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Answer Posted / kolluru venkatesh
A cash management technique employed by companies holding funds at financial institutions. Cash pooling allows companies o combine their credit and debit positions in various accounts into one account, and includes techniques like notional cash pooling and cash concentration. Notional cash pooling has the company combine the balances of several accounts in order to limit low balance or transaction fees. Cash concentration or zero balancing has the company physically combining various accounts into one single account.
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