Cash management is a service which enables the corporate customers to manage their receivables and payables efficiently.
RTGS enables settlement of payment transactions in the Indian financial market between banks and other financial institutions to ensure real time settlement of funds.
It integrates settlement of payments taking place under multiple systems such as inter-bank clearing, high value clearing, MICR clearing and negotiated dealing system.
High value and inter-bank clearing will be discontinued once RTGS becomes live, Leeladhar said at a seminar on CMS here, organised by Pune based CashTech solutions.
As different locations are inter connected in the new system, the utility of cash management services will be reduced to an extent.
However, CMS will have a role to play as our economy is cheque based and it will be sometime before the entire nation gets covered. Banks offering CMS will have to innovate and come out with newer products to remain in the business, he said.
Raj Subramaniam, the director of CashTech Solutions, said that their company would soon start offering its solutions in the Chinese market. The company currently has operations in 15 countries.
It has about 45 customer sites, of which 15 are in India and the rest abroad.
The company earns more than 60 per cent of its revenues from overseas market. The company launched its next generation cash management platform on Thursday.
It has already bagged an order to implement the solution for an Indonesian bank.The company claims to have a 40 per cent share of the Indian cash management software market. Its clients' list includes State Bank of India, Syndicate Bank and Andhra Bank.
