohit, student of N. L. Dalmia Institute of Management Studies &
Research, studying MMS Course hereby declare that I have completed the
project on The Cash Management Services Market in India in the academic
year 2009-2010. The information submitted is true and original to the best of
my knowledge.
SIGNATURE
__________________
ACKNOWLEDGEMENT
2
8/9/2019 CMS Report 1
3/101
It gives me immense pleasure to thank the people who have guided me throughout
my project. I am not sure if I will ever be able to repay them for all their invaluable support,
time and guidance. My project bears the imprint of many people.
I take this opportunity to express my deep and sincere gratitude to Mr. Amar Doshi, Product
Manager, CMS, ICICI Bankfor his timely support. It is because of his support that I could
synchronize the efforts in converting the manifold features of the project. I would also like to
thankMr. Praveen Trivedi, DGM, ICICI BANKfor selecting me to complete a project in his
department.
I wouldalso like to express my sincere gratitude towards Prof P. L. Arya (Director, N. L.
Dalmia Institute of Management Studies & Research)for his support and guidance.
Finally I am thankful to all the employees of ICICI Bank, who have given their full support in
collecting the required information and continuous help during the preparation of the
project.
I thank you all!!
3
8/9/2019 CMS Report 1
4/101
TABLE OF CONTENTS
TOPIC Page no.
1. Executive Summary 5
2. Introduction to Cash Management Services 6
3. Benefits of Cash Management 7
4. Cash Management Services generally offered 8
5. Cash Management Services- Indian Scenario 11
6. Industry Analysis and target segments 13
7. Cash Management Services at ICICI Bank 22
8. Product Analysis 26
9. Competitive Analysis 28
10. SWOT Analysis 67
11. Analysis of Cheque Clearing 68
12. Questionnaire Design 73
13. Survey Report 83
14. Conclusion 99
15. Recommendations 100
Executive Summary
4
8/9/2019 CMS Report 1
5/101
Cash management is a broad term that covers a number of functions that help individuals and
businesses process receipts and payments in an organized and efficient manner.
Administering cash assets today often makes use of a number of automated support services
offered by banks and other financial institutions. The gamut of cash management services
range from simple checkbook balancing and other types of securities to automated softwarethat allows easy cash collection.
When it comes to cash collections, there are a few popular options today that can make the
process of receiving payments from customers much easier. Automated clearing houses make
it possible to transact a business to business cash transfer that deducts the payment from the
customer account and deposits the funds in the vendor account. Generally, this service is
available for a fee at local banks.
Lockbox services are also often used by businesses to speed up the Accounts
Receivable process. Cash management by lockbox requires the establishment of a post office
box for the client. The vendor uses this post office address as the remittance address on
all invoices. As payments are received, the financial institution collects the payments, posts
them to the operating account for the customer. The customer can usually access daily reports
that can be downloaded and used for posting payments into the company Receivables.
Because of the increased incidence of check fraud, the concept of account reconcilement
services has become a must for many companies. Essentially, an ARC will keep the
checkbook for an operating account balanced at all times. As an additional level of protection,
the ARC allows the client to upload a daily listing of checks that have been issued on the
account. In the event a check is presented that is not included on the authorized lists, the bankwill reject the check.
There are a number of cash management options offered by local banks. In some instances,
the cost for the services can be costly. However, many businesses find that the savings in time
coupled with the high degree of accuracy more than make up for the charges associated with
cash management support services. The project aims to understand the Cash Management
Services offered by the banks. It also tries to understand the Cash Management Services
market in India, the need of customers and the current status of CMS products in the Indian
market. The objective of the report is to get a thorough understanding of the process of CMS
and how the market functions. It also tries to identify growth opportunities for the market bytrying to understand the needs of the customers using CMS
5
8/9/2019 CMS Report 1
6/101
Introduction to Cash Management Services
Manage your cash flow and liquidity-Effectively and Efficiently
For any organization, cash is the lifeblood that keeps the business going. That is why,
increasingly, Cash Management has been gaining importance with organizations that
view the services as a crucial part of their corporate strategies.
Cash Management is Efficient Management of cash (Outflows/Inflows) to improve liquidity
and returns while implementing adequate control and managing risks. Cash Management can
generally be defined as the efficient utilization of cash through coordinated management of
payments, collections and cash balances. The objectives are to reduce costs, enhance control
and optimize returns as well as reduce the inventory holdings. Traditionally, cash
management involved personalized services offered by the bank's staff to the company's
treasurer via mails, telephone, calls, faxes etc or visits to the bank initiated transactions. But
with the advent of computer technology, cash management services have been automated to a
large extent. Many banks now allow their corporate customers to perform online inquiries and
transaction services (payment, collection and liquidity management) through PC or Internet
via a web interface. With such a system in place, a company can perform most of the cash
management functions themselves without relying on a bank staff to act as the executor of
their requests.
6
8/9/2019 CMS Report 1
7/101
Benefits of Cash Management Services
1. Properly timing the disbursements.
Some payments must be made on a specified or legal date, such as Social Security payments.
For such payments, there is no cash management decision. For other payments, such as
vendor payments, discretion in timing is possible. Government vendors face the same cash
management needs as the Government. They want to accelerate collections. One way vendors
can do this is to offer discount terms for timely payment for goods sold.
2. Eliminating idle cash balances.
Every Rupee held as cash rather than used to augment revenues or decrease expenditures
represents a lost opportunity. Funds that are not needed to cover expected transactions can be
used to buy back outstanding debt (and cease a flow of funds out of the Treasury for interest
payments) or can be invested to generate a flow of funds into the Treasurys account.
Minimizing idle cash balances requires accurate information about expected receipts and
likely disbursements.
3. Ensuring timely deposit of collections.
Having funds in-hand is better than having accounts receivable. The cash is easier to convert
immediately into value or goods. A receivable, an item to be converted in the future, often is
subject to a transaction delay or a depreciation of value. Once funds are due to the
Government, they should be converted to cash-in-hand immediately and deposited in the
Treasury's account as soon as possible.
4. Monitoring exposure and reducing risks
The Banks have the responsibility to use timely, reliable, and comprehensive financial
information and systems. To that end, banks encourage to improve their cash management
practices by using electronic funds transfer (EFT) whenever cost effective, practicable, and
consistent with statutory authority. So there is a need to monitor the exposure and reduce the
risk.
7
8/9/2019 CMS Report 1
8/101
Cash Management Services generally offered
The following is a list of services generally offered by banks and utilized by larger businesses
and corporations
1. 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 aspositive pay.
2. 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.
3. 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.
4. 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.
5. Balance Reporting Services: Corporate clients who actively manage their cash
balances usually subscribe to secure web-based reporting of their account and
transaction information at their lead bank. These sophisticated compilations ofbanking activity may include balances in foreign currencies, as well as those at other
banks. They include information on cash positions 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, and wire transfers in and out, ACH
(automated clearinghouse debits and credits), investments, etc.
8
8/9/2019 CMS Report 1
9/101
6. 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 ClearingHouse to electronically "pull" the money from these banks into a single interest-
bearing bank account.
7. 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.
8. 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.
9. Sweep Accounts: They 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.
10.Zero Balance Accounting: It 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 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.
11.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.
9
8/9/2019 CMS Report 1
10/101
12.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 marketinvestments. 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.
10
8/9/2019 CMS Report 1
11/101
Cash Management Services - Indian Scenario
The need for cash management aroused two decades ago in the mid eighties when the Indian
corporates were facing various problems like the uncertainty as to when funds would be made
available to them, the problem of long transit period between banking cheques and receivingfunds, long period of administrative work in banking cheques and tracking progress and
reconciliation problems regarding uncertainty of inflows and lack of details on each credit to
the account. It is important to review the Indian scenario in this regard. As we are all aware,
that the banks desire for funds has lost because of the slowdown. Despite the offer of very
soft terms corporates are refusing to borrow, while bank deposits have been ballooning.
Compelled to service the burgeoning liabilities, but unable to lend hastily and allow their
non-performing assets (NPAs) to grow, bankers are forced to compete for the handful of safe
bets among their borrowers.
Banks chose to use the opportunity to refocus their activities, seeking clearly definedidentities in terms of services and customer segments. Most of them concentrated on cleaning
up their books by peeling down their NPAs. All of them are attempting for freezing of costs,
improving operational efficiencies, and boosting productivity. The strategy of the banks,
which are performing well, is to use fee-based services to maintain their earnings growth.
With interest rates falling, non-interest income is, unsurprisingly, the fastest-growing
component of the banks total income. Fee-based activities will complement though not
substitute the core business of lending. With rising interest rates too, Corporate and others are
not willing to borrow, fee-based services play again an active role in boosting a Banks total
income.
It is gratifying to note that a number of banks in India are offering wide-ranging cash
management services to their corporate clients. All the three categories of banks viz.,
nationalized banks, private banks, and foreign banks operating in India are active in the cash
management segment. SBI, PNB, Corporation, ICICI Bank, HDFC Bank, Centurion Bank of
Punjab and ING Vysya Bank, are some of the active Indian banks in this segment. Citi Bank,
Standard Chartered Bank, ABN Amro Bank, BNP Paribus, and HSBC are the foreign banks
operating in India, which are prominent among the cash management services providers.
Indian banks are offering services like electronic funds transfer services, provision of cash
related MIS reports, cash pooling services, collection services, debit transfer services,guaranteed credit arrangements, sweep products, tax payment services, receivables and
payables management.
Foreign banks operating in India are offering regional and global treasury management
services, liquidity management services, card services, electronic banking services,
ecommerce solutions, account management services, collection management services, cash
delivery management services and investment solutions. Banks realized that if they do not
offer the services required by corporate customers it would result in a net loss of clientele,
returns and goodwill. Banks in India need to continuously monitor international trends in
innovations taking place in providing cash management services and swiftly offer similarservices to their corporate clients. The Reserve Bank of India is taking a number of
11
8/9/2019 CMS Report 1
12/101
initiatives, which has facilitated the active involvement of commercial banks in the
sophisticated cash management segment. One of the prerequisites is to ensure faster and
reliable mobility of funds in a country and to have an efficient payment system. Considering
the importance of a robust payment system to the economy, the RBI has been taking
numerous measures since mid Eighties to strengthen the payments mechanism in the country.Introduction of computerized settlement of clearing transactions, use of Magnetic Ink
Character Recognition technology, provision of inter-city clearing facilities and high value
clearing facilities, Electronic Clearing Service Scheme , Electronic Funds Transfer scheme,
Delivery vs. Payment for Government securities transactions, setting up of Indian Financial
Network are some of the significant initiatives which highlight the seriousness with which the
Reserve Bank has taken up the reforms in Payment systems.
Introduction of a Centralized Funds Management System, Securities Services System, Real
Time Gross Settlement System and Structured Financial Messaging System are on the top
priority items of the agenda to transform the existing systems into a state-of-the-art paymentinfrastructure in India by the Reserve Bank. The current vision envisaged for the payment
systems reforms is one, which contemplates linking up of at least all important bank branches
with the domestic payment systems network thereby facilitating cross border connectivity.
With the help of the systems already put in place in India and which are coming into being,
both banks and corporate can exercise effective control over the cash management.
Industry Analysis and Target Segments
12
8/9/2019 CMS Report 1
13/101
Cash Management Services (CMS) is required across different industries and every industry
has its own specific Cash Management need. Ten different industry segments were chosen
and analyzed on the following factors:
1. Major Players in the Industry
2. Features of the Industry on the whole
3. Need for Cash Management
The industry analyzed and the findings are as shown below:
a. Construction:
The various players in this industry are:
Larsen & Toubro: Annual turnover of Rs 339263 million
Punj Llyod: Annual turnover of Rs 68879 million
JP Associate: Annual turnover of Rs 57641 million
IVRCL Infra : Annual turnover of Rs 49830 million
NagarCons : Annual turnover of Rs 41514 million
Features:
Experiencing growth to due to increase in demand.
Not too dependent on government policies.
Has government support as it wants more development.
Eg: DLF tie up with DDA
Lot of diversification opportunities possible
Eg: Unitech investing in hotel construction
It is a cyclical industry as demand generally depends on the state of the
economy
Cash Management Services need:
The industry can have Cash Management Services
13
8/9/2019 CMS Report 1
14/101
Companies have multiple projects running which makes keeping track of
payments to suppliers difficult
These companies hire contractors for work. They can be paid using Auto
Clearing services
These companies have multiple collection issues once the project is
underway. The bank can act as a collector
CMS can help the companies in delay of supplies due to delay in payments
CMS can help them have a centralized MIS which the company and the
suppliers can access for better operations
b. Hospitality:
The various players in the industry are:
IHC Ltd: Annual turnover of Rs 16195 million
EIH : Annual turnover of Rs 8886 million
Oberoi Group: Annual turnover of Rs 2147 million
Hotel Leela Venture: Annual turnover of Rs 4522 million
Asian Hotels Ltd: Annual turnover of Rs 6415 million
Features:
The Hospitality industry is witnessing a boom due to increased
international as well as domestic demand
Not too dependent on government policies.
Has government support as it is encouraging tourism through various
campaigns
Price of service is dependent on many factors which make it a price
sensitive industry
It is a cyclical industry as demand generally depends on the state of the
economy as well as current political situation
Cash Management Services need:
The industry can have Cash Management Services (CMS)
14
8/9/2019 CMS Report 1
15/101
Companies have a chain of hotel in different cities. They can have a
centralized payment and collection structure
For a particular hotel payables can be managed through auto clearing
services
Receivables from customers can be managed through a concentration
account.
Every hotel can have a centralized MIS to maintain inventory levels
and stockouts. Also automatic order system can be set up through the bank
The payments made and received can be maintained using auto
reconcilement services
c. FMCG:
The various players in this industry are:
HUL Ltd: Annual turnover of Rs 205170 million
Dabur India: Annual turnover of Rs 23961 million
Colgate Palmolive: Annual turnover of Rs 16948 million
Nirma: Annual turnover of Rs 30000 million
Marico Industries Ltd: Annual turnover of Rs 19174 million
Features:
A major portion of the monthly budget of each household is reserved
for FMCG products. So there is no problem of demand
The volume of money circulated in the economy against FMCG products
is very high, as the number of products the consumer use is very high
Competition in the FMCG sector is very high resulting in high pressure on
margins.
Manufacturing in the company can be outsourced
Cash Management Services need:
The industry can have Cash Management Services (CMS)
15
8/9/2019 CMS Report 1
16/101
As manufacturing is outsourced it important to maintain payables and
receivables
These companies have a tight working capital policy. CMS can help
them maintain that
These companies have strong distribution networks. Transactions with
these networks can be maintained by a centralized system
d. Oil and Natural Gas:
The various players in the industry are:
Reliance Industries: Annual turnover of Rs 1418474 million
BPCL: Annual turnover of Rs 1352377 million
HPCL: Annual turnover of Rs 1254869 million
India Oil Corp: Annual turnover of Rs 3070485 million
ONGC: Annual turnover of Rs 636187 million
Features:
They provide the basic material for fuel
They are highly dependent on government policies
Pricing is subsidized and they bear the brunt of subsidies
They are one of the most profit making companies in India
Eg: ONGC
Cash Management Services need:
These companies do not necessarily need CMS
These companies are owned by the government and are highly regulated
Their operations is mostly overlooked by the government
e. Aviation:
16
8/9/2019 CMS Report 1
17/101
The various players in the industry are:
Jet Airways: Annual turnover of Rs 114769 million
Kingfisher Airlines: Annual turnover of Rs 52691 million
Spice Jet: Annual turnover of Rs 16894 million
Global Vectra Helico: Annual turnover of Rs 2000 million
Features;
It is one of the most rapid growing industry of the 90s
It has immense potential for growth
It is capital intensive industry
It is dependent on government policies
It is a cyclical industry as demand depends on the state of the economy
Cash Management Services need:
The aviation companies can have Cash Management Services (CMS)
It can have a centralized salary disbursement along with other payables
The company has interest payments on fleet which can be
automatically adjusted by the bank
The receivables in terms of inventory can be maintained by the bank
f. Retail:
The various players are:
Future Value Retail: Annual turnover of Rs 66614 million
Shopper Stop Ltd: Annual turnover of Rs 14000 million
Trent: Annual turnover of Rs 5140 million
Vishal Retail: Annual turnover of Rs 13930 million
17
8/9/2019 CMS Report 1
18/101
Features:
It is one of the fastest growing industries of the 90s
It has immense future potential since the purchasing power of the
customers increase
Market is supposed to grow to $637 billion by 2015 from $300 billion in
2007
India is ranked 1st as the most attractive market for retail investments
Cash Management Services need:
The industry can have Cash Management Services
The players in the industry have a chain of outlets. Payments andreceivables for the chain can be maintained by a centralized system
For a particular outlet inventory payments, petty cash payments can be
managed by the bank
The companies can have auto reconciliation to manage accounts in a
centralized manner
g. Steel:
The various players are:
SAIL: Annual turnover of Rs 436555 million
Tata Steel: Annual turnover of Rs 243157 million
JSW Steel: Annual turnover of Rs 140012 million
Essar Steel: Annual turnover of Rs 116883 million
Features:
India is the 5th largest producer of steel
Steel companies have shown robust growth during the past 5-7 years
It is a cyclical industry as demand depends on the state of the economy
It is dependent on government policies
18
8/9/2019 CMS Report 1
19/101
Cash Management Services need:
The industry can have Cash Management Services
The companies can make payments to suppliers through a centralized
payment system
The company can have a centralized cash and cheque collection from
customers
Daily inventory purchases and petty cash expenses can also be
managed by a bank
h. IT:
The various players in the industry are:
TCS: Annual turnover of Rs 230444 million
Infosys: Annual turnover of Rs 211400 million
Wipro: Annual turnover of Rs 215073 million
Mah Satyam: Annual turnover of Rs 81372 million
Features:
Information Technology is the fastest growing sector of India, a sunrise
industry and the area of growth for the millennium
India's software and services exports were $17.2 billion in the fiscal year
ended March 31 this year, up by 34.5 percent from the previous year
The engineering, R&D and software products exports segment is expected
to grow by 14.4 per cent in the current fiscal year, to touch US$ 7.3 billion;
which highlights the strong impetus and renewed focus on improving IPdriven service capabilities in India.
Cash Management Services need:
The industry need not necessarily have CMS
These companies have a lot of intangibles. Thus their payables are less
These companies generally have their own software package in place for
collection and salary disbursements
19
8/9/2019 CMS Report 1
20/101
i. Pharmaceuticals:
The various players are:
Cipla: Annual turnover of Rs 49606 million
Ranbaxy Labs: Annual turnover of Rs 47802 million
Dr Reddys Labs: Annual turnover of Rs 41589 million
Sun Pharma: Annual turnover of Rs 38615 million
Features:
Indias pharmaceutical industry is one of the fastest growing sectors in the
Indian economy with the growth rate (CAGR) of 11.9 per cent during
2004-2008
The industry has emerged as one of the strongest and most successful
examples of knowledge-based industries in the world and it has made
tremendous progress in terms of development of technology, products and
infrastructure
The Indian pharmaceutical industry ranks fourth in the world in terms of
volume (8 per cent global share) and fourteenth in terms of value (1.9 per
cent global share).
Cash Management Services need:
The industry can have CMS
The companies can make payments to the suppliers through a
centralized system
The receivables can also be managed by such a system
They can manage all their accounts through account concentration
services
20
8/9/2019 CMS Report 1
21/101
j. Power:
The various players in the industry are:
NTPC: Annual turnover of Rs 419752 million
Rel. Infra: Annual turnover of Rs 97394 million
Tata Power: Annual turnover of Rs 72352 million
Suzlon Energy: Annual turnover of Rs 72355 million
Features:
Majority of Generation, Transmission and Distribution capacities are witheither public sector companies or with State Electricity Boards (SEBs)
Private sector participation is increasing especially in Generation and
Distribution
The industry has to bear the brunt of unbalanced growth
Cash Management Services need:
The industry need not have CMS
Most of the companies are owned by the government
The companies in this industry require long term investments
21
8/9/2019 CMS Report 1
22/101
Cash Management Services at ICICI Bank
ICICI Bank's Cash Management Services offer a full range of receivable and payable services
to meet your complex cash management needs. Payments received from your dealers/
distributors and made to your suppliers are efficiently processed to optimize your cash flow position and to ensure effective management of the operations of your business.
ICICI Bank provides a gamut of products and services, ensuring that all the business
requirements of the corporations are met under one roof. Further, ICICI Bank constantly
innovates and improves its product offerings in order to improve client servicing.
Key Benefits:
Widest network across India
Comprehensive range of CMS products
Strong logistics support
Advanced technology support and a highly competent team
Dedicated and trained Customer Care
Ensuring timely deposit of collections
Timely execution of disbursement request
22
8/9/2019 CMS Report 1
23/101
Collection Solutions
ICICI Bank offers a wide range of collection products to meet the specific requirements of
the clients like local cheque collections, upcountry cheque collections, cash collections and
electronic collections. With a wide network, customized MIS and multiple channels fordelivery of MIS, ICICI Bank renders quick and effective management of receivables.
CICI Bank offers a wide range of collection products to meet the specific requirements of the
clients. The products offered are as follows:
Local cheque collection through:
o ICICI Bank branches
o Correspondent bank branches
Upcountry cheque collection through:
o ICICI Bank branches
o Correspondent bank branches
o Other banks
RTGS integrated collections
Electronic collections (through auto-debit)
Cash collections through our Doorstep banking services
Features
23
8/9/2019 CMS Report 1
24/101
Wide network coverage of over 670 own locations and over 4200 correspondent bank
locations
Capability to process cheques drawn at any location
Assured payment on fixed day basis, irrespective of the fate of the instrument sent in for
clearing
Instrument outstanding report and credits in the pipeline report available to strengthen internal
control
Multiple channels available for receipt of data including e-mails, faxes, courier and the
Internet
Prompt realisation of cheques through an extensive network, supported by correspondent
banking relationships
Availability of information on the amounts deposited at multiple locations with informationavailable at the instrument level
Provision of uploading the system generated deposit slip details, in a single file
Customised MIS and availability of scan images of instruments at select locations
Payments
24
8/9/2019 CMS Report 1
25/101
The payment solutions offered by ICICI Bank include bulk disbursement solutions for
making payments to channel partners through multiple modes, Payable at Par solutions for
payment of dividend, interest or for redemption and Internet-based cheque writing facility for
printing of cheques at your own premises.
ICICI Bank offers payment solutions that cater to all the requirements of a corporation. The
payment product suite includes bulk disbursement solution through Integrated Payment
System, Internet-based cheque writing which facilitates printing of instruments at your own
office and Payable at Par solution for payment of dividend, interest and for redemption.
Key Features
Payment solutions of ICICI Bank offered through Integrated Payment System (IPS) not only
offers multiple modes of payment but also facilitates functional, operational and financialbenefits like:
Single file upload to effect multiple modes of payments
o Physical modes include cheques, demand drafts
o Electronic modes include direct credit to ICICI Bank account holders, RTGS
and NEFT
Web-based access for uploading and authorizing printing requests
ERP extractor for extracting data directly from the ERP system
Host-To-Host connectivity for Straight Through Processing of transactions
Data encryption for enhanced security
Partial batch authorization and processing
Dynamic signature printing
Printing of instruments and direct dispatch to beneficiaries
Tracking of dispatches
Advices over e-mail to beneficiaries
Customized annexure printing for cheques
At par cheques payable at over 700 locations
Customized MIS
Product Analysis
25
8/9/2019 CMS Report 1
26/101
Almost every bank in the country offers Cash Management Services (CMS). Thus it becomes
important to understand the different products offered by different banks. Undertaking a
product analysis helps the bank to understand where it stands when it s compared to
competing banks. It shows where the bank lies ahead and where It lags in terms of other
banks in the country. A product analysis was done to understand the different CMS products.
The following banks were included in the comparison:
1. Bank of India
2. Corporation Bank
3. HDFC Bank
4. Axis Bank
5. Citi Bank
6. HSBC Bank
7. Standard and Chartered Bank
Product/ Bank
Bank
of
India
Corp
Bank
Canar
a
Bank
ICIC
I
Bank
HDF
C
Bank
Axis
Bank
Citi
Ban
k
HSB
C
Bank
SCB
Collection Based
LCC Yes Yes Yes Yes Yes Yes Yes Yes Yes
UCC Yes Yes Yes Yes Yes Yes Yes Yes Yes
Foreign currency
cheque Yes No No No No No Yes Yes Yes
Cash Collection No No No Yes No No No Yes Yes
Post Dated
Cheque
Collection
Yes Yes No No No Yes No No No
Payment Based
ECS Yes Yes Yes Yes Yes Yes Yes Yes Yes
NEFT Yes Yes Yes Yes Yes Yes Yes Yes Yes
RTGS Yes Yes Yes Yes Yes Yes Yes Yes Yes
Payable at Par
chequesYes Yes Yes Yes Yes Yes Yes Yes Yes
International
PaymentsNo No No No No No Yes Yes Yes
Dividend
PaymentNo No No Yes Yes Yes No No No
Lockbox/Dropbo
xNo No No Yes No Yes Yes Yes Yes
Liquidity Mgmt No No No No No No Yes Yes Yes
Conclusions from Product Analysis
26
8/9/2019 CMS Report 1
27/101
1. All the products can be summarized in the following three categories
a. Collection Based
b. Payment Based
c. Liquidity Management Based
2. All the banks offer products which are of a similar nature
3. Foreign Currency Cheque Collections and Payments are offered only by theinternational banks in the market
4. Even Liquidity Management based products are offered by these banks
5. Cash collections is offered only by ICICI bank , HSBC Bank and Standard CharteredBank
6. Post Dated Cheque Collections is a prime product for Government Banks
7. The market is saturated with products of similar nature with no bank having abreakthrough product
27
8/9/2019 CMS Report 1
28/101
Competitive analysis
Competitive analysis in marketing and strategic management is an assessment of the strengthsand weaknesses of current and potential competitors. This analysis provides both an offensiveand defensive strategic context through which to identify opportunities and threats.
Competitor profiling coalesces all of the relevant sources of competitor analysis into oneframework in the support of efficient and effective strategy formulation, implementation,monitoring and adjustment. The Cash Management Services (CMS) industry is verycompetitive as almost every bank provides CMS. It becomes important to understandcompetition to keep up with the latest trends in the market.
1. HDFC Bank:
Product Definition:-
HDFC Bank Locations /Branches
Speed:-Local cheques collection at HDFC Bank Locations e.g. cheques deposited in Delhiand payable at Delhi.
Sprint:-Outstation cheques collection on HDFC Bank Locations e.g. cheques deposited atDelhi and payable at other HDFC Bank location say Pune, Chennai, and Mumbai etc
Correspondent Bank Locations /Branches
Rapid:-Local cheques collection at Corr Bank Locations e.g. cheques deposited in Wardhaand payable at Wardha.
Express:-Outstation cheques collection on Corr Bank Locations e.g. cheques deposited atChennai and payable at Corr Bank location say Munnar
Clean:-Outstation cheques collection on Non covered Locations e.g. cheques deposited atChennai and payable at Non covered location.
CMS Collection Products at HDFC Bank:
CMS Process Flow:
- Client can open only one corporate current account with HDFC Bank. Customers canalso use the existing corporate current account with the Bank for this CMS facility.
- A CMS Client code is provided to the company at the time of setup. All the deposits inthe CMS account are to be made with reference to this unique client code. All the chequescan be collected from the designated clients office through a courier service.
- If the courier facility is not availed, the cheques are to be deposited with the designatedHDFC Bank branch or a coordinator along with a specific CMS deposit slip for that
product before the cutoff time.
- Daily MIS is provided with the collections in the account for that particular day in a softcopy at the Email IDs given at setup by the client. The bank can customize the MIS in theformat as desired by your company.
28
8/9/2019 CMS Report 1
29/101
- E-Net viewing: Under this facility the company can view all the details that are required.The details are provided under 2 heads :
- The Account Viewing where you can see the account statement, balance, etc.
- The CMS module where the company can view the deposits on that day, the day of creditfor these cheques.
CMS Pricing and Arrangements:-
CMS offers you the facility of clearing of local / outstation instruments favoring anorganization deposited at our various branch locations with pooling of funds at Mumbai orany other location where HDFC bank has presence on very competitive terms. CMSeliminates the inherent delays of a traditional funds transfer mechanism. CMS enhancesliquidity and ensures optimum planning and utilization of funds. In addition to faster accessto funds, CMS provides you with MIS, which will help improve your reconciliation.
LOCAL CHEQUES & FUNDS TRANSFER (Subject to Clear Fund Basis)
Product Business
locations
Funds flow mechanism Service charges
Speed Localchqscollection
at HDFCBanklocation
Highvalue
DAY 0 Instrumentsdeposited at the respectivelocations before the
prescribed cut off time.
DAY 0- Funds pooled atMumbai** by credit toyour account with ourBank for deposits made atthe locations.
Nil
NonHighvalue
DAY 0 Instrumentsdeposited at the respectivelocations before the
prescribed cut off time.
DAY 2 - Funds pooled atMumbai** by credit toyour account with ourBank for deposits made at
the locations.
Nil
29
8/9/2019 CMS Report 1
30/101
OUTSTATION CHEQUES & FUNDS TRANSFER
PRODUCT
BUSINESSLOCATIO
FUNDS FLOW MECHANISM SERVICE
30
HBTRF chqscollection
at HDFCBanklocation
DAY 0 Instrumentsdeposited at the respective
locations before theprescribed cut off time.
DAY 1 - Funds pooled atMumbai** by credit toyour account with ourBank for deposits made atthe locations.
Nil
8/9/2019 CMS Report 1
31/101
NS CHARGES
Sprint HDFC Bank locations
DAY 0 Instruments deposited atthe respective locations before the
prescribed cut-off time for clearing.
DAY 4 - Funds pooled atMumbai** by credit to youraccount with our Bank.
Nil
** Funds will be pooled to your account with HDFC bank Ltd
OTHER CHARGES:
1. Rs.100/- flat per return instrument
2. Courier can be organized on behalf of the company for picking up the checks fromyour branches at Rs.400/- per pick-up location per month within City limits.
3. Service Tax and Educational Cess @ 12.36% shall be charged as applicable.
4. Outstation clearing courier charges Rs 20.00/packet.
VALUE ADDITIONS:
1. Daily report on location wise collections/returns.
2. Monthly report on total collections and service charges.
3. Monthly report on total payouts and service charges.
4. Enet facility to check / validate cheque collection across location at one central placethrough deposit and instrument query.
5. Any additional report, in mutual consultation which the company may be requiringfrom time to time.
DOCUMENTATION:
1. The company to execute an Application-cum-Agreement / Fax indemnity.
2. To provide a board resolution for availing the Cash Management Services from ourBank.
31
8/9/2019 CMS Report 1
32/101
3. To provide a list of signatories who are authorized to give instructions to the bank foroperating the services.
OTHER TERMS:
1. The above services are demand facilities, subject to our ongoing review and the termsconditions, pricing etc. may be modified or services recalled without notice at the
banks absolute discretion.
2. The process flow is exclusive of intervening bank holidays for clearing purposes.
3. There is no high value clearing on Saturdays, hence the process flow will changeaccordingly.
4. Sundays & other bank holidays have been excluded for the purpose of calculation ofthe above referred days.
NETWORK:
Express Locations: 778
Rapid Centres: 288
HDFC Bank Locations:
32
8/9/2019 CMS Report 1
33/101
1. Andaman and Nicobar Islands: 0 2. Andhra Pradesh: 18
3. Arunachal Pradesh: 0 4. Assam: 3
5. Bihar: 7 6. Chandigarh: 4
7. Chhattisgarh: 4 8. Dadra and Nagar Haveli: 1
9. Daman and Diu: 1 10. Delhi: 7
11. Goa: 6 12. Gujarat: 54
13. Haryana: 17 14. Himachal Pradesh: 9
15. Jammu and Kashmir: 2 16. Jharkhand: 9
17. Karnataka: 13 18. Kerala: 22
19. Madhya Pradesh: 18 20. Maharashtra: 29
21. Manipur: 0 22. Meghalaya: 1
23. Mizoram: 0 24. Nagaland: 0
25. Orissa: 9 26. Pondicherry: 1
27. Punjab: 45 28. Rajasthan: 16
29. Sikkim: 1 30. Tamil Nadu: 17
31. Tripura: 1 32. Uttar Pradesh: 23
33. Uttarakhand: 8 34. West Bengal: 13
2. BANK OF INDIA
Collection of cheques
Local Cheques & Upcountry cheques at places where Banks branches exist.
Upcountry cheques at places where Banks branches do not exist.
Instant credit as per arrangement on any day before realization.
33
8/9/2019 CMS Report 1
34/101
Customized MIS, Including outstanding entries at any time.
Pooling is possible, including multiple pooling.
Single point reference for any detail/data.
Courier Pick-Up from Customers Collections.
Post Dated Cheques Collection:
Post dated cheques (PDCs) vaulted, dispatched to drawee center three days in advancecollected on due dates and credited to account on due date or next day.
Tracking of customers invoices with PDCs possible.
Auto Reconciliation.
Unpaid/Returned PDCs also properly tracked and accounted.
All other advantages of collections.
Payments
Centralized or Remote printing of payments (Cheques/Pay Orders/DDs/IWs/DWs/Ros-withFacsimile signatures)
Printing of Cheques on continuous stationery.
Interface with RTGS/NEFT/ECS.(Linkage to e-modes)
Correspondent Banking Issue of DDs by branches*of Correspondent Bank.
Funding before issue/upon payment.
Auto Reconciliation.
(* On places where Banks CBS branches situate or even places where Banks branches notSuitable-thro similar correspondent /courier arrangement)
General:
Customized MIS of data in whichever way desired.
Interface between Finnacle and CMS Software.
Time Frame for Collection of Local / Outstation Cheques / Instruments :
For local cheques presented in clearing credit will be afforded as on the date of settlement offunds in clearing and the account holder will be allowed to withdraw funds as per return
34
8/9/2019 CMS Report 1
35/101
clearing norms in vogue.
Cheques / Instruments presented in high value clearing (with the minimum value of Rs. 1 lac)shall be credited on the same day (applicable only in areas covered by high value / same dayclearing).
For cheques and other instruments sent for collection to centres within the country, generallythe following time norms shall be applied :
a) Cheques presented at any of the four major Metro Centres (New Delhi, Mumbai, Kolkataand Chennai) and payable at any of the other three centres : Maximum period of 7 days.
b) Metro Centres and State Capitals (other than those of North Eastern States and Sikkim):Maximum period of 10 days.
c) In all other Centres : Maximum period of 14 days.
d) Cheques drawn on foreign countries: Such instruments are accepted for collection on thebest of efforts basis. Bank may enter into specific collection arrangement with itscorrespondent bank for speedy collection of such instrument. Bank would give credit to the
party on credit of proceeds to the banks Nostro Account with the correspondent bank aftertaking into account hold periods as applicable to the countries concerned.
The above time norms are applicable irrespective of whether cheques/instruments are drawnon the banks own branches or branches of other banks.
Service Charges:
Nature of Service Individual Non Individual
Cheques sent for
collection
Upto Rs 500- Rs 15 per instrument(PI)
Rs 501-100: Rs 25 PI
Upto Rs 500- Rs 10 perinstrument (PI)
Rs 501-100: Rs 20 PI
35
8/9/2019 CMS Report 1
36/101
Rs 1001-10000: Rs 50 PI
Rs 10001- 1 lac: Rs 100 PI
Above Rs 1 lac: Rs 150 PI
Rs 1001-10000: Rs 45 PI
Rs 10001- 1 lac: Rs 100 PI
Above Rs 1 lac: Rs 150 PI
RTGS (charges pertransaction)
Rs 1- 5 lacs: Rs 25
Rs 5 lacs and above: Rs 50
Rs 1- 5 lacs: Rs 25
Rs 5 lacs and above: Rs 50
NEFT and EFT Upto 1 lac: Rs 5 per transaction
Rs 1 lac and above: Rs 25 pertransaction
Upto 1 lac: Rs 5 per transaction
Rs 1 lac and above: Rs 25 pertransaction
ECS Credit Clearing (per entry/ item):
NCC Clearing House No charge
Destination Bank No charge
Sponsor Bank Rs. 5.50
(Min. Rs. 2500/-)
Debit Clearing (per entry/ item):
NCC Clearing House No charge
Destination Bank No charge
Sponsor Bank Rs. 4.00
(Min.Rs.2500/-)
Returning charges - Rs. 80/-
FREE
FREE
Returning charges - Rs. 50/-
Collection of
Bills
Upto Rs.10,000/- : Rs. 120/- per bill
Above Rs.10,000/- upto Rs.1 lac : Rs.12/- per
Rs.1000/- or part thereof (Min.Rs.250/-)
Above Rs.1 lac : Rs. 10/- perRs.1000/- or part
thereof Min. Rs.1200/- Max.Rs.35,000/-
Collection Charges
under Star Speed
Cheque collectionscheme
Upto Rs.5000/-: Rs.10/- perinstrument
Rs.5001/- to Rs. 50000/-: Rs. 15/- per
Same
36
8/9/2019 CMS Report 1
37/101
instrument
Rs.50001 to Rs. 1 lac : Rs. 20/- perinstrument
Above Rs. 1 lac: Rs. 30/- perinstrument
Cheque Return Charges
Due to technical reasons: Rs. 60/- per instrument PLUS entire out-of-pocket expenses.
Due to non-technical reasons_ Rs.100/- per instrument PLUS entireout-of-pocket expenses.
Collection charges
under Speed
Clearing
Instruments upto Rs. 1 lac: Nocharges
Instruments above Rs. 1 lac: Rs.150/- per instrument
Same
Network:
1. Andaman and Nicobar Islands: 0 2. Andhra Pradesh: 104
3. Arunachal Pradesh: 0 4. Assam: 14
5. Bihar: 185 6. Chandigarh: 8
7. Chhattisgarh: 26 8. Dadra and Nagar Haveli: 0
37
8/9/2019 CMS Report 1
38/101
9. Daman and Diu: 1 10. Delhi: 62
11. Goa: 37 12. Gujarat: 268
13. Haryana: 32 14. Himachal Pradesh: 10
15. Jammu and Kashmir: 6 16. Jharkhand: 297
17. Karnataka: 84 18. Kerala: 83
19. Madhya Pradesh: 271 20. Maharashtra: 635
21. Manipur: 0 22. Meghalaya: 2
23. Mizoram: 0 24. Nagaland: 0
25. Orissa: 125 26. Pondicherry: 5
27. Punjab: 94 28. Rajasthan: 63
29. Sikkim: 1 30. Tamil Nadu: 163
31. Tripura: 1 32. Uttar Pradesh: 292
33. Uttarakhand: 16 34. West Bengal: 221
3. Corporation Bank
Banks has been always aiming to create values for its customers. Looking beyond traditional
banking, the Bank introduced an array of other products and services to different customer
segments. Cash Management Services is one such solution offered by the Bank to the
corporate customers. Every organization has receivables to collect from its dealers/ depots/
customers. Every revenue collected by the organization gets paid in one form or the other.
Collection And Payment Services (CAPS) provides customized solutions to corporate' needsin liquidity management.
38
8/9/2019 CMS Report 1
39/101
Fast Collection Service
Fast Collection Service (FCS) is the premier product of the Bank under CAPS range of
products. FCS envisages elimination of one leg of movement of cheques from drawer to
beneficiarys place and travel back to speed up the process. The corporates can access the
collections effected at 301 LOCATIONS (OPERATING CENTRES) across the country
covered under the arrangement within 24 to 48 hours at a location of corporates choice.
Corp Clear Services [CCS]
CCS ensures quick collection of outstation cheques. The product enables assured credit on
predetermined day of corporates choice, in respect of upcountry cheques deposited with
specialized CAPS branches irrespective of the day of realization. The need-based product
range under this segment includes
Corp Clear Services - 8th* Day
Corp Express Services - 4th * Day
Corp Instant Services - Next Day
(* for cheques drawn on locations where CorpBank has branches)
Corp Collect Service [ CCT]
Corporates apprehensive of cheque realizations may use their Corp Collect Service that
operates on Realize and Pay basis. The Service is extended for both within and outside
network locations. All the benefits of other corp. clear services do come along with Corp
Collect Service.
Corp Comfort Services
Waiting unduly and without certainty as to realization of outstation cheques would hamper
the business cycles. With an assured credit on 8th day in respect of outstation cheques falling
outside network, CorpComfort Service proves an effective blend of CorpClear Service and
CorpInstant Service.
Corp Remit Services
CorpRemit Service meets the corporates wholesale payment requirements such as statutory
payments, payments to vendors/suppliers, banking requirements, inter branch transfers etc.,
Corporates need just to hand over the payout instructions file along with funding cheque to
CAPS branch. Further Servicing will be taken over by the CAPS outfit. One of the salient
features of CorpRemit is that corporates get confirmation on payout effected. Remittances
can also be sent through RTGS to over 25000 bank branches across the country.
Corp Pay Services
39
8/9/2019 CMS Report 1
40/101
Corp Pay Service facilitates corporates to make retail payments very effectively. Some of the
payouts that can be very effectively and conveniently handled include disbursal of incentives,
equity and debt servicing to the satisfaction of investors, salary and wages payouts etc. All
that corporate need to do is to furnish the payout details in magnetic media/mail and the
funding therefore. Rest is only client satisfaction. Value added service such as dispatch ofpayout instrument to beneficiary is also made available. All these are available at a very
competitive price exclusively for corporates.
Payment Processing Centre
Continuing the initiatives in re-engineering the Cash Management Process, Payment
Processing Centre was set up to replicate the success achieved in collections in payments too.
At PPC, capabilities are built to print exceptionally large number of Demand Drafts with
advice. Value added service such as dispatch of payout instruments to beneficiaries is being
undertaken.
PDC Hub
Considering the huge market available and market demand for collection of PDC cheques,
PDC Hub was setup exclusively for handling bulk PDC cheques received from Finance
Companies, Banks etc towards repayments loans extended by them.
CorpNet - an Internet banking facility
Symbolizing the commitment to deliver value added services to clients using CAPS with
continuous improvements year after year, the Bank has made the use of the state of the art
technology. CorpNet an internet banking facility is now available to all corporates using
CAPS for their cash management needs. CorpNet optimizes the efficiency of corporates cash
management. CorpNet provides for a host of advantages to corporates using CAPS.
Convenience, information online, data modulation, cash inflow forecast, outstanding position
of instruments sent for collection are some of these distinct advantages coming without any
extra cost. A very high level of security features are incorporated to afford greater degree of
client comfort using this technology driven value addition.
Correspondent Banking Arrangement
Corporation Bank has developed structured products exclusively to the agency services
requirements of clients of correspondent banks under the umbrella of Correspondent Banking
Arrangements. The product can be used by top rated corporate houses within the country for
effecting cash disbursal across country.
Speed Remittance:
Under this arrangement, the NRIs can send remittances through exchange houses across
globe. The exchange houses send the details to our Nodal branch (PPC Branch) at Bangalorewho in turn credit the same to the beneficiaries accounts maintained in any of our branches.
40
8/9/2019 CMS Report 1
41/101
In case the beneficiary account is not held in our Bank, a pay order can be issued at the
destination, which can be collected by the beneficiary.
Payment Gateway:
The Division, with futuristic view in mind where web trade is taking shape gradually in Indiaespecially amongst urban population, has decided to offer payment gateway solutions to
corporate having its own trading sites on Internet. The product envisages providing buyers
having account with our Bank an opportunity to pay for the purchases made on the net.
Through this product our corporate customer will get wider base for selling their products
ECS payments / Collections:
The product envisages large volume, low value bulk collections and payments from various
accounts at select ECS locations. The same can be handled through select specialized CAPS
branches.
Service charges:
Sl.No.
Type of Service Service Charges [Incl. ServiceTax]
3.01 Collection of Outward / Inward Cheques:Upto Rs. 10,000/-Rs.10,001/- to Rs.1,00,000/-Rs. 1,00,001/- and above
Rs. 55/- per instrumentRs. 110/- per instrumentRs. 165/- per instrument
3.02 Collection of Outward / Inward BillsUpto Rs.1000
Rs.1001 to Rs. 5000Rs.5001 to Rs.10,000
Rs. 50/-
Rs. 60/-Rs. 100/-
41
8/9/2019 CMS Report 1
42/101
Rs. 10,001 to Rs 50,000Rs. 50,000 to Rs 1,00,000> Rs. 1,00,000
Rs. 8.00/1000 [Min Rs. 100]Rs. 8.00/1000Rs. 8.00/1000 (Max Rs.17,000)
3.03 Return / Dishonour of Bills / Cheques
Cheques received in inward clearingFor Savings accountsFor Current, Overdraft & Cash Credit accountsCheques sent in outward clearing(Cheques deposited by customer)For Savings accountsFor Current, Overdraft & Cash Credit accountsDishonour of local / outstation bills and outstationcheques
Rs.100/-Rs.150/-
Rs.50/-per instrumentRs.100/- per instrument50% of collection charges(Min Rs.60)
4. CANARA BANK
CORPORATE CASH MANAGEMENT SERVICES (CCMS)
The speedier Corporates are, its easier for them to address the challenges of globalization.
Corporate Cash Management Services (CCMS), an innovative service offered by Canara
Bank for speedy collection of cheques and other instruments, places Corporates on a faster
track. In more ways than one-such as definite funds flow, better cash management and
deployment of funds, better monitoring of funds flow, optimum allocation of funds and
effective planning of investment functions.
WHAT IS CCMS:
An innovative service specifically tailored to meet the requirements of
42
8/9/2019 CMS Report 1
43/101
Corporates/Business houses/Partnership firms.
Speedy collection of outstation cheques and other instruments.
Pooling of funds at designated centers.
More importantly, providing funds to the Corporates as per their need.
Customized MIS reports.
WHAT CANARA OFFER:
Under CCMS they offer the state of the art technology products.
SUPERFAST SERVICE - Local cheque collection services
FASTRACK SERVICE - Upcountry cheque collection services
BULK COLLECTION SERVICE - Bulk cheques collection services
Under 'SUPERFAST SERVICE', agents or offices of Corporates can deposit the cheques to
be cleared in the local clearing and funds will be pooled at any pooling branch designated by
the Corporates.
Under 'FASTRACK SERVICE', agents or offices of Corporate can deposit the cheques drawn
on outstation centers and proceeds will be pooled at any pooling branch designated by
Corporate.
Under 'BULK COLLECTION SERVICE', agents or offices of Corporate can deposit their
bulk (large number) instruments of small value to be cleared in the local clearing and fundswill be pooled at any pooling branch designated by the Corporate.
Network of CCMS centres:
1. Andaman and Nicobar Islands: 1 2. Andhra Pradesh: 8
3. Arunachal Pradesh: 0 4. Assam: 1
5. Bihar: 5 6. Chandigarh: 1
7. Chhattisgarh: 1 8. Dadra and Nagar Haveli: 0
9. Daman and Diu: 0 10. Delhi: 3
11. Goa: 3 12. Gujarat: 8
13. Haryana: 8 14. Himachal Pradesh: 3
15. Jammu and Kashmir: 2 16. Jharkhand: 1
43
8/9/2019 CMS Report 1
44/101
17. Karnataka: 29 18. Kerala: 11
19. Madhya Pradesh: 12 20. Maharashtra: 18
21. Manipur: 0 22. Meghalaya: 0
23. Mizoram: 0 24. Nagaland: 0
25. Orissa: 5 26. Pondicherry: 1
27. Punjab: 9 28. Rajasthan: 14
29. Sikkim: 2 30. Tamil Nadu: 31
31. Tripura: 1 32. Uttar Pradesh: 22
33. Uttarakhand: 3 34. West Bengal: 2
Service Charges:
CHEQUE COLLECTION
5. Outstation
cheque collection
Inward / Outward Collection of Outstation cheques / instruments
such as DDs/ Dividend / Interest Warrants, Refund Orders, Income
Tax Refund orders etc. (other than bills)
Amount ranging
From - ToOTHER THAN INDIVIDUAL
INDIVIDUALS
OTHER THAN
RURALRURAL
44
8/9/2019 CMS Report 1
45/101
Up to Rs.
10000/-Rs. 50/- per instrument
Rs.10,001/- to
Rs. 1,00,000/-Rs. 100/- per instrument
Rs. 1,00,001
and aboveRs. 150/- per instrument
NEFT Money
transferInward = NIL
Outward : Upto Rs 1 lac- Rs 5/- per transactionAbove Rs 1 lac Rs 25/- per transaction
7. RTGS Moneytransfer
Inward = NIL Outward : Rs 1 lac to Rs 5 lac- Rs 25/- per transactionAbove Rs 5lac - Rs 50/- per transaction
SFMS (IFN
100)Inward = NIL
Outward Rs 1/- per Rs 1000/- or part there of subject to aminimum of Rs20/- and a maximum of rs 2000/-.
ECSCredit/Debit =
NIL
Immediate Credit of outstation cheques upto Rs.15000/-
5. Axis Bank:
Collection Solutions - Power Collect: Managing Receivables Collections
Axis Bank facilitates faster collections by enabling quick realization of local and upcountry
cheques and pooling the funds in a central account. The bank provides the following
collection products:
Local Cheque Collections (LCC)
Axis Bank locations:
45
8/9/2019 CMS Report 1
46/101
With a large network of branches, the bank is able to collect locally payable cheques across
the country. The branches are equipped to handle large volume of instruments and ensure that
the funds are pooled as per the agreed timelines even before the same are realized.
Non Axis Bank locations:
Currently the bank has Correspondent Banking arrangement with multiple Banks to use their
branch network. The bank has appointed our Coordinators at various locations to facilitate the
company cheque pick-ups and ensure that they are immediately processed in the local
clearing through a Correspondent Bank.
LCC enables the company to realize funds (on an assured day) through cheques payable
within the purview of local clearing. The bank provide these services at
Axis Bank Network: 426 locations with courier pickup facility
Coordinator Network: Locations with courier pickup facility can be added as per the
company business requirements
Upcountry Cheque Collection (UCC)
UCC enables the company an assured credit for outstation cheques on a designated day in any
of the company account across the country (at any of the Axis Bank branch) with a
customized MIS. In addition to Axis Bank and correspondent bank centers (3000 locations),
all the locations are being covered under Remote Cheque Collections, offering the company a
one-stop-solution for all the company outstation cheques across the country.
Axis Bank locations:
The Banks wide network of Branches ensures that most of the companys outstation cheques
would be covered within Axis Bank network. This would result in faster realization of funds.
Further, funds can be pooled into the company account even before the instruments are
realized as per the arrangement.
Non Axis Bank locations:
To further extend the offering to process the company Outstation Cheques at Non Axis Bank
locations, the bank have tied up with other banks to act as our Correspondent Bank and
ensure that all the company Outstation Cheques are collected and immediately presented for
clearing.
Remote Locations:
46
8/9/2019 CMS Report 1
47/101
There could be a possibility wherein the location where the outstation cheque is drawn on is
not covered under our extended network with correspondent banks. The bank still can offer
the company to collect the same and send it directly to the Drawee location for realization.
Bulk Collections - Utility Bills or PDCs Management:
The bank handle the complete life cycle of the Post Dated Cheques till they are realized. All
the activities like maintaining PDC inventories, retrieval and depositing the cheque for
payment, re-presentation of a bounced cheque and exception handling (stop payment etc.) are
conducted by the Bank on behalf of its customers.
At Axis Bank, the bank offer solutions to meet Bulk Collection Requirements ie, Post Dated
Cheques (PDCs), Bulk Collections through Cheque clearing or ECS debit services, etc. The
Bank processes collections in a convenient and efficient way to avoid any reconciliationissues. The bank have required infrastructure, technology and capability to manage and
handle PDCs through our dedicated team that manages inventory of cheques and timely
presentation of the same, well supported with MIS ensuring maximum benefits to the
organization
Utility bill collection:
Axis bank offers ease & convenience to its customers and utility subscribers in their bill
payment by facilitating bill payments via online & offline modes for various utility service
providers.
The various popular channels offered by Bank for bill payment are:
Online Mode:
Electronic Clearing Services (ECS)
Collection through Internet and ATM for common customers
Collection through Bill payment Kiosks
Offline Mode:
Drop boxes at branches of Axis bank/Departmental stores/Mobile Galleries
Onsite and Offsite ATMs
Pick up from customer service centers and other authorized outlets
47
8/9/2019 CMS Report 1
48/101
Presently the bank has tied up with utility service providers like MTNL, BPL Mobile,
AIRTEL, Reliance Energy, Mahan agar Gas, NDPL and more in the pipe line.
The Axis bank's extensive network & prominently placed ATMs provide reach and access for
customers to pay their bills. Bill payment service from Axis bank has a robust and proven
technology to ensure reliability, security and performance and is aptly supported by a
dedicated desk for efficient functioning and customer service..
Collecting Bankers for IPO or FPO or Rights Issues
As collecting bankers, the bank provides you services relating to:
Public or Rights Issues
Private Placements
Buyback offers
The bank provides Collecting or Escrow Banker services for Initial Public Offer (IPO) and
for Further Public Offer (FPO) to handle collections of application forms and instruments
received. Our extensive branch network of 236 locations, robust processes and systems and
an experienced team across the country enable us to act as a leading collecting banker. The
bank endeavors that Companies, Merchant Bankers, Registrars, and Syndicate Members
receive high quality service and satisfaction.
In this current scenario of cut-throat competition, Axis Bank has designed its products to
minimize the issues faced by you in the area of fund management and reconciliation. Our aim
is to reduce the cost, time and efforts faced by corporate in collection and payment issues.
The bank provide you complete solutions to all the company CMS needs to enable you to
devote more time and effort towards improving the company business
ECS Debit:
ECS Debit is an electronic clearing system that facilitates paperless debit transaction. Axis
Bank facilitates ECS Debit on all the locations that are activated by the respective localclearing houses. The bank accepts the electronic file centrally for all the locations and
arranges to upload it at the RBI site. The realized funds get pooled to a centralized account.
Network:
CMS Branch in States:
35. Andaman and Nicobar Islands: 1 36. Andhra Pradesh: 39
37. Arunachal Pradesh: 1 38. Assam: 11
39. Bihar: 11 40. Chandigarh: 1
48
8/9/2019 CMS Report 1
49/101
41. Chhattisgarh: 13 42. Dadra and Nagar Haveli: 1
43. Daman and Diu: 1 44. Delhi: 1
45. Goa: 4 46. Gujarat: 39
47. Haryana: 20 48. Himachal Pradesh: 4
49. Jammu and Kashmir: 1 50. Jharkhand: 9
51. Karnataka: 32 52. Kerala: 18
53. Madhya Pradesh: 27 54. Maharashtra: 45
55. Manipur: 1 56. Meghalaya: 2
57. Mizoram: 1 58. Nagaland: 3
59. Orissa: 25 60. Pondicherry: 1
61. Punjab: 44 62. Rajasthan: 20
63. Sikkim: 1 64. Tamil Nadu: 38
65. Tripura: 2 66. Uttar Pradesh: 37
67. Uttarakhand: 10 68. West Bengal: 32
Correspondent Bank Location: 825
RTGS &NEFT Locations: 187
Service Charges:
49
8/9/2019 CMS Report 1
50/101
6. HSBC BANK
Integrated Receivables Solutions (IRS)
50
8/9/2019 CMS Report 1
51/101
The bank understands how important accounts receivables management is to the company
business cycle. The more control you have over the company cash flow, the lesser will be the
need for working capital required for running the company business. The faster you convert
receivables into cash, the lower will be the risks associated with the company business. At the
same time, in today's competitive environment, this has to be matched with minimization oftransaction charges and must bring in efficiencies in the company business processes.
HSBC's Integrated Receivables Solutions (IRS) offers you an opportunity to outsource the
company receivables process, from picking up cheques from the company customers, usage
of strong logistics management and correspondent bank relationships for faster processing
and clearance of the company receivables to world-class systems and processes to allow you
to have a complete control over the company cash flows and receivables.
Benefits of Integrated Receivables Solutions (IRS)
Faster realization of receivables through our strong logistics management &
geographic reach
Savings in interest costs and Bank charges through rationalization of account structure
and local clearing at over 350 locations across the country
Simplification of process through Online querying on receivables
Simplification and automated Bank Reconciliation
Outsource debtor's reconciliation
The bank provide you with a single window for processing, tracking, reconciling and
managing all the company receivables - paper and electronic through our online delivery
platform HSBCnet
Key Features of HSBC's IRS:
Local clearing of cheques at over 350 locations across India
Faster realization of outstation cheques through correspondent banks with a strong
regional presence covering over 5,000 locations across India
Cheque pick-ups at over 350 locations directly from company's offices/customers
Single collection account for cheque deposits across the country
Cash concentration in the centralized collection account
Collection reports with details of cheque number, drawer's name, date and place ofdeposit and invoice details
51
8/9/2019 CMS Report 1
52/101
Online querying on instruments deposited across the country
One platform for all forms of collections i.e. cheques, cash and electronic Automated
Bank
Automated Reconciliation through integration of collection reports with the companyBack Office Systems
Reconciliation of invoices against receipts from the company customers
Products:
Paper Collection
IRS is structured to offer quick realization of the company instruments, local or outstation.
The proceeds of all cheques deposited with HSBC can be concentrated into a designated
central account at any of our branches. Consequently you have better control on the companycash flows and the reconciliation and monitoring requirements associated with multiple
accounts are eliminated. Information on these collections is delivered to you through
HSBCnet.
IRS further delivers a variety of collection reports that can be used for automating the
reconciliation process at the company end.
Local Clearing Solutions
HSBC has an extensive network of its own branches and correspondent banks thatprovide you with the capability to clear the company instruments in local clearing at over
350 locations across India. The funds collected from these instruments can directly be
credited to the company centralized collection account. At each of these locations, HSBC
provides you with the option of directly picking up the instruments from the company
customers. Detailed collection reports provide you with information on the instruments
deposited at each of the locations.
Outstation Clearing Solutions
HSBC has correspondent bank relationships with strong regional banks covering over
5,000 locations across India. This ensures faster realization of the company upcountry
instruments. Detailed collection reports and online querying options on HSBCnet ensure
that you can track and have complete control over the company receivables.
Smartcollect
Smartcollect provides you HSBC's extensive global reach of over 10,000 offices in 83
countries for efficient collection of foreign currency cheques.
52
8/9/2019 CMS Report 1
53/101
Electronic Collections
IRS helps the company business process improvement objectives with a comprehensive array
of electronic collections, including
Domestic electronic funds transfer such as RTGS, NEFT, ECS
International wire transfer
Direct debit
Receivables data accompanying these transactions is captured and delivered to you
electronically to support the company customer order fulfillment, credit management and
reconciliation process.
Receivables Management System
Built with advanced modular technology, our receivables management system brings together
all the IRS components. Its automated reconciliation and information management modules
are fully integrated with the collections and processing features of IRS. As the backbone of
IRS, our receivables management system:
Consolidates receivables information across electronic and paper collections
Automates accounts receivables reconciliation using the company pre-defined
matching parameters for funds received against various invoices
Delivers collection reports structured to meet the company specified needs
Provides online transaction enquiry
Integrated Payment Solutions (IPS)
Payments entail a broad spectrum of requirements, with constantly varying payment formats
and systems. While paper-based payments currently constitute a majority of payment modes
in the country, electronic-payments are fast gaining importance.
53
8/9/2019 CMS Report 1
54/101
Managing these constantly evolving and varied requirements, while seeking to effect the
company payments in a timely and accurate manner, is an administrative burden that the
company would like to do away with - but at the same time it would like to ensure that the
company internal guidelines and controls are in place.
Benefits of HSBC's integrated Payment Solutions (IPS)
Reduction in the overall end to end cost of processing payments and accounts
reconciliation
Enhanced reconciliation resource optimization in payments processing and account
reconciliations
Improved Risk Management and Controls
Improved vendor relationships
Key Features of HSBC's IPS
A single point of entry for real-time information & transaction - execution for all the
company accounts
Solution for online creation or file uploads of payment instructions for execution
through varied modes like Cheques, Drafts, RTGS, NEFT & Account Transfers
Options for instruction level or file level authorization or pre-authorized modes of
initiation
Flexible and scalable authorization matrix permitting multiple authorizing levels
Availability of varied Account Statements and Reverse MIS files for automated
reconciliation within the company systems
Safety and security through two-factor authentication
Industry benchmark security through 128 bit SSL encryption
HSBC IPS Products
Cheque Outsourcing Services
Cheque Outsourcing Services facilitates outsourcing of the company paper-based payment to
HSBC. The bank support individual/bulk issuance of payable at par company cheques,
54
8/9/2019 CMS Report 1
55/101
Demand Drafts and Cashier Orders. The bank manages the company paper-based payment
processing by providing solutions on:
Printing of instruments with customized payment advices
Online querying & reconciliation of instruments through varied reports
Outsourcing of instrument dispatches directly to the beneficiaries
Remote authorization of payments for the company mobile signatories
Rationalization of work flows and payment related activities
Priority Payments
Priority Payments is a suite of electronic payment products including NEFT & RTGS that
you may leverage on to pay the company beneficiaries in a timely fashion:
Reduction in cost of Demand Drafts Rationalization of courier lead time and expenses
Urgent payments at over 1000 RTGS locations and 700 NEFT locations
Reduction in the risk of fraudulent encashment associated with paper-based
instruments
Reduction in administrative activities like maintenance of dispatch records, cheques
etc
SmartCheque
SmartCheque is suited for the company low value, urgent paper payments: a solution, which
enables you to issue cheques at the company end which are payable at par at all HSBC
branches.
Advising Solution
In this, the bank intimates the company beneficiary of the payment and its underlying details.
In addition to the paper-advice that will accompany each payment instrument, our Advising
engine additionally provides:
Advice delivery to multiple recipients through email, fax or mail
55
8/9/2019 CMS Report 1
56/101
All payment types initiated through HSBCnet are supported
All payment types initiated through HSBCnet are supported Inter-account transfers,
Cashier Orders, Demand Drafts, Corporate Cheques, EFT, NEFT & RTGS
User defined templates for recipient information & advising details are supported
Service Charges:
Up-Country Cheque Collections within India:
Outstation Cheque Collection
(Charges applicable w.e.f. 1 Dec 2008 as per RBICircular dated 8 Oct 2008)
INR 50 per instrument (upto INR
10,000)INR 100 per instrument (INR 10,000
56
8/9/2019 CMS Report 1
57/101
(Charges exclusive of service tax) - INR 1 lakh)
INR 150 per instrument (greater than
INR 1 lakh)
Up-Country Cheque Collections outside India:
Foreign currency cheque clearance: 0.5% of the value of the cheque or Rs. 300 whichever is
higher
(Charges exclusive of service tax)
Others (Issuing a cheque in a country/location where HSBC has branches) 0.35% of the value
of the cheque or Rs. 50 whichever is higher
Others (Issuing a cheque in a country/location where HSBC has no branches) 0.40% of the
value of the cheque or Rs. 100 whichever is higher
Cash Delivery/Pick up: 250/ 225/200
Bill Payments:
Through Internet Banking and PhoneBanking: Free
RTGS (charges per transaction): Rs 1- 5 lacs: Rs 25
Rs 5 lacs and above: Rs 50
NEFT and EFT: Upto 1 lac: Rs 5 per transaction
Rs 1 lac and above: Rs 25 per transaction
7. Standard Chartered
Standard Chartered is highly recognized as a leading cash management supplier across the
emerging markets. Their Cash Management Services cover local and cross border Payments,
Collections, Information Management, Account Services and Liquidity Management for both
corporate and institutional customers. With Standard Chartered's Cash Management services,
the corporate will always know their exact financial position. The corporates have the
flexibility to manage their company's complete financial position directly from the computerworkstation. The corporates will also be able to take advantage of the banks outstanding
57
8/9/2019 CMS Report 1
58/101
8/9/2019 CMS Report 1
59/101
and the ability to send industry standard messages directly to the bank. Their in-country
specialists are available to help customize a solution that would enable the corporate to
manage their working capital in a more efficient manner.
Collections Services
Comprehensive receivables management solution
Standard Chartered understands that operating and sustaining a profitable business these days
is extremely tough. In an environment of constant changes and uncertainties, most businesses
face challenges of costs and efficiency. Key concerns include:
Receivables Management - ensuring receivables are collected in an efficient and timely
manner to optimize utilization of funds.
Risk Management - ensuring effective management of debtors to eliminate risk of returns
and losses caused by defaulters and delayed payments.
Inventory Management - ensuring efficient and quick turnaround of inventory to
maximize returns.
Cost Management - reducing interest costs through optimal utilization of funds.
Solution:
The Standard Chartered Collections Solution leverages the Bank's extensive regional
knowledge and widespread branch network across their key markets to specially tailor
solutions for the customers regional and local collection needs. This Collections Solution,
delivered through a standardized international platform, has the flexibility to cater to the
customers local needs, thus enabling them to meet their objectives of reducing costs and
increasing efficiency and profitability through better receivables and risk management.
The key components of the banks solution include the following:
Extensive Clearing Network
Guaranteed Credit
Comprehensive MIS
System Integration
Outsourcing of Collection
59
8/9/2019 CMS Report 1
60/101
Extensive Clearing Network
The Banks extensive branch network, complemented by their correspondent banks' network,
provides the customers with a wide coverage of clearing locations to ensure they get the
benefit of early availability of funds. This is further enhanced by the customers cheque
purchase and guaranteed credit services.
Guaranteed Credit
To help the corporate manage their cash inflow fr
Recommended