Create an Impressive Money Receipt Example for Customer Service

Money receipt example for Customer Service

hello everyone welcome to officers ATA 247 this is the English Channel of officers ATA 247 if you have not subscribed to the channel then subscribe the channel hit the like button and uh as you all know that we have started this Champion Series where we are discussing unit wise chapters unit wise uh we will be discussing units of every subject of your jib paper so uh now we are targeting jibb May 2025 I hope you all have started your preparation if not then this is the right time that you can start your preparation because you will get a lot of time to revise and practice if you start your preparation now so with this we are starting today's uh session and before I start the session please share the link of this video with all your colleagues and friends on Facebook WhatsApp or telegram group so that they can also benefit from these sessions which we are bringing on YouTube so let's begin today's topic and today's topic is unit 11 cash Management Services of principle and practices of banking module a so let's see what is in M cash management system so cash management refers to collection concentration and dispersement of cash so if in terms of company if we talk there are companies which collect a lot of cash from different places from different retail units which they have so first is collection of cash then there is concentration because they need to concentrate it at one place because they have to make the expenditure as well they have to make payments to employees vendors suppliers and third thing is dispersement of cash it will be for making payments as I told you and it will also not just employees and vendors and suppliers they also have to disperse cash for the payment of emis of loans which they have taken whether it is a working capital loan or it is a Term Loan it encompasses like a level of liquidity management management of cash balance and shortterm investment strategy so this will help the companies to have liquidity management of cash and also to make an use of short-term Investments so that whatever cash they are holding rather than lying idly in the retail stores if this can be concentrated at any bank then it will be helpful for the companies that they can also go for short-term Investments what are the fundamental objectives of cash management so one of the fundamental objective of cash management is optimization of liquidity through improved flow of funds I'm now uh now suppose that there is a firm and they have retail stores at five different places in five different cities I this is 1 2 3 4 and five so they will be collecting cash at different places all this cash will be collected in collected at different places and then transferred to a single place one single central office they uh they may be having after collecting those cash at Central level it will be decided that how much is to be paid to the bank how much is to be paid to the employees and how much is to be paid to suppliers and whatever money is left they can invest so this will help in optimization it will optimize the liquidity through improved flow of funds from different places objective of cash management system is to improve Revenue so fundamental objective is optimization of liquidity it will help in improving the revenue because they may be having they can afford to have stores at different places they can afford to have their offices in different countries and from there also they can improve the revenue for the company second is maximize profit whenever they will be having very good cash Management Services and they are having they can expand they can go to different places they can go to different cities they can go to different companies countries sorry so they can maximize profits when Revenue will improve if there is optimization of liquidity it will help in maximizing the profits it will also minimize the cost because now it can be transferred from one place to another and it it becomes very seamless for them that uh uh they can manage cash at one single level even if they are collecting at different places fourth is establishment establish efficient management system to assist and accelerate growth for the company so this helps a lot to the companies to improve Revenue maximize profit minimize cost establish efficient system and also to man optimize on the liquidity part through flow of funds now what are the developments in CMS there have been significantly many changes but there are especially two reasons for which these developments has been made first there has been an upward Trend in interest rates so what does this mean that there is a upward Trend in interest rates the interest rate has been rising like this since last two decades so that increased opportunity cost opportunity cost means that has increased the opportunity cost of holding cash if suppose a company is holding cash rather than holding it in their stores if they get it deposited if that gets it transferred to the central office central office can can strategize to make short-term investment from which they can earn better returns and because they can because there is an upward Trend and interest rate they can benefit from the short-term Investments that is why the opportunity cost has also increased and so there is no point in holding the cash for very long second is technological developments particularly computerized electronic fund transfer mechanism has made this very easy for the companies to manage their cash now they exactly they can know that how much cash was generated at which store and they can be transferred to the main office and from there different kind of dispersements can be done now if we talk about companies like IBM General Motors or HP which have manufacturing plant at different count so it becomes easier for them that they collect it from sale offices and most of the payment are made from cities where manufacturing occurs or else from the head office so it becomes easier for them because of this cash Management Services which the banks are providing that they can combine it at one place they can bring it at one place from different sales of offices at different in different countries at different locations and that can be made use of either from the manufacturing uh either from the head office or they can be used for manufacturing where whatever wherever the manufacturing unit they have now comes what is importance of cash management system first we will see what is importance of cash management system for corporate entities so good cash management is a conscious process of knowing when where and how a company's cash need will occur so when and where it could be that they are generating cash at sales point as in the previous slide we have seen that uh companies like IBM uh General Motors which have manufacturing plants at different places and they are collecting cash only from the sales offices that cash can be used as for manufacturing and these manufacturing units are also placed at different places or from or else it could be used by the head office for any kind of other investment or for expansion of the company so good cash management it will tell them when and where they would need the money and how a company's cash need will occur knowing which are the best sources for meeting additional cash needs so now with cash management system they can know that what would be the best source for meeting additional cash needs if they need at any time this could be from Banks and financial systems as well whether it would be convenient for them to utilize the cash which they are generating at sales point or they can utilize or you or they can simply go to the bank and apply for working capital needs and from there they can get the CC limit so it is important for them to understand which would be the best source for meeting the additional C cash needs which they might be requiring being prepared to meet these needs when they occur by keeping good relationship with bankers and other creditors so whenever there is need required they can simply ask from the banker or any other creditor this will help them to understand when and where the cash will be needed so they will maintain the lesing with the banks and other creditors and this will help them to optimize the liquidity and maximize The Profit what is so uh for corporate entity proper cash management system so how will they help them create control over time and funds in the previous slide we have seen that how this will and what is the importance of cash management system for a corporate entity now we will see that how this will benefit to a corporate it will create more control over time and funds it will provide timely access to information if they exactly know that how much cash they have they might be having uh they can utilize that cash wherever it is required suppose they have a unit which is in they have a unit which is in Delhi but they need cash at Mumbai although the Mumbai Office is not generating much of cash they can get it transferred to Mumbai they can have real time knowledge that how much cash Delhi office is having so it will provide timely access to information enables easy employee related payment it becomes easier for the company to make payments to all the employees whether they are in based out of Mumbai or they are uh in Delhi support electronic payments electronic payments will become easier because everything is lying in the bank so transferring the money is easier produces faster electronic reconciliation so whatever reconciliation has to be done at different offices that will become easier and faster allow detection of bookkeeping errors if there is any error any bookkeeping means accounting errors if there account if there are accounting errors that can also be reconciled and they can be pointed out once they are pointed out they they are detected they can be rectified and Reconciliation can be done it reduces the number of checks issued so because because of electronic transfers because of the knowledge that we may be having that at which office how much cash is lying it will help in reducing the number of checks which a firm usually issue because a lot of electronic transfers can be done now earns interest income or reduces interest expense so any idle cash which which is lying it can be used for shortterm shortterm investment and this will reduce interest expense as well because they will be able to timely pay the timely payment of loans can be done now comes importance of cash management for banks so what is uh why it is important for banks because of deregulation and new technology Banks comparative advantage made it easier for non-bank competitor to enter into exclusive Banks domain so there is huge competition with non-bank competitors nowadays and this has shifted their sales mix to what product that generate non-interest income by selling nonbank fee based financial services so what does this mean is that because of deregulation and new technology even non-bank competitors have entered into the businesses in which only banks were allowed to do the business but now not only the banks there are other institutions also who are working in this domain so what does this has resulted in it has resulted in the sales mix Banks how will they earn profit they earn profit from interest which we earn from loans so the difference of Interest which we earn from loans and the interest which we pay to our depositors that becomes earning for the bank but that is reducing now because of competition that interest margin has reduced a lot so banking has changed their sales mix earlier if it was 80% from this and 20% from fee based income fee based income this mix has been changed now exact percentage I'm not this is just an example I'm taking that this has from 80% this has become to 60% and maybe this has become 40% that bank is relying on the fee based income and Bank gets fee based income from selling Insurance the third party products or providing cash Management Services also they will get some fees out of it so for banks so also this will help them to this will help Banks to increase their fee based income now there are uh some types of cash Management Services which the banks provide one is check DD drawing Arrangements where first is uh cash collection service banks have implemented various customized cash pickup Solutions so bank will be charging some of the fees for this pickup Solutions which they are providing to their customers and what benefit it is for the firms that it minimizes the operational risk reduces the cost security increased efficiency because if the cash is lying then there is a risk that there any decoy or anything could happen but now if suppose a firm is generating 10 lakh 15 lakh cash per day it it will be picked up by the bank through this cash pickup Solutions on the same date and can be deposited in the bank this will reduce the risk of the firms and this will also reduce in the cost because they would earlier they needed a person to go and deposit that uh in the bank but now they won't be needing any other person to just do this job of depositing cash from their offices to their retail stores to bank because bank is providing this cash pickup facility from their units their retail uh shops direct credit by fund transfer this offer management payable in respect of supply chain payments overseas remittances salary payment so this has been become very easier for the firms to do these kind of jobs the supply chain payment is easier overseas remittances are easier they can just simply transfer it through electronic trans payments Banks also provide check DD drawing Arrangements where demand draft payable at par checks issued by the CMS client for branches across the country and can be presented for payment and it will be easier for them to get it paid or to whom whom um they have issued the check for them also it becomes easier to get the those cash those checks in cash in different branches of the same bank any F payment electronic channels it also helps them to have bulk disbursements for credit to various beneficiaries benefici beneficiaries could be suppliers suppliers could be beneficiaries employees could be beneficiaries so they can make bulk disbursement on a single click once they have uploaded the data they can transfer the money to different beneficiaries like suppliers or employees and this is this will become very easy and uh even to an when we talk about any FD payment it could be done to other Banks also like suppose the payment of employees are done through cash are done in uh different banks then also it will become very easier for the fir firms to transfer the money reable management and check collection local and UpCountry clearing Solutions are also provided by the bank nsh payment facility is also provided for periodical disbursement or receipt if they have to make any kind of Emi payment which are periodical in nature that can also be done easily through NS nsh payment facility and auto sweeping facility Auto sweeping facility like if they have stores in Delhi Mumbai Chennai Kolkata and they are maintaining their head office at Mumbai so it will whatever cash has been generated at Delhi it can be pulled to Mumbai Office so this pooling has also become very easier for the farm firms now let's see some of the questions of this unit which of the following is not a benefit of the cash management to the corporate more control over time and funds easy employee related payment fees based income faster electronic reconciliation which of the following is not a benefit of the cash management to the corporate more control over time and fund easy employee related payments fee based income faster electronic reconciliation and we have seen that uh it provides more control over time and funds to the corporates easy employee related payments can be done Fe e based income is for the banks and faster electronic reconciliation is done so right answer is C fee based income which of the following are objective of cash Management Services optimization of liquidity through improved flow of funds improve Revenue minimize cost maximize profits establish efficient management system to assist and accelerate growth all except one all except five all except three and four or all of the above which of the following are objectives of cash Management Services optimization of liquidity through improved flow of funds improved Revenue minimize cost maximize profits establish efficient management system to assist and accelerate growth so uh this is of optimization of liquidity is one of the objective through improved flow of funds improving revenue is one of the objectives minimizing cost is one of the objective maximizing profit is one of the objective and establishing efficient management system to assist and accelerate growth is also one of the objectives so right answer is all of the above D is the right answer which of the following are not measures taken by RBI to strengthen the payment mechanism in the country rtgs realtime gross settlement system delivery versus payment for government securities transactions National automated Clearing House nsh system centralized funds management system cfms structured Financial messaging system sfms all of the above all except four and five all except three all except 1 2 and three so you have to answer that which of the following are not measures taken by sorry this is uh it should not be not it should be what are the which of the following are measures which are taken by RBI it is not not it is which of the following are measures which are taken by RBI to strengthen the payment mechanism in the country so which of the following are measures which are taken by RBI for strengthening the payment system rtgs delivery versus payment for government security transaction National automat automated Clearing House system centralized fund management system structured fundament financial management system sfms so all these are measures which are taken by RBI to strengthen the payment mechanism in the country this includes rtgs uh delivery versus payment nhch State uh system CF FMS sfms and so right answer would be all of the above here please consider the question as which of the following measures are which are taken it not I have so uh this is it for today's session on uh this particular topic cash Management Services and as I told you that we have already launched our batch and if you have not enrolled for our uh paid classes then uh you can enroll for the paid classes because in this particular series it is very important to cover the whole of the unit in one session so for that you have to go to ATA 247 site and if you have not downloaded the app then first of all download the app from Google store or Apple Store Google Play or Apple store then you have to go to all courses jib CIB and then 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