According to information available with FE, BSNL has initiated a two-part bidding process to rope in a leading commercial bank with a national presence and sizable size to manage its cash flow efficiently using latest technology in fund transfer and cash management. The two-part bidding process involves a technical part and a financial part. The chosen bank would have to manage the entire cash flow of BSNL including collection of bills and transfer of funds from local offices to regional offices and headquarters.
The contract would be initially for a period of one year and BSNL may renew the mandate if the service meets the benchmarks. BSNL would reserve the rights to terminate the contract if the chosen bank is found wanting in providing quality service.
The outsourcing of the cash management services would help BSNL improve its profitability and better margins as it would cut fund transfer time drastically. Besides, BSNL would also earn additional interest as the funds would be parked in a 7-day fixed deposit account.
Sources said the banks pitching for the BSNL mandate should have a proven track record in managing cash flows besides a sound technology platform. It should also have anywhere banking facility through the country and a paid up capital of Rs 100 crore. It should also have agency arrangement with other banks for the places where it does not have a branch of its own.
According to BSNLs requirements, the selected bank would have to channelise all the cash and cheque collections from all counters, post offices and other banks to the branch in which each circle has its account.
From there, the cash and cheque collections should be sent to the branch in which BSNL headquarters has the account.