Principal Accounts Office
Government of NCT of Delhi

3.1 As already mentioned, Pay and Accounts Office of a Ministry / Department is placed in account with a branch of Reserve Bank or a Public Sector Bank nominated for the Ministry / Department. Similarly, a Cheque Drawing Officer of a Ministry / Department is also placed in account with a branch of the same Bank.

3.2 Public Sector Banks are now conducting Government business on behalf of the Reserve Bank of India who is the official banker of the Central Government. When a cheque is issued in payment of a bill, the amount is normally debited to the final head of account. At the close of the month the paid bills or vouchers are posted in the compilation sheet and the net amount of payment is tallied with the total amount of cheques delivered during the month. After this is done, the net amount of cheques delivered during the month is credited to the head "8670-Cheques and Bills-102 PAO Cheques." In case of cheques issued by the cheque drawing officers, the total amount of cheques drawn during a month is credited to the head '8670-Cheques and Bills-103 Departmental Cheques'. Offices/Departments which are required to follow the Public Works / Forest System of accounts credit the amount so arrived at to the head '8782 Cash Remittances etc.-102 Public Works Remittances 103 Forest Remittances' as the case may be, in their monthly account.

3.3Whenever a cheque is encashed by a Public Sector Bank, it initially pays the amount from its own cash balance and then claims reimbursement from the Central Accounts Section (CAS), RBI Nagpur which maintains the account of each Ministry/Department. Similarly, when Government receipts are paid into a Public Sector Bank, it passes on the proceeds to the Central Accounts Section, RBI, Nagpur. As there is a time lag for a Government transaction carried out by the bank to get reflected in Government cash balance the minor head 'Public Sector Bark Suspense' is operated in Government books to account for the transactions awaiting settlement.

3.4The dealing branches of Public Sector Banks send the daily scrolls of receipts/payments in duplicate to the Focal Point Branch alongwith challans/paid cheques. The Focal Point Branch consolidates the transactions PAO-wise and prepares a main scroll in triplicate and sends two copies of the main scroll alongwith the original of the daily receipts/payments scrolls received from the dealing branches together with challans/paid cheques to the Pay and Accounts Office. The aggregate of receipts/payments are to be incorporated in a Daily Memo by the Focal Point Branch and it sends the same to the Link Cell of the bank at Nagpur which settles the amounts with the RBI, CAS, Nagpur.

3.5The receipt scrolls attached to the main scrolls are to be examined by the Pay and Accounts Office to ensure that the challans enclosed actually pertain to the Pay and Accounts Office concerned and the receipts recorded in the scroll tally with the amount shown in the challans. Similarly, the payment scrolls attached are also to be examined to ensure that the paid cheques are those which are issued by the Pay and Accounts Officer or by the Cheque Drawing Officer functioning under him and that the amount of payments recorded in the scroll tallies with the amount shown on the paid cheque. The Pay and Accounts Officer will ensure that error-free Main Scroll is verified and duplicate thereof returned to the Focal Point Branch. Any discrepancy in the Main Scroll is to be got rectified by personal contacts. After this verification, the totals of the payments and receipts of the main scroll are to be entered date-wise in columns 2 and 3 respectively in the Register of PSB Suspense/RB Deposits in Form CAM-17 indicating date of the main scroll in column 1 ibid. Separate pages/folios are to be used for entering scrolls pertaining to the office of the Pay and Accounts Officer and for each Cheque Drawing Officer, one page being used for total consolidated account of the Focal Point Branch. The total for the month is to be struck separately for payment scrolls and receipt scrolls.

3.6.1 After verifying the total amounts of receipts/payments as noted in the 'Register of Public Sector Bank Suspense/R.B. Deposits' on the basis of daily main scrolls, necessary transfer entry will be prepared by the Pay and Accounts Officer to adjust the amounts of payments in his books as under:-

(-) Cr. 8670 - Cheques and Bills
102 PAO Cheques

or

103 Departmental Cheques
(as the case may be)

To

8658-Suspense Accounts
108 Public Sector Bank Suspense. Cr

3.6.2In case of offices following the Public Works/Forest Divisional system of accounts, the amount of paid cheques will be adjusted as under:

(-) Cr. 8782-Cash Remittances etc.
102 Public Works Remittances

or

103 Forest Remittances
(as the case may be)

Cr. 8658-Suspense Accounts
108 Public Sector Bank Suspense

3.7 So far as the amounts of receipts are concerned, the challans are posted under final receipt heads of accounts or minus debited to the advance or salary head under which the payment was originally debited in the compilation sheet as per classification recorded in the challans. The total amount of receipts is then arrived at and after verifying the monthly total under column 3 of the 'Register of PSB Suspense' is debited to the head '8658-Suspense Accounts 108-PSB Suspense'.

3.8.1 After the close of the month, 'the Focal Point Branch sends to the Pay and Accounts Office four copies of "Date-wise Monthly Statement (DMS)" based on the verified daily Main Scrolls by the 3rd of the following month. This statement is to be checked with reference to the gross receipts/payments worked out in CAM 17 with reference to daily Main Scrolls. Two copies of the DMS are returned to the Focal Point Branch by the 7th of the following month. The duplicate copy of the DMS is sent to the Principal Accounts Office.

3.8.2The Pay and Accounts Office also receives Monthly computerised (Put-through) Statement from SBI GAD or link cell of the other Public Sector Banks at Nagpur showing the amounts of receipts/payments settled with RBI, CAS, Nagpur. The Pay and Accounts Office checks the entries therein with reference to the figures in the DMS.

3.9.1 After verifying the figures of computerised statement of credit/debit settled with the RBI, CAS, Nagpur by the SBI GAD or link cell of other Public Sector Banks with the Date-wise Monthly Statement received earlier from the Focal Point Bank, the Pay and Accounts Office has to reconcile the figures as in its books with the figures appearing in the put-through statement. For this purpose a 'Monthly Reconciliation Analysis' has to be prepared in the form as per 'Annexure I'. The Pay and Accounts Office is responsible for any difference appearing in Part 'A' of the Analysis. For discrepant items appearing in serial (vi) (b) of Part 'C' and transactions other than those appearing in Serial (vi) (a) of Part 'C', it has to contact the Focal Point Branch to ensure that the rectification is carried out and the item has been put through by the Focal Point Branch through the GAD/Link Cell in the subsequent month positively. The grand total of Serial (vi) (a) and (vi) (b) is tallied with the closing balance shown against serial (v) of Part 'C'.

3.9.2 The Pay and Accounts Office has also to maintain a 'Register of amounts put through', with the RBI, CAS, Nagpur separately for receipts and payments as in Part I of Annexure II. Normally, all the amounts except those relating to the last 3-4 days of the month will be put through/settled with RBI, CAS, Nagpur in the same month. The items of last 3-4 days are expected to be put through/settled in the first few days of the subsequent month. In case it is seen while closing the register of subsequent month, that some balance of a month is outstanding the Focal Point Branch will immediately be contacted for remedial action.

3.9.3 The Pay and Accounts Office has also to maintain a Register showing the progressive position of amounts to be put through/settled with RBI, CAS, Nagpur as in Part II of Annexure II separately for receipts and payments.

3.9.4 The Pay and Accounts Office prepares a statement of monthly reconciliation between the figures as in 'Datewise Monthly Statement' and the amounts booked under '8658- Suspense Accounts-108 PSB Suspense' in Annexure III. Proper explanations/reasons for the difference with reference to the 'Datewise Monthly Statement' are given in the statement. Action taken for clearance of difference is also given therein. A copy of the monthly reconciliation statement is sent by the Pay and Accounts Office alongwith the monthly account to the Principal Accounts Office.

3.9.5 Verification of the amounts put-through/settled with the RBI, CAS, Nagpur with the figures of the DMS and preparation of 'Monthly Reconciliation Analysis' will throw light on the amount of reimbursement claimed in excess by the bank. A statement in Annexure IV is sent by the Pay and Accounts Office to the Principal Accounts Office for reporting excess put through to the Controller General of Accounts as per instructions issued on the subject.

3.10 In order to keep a watch over the clearance of balances under the suspense head, a 'Broad-sheet of PSB Suspense' is also maintained by the Pay and Accounts Office in the Form asper Annexure V separately for Debits (receipts) and Credits (payments). The clearance of the head 'PSB Suspense' is however, done by the Principal Accounts Office on receipt of a monthly statement of closing balances (CAS-122) from RBI, CAS Nagpur. The amount of debits/credits cleared from 'PSB Suspense' shall be intimated to the concerned Pay and Accounts Office by the Principal Accounts Office for maintaining the Broadsheet of PSB Suspense. The Pay and Accounts Office also works out the age-wise analysis of balances in Annexure VI (supported by amount put-through/settled with RBI, CAS, Nagpur). The statement received from RBI, CAS, Nagpur shows the details of payments and receipts for which settlement had been effected between the Public Sector Bank and the RBI, CAS, Nagpur. This statement also includes the details by RBI, CAS, Nagpur on the basis of advices issued by the Principal Accounts Office. After verification of this balance statement, the Principal Accounts Office has to prepare the following Transfer Entry:-

Payments settled between PSB and RBI, CAS, Nagpur

(-) Cr. 8658-Suspense Accounts
108-PSB Suspense

To

8675-Deposits with Reserve Bank
101-Central-Civil Cr.

Receipts settled between the PSB and RBI, CAS, Nagpur.

Dr. 8675-Deposits with Reserve Bank
101-Central Civil

To

8658-Suspense Accounts
108, PSB Suspense(-)Dr.

The balances outstanding on the credit and debit side after deducing the above adjustments for a month under the minor head 'PSB Suspense' separately would indicate the amounts paid by the Public Sector Bank which have not been got recouped by it during the month itself and the amount of receipts collected by the Public Sector Bank which it has not credited to RBI, CAS, Nagpur before the end of the month respectively. A close watch has to be kept on the clearance of balances (both credit and debit) under the minor head 'PSB Suspense' to ensure that actual settlement between the Public Sector Banks and Central Accounts Section of Reserve Bank of India at Nagpur is conducted within the minimum possible time; otherwise the cash balances of the Government as reflected in the books of the RBI would give an erroneous picture of cash balance of the Government of India with the Reserve Bank of India.

3.11.1 Procedure in case of Central Board of Excise and Customs.

(a) Receipt of Revenue:

The receipt scrolls are prepared by the bank in triplicate major head wise. The serial number in the scroll is recorded on the right hand top corner of all copies of challans to facilitate identification. Each day's scrolls are also given running serial number separately for each major head for the financial year. The dealing branch sends the scrolls together with challans arranged serially to the Focal Point Branch for onward transmission to the Pay and Accounts Office. The quadruplicate copies of challans are also sent duly bound and serially arranged.

(b) Refund of Revenue

At the headquarters of each Collectorate one branch of the selected bank is authorised to make payment of refunds on cheques (marked Revenue Refunds and Rebates) issued by the Divisional Officer. The paying branch prepares in quadruplicate separate major head-wise scrolls (marked Refunds, Rebates and Drawbacks). Two copies of the scrolls with paid cheques are sent to the Focal Point Branch and the third copy of scroll is sent to the Divisional Officer.

(c) Action in Focal Point Branch

It prepares major head-wise daily main scroll in triplicate and sends two copies of the scrolls to the Pay and Accounts Office of the Collectorate alongwith the original copy of receipt payment scrolls and challans and paid cheques received from the dealing branches. The major head-wise quadruplicate copies of challans duly arranged Rangewise are sent to the nominated Range Officer.

(d) Accounting Adjustment

The Pay and Accounts Office adjusts the receipts in its account under the concerned heads by contra debit (bank wise) to head 8658-Suspense Accounts-108 PSB Suspense Bank- "X'' (name of the bank). Similarly, in case of payment of refund cheques the amount is credited bank-wise to the head 'PSB Suspense Bank-"X". It maintains a separate register of 'PSB Suspense' for each bank concerned with the work of Revenue Account' and posts therein each day's receipts payments. The Link Cell prepares in respect of each Pay and Accounts Office (i.e. Collectorate) a statement in quadruplicate of receipts and payments put through to RBI, CAS, Nagpur. The monthly statement as got verified by the RBI, CAS, Nagpur is sent to the Principal Chief Controller of Accounts, Central Board of Excise and Customs by the latter and a copy is also sent to the Focal Point Branch. Another copy is sent to Pay and Accounts Office direct. On receipt of the statement from RBI, CAS, Nagpur, Principal Chief Controller of Accounts, Central Board of Excise and Customs clears the head "PSB Suspense-Bank-'X' by transfer to the head '8675 Deposits with Reserve Bank-101 Central-Civil'.

3.11.2 Procedure in case of Central Board of Direct Taxes.

(a) Receipt of Taxes

The receipt scrolls are prepared major head-wise in quadruplicate. A running serial number for each financial year is given to the scrolls for each major head. The dealing branch also prepares a summary of receipts indicating total receipts under all major heads for the day. The branch then sends three sets of scrolls /challans, the first set containing original scroll and original challan intended for Designated Officer; the second set containing duplicate copies of scrolls and challans meant for the Zonal Accounts Officer and the triplicate copy of scroll and the summary of receipts meant for the Nodal Branch with a forwarding letter to the Nodal Branch.

(b) Income Tax Refund Orders (ITROs)

Only the authorised Income Tax Officer (ITO) can issue the ITRO on the authorised bank. In case of refund orders upto Rs. 1000 two foils of relative refund orders are issued to the assessee. In case of refund of Rs. 1000 and above, the ITO will issue one foil to assessee and simultaneously refund advice in duplicate will be sent to the paying branch. The ITRO and refund advice bear the same number and the payment is made en the strength of refund advice. The paying branch prepares the scrolls major head-wise in quadruplicate. The scrolls are made into sets similar to the sets relating to receipts except that instead of challans, the paid refund orders/advices are attached to the scrolls. Besides, the set meant for Designated Officer does not contain the refund order in case of refunds of Rs. 1000 and above. However, in these cases a copy of the refund advice is sent to him.

(c) Action in Nodal Branch

On receipt of sets of scrolls with challans/paid instruments the Nodal Branch prepares daily main receipt/payment scrolls in triplicate Designated Officer/major head-wise. The scrolls are given running serial numbers for each financial year. The receipt scrolls together with original branch bank scrolls and challans and similarly the payment scrolls together with ITROs are sent in duplicate to the Zonal Accounts Office on day to day basis. Another set of receipt scrolls containing original challans and payment scrolls together with refund advice for refund of Rs.1000 and above and paid ITROs upto Rs.1000 is sent to the Designated Officer bi-weekly. The Nodal Branch also records a certificate on the main scroll sent to Zonal Accounts Office/Designated Officer to the effect that necessary advice has been sent to the Link Cell at Nagpur. It also maintains a Register to record daily receipts and payments reported to it by branch banks under various major heads. Two copies of the Register (kept in perforated form) are furnished to the Zonal Accounts Office with the relevant scrolls etc. Nodal Branch is required to prepare a Daily Memo on the basis of entries in the above Register and sends it on daily basis to the Link Cell at Nagpur.

The Nodal Branch also prepares each month ZAO-wise monthly statements in quadruplicate indicating date-wise receipts/payments reported to the Zonal Accounts Office earlier and sends 3 copies to the Zonal Accounts Office for verification. The third copy is sent by the Zonal Accounts Office to the Principal Chief Controller of Accounts, Central Board of Direct Taxes. On receipt of the verified copy, the same is passed on to Link Cell by the Nodal Branch after keeping necessary note in the office copy.

(d) Accounting Adjustments

The Link Cell at Nagpur checks the Daily Memos received from the Nodal Branch and passes on the same to RBI, CAS, Nagpur for settlement. On the basis of the Daily Memos received from Link Cell, RBI, CAS, Nagpur generates daily input statements and furnishes two copies thereof to Link Cell for confirming the figures. For the purpose of final reconciliation of transaction with the concerned Zonal Accounts Office and Link Cell, the RBI, CAS, Nagpur generates monthly statement and furnishes the same to Zonal Accounts Office and the Link Cell of the bank. It also sends a monthly analysis indicating major head-wise receipts/ refunds etc. to Principal Chief Controller of Accounts, Central Board of Direct Taxes.

The Zonal Accounts Office on receipt of the monthly statements of receipts and payments from the Nodal Branch carries adjustments in its books by per conra debit and credit to the head '8658-Suspense Accounts-108-PSB Suspense'. The minor head 'Receipts awaiting transfer to other minor heads' is operated initially under various receipt major heads. The above minor head is cleared by transfer of the amounts to the concerned minor heads on receipt of account from the Designated Officer. On receipt of major head-wise monthly statement from the RBI, the Principal Chief Controller of Accounts, Central Board of Direct Taxes clears the above suspense head by minus debit/ minus credit by per contra debit and credit to the head '8675- Deposits with Reserve Bank-101 Central-Civil'.

3.12 Deposits with Reserve Bank

3.12.1 The general banking business of the Central Government is conducted by the Reserve Bank of India. Ministries and Departments of the Central Government operate on such branches of the Reserve Bank and or the Public Sector Bank, as have been, or may be nominated by the Reserve Bank as its agents for handling the receipt and payment transactions of a particular Ministry or Department. The Central Accounts Section of Reserve Bank of India at Nagpur keeps a complete account of receipts and payments (including inter-Government adjustments and adjustmentsinter-seof Defence, Railways and Posts) in respect of Central Government. It maintains individual accounts of each Ministry / Department of the Central Government and of Union Territory administrations having separated accounts offices and sends a monthly statement, taking into account all cash transactions in all the branches and agencies of the Bank and the adjusting transactions in its own books to their Principal Accounts Offices with such supporting details as may be prescribed by Government from time to time. Beside keeping the Ministry/Department-wise accounts, the Central Accounts Section also acts as a general clearing house for the adjustment of such transactions between the Central and State Governments as may be specified by the Central Government.

3.12.2 As will be clear from adjustments shown in para 3.9 above, all receipts of Central Government are finally debited to the head '8675 Deposits with Reserve Bank-101 Central-Civil' and all payments on its behalf are finally credited to the above head. The net position of credit or debit under the above head during the year is reflected by the Principal Accounts Office of each Ministry/Department in the Statement of Central Transactions.

3.12.3The cash balance of Central Government (including Railways, Defence, Posts & Telecommunications) is worked out by Controller General of Accounts by transferring the net transactions shown under "8675 Deposits with Reserve Bank" to "8999-Cash Balance-102 Deposits with Reserve Bank," and reflected accordingly in the Union Government Finance Accounts.

ANNEXURE-I

Monthly Reconciliation Analysis

(Para 3.9.1)

PAO ........................................................................ Month ..............................................

ANNEXURE-II

REGISTER OF AMOUNTS PUT THROUGH
RECEIPTS/PAYMENTS

Part-1
(Para 3.9.2)

P.A.O.

ANNEXURE II

REGISTER OF AMOUNTS PUT THROUGH
RECEIPTS/PAYMENTS

Part II
para(3.9.3)

P.A.O ______

ANNEXURE-III

(Para 3.9.4)

Statement of Monthly Reconciliation between the figures as per DMS and the amount booked under "8658-Suspense Accounts-P.S.B. Suspense" for the month of---------------

ANNEXURE-IV

STATEMENT OF DOUBLE/EXCESS REIMBURSEMENT

(Para 3.9.5)

ANNEXURE-V

BROADSHEET OF PSB SUSPENSE

(Para 3.10)

P.A.O. ........................................ Receipts (Debit) /Disbursements (Credit)

ANNEXURE-VI

Abstract showing the Balances outstanding under 'PSB Suspense'

(Para 3.10)

Year ...................