Section I—Receipt and Custody of Government Money

19. All transactions to which any Government servant, in his official capacity is a party, must, without any reservation, be brought to account.

20. Under Treasury Rule 3, all moneys standing in the Government Account (save as provided in paragraph 21-A) must either be held in the Treasury or in the Bank. Moneys deposited in the Bank shall be considered as one general fund held in the books of the Bank on behalf of the State. The deposit of such moneys in the Bank shall be governed by the terms of the agreement made between the Governor and the Bank under section 21 of the Reserve Bank of India Act, 1934 (Act II of 1934) (See Annexure A to Appendix II).

21. Under Treasury Rule 7(1), all moneys as defined in articles 266, 267 and 284 of the Constitution, received by or tendered to Government servants in their official capacity shall, without undue delay be paid in full into the treasury or into the Bank and shall be included in the Government Account. Except as provided in Treasury Rule 7(2) (paragraph 21-A), moneys received as aforesaid shall not be appropriated to meet departmental expenditure, nor otherwise kept apart from the Government Account.

NOTE—For moneys tendered on behalf of the Central Government or other State Governments, see Treasury Rules 34 and 35 (Appendix II and paragraph 85-A).

21-A. Under Treasury Rule 7(2), the direct appropriation of departmental receipts to departmental expenditure is authorised in the following cases, notwithstanding the provisions of paragraph 21:

(a) in the case of moneys received in civil, revenue and criminal cases on account of the service and publication of summons and notices; diet-money travelling allowance, fees and pay of witnesses; fees and other charges of commissions and arbitrations ; expenses of civil prisioners ; and for other similar purposes ;

(b) in the case of deposits received at a civil court and utilized by the Court to meet claims for the refund of such deposits ;

(c) in the case of cash receipts utilized in accordance with departmental regulations of the Public Works Department to defray expenditure on current works or utilized by that Department under the authorization of the Accountant General to defray pay and travelling allowance charges ;

(d) in the case of cash received by the Forest Department and utilized in meeting immediate local expenditure ;

(e) in the case of earnest money received from contractors with their tenders if it is refunded the same day ;

(f) in the case of fees received by Government servants appointed under Notaries Act, 1952 (Act No. 53 of 1952) and utilized to defray legal expenses incurred by them in the discharge of their duties as such Notaries ;

(g) in the case of cash found on the persons of prisoners at the time of their admission to jail, and used for the repayment by Jail Superintendents under departmental regulations of similar sums due to other prisoners on their release ;

(h) in the case of cash received by the officers of the Industries Department from the public on account of sale-proceeds at an exhibition, or on account of contributions for sending demonstration parties or exhibits to exhibitions ;

(i) in the case of receipts on account of sale-proceeds of stores or garden and farm produce utilized in accordance with the departmental regulations of the Agriculture Department, to meet expenditure on commission and other sale-charges ;

(j) in the case of receipts on account of sale-proceeds of Government property disposed of through auctioneers, to meet expenditure on commission paid to auctioneers ;

(k) in the case of court fees and fines realized by the Panchayati Adalats under the U.P. Panchayat Raj Act 1947, for the payment of remuneration to persons employed in writing or preparing copies of the records, registers, summons, etc., or employed .in serving warrants of arrest, summons, notices and in carrying out orders for seizing, selling and delivering property attached, or on account of expenditure on office contingencies, etc., or for disbursement of the balance to the Gaon Sabhas situated within the jurisdiction of the Panchayati Adalats ;

(l) in the case of fines (other than magisterial fines) and surplus sale-proceeds of impounded cattle, etc., under the Cattle Trespass Act, 1871, in respect of cattle pounds whether farmed out or managed directly by local bodies themselves;

(m) in the case of registration fees mentioned in sub-paragraphs II and III of paragraph 183 of the Police Regulations for the payment of remunerations to clerks concerned ;

Provided that the authority hereby given for the direct appropriation of the revenues of the State, including departmental receipts, shall not be construed as an authority for keeping the receipts and payments pertaining to such appropriation outside the account of the payments into, and the withdrawals from, the Government Account.

22. (i) All moneys received by or deposited with any officer, employed in connection with the affairs of the State in his capacity as such, other than revenues or public money raised or received by Government, shall be paid into the Public Account.

(ii) All moneys received by or deposited with any court to the credit of any causes, matter, account or persons shall also be paid into the Public Account.

(iii) The head of account to which such moneys shall be credited and the withdrawal of moneys therefrom shall be governed by the relevent provisions of the Account Code, the Treasury and Account Rules and the Budget Manual or such other general or special orders as may be issued in this behalf.

NOTE—The moneys received on behalf of the Central or other State Governments shall be deposited into the Treasury or Bank, as the case may be in accordance with Treasury Rules 34 and 35 (Appendix II).

22-A. (Deleted).

22-B. Under Rule 9 of the Treasury Rules, a government servant may not, except with the special permission of the Government, deposit in a bank moneys withdrawn from the Government Account under the provisions of Section VII of the Treasury Rules (Appendix II).

23. Departmental receipts may ordinarily be realized in legal tender coins or currency notes only. Currency notes of all denominations are now universal legal tender irrespective of the circle of their issue and are received by all Government servants in payment of the dues of the Government or in settlement of other Government transactions.

24. Cheques payable on demand including crossed cheques, Bank Drafts, and demand drafts may also be accepted in payment of departmental receipts subject to the conditions laid down in paragraphs 25 and 25-A.

25. At places where Treasury business is conducted by the Bank, cheques on banks which have clearing accounts with the Bank, will be accepted in payment of the dues of the Government or in settlement of other transactions. Such cheques must be crossed in all cases. Until, however, a cheque has been cleared, the Government cannot admit that payment has been made and consequently final receipts will not be granted when it is tendered (see paragraph 25-A).

25-A. Under Treasury Rule 10 (iii), if a cheque on a bank is accepted in payment of the dues of the Government under any rules, a receipt for the actual cheque only shall be given, but the formal receipt for payment shall not be delivered until the cheque has been accepted by the bank on which it is drawn.

25-B. (a) In the event of a cheque being dishonoured by the bank concerned on presentation the fact will be intimated at once to the tenderer but the Government cannot accept any liability for loss or damage which may possibly occur as a result of delay in intimating that the cheque has been dishonoured.

(b) Certain special arrangements will be necessary when the dues which have to be paid by certain fixed dates are paid by cheque, and persons desiring to make such payments in this manner without risk, must take precautions to ensure that their cheques reach the Treasury at the latest on the day before the date on which the payment is to be made. Cheques received on the last day of payment of the dues will be liable to be refused, and those received later will not be accepted.

Exception—Treasuries not banking with the Bank may also be specially authorized by the Government to accept such crossed cheques if they are not situated far from the Bank.

NOTE—For the purpose of this rule demand drafts should be treated in the same manner as cheques.

26. Government servants receiving money on behalf of the Government must give the payer a receipt in Form no. I. The amount should be entered in the receipt both in words and figures and it should bear the full signature of the Government servant receiving the payment and not mearly his initials. The officer should satisfy himself at the time of signing the receipt that the amount has been entered in the cash-book (see paragraph 27-A).

Exception—Receipts need not be given by the nazir or, in the case of tahsils, the naib-nazir, for moneys drawn in recoupment of the permanent advance or received through money order or cash order.

NOTE—The receipt books will be supplied with foils in duplicate. The duplicate copies will be made out by using carbon paper of the double-sided variety in order that there should be carbon impressions on the reverse of the original receipt as well as on the obverse of the duplicate.

In the Forest and Public Works Department, special forms of receipts prescribed in paragraphs 40 and 151 of Volumes VII and VI, respectively, of the Financial Handbook, shall be used. In the case of the High Court the existing forms may continue to be used in cases in which the use of those forms is prescribed. In the case of the Agriculture and Animal Husbandry Departments the existing form of receipt may continue. The receipt form should, however, be so arranged that the foil and the counterfoil are placed one over the other. The duplicate copies should be made out by using carbon paper of the double-sided variety.

In the Transport Department special receipt forms in Form no. I-B shall be used. The receipt book will have foils in duplicate and will be written up by using carbon paper of the double-sided variety in the manner laid down in sub-paragraph 1 above. The books of receipt forms will be got printed by the Transport Department from the Government Press and obtained directly from the Superintendent, Printing and Stationery for the use of departmental officers. A proper account of the books received and distributed to departmental officers shall be kept by the Transport Department. Other instructions laid in paragraph 27 should also be observed mutaitis mutandis.

26-A. The instructions contained in paragraphs 47 (c) and 47 (d) of this Handbook regarding the signing of vouchers and the writing of amounts on payment voucher should generally be observed mutatis mutandis in the case of all receipts including receipts to be given by Treasuries on receipt chalans. The bills which are to be submitted to the Government for payment and other related document may be written with ball point-pen also provided the writings and signatures are clear and legible and ink does not split or spread.

(C. S. no. 48 dated 30-4-1984)

[Vitta (Lekha) Anubhag-1 File no. 15(13)-96.]

NOTE—In respect of Treasury chalans please see notes under paragraphs 417 and 478 of Part II of this Volume.

27. Books of receipt Forms should be obtained from the headquarters Treasury of the district and the books should be carefully examined to see that the number of forms contained in each is intact and a certificate of count recorded on the flyleaf. Duplicates of used receipt books should be kept under lock and key in the personal custody of the head of the office and they should not be recorded unless they have been examined to ensure that all items for which receipts were issued were duly brought to account.

27-A. A simple cash-book in form no. 2 should be kept in every office (except where a cash-book prescribed by any of the rules for the time being in force is maintained) for recording in separate columns all moneys received by government servants in their official capacity, and their subsequent remittance to the Treasury or to the Bank, as well as moneys withdrawn from the Treasury or the Bank either by bills or by cheques, and their subsequent disbursements.

The cash-books should be bound in convenient volumes and their pages, machine numbered. Before bringing a cash-book into use, the head of the office or other responsible officer nominated by him should count the number of pages and record a certificate of count on the flyleaf of the cash-book.

Except where otherwise provided in the departmental regulations or other rules or when no transaction takes place, the cash-book should be closed and balanced each day and the balance of each column initialled by the head of the office or the officer authorised by him under note (1) below sub-paragraph (g) of paragraph 47, in token of having checked all the entries of the day. The balance at the end of the month should be verified with the balance of cash in hand and a certificate to that effect recorded in the cash-book under the signature of the head of the office responsiblet or the money.

NOTES—(1) In offices where the money transactions are heavy, the cash-book should be kept in Form no. 2-AA.

(2) For the Forest and Public Works Departments cash-books are maintained under the rules in the Volume VII and VI of the Hand-book, respectively.

(3) In the Jails the cash-book will be maintained in the following form :

 

PRISON CASH-BOOK

Receipt

Disbursements

1

2

3

4

5

6

1

2

3

4

5

6

Ledger page

D ate of receipt

Serial no. of cash receipts

Particulars of receipts

Amount

Total

Ledger page

Date of disbursement

Serial no. of cash payment

Particulars of disbursement

Amount

Total

       

Rs. P.

Rs. P.

       

Rs. P.

Rs. P.

(4) In the case of payments into Treasuries the disbursing officer should compare the Treasury Officer’s receipt on the chalan with the entry in the cash-book before initialing it, and when the total of such payments in the month exceeds Rs. 1,000 he should obtain from the Treasury a monthly list of payments which should be compared with the posting in the cash-book. This procedure does not apply to the departments for whose guidance separate detailed rules exist in their departmental manuals.

(5) A Divisional Commissioner may assign the duties of verification and checking etc. of the cash-book to the ministerial head in his own office, but he should check the cash-book and verify the cash balance at least once a month and record a note therein showing that he has done so.

28. The Government money in the custody of a department or office should, as a rule, be kept in strong treasure chests and secured by two locks of different patterns. In the absence of any precise orders form Government, the head of the office in-charge of the chest should make such arrangements for the custody of the key and the proper disbursement of all moneys as he considers requisite. All the keys of the same lock must, except where the procedure prescribed in the note to this paragraph is adopted be kept in the same person’s custody, and, as a general rule, the keys of the one lock should be kept apart from the keys of the other lock, and in different person’s custody when practicable. When there is a police guard, the havildar or other party officer of the guard should usually be the custodian of one set of keys. The chest should never be opened without both custodians being present. The non-commissioned officer or daffadar of the guard should always be present when a treasure chest is opened and until it is again locked. Whenever a cashier is attached to an office the keys of one of the locks of the treasure chests will necessarily remain in his possession.

There may be occasions when the cashier is not in a position to attend the office and is unable to make some arrangement for Government transactions. To meet such situations where the contingency can be foreseen, the head of the office or the officer looking after the cash work on his behalf should himself take over the charge of the cash for the period during which the cashier is likely to be absent, in the presence of witnesses if available. The cash and the accounts should be checked carefully in the presence of the same witnesses who may be asked to sign the result of the checking which should be noted carefully before taking over the charge in order to avoid any flaw in the determination of the responsibility of the cashier. In cases in which this is not possible, funds should be obtained from the Treasury on pending bills, etc. in the prescribed manner and it should be arranged that Government transactions do not suffer. The head of office should ensure that the accounts are kept properly and the money is kept safely.

NOTES—(1) If considered desirable, the duplicate keys of cash chests may be placed, under the seal of the officer-in-charge, in the custody of Treasury Officer. In the event of this practice being adopted, a duplicate key register should be maintained and once a year, in the month of April, the keys should be sent for, examined, and returned under fresh seal, a note being made in the register that they have been found correct.

(2) The employment of peons to fetch or carry money should be discouraged. Only responsible persons should be entrusted with carriage of public money. For the definition of the word "responsible person" please see Appendix XVII.

(3) A Government servant who handles Government money should not, except with the special sanction of the head of the office, be allowed to handle also in his official capacity money which does not belong to the Government. Where under any special sanction, a Government servant deals with both Government and non-Government money in his official capacity, the Government money should be kept in a cash box separate from the non-Government money and the transactions relating to the latter should be accounted for in a separate set of books and kept entirely out of Government Account.

29. The head of the office will count the cash in the hands of each cashier under his control at least once a month ; or in the case of subordinate offices at out-stations, he or any other gazetted Government servant named by him will count it whenever he may visit them, and will record a note in cash-book showing the date of examination and the amount (in words) found.

NOTE—The periodical verification of cash in Treasuries and Sub-Treasuries is governed by Treasury Rule 4, and the rules in Chapter XIX.

30. The counting should be made on the last working day of each month immediately after closing the cash account of the month, but where this is not possible, the cash balance may be counted on the first working day of the following month before any disbursement is made on that date.

31. Under Treasury Rule 10, the procedure to be adopted by Government servants and other collecting authorities in receiving moneys on behalf of Government, granting receipts for such moneys and paying them into the Government Account, and by the Treasury and the Bank in receiving such moneys and granting receipts for them, shall be such as may be prescribed by Government in the Finance Department after consultation with the Accountant General.

31-A. Under Rules (i) and (ii) of Treasury Rule 10, any person paying money into the Treasury or the Bank shall present with it a memorandum (chalan) showing distinctly the nature of the payment and the person or Government servant on whose account it is made and will thus contain all the informations necessary for the preparation of the receipt to be given in exchange and for the proper accounts classification of credit and its allocation between Governments and departments concerned. Separate chalans shall be used for moneys creditable to different heads of accounts.

At places where the money is to be deposited in the Bank, the memorandum of chalan referred to above, shall except where otherwise provided be presented direct to the Bank. (See paragraph 32).

31-B. Every chalan shall be in Form no. 43-B (see Paragraph 417, part II of this Handbook) and be signed in ink and filled up in ink or typewritten. The chalans written ligibily and clearly with ball point pen may also be accepted by Treasuries or Banks conducting Government transactions. The remitter in the case of remittances from Government offices shall be the heads of the office (including non-gazetted officers who are head of offices) or some gazetted officer specifically authorized in this behalf. In cases where the number of chalans every day is heavy and no gazetted officer can be entrusted with the work, responsible ministerial officers like Nazirs in Collector’s offices, who have furnished adequate security and who under departmental rules have to keep accounts showing receipts and remittances to the Treasury of all sums passing through their hands and whose accounts, under departmental rules, are checked by some gazetted officer, shall also be deemed remitters. In such cases the head of the office should send a letter of authority to the Treasury Officer/Bank permitting such officials to sign those chalans on his behalf and should also send a copy of the specimen signature of the ministerial officer for record in the Treasury/Bank. Chalans signed by Government servants other than those mentioned above shall not be accepted by the Treasury/Bank except under a general or special order of the Government.

To enable the Treasury to credit the amount to the revenues of the State and the Central Government separately the words "State" or "Central" should be prominently noted on each chalan, as the case may be. As an abbreviation, letters "S" and "C" may be used.

31-C. All receipts for money paid into the Treasury should be signed by the treasurer, accountant and the Treasury Officer except that receipts for sums less than Rs. 500 do not require the signature of the Treasury Officer but only of the accountant and treasurer. Also receipts for the price of service postage stamps realized in cash or cheques (other than pre-audit cheques issued by the Accountant General) may be signed by the Treasury accountant instead of the Treasury Officer in all cases irrespective of the amount involved but they should be given only machine numbered Form no. 1-A (see paragraph 166-168). The amount should be entered in the receipt both in words and figures and it should bear the full signature of the Government servant receiving the payment and not merely his initials.

NOTES—(1) The above rule, in so far it relates to the signing of receipt by the accountant and the treasurer, does not apply to Sub-Treasuries, where all receipts including receipts for service postage stamps should be signed by the Sub-Treasury Officer. (See paragraph 435).

(2) In the case of the Mussoorie Sub-Treasury the Treasury accountant is authorized as a special case, to sign all receipt chalans up to Rs. 500.

31-D. Under Treasury Rule 10 (iv) at places where the money is to be deposited in the Bank, the advices of receipts. which according to any provision made under this rule have to be sent to Government servants or departments and consolidated receipts or certificates of receipts required by any such provision to be given to any Government servant or department, shall be given by the Treasury and not by the Bank.

32. (i) Chalans for deposits by private persons and local bodies into Government account will be presented in triplicate. The ‘Depositor’s Copy’ of the receipted chalan will be returned to the depositor by the Bank. The Treasury will send ‘Departmental Copies’ received from the Bank to the concerned departmental officers on the next working day accompanied by a statement of chalanwise particulars of deposits.

Exception—Fees for Government examinations tendered by candidates should be accompanied by chalans in duplicate vide paragraph 594.

(ii) Deposits by departmental officers should be accompanied by duplicate chalans only, unless otherwise provided in the rules or specifically authorised by Government orders (See exceptions in Annexure B to this Chapter). Similarly deposits by local bodies to their own account in the Treasury will be accompanied by duplicate chalans.

(iii) All departments of the Government, receiving money from the public will either supply the intending depositors with printed forms of chalans in triplicate free of charge with relevant head of account duly filled in, or will arrange to receive payments in cash, cheques, postal orders, money orders, etc. The chalans will not be required to be presented again to the departmental officer for signature as the details therein will already have been checked by the office issuing the chalans. In order to enable the Bank to verify that the chalan is in order and has been issued by the appropriate authority, the order to the Bank to receive payment, in the last column of the chalan form, should be signed by some departmental officer, whose specimen signatures should have been furnished to the Bank. No chalans, with the exception of those relating to Central transactions and required to be passed at the Treasury under the rules of the Government of India, will be presented at a Banking Treasury for being passed.

NOTE—Printed forms of chalans to local bodies or private institutions for deposits into their personal ledger accounts will be supplied by the Treasury. The order to the Bank to receive payment in the last column of the chalan form should be signed by the Administrator of the personal ledger account.

Exceptions—(1) Chalans pertaining to deposits under the head "043—Taxes and Duties on Electricity" need not be signed by an officer of the department provided the head of account is printed on the chalan before they are issued to the intending depositors.

(2) Chalan pertaining to deposits in the State accounts under the head "051—Public Service Commission Examination Fees" need not be signed by an officer of the department provided the head of account is printed on the chalans before they are issued to the intending depositors.

(3) Chalan pertaining to deposits in the State accounts under the head "7610—Loans to government servants etc.—201—House building advances—03—House building advances to Legislatures/ former Legislatures", "7610—Loans to government servants etc.—202—advances for purchase of Motor conveyances—05—Advances for purchase of Motor conveyances to Legislatures former Legislatures."

"0049—Interest Receipts—04—Interest Receipts of State/Union Territory governments—800—other Receipts—12—Interest on payments of Loan to Legislatures/former Legislatures—1201—Loans for House building." "0049—Interest Receipts—800—other Receipts—12—Interest on payments of Loan to Legislatures/former Legislatures—1202—Loans for conveyances" need not be signed by an officer of the department provided the head of account is printed on the chalans before they are issued to the intending depositers.

C. S. No. 101, dated 21 September, 1992

Vitta (Lekha) Anubhag—1, File No. 15 (2)/1990

(iv) The chalans when presented in triplicate may be marked as "Depositor’s Copy", "Departmental Copy" and "Treasury Copy" by the departmental officers supplying forms of chalan so that the copy meant for a particular party may not be handed over to the other. Those chalans which are presented by departmental officers in duplicate may be marked by them as "Depositor’s Copy" and "Treasury Copy."

33. Duplicate chalans are not required when remittances are made to a Treasury for obtaining Bank Draft and Sub-treasury cash orders; or when such remittances are accompanied by remittance and pass-books in which the Treasury Officer is required to acknowledge the receipt of the remittance.

34. (Deleted).

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