Cash Management Practice in India
CASH MANAGEMENT PRACTICES IN INDIA
Cash management refers to a broad area of finance involving the collection, handling, and usage of cash. It involves assessing market liquidity, cash flow, and investments. Cash management, or treasury management, is a Marketing term for certain services related to Cash flow offered primarily to larger business Customers. It may be used to describe all bank Accounts (such as checking accounts) provided to Businesses of a certain size, but it is more often Used to describe specific services such as cash Concentration, zero balance accounting, and
Automated clearing house facilities. Sometimes, private banking customers are given cash management
Services.
Cash management in India can be explained by using following table: COLLECTION:
The collection system basically deals with:
OUTSTATION CHEQUE: If a cheque issued in one city and to be cashed in another city, it is called outstation cheque. Eg. Ram live in Delhi receives cheque from a person in Bombay and the cheque is drawn on a bank in Bombay and Ram present into bank in Delhi for clearance, it is called outstation cheque.
INSTATION CHEQUE: If a cheque issued in one city and to be cashed in same city, it is
Cash management refers to a broad area of finance involving the collection, handling, and usage of cash. It involves assessing market liquidity, cash flow, and investments. Cash management, or treasury management, is a Marketing term for certain services related to Cash flow offered primarily to larger business Customers. It may be used to describe all bank Accounts (such as checking accounts) provided to Businesses of a certain size, but it is more often Used to describe specific services such as cash Concentration, zero balance accounting, and
Automated clearing house facilities. Sometimes, private banking customers are given cash management
Services.
Cash management in India can be explained by using following table: COLLECTION:
The collection system basically deals with:
OUTSTATION CHEQUE: If a cheque issued in one city and to be cashed in another city, it is called outstation cheque. Eg. Ram live in Delhi receives cheque from a person in Bombay and the cheque is drawn on a bank in Bombay and Ram present into bank in Delhi for clearance, it is called outstation cheque.
INSTATION CHEQUE: If a cheque issued in one city and to be cashed in same city, it is