Which tool allows entities to close current accounts while making payments more efficient?

The Pay on Behalf of (POBO) arrangement enables organizations to optimize cash management and enhance payment efficiency by consolidating payment operations. In a POBO structure, a central entity makes payments on behalf of various subsidiary entities, which allows for a streamlined payment process. This method minimizes the number of transactions required across different accounts and helps in better cash flow management.

Entities can operate a single central account, which can lead to reduced bank fees and improved liquidity management as they can effectively allocate and control funds more strategically. By centralizing payments, businesses can also ensure consistent and accurate payment processing, which enhances operational efficiency.

The other tools mentioned serve different purposes, such as managing accounts in different ways but do not specifically address the task of closing current accounts while enhancing payment efficiency in the same manner that POBO does.