Cash management services

CMS

1. BY AJEETESH SRIVASTAVA CASH MANAGEMENT SERVICE

2. WHAT IS CMS ..? A hybrid system of collections and remittances at faster pace with certain value additions. CMS seeks to provide customized and efficient collection and payment services to business entities. In other word, it can be said that it is a combination of collection and payment services, customized and packaged to meet the needs of the individuals & businesses.

3. OBJECTIVES To attract and retain Customers by offering customized products and services. To manage cash flows, liquidity and ensure reduction in costs. To provide additional value added facilities to customers. To adapt the changing business environment. To make the process involved in remittances and collection effective and efficient. To create niche market segments and stay ahead of competitions. Non-customers can also avail this service.

4. CMS & AXIS BANK : An Intro! Branches , electronically linked, across 226 cities in the country. Tie-Up with other banks to provide wider CMSs. This translates into AXIS Bank’s capability to provide CMSs to more than 2500 locations pan INDIA. The Bank has the provision of CCPH i.e. Centralized Payment & Collection Hub to resolve queries promptly and efficiently.

5. ADVANTAGES CORPORATES AXIS BANK Improved liquidity through faster access to funds. Client acquisition by offering CMS as an entering strategy. Assured funds in the pooling accounts. Fee as well as float based income. Reduced borrowings and lower interest payments. Cross selling of other banking products. Deployment of funds is easier by reduction in accounts maintained by banks for different requirements. Monitoring of cash inflows of the corporate where bank has a credit exposure. Lower operational costs. Developing overall relationships. Single window query. Balancing and mismatches at the branch level from the CMS funds.

6. PRODUCTS OF CMS Collection services Payment service Pricing Organization and System

7. COLLECTION SERVICES It can be categorized under following modes Local cheque clearing - The process is same but bank adds value to the service as instead of bringing cheques to the bank , they offer pick up services from the customers premises. Upcountry cheque collection – the bank appoints a courier company at the place of the customer, to go to his office periodically and collect cheques . The courier company sends the cheques at the branch. Then normal remittance procedures are followed. Management information systems (MIS)- Unlike traditional process under CMS when courier picks up the cheques they also pick up deposit slips which will contain all the information required by the company, like invoice, commission , rebate ,etc.

8. PAYMENT SERVICES Many businesses need to make payments, in bulk, all across the country. By CMS , the bank offer to relieve their Business Clients of the entire payment making work, both local or upcountry. The client is required to give only list of payments to be made, electronically and the rest is taken care b y bank. The various payment payment services that banks give under CMS are: Bulk Payorders & Demand Drafts : The Bulk Payoreder & DDs request can be given to bank’s CMS HUB directly or through branch. The HUB will arrange the bulk printing nearest to the customer’s premises and then deliver it to it. Remote Printing: If the client has to send multiple payments at multiple places then he can electronically give instructions to CMS HUB to have the instruments printed at various locations and then deliver them to respective payees.

9. PRICING This deals with the service charges that has to be paid to the bank providing CMS. The following factors influence CMS charges Client background, relationship value Credit rating of the company Volume and value of expected transactions MIS requirements The charges levied for CMS consists of two elements The service charge The interest factor for early clearance

10. Organization and System A central control room or hub, which manages the flow of data and funds from various locations and supports the field operations in whatever manner needed . A centralized application system with access to the branches and correspondents for entering data relating to the cheques and other information in the deposit slips . The hub has a crucial role to play in managing correspondents and courier arrangements which are the backbone of the CMS infrastructure.

11. AXIS CMS LET’S TAKE A LOOK… COLLECTION Local Cheque Collection This facility is offered for local cheque collection by our bank or coordinators present. There are 19 coordinator locations & 295 local cheque collection locations. Upcountry Cheque Collection Cheques drawn or deposit on different locations. This facility is available at more than 3000+ branches Also have tie-ups with 8 Correspondent Banks Utility Bill Collection Services It mainly deals with your regular bill payments. Requirements of utility service providers are: Realization & Remittances, drop boxes, cash pick-up services, MIS, locations. Collection Channels: Cash Collection, cheque collection, drop boxes, ATMs, ECS.

12. CONTINUED… Bulk Collection In this the cheques collected at 300 different locations are routed through the bulk collection module of CMS. Deposit slip level detail for all collections. Infrastructure to handle PDCs. Cash Pick Up & Delivery one of the few banks to offer this service. Tie-up with reputed vendors to arrange for cash pick up and delivery. Call pickup service , as & when required. Complete security & insurance of the cash. Electronic Clearing System Debit Clearing : Applicable for Tele./Elec. Bill, loan instruments etc. available at all RBI approved locations.

13. CONTINUED… Collecting Banker for IPOs Intermediaries Involved : BRLMs, Registrar to the issue, Bankers to the Issue, Auditors of the company, underwriters to the issue. Banker’s role in the process : Dealing with the escrow account, collecting cheques & DDs from bidding members on the same day, security of Bid Forms Received, preparation of banking schedule, handing over BAF to Schedule Registrar, cleaning of cheques, final certificate to registrar. USP of this Service : Vast coverage Single point contact at CCPH, Mumbai. Comprehensive MIS ( Schedules & Certificates). Strict adherence to RBI guidelines. Enhanced security Relationship manager IPO software

14. PAYMENTS Payments of dividend warrants/ redemption warrants Online validation of instruments with issue masters before payment at all axis bank branches. Online marking of stop payments. Online status of paid-unpaid instruments available. Dedicated payment cell to ensure efficient resolution of queries. Remote printing of demand drafts Facility of printing bulk DDs with facsimile signature of bank officials. Printing of instruments with cover note to capture payment requests. Dispatch of the printed instruments to the beneficiaries. Currently 90 locations are activated. Direct Credit Facility of crediting multiple axis bank accounts across the country against a single file provided in any of the bank branches . Fully automated system providing instant credit to the beneficiary.

15. CONTINUED… Customer cheques Printing of CCs can be initiated by customer through web payment interface. The print file may be directly uploaded by the client or submitted to any branch for upload. Online marking of stop payments . Electronic clearing service Debit and credit ECS facility available at all designated ECS centers. ECS credit can be utilized for payments like interest/ dividend, etc. ECS debit can be utilized for payment of utility bills, collection of taxes, etc . Available in 87 centers, managed by RBI and Public Sector Banks. EFT (Electronic Fund Transfer) – NEFT and RTGS An expeditious system of funds transfer across any of over 63,000 branches of more than 89 banks. Faster realization of receivables. Extended cut-off times for transfer of funds. Reduces fraud transit risk associated with paper based instruments.

16. AXIS BANK CONTRIBUTION IN THE GOVERNMENT BUSINESS Axis bank is the first private bank to be authorized by the RBI and Government of India for collecting taxes on behalf of State Government in twin cities of Hyderabad and Secunderabad. Collection of direct taxes on behalf of CBDT.(214 authorized branches) Collection of indirect taxes on behalf of CBEC. (56 authorized branches) Disbursement of central government pensions. (218 authorized branches) Expenditure related payments of central government ,ministries of department, state govt. business including collection of state taxes based on the recommendations of individual states.

17. FAQs…!! PAYMENTS Does our company require opening an account with Axis Bank for availing Cash Management Services? In Payments, it is mandatory to open a current account with the Bank. How long does it take to start with the CMS from Axis Bank? After the receipt of complete documentation it takes only 2-3 working days to begin with Cash Management Services. What is the documentation required? Individual products require different documentation. Specially designed documents to reduce your executive time spent on the documentation. You can send an email to  [email protected] Are the reports available on the internet? By using our highly secured WEB CMS and iconnect Modules you can access detailed information about your financial transactions .

18. FAQs Continued…!! COLLECTION Does our company require opening an account with Axis Bank for availing Cash Management Services? For Collections, it is suggested to open an account with the Cash Management Banker, however it is not mandatory to open any account for pooling of Collection funds. How long does it take to start with the CMS from Axis Bank? After the receipt of complete documentation it takes only 2-3 working days to begin with Cash Management Services. What is the documentation required? Individual products require different documentation. Specially designed documents to reduce your executive time spent on the documentation. You can send an email to  [email protected] Are the reports available on the internet? By using our highly secured WEB CMS and iconnect Modules you can access detailed information about your financial transactions .

19. HOW TO LOCATE CMS CENTERS O f AXIS BANK STEP 1 STEP 2

20. HOW TO LOCATE CMS CENTERS O f AXIS BANK STEP 3

21. HOW TO LOCATE CMS CENTERS O f AXIS BANK STEP 4 STEP 5 STEP 6 STEP 7 RESULT

22. “CMS business adds a lot of value to the customers and the bank. At the same time it is a very complex operation.”

23. REFERENCES www.axisbank.com >> FAQs, Locating CMS Centers M. N. Gopinath >> CMS Definition & Basic Concepts Axis Banking Awareness >> Banks CMS services & Training Manual their features www.google.co.in >> images & awareness content THANK YOU