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The Challenge
In recent years, the Reserve Bank of India
has encouraged corporates to switch from
paper-based clearing to electronic payments
using the Real Time Gross Settlement (RTGS)
and National Electronic Funds Transfer (NEFT)
systems. At the same time, Coca-Cola wanted to
make the switch to electronic payments from its
5,000 customers in India in order to improve
efficiency. However, RTGS and NEFT limit
remitter information, making it impossible to
identify the source of funds or to reconcile
payments. Coca-Cola wanted to resolve this
problem with a system that automatically
updated and reconciled customer credit
information to ensure that goods were
dispatched promptly and sales maintained.
The Solution
Citi proposed a virtual accounts solution to allow
Coca-Cola to realize its receivables in a fast,
reliable, and efficient manner. The targeted
enrollment was about 5,000 and virtual
accounts were created and linked to Coca-Cola’s
30 operating units’ accounts across India.
Customers would remit funds to these virtual
accounts allowing their source to be noted and
enabling automatic reconciliation in real-time.
Once the funds reached Coca-Cola’s operating
unit accounts, they could be concentrated in a
centralized account at Head Office.
HINDUSTAN COCA-COLA BEVERAGES
Virtual Accounts Facilitate Electronic Funds
Transfer and Auto-reconciliation
The Indian operations of the world’s largest non-alcoholic beverage company include 22 bottling
operations and eight contract packers.
Industrials
Energy, Power
and Chemicals
Technology, Media and
Telecommunications
Consumer and
Healthcare
Non-Bank Financial
Institutions
