FINAL EXAM REVIEWER

CASH MANAGEMENT

1. Cash Management is a set of processes and activities performed by an organization to

_______________ and ______________ its operating fund flows.
-regulate and optimize

2. An organization’s operating funds flows consists of 2 types. What are they? And
briefly define them.
-Receivables – inflows; mainly the proceeds of sales
-Disbursements – outflows; payments made by the organization to suppliers,
employees, shareholders and the government

3. What are the 3 benefits of Cash Management to the bank?

-generates low-cost deposits
-creates “stickier” banking relationships
-improves Return on Risk Assets (RORA)

4. Why is it that the more CASA is generated, the higher our earnings?
-because CASA is the low-cost component for deposits so the more CASA generated, the
lower the average rate paid to the depositors and this improves our NIM (net interest
margin)

5. What is RORA used for? What is the simple formula for computing RORA? And how
do you interpret the result?
-RORA is the key measure of the profitability of a borrowing relationship
-total relationship earnings / total loans
-the higher the result, the better

6. Why is it beneficial for borrowing clients to avail of our cash management products?
-because cash management products do not create credit risk and thus it significantly
increases the RORA of the relationship

7. The RCBC Online Corporate (ROC) allows our corporate clients to do 2 functions. What
are they?
-get real-time account balance and transaction history information
-issue instructions to the bank to initiate transactions

8. Our Disbursement Solutions are used by our clients to do what? And in what 3 forms
can they do this?
-to make payments to various parties
-cash, checks or electronic transfers
9. For corporate clients who still prefer to issue checks when making payments, which
product should we offer? And what are its features?
-Corporate Checkwriter
-allows customers to automate the preparation and printing of their checks as well as
vouchers and acknowledgement receipts
-instead of printing and signing checks, the clients send payee and payment data via
ROC to the bank and the bank uses this data to print the corresponding checks on a
three part check form
-the checks can be sent to the clients for releasing to their payees on their premises or
to an RCBC branch which releases the checks for the client

10. What are the 2 variants of Corporate Checkwriter? Briefly describe them.
-Managers Checks – immediately funded by a debit to the client’s account for the full
amount and signed by a bank officer
-Corporate Checks – signed by the client and funds stays in the client’s account until the
check clears

11. When do you offer Corporate Checkwriter Onsite?

-when the corporate clients prefer to print and sign their checks themselves

12. What are 4 benefits of Corporate Checkwriter for our clients, whether preparation
and/or releasing is outsourced to us or undertaken by them?
-automation of the check preparations saves time, effort and cost
-releasing of checks through our branches eliminates long queues of suppliers at the
clients’ offices
-automatic notification to payees of the issuance of a check in their favor lessens the
follow ups by suppliers
-for MCs, the effort to reconcile checks cleared vs. the funding account becomes
unnecessary

13. What are the 7 Cash Management solutions we provide where clients can make
payments by directly crediting their payees’ accounts?
-Automatic Credit Arrangement (ACA)
-Batch Crediting Facility
-InstaPay
-PesoNET
-InstaCore
-Payroll
-Bills Payment

14. When is ACA the best option to offer our clients? And why?
-When our clients’ suppliers also have accounts in RCBC
-because it has minimal charges
15. How do suppliers get notifications by email or SMS automatically when they receive
payments from our clients?
-our clients do payee enrollment in ROC wherein they upload a one-time enrollment
indicating their customers’ details and this will then be ROC’s basis for notification

16. What product/service do we offer when clients find the payee enrollment procedure
tedious?
-batch crediting

17. What is PesoNet?

-an electronic funds transfer service that enables clients to transfer funds to existing
accounts of any local participating bank via ROC

18. PesoNet transactions filed through ROC will be credited same day to the receiving
account if the transaction is approved before _____________. Incoming payments
received by RCBC before _____________, will be credited same day.
-2PM and 4:30PM

19. What is InstaPay?

-an electronic funds transfer service that enable clients to transfer funds to existing
accounts of any local participating bank via ROC almost INSTANTLY

20. What are 4 differences between PesoNet and Instapay?

-PesoNet credits the beneficiary account at the end of day, approval cut off is 2PM,
there is no amount of limit per transfer, transaction fee is P10
-InstaPay credits the beneficiary account immediately – offers an almost-real-time
crediting system, approval cut off is 9PM, amount of limit per transfer is P50k,
transaction fee is P15

21. When do we offer InstaCore and what is InstaCore?

-we offer InstaCore when the client has a problem collecting official receipts from their
payees
-InstaCore is a bundle that includes a disbursement product, official receipt
management and email notification to the client’s suppliers that their payment is ready
to trigger the preparation of the OR

22. What does Official Receipt Management mean?

-payments can be held off by the client until their suppliers provide them with an OR.

23. Bancnet Electronic Government System (eGov) remits payment online for which 3
government institutions?
-Philhealth
-Pag-ibig
-SSS
24. What are the 2 initial requirements to open a payroll account?
-KYC information through APAO template
-HR certification

25. Under the 90-day Payroll Monitoring Program, which required documents should be
received by Customer Account Opening Department (CAOD) within 60 calendar days?
-completely filled out Customer Relationship Form
-copy of valid ID

26. What is a Cash Cube? And what are 3 benefits?

-it is a remote deposit machine with a built-in vault that is installed in the clients’ offices
and has a system that electronically sends a report to an RCBC regional service center of
the cash it has received
-detects counterfeit or unfit notes, real-time monitoring of their cash deposits, same
day credit (not real time)

27. When do you offer Deposit Pick-Up (DPU)?

-when clients whose sales generate large volumes of cash onsite but want to minimize
the associated risks of handling or transporting it

28. What is Cash Rider? Who do you offer this service to?
-a service that dispatches a motorized messenger to collect cash from clients for deposit
into their accounts end of day.
-clients who generate smaller amounts of cash onsite

29. What arrangement do we offer where clients entrust their PDCs to RCBC for
safekeeping and then the funds are deposited to their accounts as the PDCs fall due?
How does this give the client complete control of their PDS inventory?
-Post-dated Check Warehousing / PDC Warehousing
-clients can monitor their PDCs via ROC and give us instructions to pull-out, hold, cancel
or replace them using ROC

30. What are the 3 main benefits of Check Rider to our clients?
-their sales proceeds are immediately realized because we actively collect the checks
from their customers
-easier reconciliation of their receivables since RCBC will collect and provide them with
the relevant information on the paying customer and the transaction
-clients can save on manpower/resources

31. What does Auto-Debit Arrangement (ADA) do?

-alllows our clients to automatically debit the accounts of their customers in RCBC for
settlement of payments due