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Banking Exam Question - What is Cash Management in Banks? Explain Need & Things to Remember in Cash Management






Introduction - Cash Management
Buckets do different things as cash. The management and management of the same is the same as management cash. Its main purpose is to balance the internal and external flow. Manage the needs and resources of Liquidity Management and understanding of the resources needed for cash and cash.

Things to remember when cash management
  • Extend or accelerate cash collection
  • Delay cash delivery
  • Making effective management effective
  • Determining the appropriate cash transactions
  • To expand and decentralize more investment
  • Expansion and decentralization of cash collection
  • Centralize on cash payments


Cash management requirement
  • Daily and administrative expenses
  • Pay all types of expenses
  • Deposit payment day
  • Cash management and legal liquidity ratio CD Ratio, to manage appropriate in Cash in Vault
  • Economical fluctuations and risk prevention
  • To give loans to the debtors
  • Keeping faith
  • To complete the requirement
  • For professional security
  • To comply with the central bank rules
  • For security of banking business
  • Liability to sister
  • To manage property
  • Etc. for other businesses.

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