How to decide cash retention limit in bank?
Answers
Answered by
11
Cash retention limit is the amount of money a bank certain branch can keep overnight in order to carry on the morning day to day operations.
This limit is only decided in the main branch of all banks usually by the higher management. There are certain factors that allow the banks to decide the cash retention limit for all their branches these are:
size of a branch
business they do on a day to day basis
average daily cash and receipts
location of the branch (market/residential area)
category of the branch
Cash retention limits are mainly set to ensure smooth flow of all business operations. Reduce risk at the branch level, coverage by insurance and to increase profitability.
This limit is only decided in the main branch of all banks usually by the higher management. There are certain factors that allow the banks to decide the cash retention limit for all their branches these are:
size of a branch
business they do on a day to day basis
average daily cash and receipts
location of the branch (market/residential area)
category of the branch
Cash retention limits are mainly set to ensure smooth flow of all business operations. Reduce risk at the branch level, coverage by insurance and to increase profitability.
Answered by
5
Answer:
HOPE THE ABOVE GIVEN ATTACHMENT WILL HELP YOU......
Attachments:
Similar questions