JAIIB · PPB · Chapter 11

Cash Management Services and its Importance

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Principles and Practices of Banking — JAIIB.

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One-liners from this chapter

Free sample — 8 of 106 rapid-fire Q&A cards.

Q

Exact thresholds & timings?

A

RTGS Rs. 2 lakh minimum, 24×7 since Dec 2020; NEFT 24×7 since Dec 2019 in half-hourly batches; IMPS Rs. 5 lakh cap; UPI Rs. 1 lakh general / Rs. 5 lakh tax-insurance-secondary-market.

Q

Rebranding?

A

BBPS is now Bharat Connect (NPCI Bharat BillPay Ltd, effective Dec 2024).

Q

Use-cases?

A

FMCG distributor collections, dealer financing, supply-chain finance via TReDS, PTPFC / ULI for invoice-linked credit.

Q

L — Optimise Liquidity — Stands For / What the Bank Does?

A

Stands For: Right amount of cash at right place at right time; What the Bank Does: Sweep accounts, fund pooling, intra-day overdraft

Q

F — Minimise Cost of Float — Stands For / What the Bank Does?

A

Stands For: Cut the gap between cheque deposited and funds available; What the Bank Does: CTS, electronic credit, same-day value dating

Q

C — Accelerate Collections — Stands For / What the Bank Does?

A

Stands For: Shorten DSO (Days Sales Outstanding); What the Bank Does: Pan-India collection network, ECS Credit, NACH, UPI, Bharat Connect

Q

D — Control Disbursements — Stands For / What the Bank Does?

A

Stands For: Pay on the due date — not before, not after; What the Bank Does: NEFT / RTGS / IMPS / NACH Debit / Centralised Payable-at-Par

Q

A. Receivables Management — Purpose / Underlying Rails?

A

Purpose: Pull money IN, faster; Underlying Rails: CTS, ECS Credit, NACH Credit, UPI, Bharat Connect, AePS

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