Cash management services

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.

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.

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.

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.

PRODUCTS OF CMS
Collection services
Payment service
Pricing
Organization and System

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.

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 by 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.

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

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.

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.

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.

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

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.

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.

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.

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 cash.management@axisbank.com
• 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.

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 cash.management@axisbank.com
• 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.

HOW TO LOCATE CMS CENTERS
Of
AXIS BANK
STEP 1
STEP 2

Of
AXIS BANK
STEP 3

Of
AXIS BANK
STEP 4
STEP 5
STEP 6
STEP 7
RESULT

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

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

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