Cash Management Services (CMS) is a new entrant in the Indian banking scenario. It enables bank to bring out the proper information through required intervals and offer true nationwide banking. The basic idea behind is to facilitate corporate clients to overcome the major setbacks and hurdles in the existing collection system of funds. This article conceptualizes the working of CMS.

Technological revolutions have brought out the concept of e-banking to the forefront and the banking industry which was primarily driven by interest earnings, and acted as an intermediary between the borrowers and the lenders. But in today's competitive and changing economic environment, the banks are compelled to learn the tricks of the trade for their survival. Globalization and disintermediation are the other factors which contributed for a shift in the services of the banks. Unless they cater to the needs of the public, their survival is at stake. Increased competition is now forcing banks to offer differentiated solutions, which are customized to the specific requirements of their varied clients.

It has been continuous endeavor of banks to provide useful services time and again. A paradigm shift in banking technology has made reorientation of the banking industry inevitable. In view of the recent IT evolution in the banking sector, the banks are in searching to introduce new concepts and services to meet the challenges. There is an increased focus on fee-based earnings from services. And one such effort in this direction is providing `Cash Management Service' (CMS). CMS is the area within banking that offers fee-based earnings.