Page 159 - DCOM208_BANKING_THEORY_AND_PRACTICE

Banking Theory and Practice

Notes (e) Controlled disbursement
(f) Positive pay
(g) Sweep accounts
(h) Zero balance accounting

2. Discuss on the concept of cash management system.
3. Elaborate on the need of cash management system in banking.
4. “Cash Management Services has eased the functioning in banking sector.” Explain.
5. Explain the evolution of CMS.

Answers: Self Assessment

1. Collection, concentration; disbursal 2. Liquidity; profitability
3. A large number of cheques each month 4. Lock boxes
5. Armoured car service 6. Payment outsourcing
7. Strong cash management solution 8. Cash flows; liquidity management
9. Automated clearing house 10. Small numbers of payments

11. Positive pay 12. Sweep accounts
13. Wire transfer

9.7 Further Readings

Books Hajols. T. N (2009), “Money and Banking”, Gopaljee Enterprises.
Muraleedharan, D (2009), “Modern Banking: Theory and Practice”, PHI Learning
Pvt. Ltd.
Rajesh, R, Sivagnanansithi, T (2009), “Banking Theory: Law and Practice”, Tata
McGraw Hill Publishing Company Ltd.
Shekhar, K C (2009), “Banking Theory and Practice”, Vikas Publishing House
Pvt. Ltd.

Online links http://www.allinterview.com/showanswers/73309.html
http://worldacademyonline.com/article/10/230/cash_management_
objectives_and_decisions.html
http://www.docstoc.com/docs/12162912/Cash-Management-report
http://www.cab.org.in/CAB%20Calling%20Content/RISK%20-
%20Management%20in%20Agriculture/Cash%20Management%20
and%20Payments%20in%20India.pdf

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