CASH MANAGEMENT

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 Treasury Management
• Treasury refers to the Fund and
Revenues at the disposal of bank
and day to day management of the
same.
• Treasury acts as the custodian of
cash and other liquid assets
• Treasury management is concerned
with management of consolidated
funds of the bank optimally
 Integrated Treasury
• Traditionally, Foreign exchange dealing
room managed forex dealings and cover
operations in inter bank market
• Domestic treasury/investment operations
were independent of forex operations
• Treasury ops were devoted to reserve
management (CRR and SLR) and fund
management.
• Also undertook investment in govt and
Non-govt securities.
• Need for integration arose in the context
of liberalisation of interest rates,
exchange control, introduction of
derivatives and development of sound
 Functions of Integrated
Treasury
• Reserve Management and
Investment.
• Liquidity and funds management
• Asset Liability Management and Term
money
• Risk Management
• Transfer Pricing
• Derivative products
• Arbitrage
• Capital Adequacy
 Cash Management
• Cash balance at the Branch office.
• Issues of Demand and supply
• Cash at vault and ATM
• Cash at currency chest.