| Cash
Credit facilities in banks are given
to meet out working capital requirement
of borrowers. Customers are allowed
to withdraw money to meet out the day-to-day
funds requirement to the extent of limit
sanctioned and deposit the receipts
into their cash credit account. This
results in frequent transactions into
the account with no fixed drawl and
repayment schedule.
The Asset Liability Management is
one of the critical activities for
Banks to ensure smooth inflow and
outflow of funds. Banks collect the
period wise residual maturity of all
inflows and outflows expected and
match inflow with outflows so that
liquidity balance is maintained. The
Banks have evolved/ outsourced systems
to compute inflows/ outflows in respect
of various types of funds, however,
due to unique nature of operations
in Cash Credit facilities a broad
framework has been suggested by Reserve
Bank of India and branches compute
inflows and outflows in cash Credit
facilities manually as per guidelines
of RBI.
These computations are required to
be executed on a fortnightly basis
by all branches and submitted to HO
for final compilation. Due to short
frequency (fortnightly) of submission
of the information, it is observed
that it is huge task to collect the
information for all branches and timely
compilation of the same at Head Office.
Further, the manual computation of
fluctuating portion is a tedious process
and there are always to manual error
that may lead to erroneous figures
at Head Office level.
Currently, no automated system is
available to implement computation
of inflows/ outflows in Cash Credit
facilities, D2K Technologies is one
of the first to provide such functionality
to Banking Industry. The model deployed
enables the industry to automate process
of inflow/ outflow compute for CC
facilities also. Residual Maturity
computation for Bills & Demand
Loan/ Term Loam facilities is already
facilitated through CRisMAC System.
This module serves as add module to
existing ALM systems provided by other
service providers that do not provide
functionality of computation of inflow
& outflow of cash Credit facilities |
