On cash management

In this paper, an attempt has been made with a view to assisting the reader to develop thorough understanding of the concept and various functions underlying cash management in a lucid and systematic manner. There are three main motives of holding cash in the business viz., transaction motive, precautionary motive and speculative motive. They all have been discussed in the first part of this paper. In the second part, objectives of cash management has been identified. The functions of cash management have been analysed in detail in the third and final part of this paper.