This document discusses cash management in banks. It begins by introducing cash management and its importance for businesses and banks. It then provides background on Central Bank of India and discusses the objectives of the study, which are to understand current cash management techniques in banks and identify any specialized approaches. The document outlines the research methodology used and limitations of the study. It relies on secondary sources for data collection. The conclusion is that proper cash management reduces pressure on banks and allows them to operate successfully.

1. Cash Management In Banks
(S. Maninder Singh Bhatia)
(Roll No A30601910016)
Amity Global Business School,
Banjara Hills,
Hyderabad-500034.
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2. SYNOPSIS
A STUDY ON CASH MANAGEMENT IN BANKS
1. Working Title: A Study on Cash Management in Banks.
2. Introduction to the study: Cash management is a broad term that refers to the
collection, concentration, and disbursement of cash. It encompasses a company’s
level of liquidity, its management of cash balance, and its short-term investment
strategies. In some ways, managing cash flow is the most important job of business
managers.
Having a traditional paper-based clearing system involving not only high processing
cost but also security risk, cash management in India has certainly undergone a
paradigm change. From a product-centric approach, the focus for almost all banks
today has shifted emphatically towards the customer. And, success is all about
bringing the maximum possible delivery channels to the prospect’s doorstep.
3. Company Profile:
Central Bank of India:
Established in 1911, Central Bank of India was the first Indian commercial bank
which was wholly owned and managed by Indians. The establishment of the Bank
was the ultimate realisation of the dream of Sir Sorabji Pochkhanawala, founder of the
Bank. Sir Pherozesha Mehta was the first Chairman of a truly 'Swadeshi Bank'. In
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3. fact, such was the extent of pride felt by Sir Sorabji Pochkhanawala that he
proclaimed Central Bank of India as the 'property of the nation and the country's
asset'. He also added that 'Central Bank of India lives on people's faith and regards
itself as the people's own bank'.
During the past 99 years of history the Bank has weathered many storms and faced
many challenges. The Bank could successfully transform every threat into business
opportunity and excelled over its peers in the Banking industry.
4. Problem Statement: Improper planning of Cash Management can lead any bank to
disaster and losses, which close down banks and banks loose out customers as such.
How well Cash Management is used in today’s competitive world is to be known.
5. Objective of the study: There are 2 objectives of this study:
(a) Primary Objective: The Primary objective is to understand Cash
Management in the selected banks.
(b) Secondary Objective: The secondary objective are as follows:
(a) To understand how Cash Management has changed these days.
(b) To also understand any special Cash Management techniques being
used.
(c) Making suggestion at the end of the research pertaining to Cash
Management.
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4. 6. Significance of Study: The topic has been chosen because Cash Management is very
important part of any successful bank. Proper Cash Management will help banks have
liquid assets when ever required. Liquid assets provide low risk to the bank and
customers’ cash requirements can be met.
7. Scope of the Study: The scope of the study is to understand how Cash Management
works in current Banks and any special techniques to manage the Cash in Banks.
8. Limitations of the Study: The limitations of “A Study on Cash Management in
Banks” are as follows:
(a) The project is limited to the secondary research.
(b) The major limitation relating to the study was collecting primary information on
Cash Management.
9. Research Methodology:
In this project I have used the descriptive method of disclosing the data which is
related to Cash Management in different Banks. Furthermore, describing each and
every detail relating to Cash Management.
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5. 10. Primary Data: The primary data is the data which is consisting of first hand
information and original information pertaining to the organization and in order to
collect this information the tools that are used are:
1. Questioner & Surveys.
2. Interviews.
3. Sample Size: No Sample Size for this study.
Secondary Data: The secondary data is relating to information which is collected in
the form of:
1. Internet.
2. Books.
Note: This project has all the information in the form of Secondary Data only.
11. Conclusion: Cash Management has been since banks inception. But, the complexity
of banks functioning and rules & regulations for Banks are making Banks
functionality little difficult. Proper Cash Management will reduce all the pressure and
Banks can work successfully.
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6. Bibliography:
The data for this project has been collected by secondary research from the below mentioned
websites:
http://www.centralbankofindia.co.in
http://www.gtnews.com/article/5571.cfm
http://www.icai.org/post.html?post_id=2935
http://www.hsbc.co.in/1/2/business/cash-management
http://www.gtnews.com/article/6436.cfm
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