Economics · Banking and Cash Management Services
A large multinational conglomerate operating in the Indian market intends to optimize its treasury operations by integrating its ERP system with a bank's Cash Management Services (CMS) platform to facilitate real-time liquidity forecasting and automated reconciliation. Given their pan-India operations with multiple retail outlets, the corporate seeks a solution that addresses the time-lag in local check collections while minimizing idle balances in peripheral accounts. Which specialized CMS structure provides a unified view of its cash position by consolidating funds into a central concentration account on a same-day or next-day basis?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Relying exclusively on the National Automated Clearing House (NACH) platform while maintaining separate statutory liquidity ratios at each local branch.
- 2Setting up a series of zero-balance accounts across branches where funds are manually transferred by branch managers at the end of each business day.
- 3Utilizing a Virtual Account Management system that assigns unique identifiers to each retail outlet for instant identification of payers combined with a physical pooling mechanism.✓
- 4Implementing a stand-alone Electronic Clearing Service (ECS) mandate for all retail collections coupled with a traditional branch-level overdraft facility.
Correct answer
Utilizing a Virtual Account Management system that assigns unique identifiers to each retail outlet for instant identification of payers combined with a physical pooling mechanism.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Banking and Cash Management Services MCQs →Want more practice questions on Banking and Cash Management Services?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Banking and Cash Management Services