Treasury Code Vol-1

GOVERNMENT OF KERALA

THE KERALA TREASURY CODE VOLUME I FOURTH EDITION 2013 (Incorporating Amendments upto 31-12-2012)

Issued by the Authority of the Government of Kerala

FINANCE DEPARTMENT Price: `

website: www.finance.kerala.gov.in

© GOVERNMENT OF KERALA 2013

PREFACE Under Article (283) (2) of the Constitution of India, the custody of the Consolidated Fund of the State of Kerala, the Contingency Fund of the State, the payment of moneys into such Funds, the withdrawal of money therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of the State of Kerala, their payments into the public account of the State and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by the law made by the Legislature of the State and, until provision in that behalf is made, shall be regulated by the Rules made by the Governor. In pursuance of this provision, immediately on the formation of the State of Kerala, i.e., on 1st November, 1956, the Governor by notification No. Fin. BG (5) 32727/ 56, dated 1st November, 1965 directed that the rules which were in force on the 31st day of October, 1956 in the territories concerned in respect of such matters would continue to regulate matter in relation to moneys received on account of the revenues of the State. Accordingly the treasury transactions in the Travancore-Cochin and Malabar areas of the State are being regulated by the rules in the Travancore Treasury Code and the Travancore Financial and Account Code and the rule in the Madras Treasury Code and the Madras Account Code respectively. 2. Since then the question of unifying these rules so as to bringing in uniformity of procedure in the monetary transactions of Government has been engaging the attention of Government. Accordingly this compilation, the Kerala Treasury Code, containing the unified rules, is being issued. This code, comprises two volumes the first containing the text of the Code, with its appendices and the forms in the second.

3. The rules in the Code primarily deal with the procedure which should be followed in treasuries, including the agencies of the Reserve bank of India conducting the cash business of the treasuries and by Government offices generally, in their dealings with treasuries and the Bank.As regards receipt, custody and disbursement of moneys in offices of the various departments, these Rules provide for vital principles and important safeguards of general applicability and special instructions to particular departments. Details of departmental instructions on matters of minor importance or on subjects special or peculiar to the department concerned have been left to be prescribed in the departmental manuals. 4. With regard to the procedure to be followed by Treasury Officers, etc., in connection with the payment of interest on Government securities, repayment of principal of loans, receipt of subscription to new loans and allied transactions, the relevant rules contained in the Government Securities in the Government Securities Manual should be followed. 5. The rules contained in this Code supersede all existing orders andinstructions on matters with which they deal. Any officer who notices any error or omission in this Code should report it to the head of his department; if the head of department considers that there is a real error or omission requiring amendment, he should submit suitable proposals to the Government in the Administrative Department. Important proposals of this kind should be submitted through the Accountant General, who will forward them with his comments to the Government in the Administrative Department. The Administrative Department will pass on the proposals to the Finance Department with its remarks for final disposal.

Trivandrum, 6th April 1963.

C. THOMAS, Finance Secretary.

PREFACE TO THE SECOND EDITION

During the span of ten years after the issue of the first edition of the Kerala Treasury Code (Volume I) several amendments were issued to the rules in the Code, Consequent on the change of administrative control of treasuries from the Revenue Department to a newly formed Treasury Department under the Director of Treasuries, since August 1963 the rules of procedure in the working of the treasuries had undergone may changes. So a general review of the rules was conducted and amendments were issued wherever necessary. All these amendments have been incorporated in this new edition. 2. Wherever the Director of Treasuries or any other head of the Department considers that any existing rule requires modification in the keeping with the present practice or as a result of changes in the system rendered necessary in the course of actual working he may move the Government in the Finance Department through the Accountant General to amend the rules, furnishing the details of procedure in vogue and changes proposed with reasons therefor.

P. VELAYUDHAN NAIR, Finance Secretary.

PREFACE TO THE THIRD EDITION The present edition of the Kerala Treasury Code, Volume I contains all the amendments issued to the Rules till 19-5-1984. Whenever the Director of Treasuries or any other Head of Department considers that any existing rule requires modification in keeping with the present practice or as a result of changes in the system rendered necessary in the course of actual working, he may move the Government in the Finance Department through the Accountant General to amend the rules, furnishing the details of procedure in vogue and changes proposed with reasons therefor.

Trivandrum, 26th April 1963.

K. V. RABINDRAN NAIR, Commissioner & Secretary, Finance.

PREFACE TO THE FOURTH EDITION The third edition of Kerala Treasury Code Volume I was published incorporating corrections up to 19-5-1984. Several amendments have been issued to the Rules during the last 28 years. The rules in the code primarily deal with the procedure which should be followed in Treasuries, including the agencies of the Reserve Bank of India conducting the cash business of the Treasuries and by Government officers generally, in their dealings with the Treasuries and Bank. As regards receipts, custody and disbursement of moneys in offices of various departments, these Rules provide the principles and important safeguards of general applicability and special instructions to particular departments. Details of departmental instructions on matters of minor importance or on subjects special or peculiar to the department concerned, have been left to be prescribed in the department manuals. The rules contained in this code supersede all existing orders and instructions on matters with which they deal. Any officer who notices any omission in this Code should report it to the concerned department head. If the head of the department considers that there is a real error or omission requiring amendment, he should submit suitable proposals to the Government in the Administrative Department. The Administrative Department will pass on the proposals with its remarks to Finance Department for final disposal. Thiruvananthapuram, 31st December 2012.

DR. V. P. JOY, Principal Finance Secretary.

GOVERNMENT OF KERALA Finance Department NOTIFICATION

No.54282/CR/59/Fin.

Dated, Trivandrum, 6th April 1963.

In exercise of the powers conferred by Article 283(2) of the Constitution of India and in supersession of Notification No. Fin. (BG) 5-327-7/56, dated 1st November 1956, the Governor of Kerala hereby makes the following rules:—

By order of the Governor, C. THOMAS, Finance Secretary.

i CONTENTS Part I GENERAL PRINCIPLES AND RULES

Section No. I Short title and Commencement II Definitions III Location of moneys standing in the Government Account IV General system of control over Treasury— District Treasuries Sub Treasuries V Payment of moneys into the Government Account VI Custody of moneys relating to, or standing in the Government Account VII Withdrawal of moneys from the Government Account— Definition General Rules Power of the Accountant General Special instructions to Treasury Officers Payments under special authorisation of the Collector

Pages .. .. ..

1 1–2 3

.. .. ..

3–4 4 4–10

..

10

.. .. .. ..

10 10 11 12–15

.. ..

15 15-16

VIII Transfer of moneys standing in the Government .. Account

17

Instructions to drawing officers

IX

X

Responsibility for moneys withdrawn: Treasury Officer

..

17

Drawing Officers

..

17

..

18–19

Inter-Government transactions

ii Section No. XI

Pages

Receipts and disbursements of the State in the United Kingdom

XII Supplemental

..

19

..

20

Part II GENERAL ORGANISATION AND WORKING OF THE TREASURIES

I

District Treasuries: Responsibilities of the Director

..

21-24

Responsibilities of the Treasury Officer

..

24–27

Responsibilities of the Chief Treasurer

..

27

Verification of treasury balance when there is a change of Treasury Officer or Chief Treasurer

..

27–28

Responsibility of the Section Heads in the Accounts Department

..

28

Sub Treasuries.—

II

Location of Sub Treasuries

..

28

Sub Treasury Officer

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29-30

Other employees of the Sub Treasury

..

30

Inspection of Sub Treasuries

..

30-31

Banks conducting treasury business

..

31–32

Treasurer’s records

..

33

Books of the Department of Accounts

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33–34

Closing for the day

..

35–38

Closing for the month

..

38–39

Monthly account and returns

..

39

Miscellaneous

..

40

Treasury Accounts.—

iii Section No.

Pages

Responsibilities of the Chief Treasurer and the .. Treasurer

41

Precautions against substitution of coins in treasuries

41

..

Part III RECEIPT OF GOVERNMENT MONEYS AND PAYMENT OF SUCH MONEYS INTO THE GOVERNMENT ACCOUNT

I

II

General Rules— General Instructions for handling Cash Rules applicable to Departments generally

..

42–53

Charitable Endowments

..

53-55

Issue of duplicates or copies of receipts

..

55

Special instructions for certain departments

..

56

Special to the Judicial Department

..

56

Special to the Public Works Department

..

56–58

Receipt of moneys by the Treasury or the Bank ..

58–66

Special to the Forest Department Special to the Public Works Department and Commercial Services III

.. ..

66-67 67

District Treasuries

..

68–69

Sub Treasuries

..

69

General for all Treasuries

..

69- 70

Numbering of chalans

..

70

Village remittances Anamaths Undisbursed balances

.. .. ..

70-71 71-73 73

Procedure in Treasuries which do not transact their cash business through the Bank:

iv Section No.

Pages

Receipts for money

..

73--75

Special to Judicial Department

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76

Issue of consolidated receipts relating to certain departments

..

76

Forest Department

..

77

Public Works Department and commercial services

..

77

Payment into the Bank by private persons

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77–79

Special to Judicial department

..

79

Payment into the bank by Government servants ..

80

Anamaths

..

80

Village remittances

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80-82

Procedure in Treasuries which transact their cash business through the Bank:—

Part IV CUSTODY OF MONEYS RELATING TO OR STANDING IN THE GOVERNMENT ACCOUNT

I

II

Cash in Departmental chests:— Rules applicable to departments generally

..

83–84

Special to the Forest Department

..

85

Special to the Public Works Department

..

85

..

86–87

Treasury balance and currency chest balance ..

87

Moneys held in the Treasury—Custody of Treasury cash balances— District treasuries: Custody and verification of the treasury balance Deposit in currency chest of sealed bag

..

87–89

v Section No.

Pages

Treasury Strong Room

III IV

V

..

89–90

.. .. ..

90–94 94–95 95–97

.. ..

97 97–100

.. .. ..

100–101 101–103 103–104

Stamps

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104–105

Banderols

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105

Opium and Ganja

..

105

Cash chests, valuables, etc., received at the Treasury for safe custody

..

106–110

Departmental cash chests

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110–112

Treasury padlocks and keys Storage of treasure Receipt of moneys into and issue of moneys from double locks Sub Treasuries— General Verification and certification of cash balance of treasuries: Currency chest balance: Location of currency chests Custody Verification of currency chest balances Custody, etc., of other valuables:

Part V WITHDRAWAL FROM THE GOVERNMENT ACCOUNT

I

Rules applicable to government officers in general: General

..

113–115

Form of Bills, etc.,—General to all departments ..

115-125

Pay and allowances (including leave salary ) of Government servants: Gazetted Government servants Place of payment

..

125–132

..

132–133

vi Section No. Non-Gazetted Government servants

Pages ..

133–139

Absentee statement

..

139-140

First drawal of pay

..

140

Increment certificate

..

140-141

Arrear bills

..

141–142

Private police guards and additional police

..

142–143

Travelling allowances

..

143

Special to the Police Department

..

143

Other Miscellaneous payments to Government .. servants

144

Last Pay Certificate

..

144–146

Pensioners

..

146–148

Contingencies and other miscellaneous expenditure: Permanent advances:

.

Office contingent bills

..

148–152

Supply of water

..

153

Works expenditure charged as contingent expenditure

..

153

Renting of private building for Office and residential purposes

..

153–155

Service postage stamps

..

155

Discount on Stamps

..

155

Recovery of amounts attached by courts

..

155–156

Grants in lieu of magisterial fines

..

156–157

Educational grants-in –aid, scholarships, stipends and book allowances

..

157–160

Statement of amounts due to the Government by a local body

..

161

Compensation awarded by Courts out of fines to injured parties

..

161

vii Section No. Refunds of revenue

..

161–162

Refunds of Land revenue

..

162–163

Refunds on account of stamps

..

163

Refunds of process and poundage fees by Courts of law

..

163

Refunds of registration fees

..

164

Refunds of excess receipts on account of advertisements in the Gazette and other official publications

..

164

Refunds of College and examination fees

..

164

Refunds of fines

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164-165

Refunds of Sales Tax and Agricultural Income Tax

..

165

Loans and advance

..

165–167

Survey Department bills

..

167

Bills for survey charges in the Revenue Department

..

167

Repayment of deposits

..

167 –168

Repayment of revenue deposits

..

168–169

Repayment of civil Courts deposits

..

169

Repayment of revenue deposits and Criminal .. Court’s deposits

169

Repayment of personal deposits II

Pages

Special to the Forest Department Procedure in Treasuries— Treasuries which do not transact their cash business through the Bank: District Treasuries— General Claims of deceased Government Servants

..

170 –171

..

171

.. ..

172-184 184–189

Payments of persons not in Government Service .. Payment of Pensions

..

189–190 190

viii Section No.

Pages

Payment of endorsed bills

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190

Payment by Postal money order

..

190

Refunds of revenue and deposits

..

190–191

Repayment of Civil Courts deposits

..

192

Receipt stamps —Defacing

..

192

Transfer payments

..

192-193

Duplicate ‘Not payable’ copies of bills

..

193–194

Treasury bill book

..

194–198

Memorandum of deductions from bills

..

198

General

..

198–200

Payments of land cess and fishery rentals to Panchayat

..

200–201

Payment of surcharge on stamp duty, etc., to Panchayats

..

201

General

..

201–205

Treasury Bill Book

..

205

Special to Judicial Department

..

205–206

Repayment of Revenue and Criminal Court’s.. deposits

206

Special to Local Funds .. Cheques— General—Applicable to departments generally.. Local Fund cheque .. Time expired cheques .. Lost cheques .. Cancelled cheques .. Letters of credit ..

206

Sub Treasuries:—

Treasuries which transact their cash business through the banks—

III

207-210 210-211 211 212 212-215 215-219

ix Section No. Special Rules for drawal of cheques when the Treasury transacts its cash business through the Bank— Rules applicable to departments generally— Cheques .. Letters of credit .. IV Payment of pensions— General .. Manner of payment of pensions and identification of pensioners— Pension Payment Orders .. Register of Pension Payment Orders:— Service pensions paid at District Treasury .. Service pension paid at Sub Treasury .. Political pensions .. General Rules of payment .. Leper pensioners ..

Pages

220–221 221 222

223-226 226 226 226 227-229 230–233

Payment of pensions by Postal Money Order ..

234–238

Payment of Pension through Treasury saving .. Bank Account

238–240

Periodical appearance of pensioners for identification

..

240–241

Transfer service pensions

..

242

Transfer of political pension

..

242–243

Renewal of Pension Payment Orders

..

243–245

Service pensions

..

245–246

Political pensions

..

246

Deceased pensioners

..

247–252

Gratuities

..

252–253

Transfer of Pension:

Lapse of pensions—

Commutation of pensions:

x Section No.

V

Pages Service pensions

..

254

Revenue pensions

..

254

Political pensions

..

254

..

254–255

..

255-256

.. ..

257 257

Medical Allowance to Pensioners Special Instructions to Treasury Officers— Authority of the Treasury Officer to make payment Doubtful claims Payment under special authorizations Part VI

TRANSFER OF MONEYS STANDING IN THE GOVERNMENT ACCOUNT

General

..

258

Maximum normal cash balance

..

258-259

Weekly cash balance report

..

259

Monthly cash balance report

..

259–260

General

..

261–262

Treasuries which do not transact their cash business through the Bank

..

262-263

Treasuries which transact their cash business.. through the Bank

263

Resource:

Supply of funds to Treasuries and Sub Treasuries :

Remittances— Transfers through currency

..

Remittances of coin and notes

..

Transfers through currency—

263 264

xi Section No. In a district where there is no treasury which transacts its cash business through the Bank—

Pages

At a District Treasury

..

265

At a Sub Treasury

..

265–266

Transfers of funds from and to a currency chest in custody of the Bank

..

266

Transfers of funds between the treasury balance and the currency chest at a Treasury

..

266-267

In a district where there is at least one treasury which transacts its cash business through the Bank:

Remittances of coin and notes— Transfers of funds from and to a Sub Treasury where there is no currency chest

..

267

General

..

267

Despatch of remittances

..

267–268

Remittance of coin

..

269–270

Remittance of uncurrent coin

..

270–271

Remittance of notes

..

271–272

Duties of the Officer-in-charge of the escort for a remittance

..

272

Treasurers accompanying remittances

..

273–274

Receipt of remittance

..

274–279

T.A. of Treasurers, Clerks etc., who accompany .. remittance

279–281

Additional rules for remittances by railway

..

281–284

Remittances to and from branches of the State Bank of India

..

284–287

Reserve Bank of India remittances—

xii Section No.

Pages

Introductory

..

288–289

Telegraphic transfers

..

290–291

Explanations

..

291–292

Form of drafts

..

292–293

Issue of drafts

..

293–294

Advice of remittances drawn

..

294-295

Regularity of signature

..

295–296

Encashment of drafts

..

296–298

Doubtful drawings

..

298-299

Form of receipt

..

299

Record of drawings and encashments

..

300

Drafts, Drawings and Encashments—

Other rules—

..

Issue of duplicates

..

301-302

Cancellation and refund

..

302–303

Unpaid drafts

..

304

Lapse of drafts

..

304

Supply of forms

..

304

Special Rules for remittance of Policemen

..

304

Exchange of drafts

Part VII RESPONSIBILITY FOR MONEYS WITHDRAWN

I

II

Responsibility of Treasury Officer in Recovering amounts disallowed by the Accountant General Register of recoveries General Rules applicable to all drawing Officers— Responsibility in clearing audit objections

..

305–306

..

306

..

307

xiii Section No.

Pages

General rules regarding the form of vouchers for disbursements made, etc.

..

307–310

Disbursement of pay and allowances of Government servants

..

311–313

Disbursements out of the permanent advance ..

313

Custody of vouchers and acquittances

..

314

Cancellation and destruction of sub-vouchers III Special rules for drawing officers of certain departments: Special to Public Works Department Special to cheque drawing Departments mentioned in sub-rule (d) of rule 162 Budgetary Control

.. ..

314

.. ..

314–316 316–317

..

317–323

Part VIII MISCELLANEOUS STATUTORY RULES AND EXECUTIVE INSTRUCTIONS

The Indian Coinage Rules

..

324

Denomination-wise details of coins under circulation

..

325–332

Denominations of notes

..

333

Receipt and issue of notes

..

333–335

Forged, defective and lost notes

..

335–337

Procedure in Treasuries the cash business of which is conducted by the Bank

..

337

Indents for notes

..

337-338

Cypher Code and Treasury Agencies Private Check Signal book

..

338

Safe custody of Code and Check Signal Books

..

338

Currency and Bank notes—Instructions issued by the Reserve Bank of India

xiv Section No.

Pages

Procedure to be followed in connection with the distribution and acknowledgement of amendment slips

..

339

Procedure to be followed in dealing with amendment slips

..

339

Procedure to be followed in event of the Cypher Code, etc., being lost or falling into unauthorised hands

..

339-340

Procedure to be followed in the event of transfer of charge

..

340

Annual Possession Certificate

..

340-341

..

341-342

..

343

Treasury Bills

..

343

Ways and Means Advances

..

343–344

Transactions relating to Government of other countries

..

344

Destruction of accounts records

..

345

Rounding off of Paise in Government` ` Accounts

..

345–348

Remittance of moneys due from Government by postage stamps

..

348

Government Order No. 402/2011/Fin dated 23.09.11

..

349–353

Index

..

354–401

Instructions on miscellaneous subjects— Local Funds Public Debt: Permanent and temporary loans Floating debt—

THE KERALA TREASURY CODE VOLUME I MAIN RULES PART I GENERAL PRINCIPLES AND RULES SECTION I Short Title and Commencement 1. These rules may be called the “Kerala Treasury Rules” and they shall come into force on the 1st July, 1963. SECTION II Definitions 2. In these rules, unless the context otherwise requires, the following expressions have the meaning hereby assigned to them, that is to say :— (a) “The Accountant General” means the Head of the Office of Audit and Accounts subordinate to the Comptroller and Auditor General of India, who keeps the accounts of the State and exercise audit functions in relation to those accounts on behalf of the Comptroller and Auditor General of India. (b) “The Bank” means any office or branch of the Banking Department of the Reserve Bank of India, any branch of the State Bank of India, acting as the agent of the Reserve Bank of India in accordance with the provisions of the Reserve Bank of India Act,1934 (Act II of 1934), and any branch of a Subsidiary Bank as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (Act 38 of 1959), which is authorised to transact Government business as agent of the State Bank of India, or any other agency appointed by the Reserve Bank of India. (c) “Cheque” means a written order (not expressed to be payable otherwise than on demand) addressed by a person called the “drawer” to a bank or a treasury to pay a specified sum of money to himself or a third party known as the “payee” and includes a demand draft drawn on any specified bank or banker (including the Reserve Bank of India).

1

PART I

KERALA TREASURY CODE

RULE 2

(d) “Collector” means the head of a district and includes any other officer for the time being authorised to discharge the duties of the Collector for the purpose of these rules. (e)

The “Constitution” means the Constitution of India.

(f) “Director” means the Head of the Department of Treasuries and includes any other officer for the time being authorised to discharge the duties of the Director for the purpose of these rules. (g) “Government Account” means the total of the Consolidated Fund Account, the Contingency Fund Account and the Public Account of the State. NOTE.—In this clause the expression “the Consolidated Fund Account”, “the Contingency Fund Account” and “the Public Account” shall have the meaning respectively assigned to them in the Constitution. (h) “The State”, “the Governor” and “the Government” means respectively the State, the Governor and the Government of Kerala and “the President” means the President of the Indian Union. (i) “Government servant” means any person serving in connection with the affairs of the State whether remunerated by salary or not, and includes every person who is authorised to receive, keep, carry or spend moneys on behalf of the Government. (j) “Indian Audit Department” means the officers and establishment, being in India and subordinate to the Comptroller and Auditor General of India, that are employed upon the keeping and audit of the accounts of the Union and of the States or upon one or other of these duties. (k) “Treasury” means any treasury of the State and includes a sub-treasury.

2

PART I

KERALA TREASURY CODE

RULES 3-4

SECTION III Location of Moneys standing in the Government Account 3. Subject to the provision of sub-rule (2) of rule 6 and rule 7 money standing in the Government Account must be held either 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 Government and the Bank under section 21 of the Reserve Bank of India Act, 1934 (Act II of 1934). NOTE.—The agreement between the Government and the Reserve Bank of India is given in Appendix I. The name of the Bank which conduct the cash business of the Government is given in Appendix 2. SECTION IV General System of Control over Treasury DISTRICT TREASURIES

4. (1) Unless the Government, after consultation with the Accountant General, otherwise directs in any special case, there shall be a treasury in every district. If moneys standing in the Government Account are, in any district, not deposited in the Bank, the treasury of that district shall be divided into two departments; a department of accounts comprising of a number of sections each under the charge of a Section Head and a cash department under the charge of a Treasurer. Subject as hereinafter provided in this rule, the general procedure for conduct of business in a district treasury shall be regulated by the provisions contained in Part II. (2) The treasury shall be under the control of a Treasury Officer who shall be under the administrative control of the Director. The Treasury Officer shall be responsible for the proper observance of the procedure prescribed by or under these rules and for the punctual submission of all returns required from the Treasury by the Government, the Accountant General and the Reserve Bank of India. Subject to the provisions of this rule, the respective responsibilities of the Director and the Treasury Officer for business of the treasury shall be defined in the provisions contained in Part II. 3

PART I

KERALA TREASURY CODE

RULES 4-6

(3) The duty of verifying and certifying the monthly cash balance, if any in the treasury in the manner prescribed in Part II of these rules and of submitting the monthly accounts of such balance in such form and after such verification as the Accountant General may require, shall be undertaken by the Treasury Officer or by such other officer as may be authorised by or under these rules to act in this behalf. (4)

[Deleted]

[G.O.(P) 111/76/Fin., dated 3rd April 1976] (5) No portion of the responsibility for the proper management and working of treasuries shall devolve upon the officers of the Indian Audit Department. The inspection of treasuries by officers of the Indian Audit Department shall not relieve the Director of his responsibilities for management and inspection. SUB TREASURIES

5. If the requirements of the public business make necessary the establishment of one or more sub treasuries under a district treasury, the arrangements for the administration thereof and for the proper conduct of business therein shall be as prescribed in Part II of these rules. The daily accounts of receipts and payments at a sub treasury must be included in the accounts of the district treasury. SECTION V Payment of Moneys into the Government Account 6. (1) (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 moneys, raised or received by Government shall be paid into the public account *or by transfer credit of bills, cheques etc., payable at the same Treasury provided all the documents required for the opening of an account such as application, specimen signature card and transfer pay-in-slip are attached with the bill/cheque. (ii) All moneys received by or deposited with any court to the credit of any cause, matter, account or persons, shall also be paid into the public account. *Addition [G.O.(P) 1065/92/Fin. dated 14th December, 1992.

4

PART I

KERALA TREASURY CODE

RULE 6

(iii) The head of account to which such moneys shall be credited and withdrawal of moneys there from shall be governed by the relevant provisions of the Kerala Account Code, Volumes I and II or the Kerala Treasury Code or such other general or special orders as may be issued in this behalf. (2) Save as hereinafter provided in this section, all moneys as defined in Articles 266,267 or 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. Moneys received as aforesaid shall not be appropriated to meet departmental expenditure, nor otherwise kept apart from Government Account. No department of Government may require that any moneys received by it on Government Account be kept out of that account. If any question arises whether moneys received by government servants in any capacity form part of the Government Account or not, the question will be referred to the Government, whose decision shall be final. (3) Notwithstanding anything contained in sub-rule (i) of this rule, direct appropriation of departmental receipts for departmental expenditure is authorized in the following cases:— (a) Moneys received on account of the service of summons, diet money of witnesses and similar purposes in civil, revenue and criminal cases and in the Registration Department, for payment of charge for which the moneys have been received. NOTE.—The following items are included within the scope of clause (a) of rule 6 (3):— (1)

Moneys received in civil courts on account of— (i)

Commissioner’s fees,

(ii)

Fees for copying maps, plans and genealogical trees

(iii) Judgment-debtors, subsistence money, (iv) Petty items such as money order commission for the transmission of Commissioner’s fees, tom-tom charges, charges for the conveyance of attached property, charges for feeding attached cattle, postage and other charges for calling for records for reference, and for the transmission of decrees to other courts for execution, and 5

PART I

KERALA TREASURY CODE

RULE 6

(v) Other similar items ordered by the High Court. (2) Process fee levied under section 36 of the Indian Registration Act, 1908 (Indian Act XVI of 1908). (3) Fees levied for the preparation of copies of maps, plans or records under Article 14 of the Registration Table of Fees. (4) Process fee levied by village panchayat courts for payment to the establishment employed in the service of processes. (5) Moneys received for batta to be paid to witnesses who have to give evidence in inquiries before the Commissioner and Deputy and Assistant Commissioners of Hindu Religious and Charitable Endowments (Administration) Department. All such moneys should, however, be forthwith paid in full into the Treasury or the Bank, if the disbursement or refund is not likely to be made within a month. Amount not disbursed or refunded within a month from the date of receipt should also be paid in full into the treasury or the bank. (a) With regard to item (4) mentioned above, viz., process fees levied by a Village Panchayat Court, the President of the Court should not keep with him more than `15 at any time and he should pay any amount in excess of the limit into the treasury or the bank at once. (b) Maintenance amounts deposited in court under section 488 of the Code of Criminal Procedure, 1898 (V of 1898), for payment to the parties concerned. (c) Fees received by Government Servants appointed as Notaries Public under the Negotiable Instruments Act, 1881 (XXVI of 1881) to defray legal expenses incurred by them in the discharge of their duties as such Notaries Public. (d) Cash receipts in the Public Works Department to defray expenditure on current works which cannot be met from the imprest or permanent advance of the officer incurring the expenditure, or to defray pay and traveling allowance charges when this is necessary in exceptional cases to prevent abnormal delay in making payments.

6

PART I

KERALA TREASURY CODE

RULE 6

(e) Cash receipts of Range Officers in the Forest Department to meet immediate local expenditure when there is no treasury at the Range headquarters and the Divisional Forest Officer considers it necessary to permit appropriation of receipts. (f) Cattle pound receipts, to meet feeding charges, disbursement of commissions to pound keepers, expenses connected with the sale of cattle and money order commission in accordance with the orders of Government. (g) Value of stamps issued to licensed stamp vendors, to pay discount due to them. (h) Initial deposits and earnest money deposits made by intending bidders at all auction sales in any department of the Government for returning the deposits of unsuccessful bidders at the close of the sale on each day. (i) Moneys received by jail authorities, for the subsistence allowance of civil debtors. (j) Moneys realised by the subordinates of the Fisheries Department of the Government on sale of fish, to meet urgent contingent expenditure in connection with the deep-sea fishing operations. (k) Daily collection of hospital stoppages and pay ward charges for making refunds of excess collection of hospital stoppages and pay ward charges due to the discharged patients by the Superintendents and the Medical Officers-in-charge of the Government hospitals and other Government medical institutions in the State. (l) Daily collection of veterinary hospital fee, for making refunds of excess collection of hospital stoppages due to the parties at the time of discharge of animals by the Principal, Veterinary College, Ollukara and other officers in charge of the veterinary hospitals or dispensaries. (m) Revenue realised from the auction sale of unserviceable articles, etc., may be utilised for meeting such items of expenditure as tom-tom charges, cart-hire, etc., to be incurred in connection therewith.

7

PART I

KERALA TREASURY CODE

RULE 6

(n) Cash property found on the person of a prisoner at the time of his admission to jail should be deposited in the Treasury for credit to the personal ledger account opened in the Treasury under “Transactions in connection with the cash property of prisoner in jails”. But the Jailor may retain a small sum for immediate disbursement of similar sums due to other prisoners on their release and remit the balance into Treasury. (o) Medical inspection fees realised from the students in the Government Colleges. (p) Moneys received in the Government Press on account of sale of publications and advertisement charges may be utilised for refunding excess amounts realised from parties. *(pp) Moneys realised by the subordinates of the Dairy Development Department on the sale of milk and milk products to meet refund charge of advances received for which supply of milk and milk products has not been effected. **(ppp) Sale proceeds of “Teacher’s Hand Book” received by Assistant Educational Officers who have been authorised to distribute the book may be utilised by such officers to meet sundry expenses like packing, transport of books and expenses for remittances of sale proceeds of the books. † (pppp) Payment of route-war batta to the crewmen of the State Water Transport Department from the daily collection. ‡ ppppp Sale proceeds of lottery tickets received by the District Lottery Officer, may be utilized for meeting the expenditure towards payment of prize money upto ` 5,000 (Rupees Five thousand only) subject to the following conditions:(i) The Departmental receipts shall be appropriated only for meeting the expenditure for the payment of prize money, agent’s and Seller’s prize and additional commission, which are now met from the permanent advance allotted for the purpose; * ** † ‡

Insertion [G.O.(P) No.368/73/Fin., dated 29th August, 1973] Insertion [G.O.(P) 189/77/Fin., dated 17th June, 1977] Insertion[G.O. (P) No.3/81/Fin., dated 1st January, 1981] Insertion [G.O. (P) 1065/92/Fin. dated 14th December, 1992]. 8

PART I

KERALA TREASURY CODE

RULE 6

(ii) The net sale proceeds of a day after defraying the above expenditure should be remitted in the Treasury on the succeeding day itself; (iii) The Department should maintain subsidiary accounts for each draw, category-wise and agent-wise; (iv) Gross receipts as per the sales account and payment as per subsidiary accounts should be entered in the cash book daily; (v) The Director of State Lotteries shall take steps to check the transactions; and (vi) The Director of State Lotteries shall present a consolidated bill every month in respect of all districts at the District Treasury, Thiruvananthapuram for transfer crediting the total amount paid from Departmental receipts during the previous month to the receipt head by debit to the departmental expenditure head concerned as provided in Rule 221 of the Kerala Treasury Code. The adjustment bill should be supported by detailed statements of payments made for each district with supporting vouchers and necessary certificates prescribed under Treasury Rules for audit by the Accountant General. NOTE.—Amendment to Sub rule (3) of Rule 6 shall be deemed to have come into force from the 6th day of April, 1988. #(pppppp) Sale proceeds of lottery tickets received by the Assistant District Lottery Officers may be utilized for the payment of prize up to ` 100 and for payment of commission to agents upto ` 100. #This amendment shall be deemed to have come into force on 26th March, 1997. (q) Any other cases where the rules and codes applicable to a particular department or departments of the Government permit the appropriation of departmental receipts for departmental expenditure: Provided that the authority hereby given to appropriate departmental receipt for departmental expenditure shall not be construed as authority to keep the departmental receipts and expenses defrayed there from outside the account of payments into and the withdrawal from the Government Account. #Insertion [G.O. (P) 270/2007/Fin. dated 25th June, 2007.

9

PART I

KERALA TREASURY CODE

RULES 7-11

7. 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 this Part. 8. The procedure to be adopted by government servants in receiving moneys on account of the revenues of the State, granting receipts for such moneys and for paying them into the Government Account and by the Treasury and the Bank in receiving such moneys and granting receipts for them shall be regulated by the provisions contained in Part III. SECTION VI Custody of moneys relating to, or standing in the Government Account 9. (1) The procedure for the safe custody of money in the hands of government servants, or held in the Treasury shall be regulated by the provisions contained in Part IV. (2) The Bank is responsible for the safe custody of government moneys deposited in the Bank.

SECTION VII Withdrawal of moneys from the Government Account DEFINITION

10. In this section “withdrawal” with its cognate expressions refers to the withdrawal of funds from the Government Account for disbursements of, or on behalf of, the State other than disbursements in the United Kingdom. GENERAL RULES

11. Save as expressly provided by or under these rules, or unless the Government after consultation with the Accountant General otherwise direct in any case, moneys may not be withdrawn from the Government Account without the written permission of the Treasury Officer or of an officer of the Indian Audit Department authorised in this behalf by the Accountant General.

10

PART I

KERALA TREASURY CODE

RULES 12-14

POWER OF THE ACCOUNTANT GENERAL

12.

The Accountant General may permit withdrawal for any purpose.

13. (a) Subject as hereinafter provided in this section a Treasury Officer may permit withdrawal for all or any of the following purposes, namely:— (i) to pay sums due from the Government to the drawing officer; (ii) to provide the drawing officer with funds to meet claims likely to be presented against the Government in the immediate future by— (1) other government servants, or (2) private parties; (iii) to enable the drawing officer to supply funds to another government servant from which to meet similar claims; (iv) to pay direct from the Treasury or from the Bank sums due by the Government to a private party; (v) in the case of an officer or authority empowered to make investments of moneys standing in the Government Account for the purpose of such investments † ; (vi) to pay sums on account of loans and advances; and † *(vii) to pay sums to the drawing officer on account of permanent advance sanctioned to his office. (b) Unless expressly authorised by the Accountant General, a Treasury Officer shall not permit withdrawal for any purpose not specified in clause (a) of this rule. 14. Except as provided in rule 22 and 23, a Treasury Officer shall not permit withdrawal for any purpose unless the claims for withdrawal complies with the provisions contained in Part V as to the person by whom and the form in which, the claim shall be preferred and the checks to which the claim shall be submitted by the Treasury Officer before directing payment thereof. †“and” occurring at the end of item (v) deleted and added at the end of item (vi) [G.O.(P) 4/75/Fin., dated 3rd January, 1975] *Addition [G.O.(P) No.4/75/Fin., dated 3rd January, 1975].

11

PART I

KERALA TREASURY CODE

RULES 15-18

SPECIAL INSTRUCTIONS TO TREASURY OFFICERS

15. A Treasury Officer has no general authority to make payments on demands presented at the Treasury, his authority being strictly limited to the making of payments authorised by or under these rules. If a demand of any kind is presented at a Treasury for a payment which is not authorised by or under these rules, or is not covered by a special order received from the Accountant General, the Treasury Officer shall decline payment for want of authority. A Treasury Officer has no authority to act under an order of the Government sanctioning a payment, unless the order is an express order to him to make payment; and even such special order should, in the absence of urgency, be sent through the Accountant General. NOTE.—See Rules 210(2)(m) and 306(a)(2) regarding payment of loans and advances and grants-in-aid. * No authorization from the Accountant General shall be necessary for the drawal of amounts by the Government for the repayment of principal or payment of interest in respect of loans raised by the Government. 16. A Treasury Officer shall not honour a claim which he considers to be disputable. He shall require the claimant to refer it to the Accountant General. 17. Except as provided by rules in Part V, a payment shall, unless the Government by general or special order otherwise direct, be made in the district in which the claim arises. 18. No withdrawal shall be permitted in order to meet the pay, leave salary, or allowances of a gazetted government servant or a reward or honorarium payable to a gazetted government servant or the transit pay and allowances of a non-gazetted government servant promoted as a gazetted government servant in respect of the period of transit availed of by him after relief from the non-gazetted post and before joining the gazetted post, or any pension, until the Accountant General has intimated to the Treasury Officer the rate at which payment shall be made: provided that the Government may, for special reasons and with the concurrence of the Accountant General waive the provisions of this rule. * Exception added vide G.O. (P) 546/87/Fin. dated 23rd June, 1987.

12

KERALA TREASURY CODE

PART I

RULE 18

Exceptions.—*(a) for payment of honorarium of an occasional nature by government to a gazetted government servant. (b)

for payment of honorarium to gazetted government servant by the Kerala Public Service Commission.

(c)

for payment of over-time allowance, where admissible to a gazetted government servant.

**(d)

for payment of honorarium to the Teaching Staff of the Engineering Colleges and Polytechnics for conducting classes for part time courses, provided such claims are countersigned by the Heads of Institutions concerned.

***(e)

For the payment of honorarium/ remuneration/ allowance to the Teaching Staff of Colleges; (i) for taking classes under Indian Administrative Service coaching scheme; (ii) for special remedial coaching to students belonging to Scheduled Caste and Scheduled Tribe subject to a maximum of `150 per month per teacher; (iii) for taking classes in Pre-examination Training Centres subject to a maximum of † ` 300 per month per teacher;

†This amendment shall be deemed to have come into force from the 11th day of January, 1985. (iv) for taking evening classes by the teachers of day colleges; (v) for taking classes in Banking and Secretariat Practice in colleges where qualified staff are not available; * Substitution [G.O.(P) No.36/75/Fin., dated 28th January, 1975] ** Substitution [G.O.(P) No.716/82/Fin., dated 24th November, 1982] *** Insertion [G.O.(P) 604/84/Fin. dated 20th October, 1984] † Substitution[G.O.(P) 86/88/Fin. dated 3rd February, 1988].

13

KERALA TREASURY CODE

PART I

RULES 18-20

(vi) for providing practical training to students of Government Colleges where facilities for the same are not available; and (vii) for taking classes in English, Economics, Mathematics, Hindi etc. in Government Polytechnics/Engineering Colleges/College of Fine Arts: (f)

for payment of National Cadet Corps honorarium provided the bills in respect of the claims enumerated above are countersigned by the Head of the Institution concerned.

NOTE.—The sanctioning authority should authorise the Gazetted Officer to draw the amount of honorarium by debit to the proper head after deducting the income tax due. 19. No withdrawal shall be permitted on a claim for the first of any series of payments in a district of pay or allowances to a government servant, other than a person newly appointed to Government service unless the claim is supported by a last pay certificate in such form, as may be prescribed by the Comptroller and Auditor General of India. A Treasury Officer may not permit any withdrawal in respect of pay or allowances of a government servant to whom he has granted a last pay certificate unless the certificate is first surrendered. *NOTE.1—The above provision will apply in the case of a non-gazetted officer promoted to a gazetted cadre also. **NOTE. 2—Exception (2) under sub rule (a) of rule 169 and the exceptions under the rule 182 shall be applicable in the case of a claim under this rule also. 20. The Treasury Officer shall be responsible to the Accountant General for acceptance of the validity of a claim against which he has permitted withdrawal and for evidence that the payee has actually received the sum withdrawn. * Insertion [G.O.(P) No.7/73/Fin., dated 2nd January, 1973]. **Addition [G.O.(P) No. 616/82/Fin., dated 22nd October, 1982].

14

PART I

KERALA TREASURY CODE

RULES 21-24

21. The Treasury Officer shall obtain sufficient information as to the nature of every payment he is making and shall not accept a voucher which does not formally present that information unless there are valid reasons, which he shall record in writing, for omitting to require it. 22. A Treasury Officer may correct an arithmetical inaccuracy or an obvious mistake in any bill presented for payment, but shall intimate to the drawing officer any correction which he makes. PAYMENTS UNDER SPECIAL AUTHORISATION OF THE COLLECTOR

23. A Collector may, in circumstances of urgency, by an order in writing authorise and require a Treasury Officer to make a payment not being a payment of pension, without complying with the provision of these rules. In any case, the Collector shall at once forward a copy of his order and a statement of the circumstances requiring it, and the Treasury Officer shall at once report the payment to the Accountant General. NOTE.—The need for exercising the special power under this rule should not arise at all in normal conditions. The power should be exercised only in real cases of urgency, e.g., floods, earthquake and the like and withdrawals of money under this rule should, as far as possible, exclude all personal claims of government servants. INSTRUCTIONS TO DRAWING OFFICERS

24. A government servant who is authorised to draw moneys by means of cheques shall notify to the Bank or the Treasury upon which he draws the number of each cheque book brought into use and the number of cheques it contain. NOTE.—A government servant who is authorised to draw moneys by means of cheques should notify to the Bank or the Treasury upon which he draws the numbers of cheque books withdrawn from use and numbers of cheques they contain, immediately after their withdrawal.

15

PART I

KERALA TREASURY CODE

RULE 25

25. *(a) Every government servant who is authorised to draw cheques or bills payable at a Treasury or Bank shall send a specimen of his signature to the Treasury or the Bank, as the case may be, through some superior or other government servant whose specimen signature is already with the Treasury or the Bank. When such a government servant makes over charge of his office to another, he shall likewise send a specimen of the signature of the relieving Government Servant to the Treasury Officer or the Bank concerned. (b) When such bills or cheques are drawn by a person who is not a drawing officer on such Treasury or the Bank and the bill or cheque is countersigned by a Departmental Authority, the specimen of the signature of such Departmental Authority shall be sent to the Treasury or the Bank as the case may be, through some superior officer or other Government Servant whose specimen signature is already available at the Treasury or Bank. When such a Departmental Authority makes over charge of his office to another, he shall likewise send a specimen of the signature of the relieving Government Servant to the Treasury Officer or the Bank concerned. (c) Specimen signature shall be forwarded to the Treasuries only in specimen signature cards in Form T.R.74A, which shall be obtained from the Treasuries concerned. NOTE 1.—A Government Servant who is authorized to draw, or a Departmental Authority referred to in sub-rule (b) who is authorized to countersign bills, cheques or other documents payable at more than one Treasury shall send a specimen of the relieving Government Servant’s signature to the Treasury Officers concerned in specimen signature cards obtained from the respective treasuries. NOTE 2.—The Treasury Officer shall keep specimen signature cards of Government Servants who draw on his Treasury or countersign bills, cheques etc., in the circumstances referred to in sub-rule (b) above, duly arranged in serial numerical order. The cards so arranged shall be kept safely under lock and key. NOTE 3.—Specimen signature to be sent to a Bank need not be in cards in Form T.R.74A, but may be furnished duly countersigned in slips of papers. * Substitution [G.O.(P) 207/88/Fin., dated 9th March, 1988.] 16

PART I

KERALA TREASURY CODE

RULES 26-28

SECTION VIII Transfer of moneys standing in the Government Account 26. The transfer of government moneys from one Treasury to another and between the currency chest balance and treasury balance of a treasury and between a treasury and the Bank shall be governed by such instructions as may be issued in this behalf by the Governor after consultation with the Reserve Bank of India. The transfer of moneys from or to a small coin depot to or from a treasury under the control of the Government of the State shall be governed by instructions issued by the President in this behalf. Save as provided above, the provisions of Part VI and subsidiary instructions issued thereunder shall regulate the procedure with regard to the matter aforesaid. SECTION IX Responsibility for moneys withdrawn TREASURY OFFICER

27. If a Treasury Officer receives intimation from the Accountant General that moneys have been incorrectly withdrawn and that a certain sum should be recovered from a drawing officer, he shall effect the recovery without delay and without regard to any correspondence undertaken or contemplated with reference to the retrenchment order; and the drawing officer shall without delay repay the sum in such manner as the Accountant General may direct. DRAWING OFFICERS 28. (a) Subject as hereinafter provided in this rule, the procedure to be observed by a government servant in regard to moneys withdrawn from the Government Account for expenditure shall be regulated by the provisions made in this behalf in Part V. (b) A government servant supplied with funds for expenditure shall be responsible for such funds until an account of them has been rendered to the satisfaction of the Accountant General. He shall also be responsible for seeing that payments are made to persons entitled to receive them. (c) If any doubt arises as to the identity of the government servant by whom an account of such funds shall be rendered, it shall be decided by the Government.

17

PART I

KERALA TREASURY CODE

RULES 29-30

SECTION X Inter-Government Transactions 29. (1) Save as provided hereinafter in this section, no transactions of the State with another government shall be adjusted against the balance of the State except in accordance with such directions as may be given by the Comptroller and Auditor General of India with the approval of the President to regulate the procedure for the accounting of the transactions between different governments. (2) Moneys presented within the jurisdiction of another government for credit to the Government Account or a payment made by another Government as a withdrawal affecting the balance of the Government Account shall not be credited or debited to the Government Account except under express authority of the Accountant General of the receiving or the paying government concerned or any other Accounting Officer authorised in this behalf by the Comptroller and Auditor General of India. (3) All adjustments against the balance of the State by debit or credit to another government shall be made through the Central Accounts Section of the Reserve Bank of India. 30. Where such a course is authorized in consequence of a delegation of functions made under Article 258(1) of the Constitution, the Treasury Officer may receive or authorise the Bank to receive moneys tendered on behalf of the Union Government, and may make or authorise the Bank to make disbursements on behalf of the Union Government in accordance with such procedure, as may be specified in the rules made by or under the authority of the President. Such receipts and disbursements on behalf of the Union Government shall be adjusted, as far as practicable, directly against the balance of the Union Government held by the Bank, but where such transactions are temporarily taken into account against the balance of the Government account, the Accountant General will on receipt of intimation from the treasury make the requisite adjustments in respect of the aforesaid transactions through the Central Accounts Section of the Reserve Bank of India, against the balance in the Government Account of the Union Government held by the bank. 18

PART I

KERALA TREASURY CODE

RULES 31-33

31. The Treasury Officer may, subject to any general or specific direction of the Government in this behalf, receive or authorise the Bank to receive moneys tendered on behalf of another State and may, if so required by the Accountant General make or authorise payment of any claim against another State. The necessary credits or debits in respect of such receipts and payments against the balance of the State concerned shall be made by the Accountant General through the Central Accounts Section of the Reserve Bank of India but until such adjustments are made, the credits and debits shall be entered in the Government Account. Moneys paid or received in the Office of the Accountant General on behalf of another State and the book entries made in the office of the Accountant General affecting the accounts of another State shall, likewise, be adjusted by the Accountant General through the Central Account Section of the Reserve Bank of India against the balances of the State concerned. 32. The provisions of rule 31 may be extended with or without modifications so payments made or received in the Sate on behalf of the Railway administered by the Government. SECTION XI Receipts and disbursements of the State in the United Kingdom 33. Until other provision is made by the Governments in this behalf, moneys received in the United Kingdom on account of the revenues of the State may be paid into, and funds required for disbursements of or on behalf of the State in that country may be withdrawn from, the balances in the Government Account of the Union Government in that country, in accordance with such procedure as may be prescribed by or under the authority of the President for the transactions of the Union Government in the United Kingdom. These transactions shall be adjusted in India, at the earliest opportunity against the balances of the Government Account according to such directions as may be given in this behalf by the Comptroller and Auditor General of India with the approval of the President.

19

PART I

KERALA TREASURY CODE

RULES 34-37

SECTION XII Supplemental 34. The Accountant General in the exercise of any of his functions under these rules shall be subject to the general control of the Comptroller and Auditor General of India. 35. Nothing in these rules, shall have effect so as to impede or prejudice the exercise by the Comptroller and Auditor General of India of the powers vested in him by or under the Constitution to make rules, or to give directions regulating the submission to the Indian Audit Department of the accounts kept in treasuries or in departmental offices and to be accompanied by such vouchers for their support as the Comptroller and Auditor General may require for purposes of audit. 36. Nothing contained, or in the application of, these rules shall have effect so as to impose upon the Bank in connection with the business of the Government any responsibility not imposed upon the Bank by the terms of its agreement referred to in rule 3. 37. (1) Where under the provisions of these rules the detailed procedure with respect to any matter is required to be prescribed or regulated by departmental regulations and where no rule or order has been made by the Government as to the authority by which the regulations shall be made, such regulations to be observed by particular departments shall be made by the Government. (2) Nothing contained in this rule affects the validity of any order, instruction or direction contained in any authorized departmental regulation in force on the date of promulgation of these rules except in so far as such order, instruction or direction is inconsistent with or repugnant to any distinct provision contained in these rules. (3) Notwithstanding anything contained in these rules, the operation of a Savings Bank Account of any person in a treasury of the State shall be regulated by the instructions contained in Appendix 3 to these rules. 20

PART II

KERALA TREASURY CODE

RULES 38-39

SUBSIDIARY RULES PART II GENERAL ORGANISATION AND WORKING OF THE TREASURIES 38. Subject to any general or special orders of the Government the responsibilities of the several officers for the proper management and working of the treasuries will be as laid down in the following rules of this part. SECTION I District Treasuries RESPONSIBILITIES OF THE DIRECTOR

39. (a) The Director as the Head of the Department of Treasuries is responsible to the Government for the proper functioning of the Treasuries in the State. He shall inspect each district treasury at least once in a year, examine whether the rules relating to the custody of treasure are closely followed, whether the registers are in good order and kept up-to-date and generally whether the treasury is working satisfactorily and shall take such effective steps as are necessary to remedy the defects, if any, noticed by him. In the course of the inspection, he shall specifically examine and satisfy himself— (i) that the actual stock of cash, opium, ganja, stamps and securities is kept under joint lock and key and corresponds with the book balance; (ii) that the Treasurer does not hold a sum larger than is necessary for the convenient transaction of the Government business and this sum together with the value of stamps, opium, ganja and other valuable articles held under the orders of the Government in his sole custody, is not larger than the security given by him; and (iii) that the stock of draft, cheque, bill and similar forms are carefully kept under lock and key by the Treasury Officer and periodically tallied with the balance of such forms on the stock books. NOTE 1.—The word “Stamps” used in the above rule includes Match Excise Banderols. NOTE 2.—Officers inspecting stamps, opium, etc., should record certificates of verification in their own hand. NOTE 3.—Appendix 5 contains the detailed rules prescribed by the Government for the inspection of District Treasuries. The Director should see during his inspection of the treasury that the stock of stamps especially those of denominations for which there is no demand or only occasional demand, is not excessive. He should pass orders at the time of inspection regarding the disposal of any surplus stock of stamps.

21

PART II

KERALA TREASURY CODE

RULE 39

(b) (1) Each district treasury will be inspected periodically by an Officer of the Indian Audit Department. (2) A brief report of such inspection will be drawn up and sent to the Director with a copy to the Treasury Officer. The report will be in two parts, the first part dealing with the observance of the rules regarding the custody of treasure, coinage, currency, remittance and public debt work as well as the maintenance of the Currency Chest Accounts and the second part dealing with other points. The Accountant General will also send a copy of the first part of the report to the Currency Officer, Reserve Bank of India, Madras. (3) The Treasury Officer shall send his replies on each part of the report in duplicate to the Director who shall pass such orders as he considers necessary and send a copy of his orders together with one copy of the reply received from the Treasury Officer to the Accountant General who will finally dispose of the report. The Treasury Officer shall also send a copy of his replies on the first part of the report of inspection to the Currency Officer, Madras. The Currency Officer will forward his copy of the report and of the Treasury Officer’s reply thereon to the Accountant General indicating whether, so far as matters dealt with by the Reserve Bank are concerned, the action taken is adequate or whether any further action is required. The Accountant General may again refer to the Director any matter brought to notice in the report in respect of which he considers that the action taken by the Treasury and the Director is inadequate. Points which cannot even then be settled and all important irregularities will be reported to the Government by the Accountant General. (4) The Accountant General will include a summary of the general results of the inspections in his annual review of the working of treasuries submitted to the Government. *NOTE—The Joint Director/Regional Deputy Directors as the case may be, are empowered to conduct the inspection of District Treasuries on behalf of the Director, once in every year and notes on such inspection shall be forwarded to Accountant General (A&E) through the Director of Treasuries. The Inspection reports in respect of District Treasuries and Sub Treasuries conducted by Accountant General’s Inspection Wing will be forwarded to the Director, who will retransmit reports to Joint Director/Regional Deputy Directors as the case may be for review and finalisation. * Insertion [G.O. (P) 581/2004/Fin. dated 13th December, 2004.]

22

PART II

KERALA TREASURY CODE

RULES 39-42

*This amendment shall be deemed to have come into force with effect from 6th December, 1996 40. When an irregularity committed by any Treasury is brought to the notice of the Director by the Accountant General the Director shall make an investigation and pass such orders as he considers necessary except in cases where the Accountant General has finally disposed of the matter by awarding a “Treasury Irregularity” to the concerned Treasury Officer a copy of the orders passed by the Director should be sent to the Accountant General. NOTE.—A list of cases in which the Accountant General usually awards “Treasury Irregularity” is given in Appendix 26. Part A of the Appendix contains a list of serious irregularities which require disciplinary action and Part B contains a list of ordinary irregularities which have the cumulative effect of judging the quality of work of the Officer-in-charge of the Treasury at the time of committing the irregularity. 41. When an Officer takes charge of the post of Director otherwise than temporarily, he shall obtain from the outgoing Director, a note prepared by the latter indicating his general impressions on the working of the Treasuries in the State with special reference to any important item of work to be attended to immediately as it comes to his knowledge. 42. The Director of Treasuries shall verify the cash balance (including the imprest balance and other anamath balances) in each District Treasury at least once in three months, without giving prior intimation about it to any member of the staff of the Treasury. The fact of verification should be recorded in the relevant registers kept in the Treasury. A certificate of verification specifying the amount, should also be sent to the Accountant General and to Government in the Finance Department. The verification shall be done by the Director of Treasuries in person. If he is unavoidably prevented from conducting the verification himself, he shall depute an officer in the Directorate, not below the rank of a District Treasury Officer** to verify the cash balance on his behalf. ** [G.O.(P) 147/77/Fin., dated 16th May 1977.] & [G.O.(P) 326/80/Fin., dated 31st May 1980.] * Insertion [G.O. (P) 581/2004/Fin. dated 13th December, 2004.]

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KERALA TREASURY CODE

PART II

RULES 42-44

† NOTE.—The Joint Director/Regional Deputy Directors as the case may be are also empowered to conduct surprise cash balance/imprest balance verification on behalf of the Director in respect of District Treasuries under their control once in three months in the case of Banking Treasuries and every month in the case of Non-Banking Treasuries. Also a certificate of verification specifying the amount may be forwarded to Accountant General (A&E) with copy to Directorate. †This amendment shall be deemed to have come into force with effect from 6th December, 1996. 43. [Deleted.] [G.O. (P) 181/76/Fin., dated 26th June 1976.] RESPONSIBILITIES OF THE TREASURY OFFICER

44. The Treasury Officer is personally responsible for the due accounting of all moneys received into and paid out of Government account, for the thorough observance of all rules prescribed for his guidance in every branch of his duties, for strict attention to all details of the daily routine of the treasury work, for the correctness of the prescribed accounts and returns and punctuality of their submission for the implicit obedience to the instructions issued by the Accountant General, the Currency Officer, the Director or any other competent authority, for the security of the cash balance, stamps, opium and other Government property and for the conduct of the subordinate treasury officials. For the custody of cash balance, stamps, opium, ganja and other valuables, the Treasury Officer is jointly responsible with the Treasurer. The fact that a subordinate has been required under these rules or under special orders of the Government to attend to certain items of Treasury work shall in no way relieve the Treasury Officer of his responsibilities. The Treasury Officer is responsible for keeping the accounts of the Treasury strictly in accordance with the directions contained in the Kerala Account Code, for the accuracy of all initial records and vouchers and for regularity of all transactions taking place at the treasury. † Insertion [G.O. (P) 581/2004/Fin. Dated 13th December, 2004] 24

PART II

KERALA TREASURY CODE

RULES 44-46

NOTE.—An officer holding independent charge of a district treasury in the course of a prescribed training (vide Appendix 4) will be personally responsible for discharging the duties and responsibilities of the Treasury Officer. However, it shall in no way, relieve the regular Treasury Officer of his responsibilities and he should closely watch the work of the Officer on training and give him proper guidance in all items of work. 45. The District Treasury Officer shall send immediate preliminary report to the Accountant General, the Director of Treasuries and the Government, of any defalcation or loss of money, stamps or opium and other property discovered in the treasury or any sub treasury even when such loss has been made good by the person responsible for it. Such preliminary report shall be supplemented as soon as possible afterwards by a detailed report, after personal investigation into the case. In dealing with cases of defalcations or losses as aforesaid and in reporting such cases to the Accountant General and other authorities, the District Treasury Officer shall be guided by such general orders or instructions as may be issued in this behalf by the Government. Petty cases, that is, cases involving losses not exceeding ` 300 each need not be reported to Accountant General unless there are, in any case important features which merit detailed investigation and consideration. 46. (1) The Treasury Officer shall satisfy himself by periodical examinations at convenient intervals that the actual stock of cash (coins and notes), stamps, opium, ganja and other valuables (including cash chests and sealed boxes and packets deposited for safe custody under Rule 157) which are put under double locks, the actual stock of the forms of drafts, cheque, pass books, cash orders, etc., and the documents pertaining to the securities of the treasury staff which are kept in his personal custody and the actual stock of saleable forms and other valuables held in the treasury under the orders of the government either under double locks or under single locks in the sole charge of the Chief Treasurer, correspond with the book balances. Such verification should invariably be done whenever there is a change of charge and also periodically as under: Cash (coins and notes) : Once in every month Stamps, opium, ganja : Once in every six months and other valuables (2) The Treasury Officer shall examine the deposit registers himself at least once a quarter and ensure that they are kept in accordance with the rules prescribed for the purpose in the Kerala Account Code or elsewhere and furnish the certificate prescribed in Article 124 of the Kerala Account Code, Volume II.

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PART II

KERALA TREASURY CODE

RULES 46-48

NOTE.—For this purpose the Assistant Treasury Officer of each District Treasury (and one of the Assistant Treasury Officers, if there are more than one Assistant Treasury Officer in any District Treasury) should be in charge of the maintenance of the Deposit Registers and the District Treasury Officer should conduct the Quarterly Examination. The Assistant Treasury Officer shall verify and attest every entry including the totals of daily transactions in the Deposit Accounts. He shall be responsible to the District Treasury Officer for the correctness of the postings and totals and also for the preparation and timely dispatch of monthly extracts and other periodical returns pertaining to Deposit due to the Accountant General. He shall also be responsible to the District Treasury Officer for rendering weekly or other periodical statements due to the courts for filling up the pass books and for the reconciliation of the Administrator’s figures with the treasury figures. 47. The Treasury Officer shall verify the District Treasury balance (which term includes besides the Treasury balance the balance in the Currency Chest of the Reserve Bank of India, if any, held in the treasury, the balance in the small coin depot, if any, attached to the Treasury and the balance of any imprest amount held by the Treasury Officer) in person on the first of each month and sign the account to be rendered to the Accountant General and the Government in the Finance Department. When, however, he is absent on tour on the first of the month, or when he is unable to perform the duties from physical inability, the duties may be entrusted to the officer discharging his duties in the district treasury in his absence. The reason for his inability to sign the accounts must be distinctly noted in the returns and accounts. In such cases, the Treasury Officer should verify the balance and satisfy himself as to the correctness of the monthly accounts immediately on his return to office and record that fact in the office copies of the accounts and returns. In no case should a Treasury Officer allow more than two consecutive months to pass without his verifying the monthly closing balance and signing the accounts. 48. When a Treasury irregularity is brought to the notice of the Treasury Officer by the Accountant General, the Treasury Officer shall make a personal investigation and his report shall be based on his own knowledge and the results of the investigation.

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PART II

KERALA TREASURY CODE

RULES 49-52

49. The special precautions to be observed by the Treasury Officer in matters relating to receipt, custody and payment of Government money are specified in other relevant parts of these rules. 50. The Treasury Officer shall see—(a) that a notice is posted up conspicuously in the Office of the hour at which the treasury closes for the receipt and payment of money, which shall be at least an hour before the end of the day’s work in order to allow time for closing and reconciling the accounts; and (b) that notices which he is required to exhibit under standing orders or instructions received from time to time such as those regarding the encashment of notes and the supply of small coins are exhibited conspicuously in places which the public enter freely. RESPONSIBILITES OF THE CHIEF TREASURER

51. The Chief Treasurer is responsible for the handling of the money at the treasury. The Treasurers or Nottams working in the district treasury are responsible for the handling of the money entrusted to them by the Chief Treasurer. VERIFICATION OF TREASURY BALANCE WHEN THERE IS A CHANGE OF TREASURY OFFICER OR CHIEF TREASURER

52. (a) Whenever the Treasury Officer hands over charge otherwise than temporarily, the relieving government servant shall, before taking charge, verify the cash balance in the district treasury in the manner prescribed in Rule 144 of part IV of these rules and report the result of his verification to the Accountant General with a certificate in Form T.R.1. He shall also obtain from the outgoing Treasury Officer a note prepared by him regarding the state of affairs in the district treasury. Whenever the Chief Treasurer hands over charge, otherwise than temporarily, the cash balance shall be similarly verified and the result of the verification recorded in the Treasurer’s Balance Sheet. (b) A government servant who holds charge of a district treasury during a short temporary absence of the Treasury Officer, e.g., on casual leave, shall be held responsible for the correctness of the balances in any double-lock receptacle which is opened whilst he is in charge, until it is duly verified and taken over by the permanent Treasury Officer. He should, therefore, verify the contents of any double-lock receptacle which is opened whilst he is in charge. The permanent Treasury Officer should verify, on his return, the contents of all double-lock receptacles which have been opened during his absence.

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PART II

KERALA TREASURY CODE

RULES 52-58

(c) If, on any occasion, the Treasury Officer or the Chief Treasurer is so ill that he is unable to go in person to the treasury to hand over charge of the treasury keys to the government servant duly authorised to take charge of the duties of his post from him, the relieving government servant shall go to the government servant who is to be relieved and take over the keys in person. The relieving government servant shall then verify the balance under double-locks in the presence of the other double lock officer and record a certificate of verification and the fact of the illness of the relieved government servant in the registers concerned. RESPONSIBILITIES OF THE SECTION HEADS IN THE ACCOUNTS DEPARTMENT

53. Each Section Head is responsible under the order of the Treasury Officer for keeping complete records of cash and book transactions of district and subordinate treasuries and for the compilation of the prescribed accounts and returns strictly in accordance with the directions and orders in force. He is also required to see that the rules and orders in force are observed in respect of all transactions of the treasury and to bring all cases of irregularity to the notice of the Treasury Officer. 54. Each Section Head may be required to inspect under the orders of the Treasury Officer, the account records of sub treasuries and to check a percentage of the initial accounts. 55. The Section Head’s department and treasurer’s department should be in different rooms, if possible. No person unconnected with the treasury should be allowed admission on any pretence into either the room housing the department of account or the Treasurer’s room beyond the bar or counter. Sub Treasuries 56. Location of sub treasuries:—There shall ordinarily be a sub treasury at the headquarters of every taluk. If there is a district treasury at the taluk headquarters the Government may do away with the establishment of sub treasury at the station. 57. The sub treasury is in the general charge of a Sub Treasury Officer. 58. The duties and responsibilities laid on the Treasury Officer in Rules 44 to 50 and 52 shall apply mutatis mutandis to Sub Treasury Officer also. But the reports and certificates in respect of verification of cash and other valuables etc., and the accounts are to be sent by the Sub Treasury Officers to the District Treasury Officers and not to Accountant General and the Finance Department unless specifically directed otherwise.

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PART II

KERALA TREASURY CODE

RULES 59-61

59. The Sub Treasury Officer shall attend to the day to day administration of the sub treasury in accordance with the treasury rules and the instructions issued by the Government, the Accountant General, the Director and the Treasury Officer. 60. The Sub Treasury Officers shall verify the cash balance in the sub treasury at least twice a month. If he remains at headquarters for a period of seven days or more at a time, he shall prove the balance in the sub treasury once in every seven days during that period. He shall also ordinarily verify the cash balance and the stock of stamps whenever he leaves or arrives at headquarters and submit a report to the District Treasury Officer. When there is a change of incumbent of a post which carries with it the charge of a sub treasury, the new incumbent shall verify the cash balance and the stock of stamps and submit a report to the District Treasury Officer. Explanation.—The scope of the term ‘proving’ is explained in Note 1 under Rule 152 (iii) in Part IV. 61. The monthly closing balance of the sub treasury should be verified and the result reported to the District Treasury Officer on the last day of the month by the Sub Treasury Officer. The Sub Treasury Officer shall arrange to be at the headquarters and to be present in the office on the last day of every month. If he is unavoidably prevented from being present in the office on the last day of the month, a special report should be submitted to the District Treasury Officer explaining the circumstances which rendered it impossible for him to verify the monthly closing balance. In that case the verification shall be done and the result shall be reported to the District Treasury Officer by the Officer entrusted to discharge the other duties of the Sub Treasury Officer for that day. In no case should a Sub Treasury Officer allow more than two consecutive months to pass without his verifying the monthly closing balance. (i) Non-Banking Treasuries.—The District Treasury Officer shall verify the cash balance (which term includes besides the treasury balance, the balance in the Currency Chest of the Reserve Bank of India, if any, held in the sub treasury, and the balance in the small coins depot, if any, attached to the sub treasury) in the non-banking sub treasuries in his district once in a month. Such verification shall be made by the District Treasury Officer himself, without prior notice. If owing to unavoidable circumstances, the District Treasury Officer is prevented from conducting the verification himself in any month, he may authorise his senior Assistant Treasury Officer to conduct the verification for that particular month.

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PART II

KERALA TREASURY CODE

RULES 61-63

But he should not allow more than two months to pass without his verifying the cash balance of a non-banking sub treasury in his jurisdiction. The fact of verification should be certified in the treasury’s daily balance sheet and also in such other register maintained to account for the cash kept in the treasury. A report of verification shall also be sent to the Director of Treasuries on the date of verification. Verification statement in respect of currency chest balance, if any, should be sent to the Currency Officer, Reserve Bank of India as stipulated in rule 153(iii) of these Rules. (ii) Banking Treasuries.—The District Treasury Officer shall verify the cash balance (including imprest balance and other anamath balances) in the banking sub treasuries in his district once in three months. Such verification shall be made without giving prior notice. If owing to unavoidable circumstances, the District Treasury Officer is prevented from conducting the verification himself in any occasion, he shall authorise his senior Assistant Treasury Officer to conduct the verification on his behalf for that particular occasion. But in such cases, the next verification of this particular sub treasury should be conducted by the District Treasury Officer himself. The fact of verification should be certified in the relevant registers kept in the Treasury and a report of verification should be sent to the Director of Treasuries on the very date of verification. OTHER EMPLOYEES OF THE SUB TREASURY

62. The duties of the Treasurers, Nottams and Section Heads in the Accounts Department of the district treasuries prescribed in Rules 51 to 55 above shall apply mutatis mutandis to the Treasurers, Nottams and the Head Accountants of the sub treasury. INSPECTION OF SUB TREASURIES

63. (a) The Director shall arrange for the inspection of the sub treasuries by * an officer in the Directorate not lower in rank than that of a District Treasury Officer at least once in two years. He shall examine the sub treasuries himself as far as possible during his tours. ** (b) The Director shall also arrange for a further detailed verification of the accounts and records pertaining to the Treasury Savings Bank transactions of all the sub-treasuries once in a year by an officer not lower in rank than that of a Sub Treasury Officer. * Substitution [G.O.(P) 326/80/Fin., dated 31st May, 1980.] ** Addition [G.O. (P) 326/80/Fin., dated 31st May, 1980.]

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PART II

KERALA TREASURY CODE

RULES 63-68

†(c) The Joint Director/Regional Deputy Directors as the case may be are also empowered for the inspection of Sub Treasuries under their jurisdiction once in every two years on behalf of the Director, and dispose the notes at their level except in major irregularities in which case the matter to be brought to the notice of the Director of Treasuries. †This amendment shall be deemed to have come into force with effect from 6th December, 1996. 64. The District Treasury Officer shall conduct inspection of all the sub treasuries in the district at least once in a year, without notice. 65. Sub treasuries will be inspected by an officer of the Indian Audit Department, if circumstances render it necessary. NOTE.—Appendix 5 contains the detailed rules prescribed by the government for the inspection of sub treasuries. The Director or other inspecting government servant should see during his inspection of a sub treasury that the stock of stamps, especially those of denominations for which there is no demand or only occasional demand, is not excessive. He should pass orders at the time of inspection regarding the disposal of any surplus stock of stamps. BANKS CONDUCTING TREASURY BUSINESS

66. If a treasury or sub treasury is located at a place where there is a branch of the State Bank of India or its subsidiary, the government may declare that the cash business of that treasury or sub treasury will be transacted through the bank. NOTE.—A list of treasuries and sub treasuries in the State is given in Appendix 2. 67. A branch of the State Bank which conducts treasury business should be kept open for the transaction of that business on a recognized holiday if the District Treasury Officer requests the Agent to keep it open for that purpose. 68. If the Agent / Manager of a branch of the State Bank of India or any of its subsidiaries which conducts treasury business dies or becomes incapacitated for duty and it is not possible for the bank or its subsidiary to make immediate arrangements for the transactions of business at the branch, the government official named hereafter, should, provided the concerned bank has by prior arrangement be requested that he should do so at once— †Insertion [G.O.(P) 581/2004/Fin. dated 13th December, 2004]

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PART II

KERALA TREASURY CODE

RULE 68

(a) visit the bank in person, take over the keys of the strong room and other receptacles of treasure, notes or books and ensure that the strong room is properly secured and direct the guard to report to him; (b) give telegraph information as the occurrence to the Local Head Office/Head Office of the concerned bank; and (c) arrange for the due transaction of urgent treasury business at the bank.The responsibility for performing the functions herein stipulated should, in the first instance, be primarily that of:— (i) the Collectors at district headquarters. (ii) the Revenue Divisional Officers at the headquarters of the Revenue Division, and (iii) the Tahsildars of the respective taluks at other places. The concerned government official should, on no account, take any action in regard to the bank’s private business, which together with the ordinary treasury business which is not of an urgent nature should remain in abeyance till a responsible official of the concerned bank takes charge of the branch. When it is impossible for the concerned government official to take the action mentioned above in person, e.g. on account of absence in camp, he may delegate his functions in this connection to any other government official not below the rank of a confirmed Sub Treasury Officer, who is within easy reach of the branch of the bank. He should nominate such government official for this purpose specially on each occasion when the necessity arises. Neither the government nor any government servant will incur any sort of responsibility either to the State Bank of India or to its subsidiaries or to any third party by reason of anything done bona fide under this rule. The Government Official concerned would however, be responsible for the safe keeping, as a bailee, of the keys of the strong room, etc., taken over by him and the accounting for the cash and other contents which he takes out from the strong room.

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PART II

KERALA TREASURY CODE

RULES 69-71

SECTION II TREASURY ACCOUNTS TREASURER’S RECORDS

69. The Treasury shall maintain a simple cash book (without subordinate registers), in which each receipt and payment shall be posted at the time and on the date on which they actually occur and in the order of occurrence. The Treasurer shall sign and immediately return to the concerned Section Head in the Department of Accounts (after the necessary entry in his accounts) all receipts for money received. He shall stamp all payment vouchers “Paid” and retain them for delivery to the Accounts Department when the books are compared. 70. When stamps or opium have been sold, the total sales shall be entered before the cash book is closed, and a memorandum should be prepared and forwarded to the concerned Section Head in the Department of Accounts, so that the necessary entry may be made in the accounts. BOOKS OF THE DEPARTMENT OF ACCOUNTS

71. The form and procedure with regard to the initial accounts kept in the treasury and the methods and principles in accordance with which the accounts are kept, are governed by the directions contained in the Kerala Account Code, Vol. II. It is the duty of the Treasury Officer to satisfy himself that those directions are strictly observed, that the accounts are correct in all respects and that the record of receipts and payments is so clear, explicit and self-contained as to be produceable if necessary as satisfactory and convincing evidence of facts. NOTE.—A complete record of cash transactions and book transfer relating to the district treasury, including those to sub treasuries within its jurisdiction, will be kept in the Accountant’s Day Book. Every item received or paid as well as all adjustments by transfer should be entered in the Day Book or in some register subsidiary to the Day Book in accordance with the directions contained in the Kerala Account Code, Vol.II. The daily total from cash subsidiary register should pass into the Day Book.

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PART II

KERALA TREASURY CODE

RULES 72-74

72. The Treasury Officer shall prohibit any erasures or over-writings in the Day Book and other registers of initial record or in any account or schedule and verify and initial every correction in them. 73. The provisions contained in rules 69 to 72 and rules 75 shall apply mutatis mutandis to the sub treasuries also. The daily account of sub treasuries are incorporated in the accounts of the district treasuries in accordance with the direction contained in the Kerala Account Code, Volume II. It is the duty of the Treasury Officer to scrutinise and examine every item of receipts and payments shown in the daily accounts and point out, and watch against all irregularities in the same way as those at the district treasury. He shall examine and regulate the procedure of sub treasuries, as far as he can from the daily examination of their accounts. NOTE.—If the Treasury Officer, owing to the volume of sub treasury transactions finds it difficult to scrutinise each and every sub treasury voucher, he may at his direction leave over the work to the Assistant Treasury Officer and/or the Section Heads of the Accounts Department, a percentage check not less than 20 per cent being effected by him. All vouchers checked by the Treasury Officer himself must be initialed by him as a token of the fact that he has exercised the check. 74. The Treasury Officer shall see that the cash balance of the sub treasury has been actually counted and certified by the Sub Treasury Officer on the closing day. The cash balance of the sub treasury must be written in words as well as in figures, the words being written in such manner as to have no room for alteration or interpolation. The Treasury Officer is also required to observe special precautions to satisfy himself that Sub Treasury Officer’s signature on the daily sheet and supporting documents is genuine and that the accounts have not been tampered with in transit. Unless there is specific instruction from the Accountant General to the contrary, the accounts must invariably be sent by post. NOTE.—The Sub Treasury Accounts and supporting documents pertaining to a month, if dispatched on or after the first of succeeding month, shall be sent to the district treasury in sealed packets through a special messenger or otherwise so that they reach the district treasury not later than the second working day. 34

PART II

KERALA TREASURY CODE

RULES 75

CLOSING FOR THE DAY

75. Subject to the directions contained in this behalf in the Kerala Account Code, Volume II, the process of closing accounts for the day shall be as follows:(a) The daily total of each subsidiary register will be entered in the appropriate part of the Day Book, which will then be totalled and the balance memorandum at the top of the Section Head’s balance sheet will be drawn up strictly in accordance with the directions contained in the Kerala Account Code, Volume II. To the account balance thus brought out the additions and deductions indicated at foot of the Day Book form will be applied so as to bring out the cash balance at the district treasury. (b) Meantime, the Treasurer will also sum both sides of his Day Book and draw up his balance memorandum in the form of the Treasurer’s daily balance sheet, Form T.R. 3 or T.R. 4, as the case may be. (c) If the results shown in the two balance sheets agree, the Treasury Officer should sign the two Day Books and the two balance sheets. He should first satisfy himself of the correctness and good order of all these documents and should give special attention to the reconcilement of the account balance of the district with that actually in the headquarters treasury; the latter excludes the balance in sub treasuries or under remittance within the district which the former includes. (d) The following is memorandum of some of the more important parts of the verification. The Treasury Officer should:— (i) compare each entry of payment in a register with the payment order ticking off each voucher as it is passed. This will not be necessary if the Treasury Officer adopts the alternative plan having the account entry presented to him for initials at the same time that he signs the order of payment; (ii) examine at least two of the totalling on each side, marking the totals as “Exd”; (iii) see the totallings are correctly carried from the register to the Day Book, initialling the totals as he thus compares them;

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PART II

KERALA TREASURY CODE

RULE 75

NOTE.—This must be done, in the case of receipt registers even when the total for the day is blank; but it is not necessary to initial blank payment registers. If the number of blank receipt register is large the following plan may be adopted. Such registers as are only rarely required for entry may be bound in a single volume and kept under the Treasury Officer’s own lock. When the volume is required for entry, he should give out of register for the purpose, and he should receive it back at the time of signing the daily accounts, carefully seeing in doing so that all new entries in it are correctly carried to the Day Book and initialling them accordingly. It is obviously necessary to guard against fraud or mistake of omitting to bring all entries from these registers upon the Day Book; and this precaution is not complete if the Treasury Officer examines only those registers from which an entry is made upon the Day Book. (iv) verify the totalling of the Day Book or get it done by some principal subordinate officer other than the Accountant who should initial it is correct; (v) see twice every week that all vouchers are properly arranged. (e) Before signing the Treasurer’s daily balance sheet, the Treasury Officer should roughly verify the balance in the sole charge of the Treasurer, as shown in that sheet, and satisfy himself on the following points:(i) that no uncurrent coins are left in charge of the Treasurer; (ii) that no more small silver and copper, bronze and nickel coin is so left than is actually required for current use; (iii) that the whole balance in sole charge of the Treasurer never exceeds his current requirements. (f) when a deficiency is found in the cash balance of any day it should be made good at once by the person responsible for it and the closing cash balance of the day should be the full balance including the amount lost and made good. If, however, for any exceptional reason the amount of deficiency is not immediately restored to the treasury balance, it should be charged in the accounts of the day on which the deficiency is discovered under “8550. Civil Advances— Other Advances—Other items” on a voucher signed by the Treasury Officer specifying the name of the person who should make good the amount. The amount recovered should be credited to the same head of account. “8550. Civil Advances—Other Advances—Other items”.

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PART II

KERALA TREASURY CODE

RULE 75

When any excess is found in the cash balance, it should be credited to Revenue Deposit on the day on which the excess is found, pending enquiry and disposal of the amount. If the enquiry does not establish beyond doubt that the excess is due to a particular person, it should be credited to Government under “0070 Other Administrative Services-C Other ServicesOther receipts-Other items”. If the amount is proved to be payable to any particular person, the refund should be made under the orders of the Director of Treasuries Such deficiencies or excess should be reported to the Director of Treasuries and Accountant General. (g) The Treasury Officer should always be careful to sign the Treasurer’s balance sheet in the evening of the day itself to which it refers but the signature and comparison of the Day Book need not be made till the following morning unless the office is to be closed for two or more days. The Section Head’s balance sheet must not be signed, until it has been carefully agreed with the Treasurer’s. NOTE.—Ordinarily, the Treasurer’s balance sheet should be compared and agreed with that of the Assistant Treasury Officer and/or the Section Heads of the Accounts Department before closing the treasury for the day and it is only when pressure of work renders this impossible that the comparison may be postponed till the following morning. When this is necessitated, the certificate over the Treasury Officer’s signature at foot of the Section Head’s balance sheet should be altered in manuscript by cancelling the words “agreed with the Section Head’s daily balance sheet and” before the form is signed by the Treasury Officer which must be done before closing the day. An additional certificate will then be added and signed by the Treasury Officer in the following morning viz., “agreed with the Section Head’s daily balance sheet”. For the 31st March and the first few days of April it will be necessary for the Assistant Treasury Officer and/or the Section Heads of the Accounts Department to prepare a separate rough balance sheet on each of these days for comparison with that of the Treasurer as the completion of the Assistant Treasury Officer and/or the Section Heads of the Accounts Department balance sheet for the 31st march has to await the receipt of the Sub Treasury accounts.

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PART II

KERALA TREASURY CODE

RULES 75-77

(h) The foregoing provisions of this rule apply also to treasuries which transact their cash business through the Bank subject to the modification that the correctness of the daily accounts should be tested by a comparison of the totals of receipts and payments in the day Book with the corresponding totals in the daily accounts received from the Bank also. NOTE.—When with the concurrence of the Accountant General the daily account of the Bank is submitted to a treasury in the morning of the day following that to which it refers, the signature and comparison of the Day Book may be made in the evening instead of in the morning of the day on which the Bank’s accounts are received, provided the pressure of work renders it necessary to so postpone it. CLOSING FOR THE MONTH

76. (1) The monthly accounts of the District Treasury shall be kept open till the receipt of daily sheets of every Sub Treasury subordinate to it for the entire period of the month. Every effort shall be made to close the accounts of the each month at the earliest possible date and in any case not later than the 6th of the succeeding month. (2) The monthly accounts of each non-banking Sub Treasury should be closed on the last working day of each calendar month. Those of each banking Sub Treasury shall be closed on the working day immediately following the last working day of each calendar month i.e., after accounting the transactions taking place at the bank on the last working day of the month. The transactions of every Sub Treasury for each day shall be included in the accounts of the District Treasury on the day on which the daily sheet is received except in the case of daily sheets pertaining to one calendar month received in the District Treasury on or after the first of the succeeding month in which case the transactions as per such daily sheets shall be included in the District Treasury accounts for the last working day of the calendar month to which they relate. 77. (1) In closing the accounts of the District Treasury for the month, the month’s total of the subsidiary registers will be carried into the cash account in the case of receipts and into the list of payments in the case of payments, the cash account being closed in accordance with directions contained in the Kerala Account Code Volume II. The cash must be verified by actual counting and the cash balance report made out in accordance with the procedure prescribed in Part IV.

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PART II

KERALA TREASURY CODE

RULES 77-79

(2) The monthly cash account shall be subjected to very careful check by the Treasury Officer when it is laid before him. He must satisfy himself that the opening and closing balances of this account are not merely deductions from accounts but are statements of facts certified to have been verified by actual enumeration of coins and notes. The Treasury Officer shall also check each entry in the cash account and list of payments with the corresponding totals in the Day Book and see that the totals of all the registers are correctly carried into the Day Book. NOTE.—If, at any time, the Treasury Officer be unable to compare all, at least he may compare some; notably, he should compare the entries in the plus and minus memorandum of deposits, stamps, etc., with the entries in the account, for example if the plus and minus memorandum shows a reduction in the stock of judicial stamps to the value of ` 5,000 and if the credit in account be less, the difference must be traced and satisfactorily accounted for. MONTHLY ACCOUNTS AND RETURNS

78. (1) A complete list of treasury accounts and returns to be rendered on different prescribed dates to the Accountant General, the Currency Officer and other authorities shall be kept at each treasury. The accounts and returns should be written up in accordance with the directions contained in this behalf in the Kerala Account Code, Volume II, and such orders and instructions as may be issued by the Director. (2) With regard to the punctual submission of the accounts and return the Government shall view with displeasure any avoidable delay on the part of the Treasury Officer in the despatch of the prescribed accounts and returns with complete schedule and vouchers, particularly those required by the Government, the Accountant General, and the Currency Office concerned. NOTE.—The returns due for despatch on a holiday may be sent one day (but not more than one day) late. 79. Vouchers pertaining to each schedule relating to the cash account or the list of payments shall be numbered consecutively in a separate monthly series and kept under lock and key in order of payment till they are despatched. Before despatch of the lists of payments and schedules, the Treasury Officer shall by inspection satisfy himself that the required vouchers are all attached. He may find it profitable at intervals during the month to take up a schedule and see that all its vouchers are present in proper order and as no payment can be made without a voucher, there can be no excuse for the absence of any unless it be that for a specific remittance.

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PART II

KERALA TREASURY CODE

RULE 80

MISCELLANEOUS

*80. Fidelity Insurance guarantee shall be obtained for the following security posts in the Treasury Department for the amounts noted against each, namely:-— (a) Treasuries in District and Sub Treasuries

Fidelity Insurance guarantee for ` 3,000

(b) Nottam and Gollahs in the District and Sub Treasuries

Fidelity Insurance guarantee for ` 500

All the security posts, namely, Treasurers Gollahs and Nottams in the Department of Treasuries shall be covered by a Single Fidelity Guarantee Insurance Policy in the name of the Director of Treasuries subject to the following conditions:— (1) The Blanket Insurance Policy need not contain the name or names of the persons covered but shall mention the designation and the number of persons in each category. (2) Whenever there is an increase in the number of post in any of the categories covered, the Director of Treasuries shall intimate that fact to the State Insurance Department within 15 days of the date of appointment to the post. The additional premium required shall be paid within the prescribed period on receipt of intimation from the State Insurance Department. (3) Only regular employees shall be allowed to hold these security posts. (4) Whenever there is necessity for any substitution and officiating arrangements, necessary office orders in this regard shall be recorded by the officer making the arrangement and shall be made available for verification by the Insurance Authority, if found necessary. (5) The Blanket Insurance Guarantee Policy shall be renewed at the appropriate time every year. [Rules 81 to 84 omitted] [G.O.(P) 747/79/Fin., dated 16th August 1979] * Substitution [G.O. (P) 747/79/Fin., dated 16th August, 1979.]

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PART II

KERALA TREASURY CODE

RULES 85-87

85. Responsibilities of Chief Treasurer and the Treasurer in the handling of money.— A Treasurer should not be placed in charge of the treasury keys, and should not be made to keep any accounts other than those property pertaining to his office. If the Chief Treasurer of a district treasury goes on casual leave, however, he may, at his option, hand over his treasury keys to the Treasurer or to the Senior Accountant serving under him, on the clear understanding that, in all cases, the Chief Treasurer will be personally responsible for any loss that may occur. Each of the Treasurers or the Nottams should be required to make good any uncurrent or counterfeit coin received by him and any overpayment made by him. 86. Precautions against substitution of coins in Treasuries.—To guard against the possibility of uncurrent or counterfeit coin being substituted in a treasury for good coin presented by the public or received in a remittance, every Treasurer and other government servant who handles coin in a district treasury should be required, on arrival for the day’s work to hand over to the Chief Treasurer or a responsible subordinate chosen by the Chief Treasurer for the purpose, all coins (private cash, etc.) which he is carrying at the time and to take them back when leaving the office after the day’s work. The procedure described above should also be followed at a sub treasury, the duties assigned to the Treasurer of a district treasury in this connection should be performed by the Sub Treasury Officer in the sub treasuries. 87. Subject to the foregoing Rules 80 to 86* the detailed instructions regarding the form of security the time limit, the custody and any verification, the release of securities, etc., are contained in the Kerala Financial Code, Volume I.

*Rules 81 to 84 omitted [G.O.(P) 747/79/Fin., dated 16th August 1979]

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PART III

KERALA TREASURY CODE

RULES 88-89

PART III RECEIPT OF GOVERNMENT MONEYS AND PAYMENT OF SUCH MONEYS INTO THE GOVERNMENT ACCOUNT SECTION I General Rules—General Instructions for handling cash APPLICABLE TO DEPARTMENTS GENERALLY

88. Moneys tendered as dues of the Government or for deposit in the custody of the Government shall not pass through the hands of a departmental officer unless he is authorised to collect such dues/deposits by a general or special order of the Government. Direct payment into the treasury or into the Bank by the person who tenders such money shall be insisted on and direct payments arranged whenever this is practicable *provided that individual remittances upto and including ` 100 shall be accepted by any departmental officer who maintains a cash book in Form T.R. 7A and remitted at the Treasury in lump on the next working day itself. 89. (a) A government servant who receives any moneys on behalf of the Government shall receive them only in one or more of the following forms: (i) Legal tender coin, (ii) Legal tender currency or bank notes, (iii) Reserve Bank drafts drawn on the treasury with which the government servant deals and made payable to him**, #(iii) (a) Remittance through e-payment for Commercial Taxes Department (iv) Crossed cheques drawn on the Reserve Bank of India, the State Bank of India, the State Bank of Travancore, any other scheduled Bank in India or on any other bank approved by Government and made payable to the government servant concerned: Provided that cheques shall not be accepted in payment of fines, compensation amounts etc., payable in criminal courts, and: Provided also that a government servant who receives a cheque drawn on a Bank situated at a place where there is no branch of the State Bank of India, State Bank of Travancore or any other subsidiary of the State Bank of India should collect from the party concerned commission charges at 1/64 per cent for collecting such cheques on behalf of the Government. * [G.O.(P) 176/84/Fin. Dated 26th March, 1984. ** Deletion [G.O.(P) 648/88/Fin.dated 1st October, 1988] # Insertion[G.O.(P) 421/09/Fin. dated 30th September, 2009]

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KERALA TREASURY CODE

PART III

RULE 89

(v) † Crossed Postal Order drawn in favour of the departmental Officer, and (vi)

Postal Money Order in favour of the departmental Officer.

NOTE 1.—The State Bank of India, the State Bank of Travancore or the branches will collect the cheques tendered in payment of Government dues on the following terms and conditions:— (i)

All Government cheques drawn in places where either the State Bank of India, State Bank of Travancore or any other subsidiary of the State Bank of India is established, will be collected free of charge.

(ii)

In other cases the Banks will claim a nominal charge of 1/64 per cent. The government servant receiving such cheques in settlement of government dues will collect this also from the parties tendering cheques.

(iii)

So as to enable the Treasury Officer to verify the consolidated treasury receipts of post offices in respect of cheques remitted by the Postal Department and to facilitate early incorporation of credits in the Treasury accounts, the State Bank of Travancore, while advising the credits to the Accountant General, will furnish a copy of the advice direct to the Treasury Officer also. The Accountant General will watch the clearance of the suspense head “bills receivable” which will initially be credited by him with the proceeds of cheques advised to him by the bank as credited to Government account and debited by the treasuries concerned on making the necessary adjustments in the treasury accounts or receipt of the copies of advices by them from the bank direct.

NOTE 2.—Cheques drawn in favour of quasi-Government institutions such as Panchayats, Municipalities, the University, the Electricity Board, etc., the transactions of which are mostly conducted through their Personal Deposit accounts with the treasuries‡ ‘and private institutions which are having P.D.Accounts operated † Addition [G.O.(P) No. 648/ 88/Fin. dated 1st October, 1988. ‡Insertion [G.O.(P) 116/74/Fin., dated 10th May, 1974]

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KERALA TREASURY CODE

PART III

RULE 89

in treasuries’ will also be accepted at treasuries and the proceeds of such cheques will be credited to the accounts of those institutions with the treasuries. The collection of such cheques will be made in accordance with the provisions contained in Note (1) above. The bank commission and/or other cheques involved in the collection of cheques received at the treasuries from the above institutions will be recovered from the proceeds of the cheques and the next amount alone will be credited to the accounts of the institutions concerned. NOTE 3.—A government servant receiving a cheque which is to be credited to a Personal Deposit Account or a banking account of a Local Fund kept at a branch of the State Bank of India shall collect from the party concerned full commission charges, if any, payable to the State Bank on such cheques. NOTE 4.—When cheques on which commission charges are payable are accepted, credit in Government accounts will be afforded only for the net amount realised after deducting such charges. NOTE 5.—Officers-in-charge of Departmental Hostels and Tourist Bungalows under the Tourist Department are authorised to accept the “Rupee Traveller’s Cheques” of the following Banks in settlement of dues to Government: 1. 2. 3. 4. 5.

The State Bank of India. The Punjab National Bank. The Bank of Baroda. The Bank of India. The Central Bank of India.

NOTE 6.—†Bank cheques presented by the depositors of Treasury Savings Bank for credit to their account will be collected in accordance with the provisions contained in Note 1 above: ‡NOTE 7.—When a cheque presented by a Party to a Departmental Officer, in satisfaction of Government dues is not honoured on presentation, the cheque concerned will be returned by the bank † Insertion [G.O.(P) 303/73/Fin.dated 23rd July, 1973] ‡ Addition[G.O.(P) 221/93/Fin.dated 18th March, 1993]

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PART III

KERALA TREASURY CODE

RULES 89-90

to the Departmental Officer with a request to reimburse the handling charges. The Departmental Officer shall, within 7 days from the date of receipt of the bounced cheque, draw and disburse the amount of handling charges to the Bank debiting the expenditure under Office Expenses. The amount so disbursed to the Bank shall be realized from the party in cash and remitted to Government account at the earliest. (b) A cheque received under clause (a) of this rule shall be treated as a final payment, only after it has been met and the amount has been actually credited to the Government. 90. (a) A government servant who receives† any money including money received in the form of Postal Money Order on behalf of the Government shall give the payer a receipt in form T.R.5 unless in any case the Government have by a general or special order dispensed with the grant of receipt.In the said Rules, in sub-rule (a) of rule 90, for Note 1, the following Note shall be substituted, namely:— *NOTE 1.—All receipts must be written in figures and in words in the original and such other copies of chalans in Form T.R.12 as are required to be given to the tenderers of moneys and signed in full over the “cash received/received payment” stamp. Other copies of the chalan and interim receipts may however be initialled against the amount already indicated therein over the “cash received/received payment” stamp. NOTE 2.—Receipt Book in Form T.R.5 will be printed with interleaved perforated copies to be taken by carbon process. Copying pencils and double faced carbon papers should be used for this purpose. The original should be retained as office copy and the duplicate issued to the party. $NOTE 3.—The Postal Money Order received shall forthwith be entered in a register of Money Order received in form T.R. 5A. The Officer while signing the money order acknowledgement, will simultaneously initial the entries in column 5 in the register in Form T.R. 5A. Total amount received as per the register in Form T.R. 5A shall be entered as a single entry in the receipt † Substitution [G.O.(P) 76/95/Fin. dated 21st January, 1995] * Substitution [G.O.(P) 494/75/Fin. dated 24th October, 1975] $ Insertion [G.O.(P) 76/95/Fin. dated 21st January, 1995]

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PART III

KERALA TREASURY CODE

RULE 90

side of the cash book in form T.R. 7A, giving the details of T.R. 5 receipts in column 2 *In view of the computerisation in Motor Vehicles Department, the computer generated Form T. R.5 (C) shall be issued in lieu of Form T.R.5. The receipts shall be in triplicate, the original copy shall be issued to the remitter for the purpose of attaching the same with the application for which he seeks service from the office, the duplicate shall be retained in the office as record and the third copy shall be given to the remitter as acknowledgment This amendment shall be deemed to have come into force with effect from 25th October, 2002. (b) When a cheque is received, a preliminary acknowledgement in Form T.R.6 shall be given for the cheque only. ** A final receipt for the payment in Form T.R.5 shall be issued to the party by the Departmental Officer on receipt of the original chalan receipt from the Treasury/Bank after the amount has been realised. If the cheque is not honoured on presentation, the fact shall be intimated to the person from whom the cheque was received, and payment in cash shall be demanded. The Government accept no responsibility for any loss or damage to the payer on account of delay in giving intimation that a cheque has not been honoured. NOTE 1.—When a cheque is not honoured on presentation, the accompanying chalan should not be returned by the receiving bank but should be retained and destroyed in due course. †Only the dishonoured cheque should be returned to the presenter along with claim for reimbursement of handling charges, if any, and the preliminary acknowledgement of the receipt of the cheque should be got back from him. NOTE 2.—The officers who are authorised to collect money should be specified and they should be asked to give the payer a receipt in the prescribed printed form in all cases. They should keep a complete account of the receipt books that they have received and should be able to produce them always used or unused. The books should be carefully examined to see * Insertion [G.O.(P) 180/09/Fin. dated 12th May, 2009] ** Substitution [G.O.(P) 103/82/Fin., dated 5th March, 1982] † Substitution [G.O.(P) 221/93/Fin. dated 18th March, 1993]

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PART III

KERALA TREASURY CODE

RULES 90-91

that the number of forms contained in each is intact and a certificate of count recorded on the fly-leaf. Ordinarily more than one book should not be used at one and the same time and a new book should be brought into use only after the old one is exhausted. The stock register of receipt books should show the dates on which a book was brought to use and the date on which it was completed. Counterfoils of used receipt books should be kept under lock and keys in the personal custody of the head of the office. NOTE 3.—The required printed receipt books (machine numbered) should be obtained by the head of each department or other controlling officer and distributed to all subordinate officers a stock account thereof being maintained showing the numbers of the books (and number of forms contained in each) received and issued to each individual officer. NOTE 4.—At the time of inspection it should be seen that all the receipt books supplied to each office have been accounted for properly and that the amounts received as per receipts granted have been brought to the cash book. 91. When Government dues have to be paid by fixed date and payment as made by cheque with reference to item (iv) in Rule 89 (a), the payer should see that the cheque reaches the government servant authorised to receive it not later than the day before the fixed date. If the cheque is so received and is honoured on presentation, the payment should be treated as having been made on the due date. When a cheque is received on the fixed date or later, the date when the amount is credited in the Government account after realization of the cheques should be treated as the date of payment; *Provided that in the case of dues to the Motor Vehicles Department which are remitted in the form of Demand Drafts drawn on banks conducting Government business, the payment will be treated as having been made in time, even if the Demand Draft is presented to the Officer authorised to receive it on the due date only. NOTE.—“Demand drafts” shall not be distinguished from cheques for the purpose of these rules. * Addition [G.O.(P) 40/82/Fin., dated 28th January, 1982]

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PART III

KERALA TREASURY CODE

RULE 92

92. (a) Save as otherwise expressly provided in these rules or in any authorised departmental regulations, the following rules shall be observed by all Government Officers who are required to receive and handle cash:— (i) Every Officer receiving money on behalf of Government should maintain a cash book in Form T.R.7A. *NOTE.—The cash book shall be bound in convenient volumes and their pages serially numbered. Before bringing a cash book into use the head of the office shall count the number of pages and record a certificate of count on the first page of the cash book. (ii) All monetary transactions should be entered in the cash book as soon as they occur and attested by the head of the office in token of check ** Provided that in the case of Trivandrum Public Library all amount received in the Book Room upto 4 p.m., each day along with the previous day’s receipt from 4 p.m. to 7 p.m. shall be brought to the main cash book on the same day. All receipts in the Office Room upto 5.15 p.m. each day shall also be accounted for in the main cash book on the same day itself. (iii) The cash books should be closed regularly and completely checked. The head of the office should verify the totalling of the cash book or have this done by some responsible subordinate other than the writer of the cash books and initial them as correct. (iv) At the end of each month, the head of the office should verify the cash balance in the cash book and record a signed and dated certificate to that effect. The certificate should also be recorded on the monthly cash account, primary abstract or account current, where such account, abstract or account current is required to be submitted to the Accountant General. Such certificates must be signed by the head of the office who should invariably date the signature. (v) When Government moneys in the custody of a Government officer are paid into the treasury or the Bank, the head of the office, making such payments should compare the Treasury Officer’s or the bank’s receipt on the chalan or his pass book with the entry in the cash book before attesting it, and satisfy himself that the amounts have been actually credited into the treasury or the bank. * Addition [G.O.(P) 639/78/Fin., dated 22nd August, 1978] ** Insertion [G.O.(P) 304/76/Fin., dated 29th September, 1976]

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KERALA TREASURY CODE

RULE 92

† When the number of payments made in a month is more than ten and the total amount involved therein exceeds ` 1,000, he should, as soon as possible after the end of the month, prepare a statement of all remittances made during the month and get it verified and certified by the Treasury Officer, which should be compared with the postings in the cash book. NOTE.—Notwithstanding the provisions of the clause the Head of Office may at his discretion prepare a statement of remittance irrespective of the number of payments made in a month and the total amount involved therein and get it verified and certified by the Treasury Officer. (vi) An erasure or overwriting of an entry once made in the cash book is strictly prohibited. If a mistake is discovered it should be corrected by drawing the pen through the incorrect entry and inserting the correct one in red ink between the lines. The head of the office should initial every such correction and invariably date his initials NOTE.—The functions assigned to the head of the office in sub-clauses (i) to (iii) and (v) and (vi) above may be performed by any other gazetted subordinate officer specifically authorised by Government in this behalf. [See also Rule 131(c)]. *(b) When a government servant who does not maintain a cash book as prescribed in clause (a) above is authorized to receive any money on behalf of the Government, he shall, on receipt of such money, grant a temporary receipt in Form T.R. 5A to the payer and either remit the money into the treasury with a chalan in duplicate and send the receipted chalan with full particulars such as the number, and date of the temporary receipt to his immediate superior officer who maintains a cash book or where there is no treasury in or near his headquarters remit the money to the same superior officer with a remittance slip. The officer who maintains the cash book shall, on receipt of the chalan or the money and the remittance slip, enter the amount in the cash book and send a final receipt in Form T.R. 5B to the subordinate who received the money in the first instance for delivery to the payer within a month. † Insertion [G.O.(P) 176/73/Fin., dated 29th May, 1973] * Substitution [G.O.(P) 1065/92/Fin dated 14th December, 1992]

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PART III

KERALA TREASURY CODE

RULE 92

*NOTE.—(1) The forms for temporary and permanent receipts (Form T.R. 5A and 5B) should be printed and bound in books, in such a way that the copy to be issued to the party as a receipt and a carbon copy to be retained as the office copy may be prepared simultaneously with carbon paper. The pages of the books should be machine-numbered. *(2) Every receipt book (temporary or permanent) should be carefully examined by the Government servant concerned immediately on receipt, and the number of forms in the book should be counted and a certificate of count should be recorded in the following form which shall be printed on the inner side of the outer cover of the book. CERTIFICATE The receipts in book No………….............… are complete and in consecutive order from……................…….. to……….....................……… Signature: Date:

Designation:

NOTE.—Amendment to rule 92 (b) shall come into force at once. (c) Except when he remits money to a superior authority under clause (b) above, a government servant who receives any money in the form of coin and notes on behalf of the Government shall remit it into the treasury with which he normally deals (or the nearest treasury into which the money can be remitted) on the date of receipt or as soon afterwards as is possible without causing undue inconvenience to the payer or if a superior authority has permitted him to make remittances at periodical intervals or when the balance in hand reaches a certain amount, in accordance with those instructions. A government servant who receives a cheque (including a bank draft) on behalf of the Government shall do as follows immediately on receipt:— † (i) If the officer concerned deals with a treasury or sub treasury which transacts its cash business through the Bank, he shall forward the cheque along with chalan duly filled up to the Bank direct, for collection and credit to Government account; * Substitution [G.O.(P) 1065/92/Fin dated 14th December, 1992] † Substitution [G.O. (P) 334/77/Fin.dated 6th September, 1977]

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PART III

KERALA TREASURY CODE

RULES 92-93

(ii) In other cases, he shall forward the cheque (including bank drafts) to his departmental superior for collection and credit to Government account. NOTE 1.—The departmental officers collecting money on behalf of Government shall be responsible for the correctness of the Head of account to which the proceeds are to be credited. NOTE 2.—The departmental superior officers collecting the proceeds of the cheque/bank drafts shall send the chalans to the subordinate officer who received the Bank drafts/cheques. NOTE 3.—Classification noted in such chalans shall also be checked up by the Treasury Officer before finally incorporating in the treasury accounts” 93. (a) When a government servant is permitted to handle in his official capacity, moneys, not being revenues of Government institution, such moneys should be included in Government accounts. When a government servant administers moneys relating to endowments such as for grant of medals, prizes, scholarships, etc., in Government Educational Institutions, even when the corpus of endowments is invested outside the Government accounts and the income from the endowment is not utilised for the maintenance of a Government Institution the interest on the endowments or other receipts connected with them shall be included in Government account. (b) When the moneys of a society or body are included in the Government account with reference to clause (a) above, a personal deposit account shall be opened in the treasury in the name of the government servant concerned. When any such case arises the government servant concerned shall apply at once to the Government through the proper channel for the opening of the personal deposit account in his name in the treasury for the purpose, if the Government have not already issued orders on the point when giving him permission to handle the moneys in his official capacity. (i) [Omitted] [G.O.(P) 712/81/Fin., dated 28th October, 1981] *(bb) A Government Servant who is permitted to open a P.D. Account under sub-rule (b) shall account for all moneys received by him *Addition [G.O.(P) 712/81/Fin., dated 28th October, 1981]

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PART III

KERALA TREASURY CODE

RULE 93

towards such P.D.Accounts in his office cash book in Form T.R.7A and remit them into the Treasury on the same day or on the next working day. He shall also maintain separate detailed accounts of the transactions pertaining to the fund administered by him in the manner laid down in the departmental manuals, codes, rules or orders creating the fund. If there are no specific provisions in the departmental manuals, codes, orders, etc., creating the fund as to the manner in which detailed accounts of the fund are to be kept, detailed accounts shall be kept, in the following manner, namely:— (1) In cases where the amount deposited has to be refunded to the remitter or in cases where the deposits lapse to Government after a specific period, the government servant administering the fund shall maintain a simple ledger account in Form T.R.7B and also a register of deposits in Form T.A. 13 and a Register of repayment in Form T.A. 14 of the Kerala Accounts Code, Volume-II by modifying the relevant columns “Initials of T.O. “ into “Initials of the Administrator of P.D. Accounts” and changing the words ‘ day book’ in Column-8 of T.A. 13 into “T.R. 7B”. Each item of receipt should be entered in the register of deposits as a distinct item assigning serial numbers in chronological order in separate series for each financial year. The directions contained in Article 64 to 67 of Kerala Account Code, Volume -II shall be followed mutatis mutandis by the government servants concerned in maintaining the above registers; (2) In other cases the government servant administering the deposit account shall maintain only a simple ledger account in Form T.R. 7B for all transactions pertaining to the deposits; (3) In both the cases specified in clauses (1) and (2), the entries are to be made in the accounts as and when the transactions occur. When the amounts are received direct by the Government Servant, entries of receipt are to be made while issuing receipts in Form T.R.5 or T.R. 6 and when remittances are made at the Treasury by the parties when the parties produce the receipted chalans. Entries of withdrawals are to be made as and when the cheques for withdrawal are drawn and issued. If the date of actual remittance into the Treasury or date of payment at the Treasury differ from the dates of receipt and withdrawals noted in the above accounts, the actual date of treasury transactions shall be noted in red ink below the date originally entered. In cases where, government servants subordinate to the Administrator of a deposit account have been authorized to accept remittances towards the 52

PART III

KERALA TREASURY CODE

RULE 93

deposit account and issue receipts the details of collection so made should be gathered at the close of each month and entered in the accounts kept by the Administrator. (4) In whatever manner the accounts are maintained, the Government servant concerned should reconcile his accounts periodically at least once in a month with the accounts kept by the treasury and prepare a reconciliation statement at the end of each month and see that the closing balance of the month (T.R. 7B) agrees with the balance in the account kept by the Treasury, subject to the deductions on account of cheques issued, but not cashed and additions on account of remittances made at the Treasury, but not incorporated in the Administrator’s P.D. Accounts. He should also furnish to the Treasury at the end of each financial year a certificate showing the closing balance in the account as on the 31st March of each year after reconciling the balance with the Treasury figures. In the case of Personal Deposits which lapse to Government after a specific period, the Government Servant administering the P.D. account, should also prepare and furnish to the Treasury before the 15th April every year a statement of deposits lapsed to the Government at the close of each financial year and deduct the amount so lapsed from the opening balance for the next year. (c) A government servant shall not place any private money in a cash chest used for keeping money received in his official capacity. NOTE.—(1) Charitable Endowments.—The following procedure should be followed in regard to funds of charitable endowments:(a) A government servant, in his capacity as administrator of a charitable endowment, should remit into the Government account moneys representing— (i) interest on securities pertaining to endowments received from the Treasurer of Charitable Endowments; and (ii) income from properties relating tothe endowments and interest realized in respect of the securities relating to endowments divested from the Treasurer of Charitable Endowments.

53

PART III

NOTE—1

KERALA TREASURY CODE

RULE 93

(b) Interest realised from the Bank shall be credited in the accounts to the head ‘Civil Deposits-Personal Deposits’. Normally payments in such cases are made by the Treasurer of Charitable Endowments, only on receipt of requisition from the administrators for amounts required for immediate disbursement and it will not be necessary to credit the amount again to the Government account. In order, however, to ensure that no unutilized amount is retained by the administrators, they shall send certificates of disbursements to the Treasurer of Charitable Endowments together with unutilized balance, if any, which shall be credited into the Personal Deposit Account. (c) In the case of cash in the hands of administrators, which includes balances relating to endowments transferred to them, amounts of interest realized by them periodically and, in a few cases, income from properties in their custody, it shall be paid into a single deposit account in the treasury and drawn again when required for disbursement. These transactions should be exhibited in the accounts under a separate deposit head “Deposit account of divested charitable endowments”. (d) Administrators of endowments, divested from the Treasurer of Charitable Endowments, shall remit into the treasury for credit under the deposit head mentioned above, all amounts received by them and draw the sums again when required. Administrators having custody of properties, other than securities held by the Treasurer of Charitable Endowments, shall remit the income from such properties to the deposit head and draw it again when required. (e) As the deposit will be operated upon by government servants belonging to several departments in their capacity as administrators of the endowments, the Government in the Revenue Department shall control the transactions in the account and render. 54

PART III

KERALA TREASURY CODE

RULES 93-94

(i) monthly certificates of reconciliation of account figures with the departmental figures relating to the account; and (ii) an annual certificate of acceptance of balance in the account on the 31st March of each year. (f) The administrators of charitable endowments divested from the Treasurer of Charitable Endowments and those having custody of properties other than securities held by the Treasurer of Charitable Endowments shall submit to the Government in the Revenue Department every month a report of their remittances and drawals relating to “divested” endowments with particulars of the amounts remitted or withdrawn, dates of such remittances or withdrawals and the name of the treasury or sub treasury concerned. NOTE—(2) Amounts required for payment of scholarships under the National Scholarship Scheme, National Loan Scholarship Scheme and the Scheme of Merit Scholarships administered by the Ministry of Education will be paid in advance in two installments to the institutions in which the scholars are undergoing studies. The head of each institution (whether Government or private) receiving such amounts is permitted to open a personal deposit account in his name in the local treasury. The amounts received by him for payment of the above mentioned scholarships should be credited to the personal deposit account and the amounts actually required for disbursement should be withdrawn by means of cheques whenever necessary. 94. Issue of duplicates or copies of receipts.—No government servant may issue a duplicate or copy of a receipt granted for money received by him on the allegation that the original receipt has been lost or is not available. A certificate may, when necessary, be given that on a specified day a certain sum was received on a certain account from a certain person, and a fee of *two rupees shall be levied for every such certificate issued to a private party. This prohibition extends only to the issue of duplicate on the allegation that the original has been lost, and does not apply to cases authorised by these rules or by special orders of the Government in which duplicates may be prepared and tendered with the originals. *Substitution [G.O. (P) 544/87/Fin. dated 23rd June, 1987]

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KERALA TREASURY CODE

RULES 95-97

SPECIAL INSTRUCTIONS FOR CERTAIN DEPARTMENT

95. In the Public Works and Forest Departments and in the Government commercial undertakings, cheques accepted in payment of Government dues should be entered in the cash account as “Receipts” as and when received and as “disbursements” when remitted to the treasury for encashment, just like moneys received by a government servant-vide Rule 92(b) and (c). If a large number of cheques is received daily, they should be initially entered in a subsidiary register in Form T.R. 8 for watching the encashment of the cheques and only the daily total of receipts and remittances accounted for in the cash book. NOTE.—Commission charges collected from parties for collection of cheques shall be entered in a separate column. SPECIAL TO THE JUDICIAL DEPARTMENT

96. (a) Receipts of moneys by Civil Courts.—In certain cases specified by the High Court in which money can be disbursed forthwith, e.g., money paid by suitors for the service of summonses and diet money of witnesses deposits are received direct at the court and the parties are not required to pay the money into the treasury or the Bank. A person who wishes to make any such deposit should present with the money a receipt in the prescribed form stating fully the particulars and the purpose of the deposit. The Officer of the court who is authorised to receive the money should receive it, sign the receipt and return it at once to the depositor. (b) Receipts of moneys by Criminal Courts.—Magistrates trying Railway cases under sections, 112, 113 and 115 of the Indian Railways Act, shall subject to directions issued by the High Court, in this behalf, deposit the Railway dues (fare and penalty) collected by them, with the Station Master concerned under clear receipt. The fines levied by the courts and creditable to the State Government shall be remitted into the Treasuries/Banks through chalan. SPECIAL TO THE PUBLIC WORKS DEPARTMENT

97. Receipt of money by government servants in Public Works Department.—Only Divisional Officers, Sub Divisional Officers and other Government servants specially authorised by the Government have power to issue final receipts for money received on behalf of the Government. The Head Clerk or Cashier may, when specially authorised to do so by Divisional or Sub Divisional Officer, receive money at headquarters when the latter is in camp.

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KERALA TREASURY CODE

RULE 97

Whenever he does so, he should promptly issue a temporary receipt in Form T.R. 9 for the cash actually received by him and simultaneously enter the amount in the cash book. A final receipt in Form T.R. 10 in confirmation of each temporary receipt should be signed by the Divisional or Sub Divisional Officer, as the case may be, and issued to the payer as soon as that officer returns to headquarters. When a Section Officer collects revenue from parties to whom grass plots, fruit trees, canal berms, etc., are leased or receives money from the sale of materials, etc., and when any government servant who is not in charge of a cash book similarly receives any money on behalf of the Government in exceptional circumstances, he should keep it separate from the imprest and any other cash in his charge and should remit it at the earliest opportunity to the Sub Divisional Officer (or other nearer superior officer having a cash book). Along with the money he should send a remittance slip in Form T.R. 11 on the back of which he should enter full particulars of the amount in question and the date of receipt by him. He should also send a copy of the remittance slip to the Divisional Officer for check of the receipt entry which should appear in the copy of the sub divisional or other cash book. The Section Officer or other government servant who receives the money in the first instance should also issue promptly to the payer a temporary receipt in Form T.R. 9. The Sub Divisional Officer or other nearer superior officer who maintains a cash book should, on receiving the remittance slip with the money fill in the two forms of memorandum of acknowledgement attached thereto in duplicate, make the necessary entry in the cash book and send forthwith to the government servant who collected the money a copy of the memorandum of acknowledgment and final receipt in Form T.R.10 for issue to the payer in confirmation of the temporary receipt. If the memorandum of acknowledgment and final receipt are not received by the government servant who collected the money within one week of his sending the cash he should forthwith report the fact in writing to the Sub Divisional Officer by name and obtain them. NOTE—1

The forms for temporary and permanent receipts (Forms T.R. 9 and T.R. 10) should be printed and bound in books, in such a way that the copy to be issued to the party as a receipt and a carbon copy to be retained as the office copy may be prepared simultaneously with carbon paper. The pages of the books should be machine-numbered.

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KERALA TREASURY CODE

PART III

NOTE—2

RULES 97-99

Every receipt book (temporary or permanent) should be carefully examined by the Government servant concerned immediately on receipt and the number of forms in the book should be counted and a certificate of count should be recorded in the following form which will be printed on the inner side of the outer cover of the book. “CERTIFICATE

This receipts in book No……………………........... are complete and in consecutive order. Signature……..............……… Date……………

Designation…............………”

98. A Government servant of the Public Works Department who remits any cheque received by him to the treasury for credit to the Government shall enter the particulars in his remittance book (See Rule 105), and send the book to the treasury with a chalan in duplicate. The treasury shall give a preliminary acknowledgment for the receipt of the cheque in the remittance book, the final receipt being given by it on the original chalan after the cheque has been cleared. SECTION II Receipt of moneys by the Treasury or the Bank 99. (a) When a treasury or the Bank receives any money from a private party for credit to the Government, it shall receive it only subject to the provisions of Rule 89(a) and the notes under it* (b) Subject to the provisions of Rule 92(b) and 92(c), a Government servant who receives money on behalf of the Government under Rule 89(a), shall remit it into the treasury or the Bank on the day of receipt or as soon afterwards as is possible without causing the payer undue inconvenience** * Second Sentence and the exception omitted [G.O.(P) 334/77/Fin., dated 6th September, 1977] ** Second Sentence omitted [G.O.(P) 334/77/Fin., dated 6th September, 1977]

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KERALA TREASURY CODE

RULES 99-101

(c) Every payment into the treasury or the Bank for credit to the Government shall be accompanied by a memorandum or chalan containing all the particulars necessary for crediting the amount correctly in the Government account and preparing a receipt to be given to the payer. When a payment is made into the treasury, the treasury shall check the chalan and make sure that it is in order and complete, test and count of money, bring the payment into account in the prescribed registers and give a receipt to the payer. When a payment is made into the Bank, the Bank shall receive the money and give a receipt to the payer, and the treasury shall bring the payment into account in the prescribed registers. When a private person makes a payment into the Bank on Government Account, the chalan shall, in the absence of special rule or order to the contrary, be first presented at the treasury, where it shall be checked and returned enfaced with an order to the Bank to receive the moneys and grant a receipt. #(d) For remittance through e-payment, a filled up Chalan or detailed memorandum as prescribed in sub-rule (c) shall not be insisted. 100. Whenever under the provisions of sub-rule (2) of Rule 6 moneys received on account of the revenues of the State, instead of being paid into a treasury or the Bank, are utilised to meet departmental payments, the gross receipts and the payments made therefrom shall be entered as receipts and expenditure in any record that may be kept of the payments into and withdrawals from the Government Account and accounted for to the Accountant General. If the receipts are in excess of payments made, the excess shall be remitted to the treasury or the Bank, as the case may be, and save where it is otherwise provided in these, the officer making such remittance shall note on the memorandum or chalan presented under Rule 99(c) the full amount of cash actually received by him, and per contra, the expenses disbursed therefrom, and not merely the net receipts. When a departmental officer remits cheque to the treasury or the Bank in adjustment of departmental receipt temporarily appropriated for departmental payments the particulars of the cheques shall be noted on the chalan or remittance note. 101. Whenever a Government servant sends a cheque or bill to the treasury for credit to the Government, he shall endorse the words ‘Received payment by transfer credit to the head (here insert the head of account)’, # Insertion[G. O. (P) 421/09/Fin. dated 30th September, 2009]

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KERALA TREASURY CODE

PART III

RULES 101-102

on the document and sign the endorsement. The word “transfer” shall be deleted from this endorsement when entered on a cheque not payable by the Government. If any Government servant endorses a cheque or bill of which the amount is to be credited to the Government without entering these words above his signature, he shall be held primarily responsible for any loss which may occur if the cheque or bill is paid in cash. 102. (a) The chalan which accompanies a payment of money into the treasury or the Bank shall contain full information as to— (1)

the nature of the payment,

(2)

the amount paid,

*(3)

name and address of the remitter,

(4)

the head of account to which the amount should be credited, and

(5)

the allocation of the amount between Governments and departments, if any, such allocation has to be made.

**(6)

the name of office and designation of the receiving departmental officer to whom the remittance relates to be written in the top of each chalan

(b) When a payment to the Government is to be credited partly to one head of account and partly to another, a separate chalan shall ordinarily be presented for the amount to be credited to each head. If, however, two or more credits relating to the same transaction are so closely connected that it would be convenient to use separate chalans for them, they shall be entered on the same chalan. (c) The chalan shall be prepared in Form T. R. 12, or in such other form as may be prescribed under these rules or in a departmental manual or code. These forms, shall be printed both in English and Malayalam. * Substitution G.O.(P) 690/83/Fin., dated 27th October, 1983] ** Addition G.O.(P) 690/83/Fin., dated 27th October, 1983]

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KERALA TREASURY CODE

RULE 102

(d) When a payment is made partly in cash and partly by cheque, the amounts paid in cash and by cheque respectively shall not be included on the same chalan. (e) The chalan shall ordinarily be presented in duplicate; the original copy shall be returned to the payer signed as a receipt, and the second copy shall be retained in the treasury or the bank. [See also Rule 90(b) in regard to cheque]. When a private person pays money into the treasury or the bank to be credited to the Government under a head which concerns a departmental officer, the duplicate chalan shall be initialed by that officer, if he is at the same station as the treasury; otherwise, the chalan shall be presented in triplicate and the treasury shall send the third copy to the departmental officer concerned, unless there are orders issued to the contrary in individual case or classes of cases—See clause (g) below. In cases where a private person presents a chalan in triplicate the departmental officer need not initial the chalan even if he is at the same place as the treasury at which the chalan is presented. Remittances to treasury on account of over-payments should be supported by chalans in triplicate, containing full particulars of the number and date of encashment of the bill and also the head of account under which the amount was originally drawn, one copy of the chalan being forwarded by the Treasury Officers to the Accountant General in support of credits incorporated in the monthly schedule of receipts of the department concerned. *Remittances representing recoveries of expenditure previously debited to expenditure heads (Revenue Account) will be exhibited direct under the service heads concerned as reduction of expenditure irrespective of whether they relate to overpayments pertaining to the current year or to any previous year. #NOTE 1.—The departmental officers concerned with the levy and collection of Government taxes and dues of forceable or periodical nature should maintain a reasonable stock of chalan forms for issue to the intending depositors on demand. Chalan forms duly filled in all respects may as far as practicable, be issued to the persons along with the letter of demand so that they may sign and present the chalan at the treasury/bank along with the money. * Substitution [G. O. (P) 536/84/Fin. dated 20th September, 1984] # Renumbered vide G. O.(P) 690/83/Fin., dated 27th October, 1983]

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PART III

*NOTE

KERALA TREASURY CODE

RULE 102

2.—Whenever there is a departmental remittance through deduction from expenditure bills, chalans should be insisted and the Treasury should also note the details of such chalans in the subsidiary register of receipts maintained at the sub treasury/ district treasury. This is not applicable to the deductions towards income-tax, house building advance and other similar deductions made in the salary bills/establishment bills which are adjusted in the treasuries and to the recoveries towards short term loans.

(f) # (i) A single chalan shall be presented with any money tendered for payment into the treasury or the bank on account of State Excise revenues on payment for a Reserve Bank draft or a cash order on a sub treasury, and with any money tendered for payment into the treasury or the bank along with a pass book or a remittance book in which the Treasury Officer or the bank is required to acknowledge the receipt of the moneys. The chalans for remittance on account of State Excise revenues shall, however, be countersigned by the Excise Inspector or any higher departmental authority. Form T.R. 14 shall be used for acknowledgement of receipt of payments on account of State Excise revenues. In the remaining cases, Form T.R. 12 shall be used when necessary. # (ii) For remittance through e-payment, the conditions under subrule (c) shall not be insisted. (g) (i) An agent or dealer or on oil distributing company shall present a chalan in triplicate along with any money tendered for payment into the treasury or the bank on account of fees for the issue of packed petrol storage licenses. The treasury or the bank shall retain the triplicate copy of the chalan and return to the payer the original and duplicate copies duly receipted. The duplicate copy shall invariably be stamped with the word “duplicate” in bold characters. (ii) A person making a payment into the treasury or the bank on account of sales tax, agricultural income tax, tax on tobacco, entertainments tax and tax on motor spirit shall present a chalan in triplicate along with the money, * Addition G.O.(P) 690/83/Fin., dated 27th October, 1983] # Renumbered vide G..O. (P) 421/09/Fin. dated 30th September, 2009. # Insertion [G..O.(P) 421/09/Fin. dated 30th September, 2009]

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KERALA TREASURY CODE

RULE 102

irrespective of the fact whether the departmental officer concerned is resident at the same station or not. The treasury or the bank shall retain the original and the triplicate copy of the chalan and return to the payer the duplicate copy duly receipted. The duplicate copy shall invariably be stamped with the word “duplicate” in bold characters. The originals shall be handed over to the Sales Tax staff who will arrange to collect them daily from the treasury of the bank. Departmental officers who remit into the treasury the Sales Tax equivalent collected on sales of goods shall write the chalans in triplicate for presentation at the treasury. The Treasury Officer shall send one copy to the Sales Tax Officer of the district, retain one copy with him and give the third copy to the officer remitting the amount. #NOTE 1.— Remittance of tax by dealers may be made through e-payment also. #NOTE 2.— Online payment of tax along with e-Return can be done with the integration of Commercial Taxes Department official Website with the approved Bank’s site. The tax due as per the return can be remitted by debit from the dealers account or any other account authorized by him on this behalf in State Bank of India/State Bank of Travancore or any other Bank as and when so specified. When the amount is debited from the dealers account or any other account authorized by him on this behalf, the bank system will generate a Cyber Receipt with a unique number. This transaction will be updated in the Kerala Value Added Tax Information System. #NOTE 3.— The designated branch of the bank shall give an abstract of the scroll countersigned and also a soft copy of the data in an encrypted format on a daily basis to the appointed Treasury Officer. #NOTE 4.— The data received from the bank is to be loaded in the Treasury database and the Treasury Officer will reconcile the scroll received from the Bank with the scroll generated in the Treasury system. #NOTE 5.— After incorporating the Data in the Treasury system a report will be generated with counter date and sequence number and to be given to the Commercial Taxes Department along with the soft copy. Commercial Taxes Department shall upload this data in Kerala Value Added Tax Information System. # Insertion[G.O.(P) 421/09/Fin. Dated 30th September, 2009]

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KERALA TREASURY CODE

RULE 102

(iii) Payments by Government Pleaders and Pleaders doing Government work shall be made in triplicate chalans in all cases. The treasury shall retain the triplicate copy of the chalan and return the original and duplicate duly receipted to the pleader. The duplicate copy shall invariably be stamped with the word “duplicate” in bold characters. The pleader shall attach the original copy to his report to be submitted to the Collector. (iv) Payments made into the treasuries of the amounts collected by Bench Courts towards the taxes and other dues creditable to municipalities shall be made in triplicate chalans in all cases. The treasury shall retain the original copy of the chalan and return the duplicate and triplicate duly receipted to the Bench Court concerned. The triplicate copy shall invariably be stamped with the word “triplicate” in bold characters. The Bench Court will keep the duplicate for its record and send the triplicate copy to the municipality concerned immediately after payment is made into the treasury. (v) A local body should, when paying contribution and fee to Government, on account of the analysis by the Public Analyst of food samples, present a chalan in triplicate and the treasury will return the original and the duplicate duly receipted. The local body should send the original to the Public Analyst, for intimation of credit. (vi) Local bodies when paying amounts towards the cost of maintenance of bore-wells and pumps under the rural water supply scheme should present chalans in triplicate. The original will be sent to the departmental officer concerned. One copy will be retained in the treasury and the other will be returned to the local body concerned. (vii) In the case of remittances of principal and interest made in respect of ‘Loans and Advances’ the chalans shall be prepared in triplicate irrespective of whether the remittances are made by a private party or by a departmental officer. The original copies of the chalans should be returned to the remitters and the duplicate copies retained in the treasury. In respect of Loans and Advances the detailed accounts of which are being maintained by the Departmental officers the triplicate copies of the chalans shall be forwarded by the Treasury Officer to the Departmental Officers concerned. In respect of loans and advances the detailed accounts of which are being maintained by the Accountant General as per Article 244 (3)(b), Kerala Financial Code, Volume I, the triplicate copies of the chalans should be forwarded by the Treasury Officer to the Accountant General along with the monthly cash account.

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PART III

KERALA TREASURY CODE

RULE 102

•(viii) In the case of remittances or recoveries of subscription and refund of temporary withdrawals in respect of General Provident Fund the chalan shall be prepared in triplicate irrespective of whether the remittances are made by a private party or by a departmental officer. The name of subscriber and his account number shall be noted in all the three copies. Over and above this, a schedule of Provident Fund Deduction in the prescribed form giving full details should invariably be attached to the Chalan. The original copies of the chalans should be returned to the remitters and the duplicate copies retained in the Treasury. The triplicate copies along with the Provident Fund Schedules should be forwarded by the Treasury Officer to the Accountant General along with the monthly cash account * NOTE—Chalans for the remittance of principal or interest on loans and advances and revenue deposits and security deposits shall be presented at the treasuries first in the case of banking treasuries also. (h) When the Government have permitted any class of payments into the treasury to be made by sending money orders to the Treasury or Sub Treasury Officer, no chalan shall be required with a money order relating to any such payment. ** NOTE—(1) Private persons may obtain chalans in the prescribed form from the Treasury. Chalans for use by Departmental Officers may be obtained direct from the Government Press. (2) Fines levied by Magistrates in respect of which the Government pay grants-in-aid to local bodies and other authorities should be shown separately in the chalans under a district head “Fines for which compensation is payable to local bodies and others”. Fines levied under the Motor Vehicles Taxation Act, should also be shown under a separate head. (3) When any amount is paid to the Government in respect of loan or advance made by the Government, the chalan presented at the treasury should contain the date and amount of the loan or advance or other particulars sufficient to identify it. If the amount paid includes interest as well as principal, the amount of interest paid should be specified separately in the chalan. If the payment is a periodical fixed payment including both principal and interest, a reference to the order fixing the amount should be entered in the chalan. • Insertion [G.O.(P) 545/87/Fin. dated 23rd June, 1987] * Substitution [G.O.(P) 839/79/Fin., dated 31st August, 1979] ** Substitution [G.O.(P) 668/79/Fin., dated 30th July, 1979]

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PART III

KERALA TREASURY CODE

RULE 102-103

† In the case of banking treasuries also, chalans for the remittance of principal or interest on loans and advances and revenue deposits and security deposits shall be routed through treasuries as stated in the note to rule 102 (g) (vii). (4) In the case of certain deposits, e.g., local fund deposit and personal deposits, the account kept in the treasury or the Bank is purely a banking account. Particulars of the deposit head concerned alone need be entered on the chalan accompanying a remittance into the treasury or the Bank for credit to such an account. No further information as to the nature of the receipts is required. (5) In cases where the personal deposit accounts and the banking accounts of Local Funds are kept at the bank (See note under the second paragraph to Rule 124 below) all adjustments made to the credit/debit of such accounts either by the treasury or by the Accountant General should, without delay, be communicated by the treasury to the bank. **(i) The following instructions shall be scrupulously followed the departmental officers to facilitate reconciliation receipts:—(1) The departmental officers should post the original Chalan received in their offices in a register or statement so that details of remittances will be available for reconciliation. (2) The third copy of the Chalan received from the treasuries shall be retained in the office for reconciliation. SPECIAL TO THE FOREST DEPARTMENT 103. (1) Forest revenues collected at outlying stations may be paid into the treasury by making remittances to the Treasury Officer by money orders. No chalan need be presented with any such payment. The money which the post office pays to the Treasury Officer should be credited in the accounts. The treasury should send the Divisional Forest Officer the usual acknowledgement on the relevant portion of the money order form, and also a daily advice of all the remittances received from him by money order on each day on which there is any such transaction. † Substitution [G.O.(P) 839/79/Fin., dated 31st August, 1979] ** Insertion G.O.(P) 690/83/Fin., dated 27th October, 1983]

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PART III

KERALA TREASURY CODE

RULES 103-105

(2) When a Divisional Forest Officer is absent from headquarters and no other Forest Officer is available there, his head clerk may sign for him chalans to be presented with payments of forest revenue into the treasury or the bank. Similarly, when a Range Officer is absent from headquarters and no other Forest Officer is available there, his head clerk or (if he has only one clerk) his clerk may sign such chalans for him. (3) When a Forest Officer receives any deposit from contractors or purchasers of forest produce, he should pay them into the treasury or the bank as soon as possible and furnish a list showing the name of each depositor. The treasury or the bank, as the case may be, should treat the moneys so remitted in all respects as if they had been paid direct by the depositors, and should therefore issue a separate receipt for the amount relating to each depositor. When any Forest Officer, other than a Divisional Forest Officer, pays any such deposit into the treasury or the bank, he should forward to the Divisional Forest Officer the receipt obtained for the payment. SPECIAL TO THE PUBLIC WORKS DEPARTMENT AND COMMERICAL SERVICES

104. No deposit account can be opened in a treasury by officers of the Public Works Department and Commercial Services. Whatever sums are paid into a treasury by an officer of the Public Works Department or a Commercial Service or on his account, must be carried to the credit of that department or service in the civil accounts. This rule applies also to deposits made at the instance of the Public Works Department or Commercial Services by municipalities or other local bodies to meet the cost of works to be carried out by the Public Works Department or Commercial Services. In this case, the accompanying chalan should state clearly the name of the Division in the Public Works Department or Commercial Services to which the amount is creditable and the work for which the deposit relates. 105. A Public Works Officer who frequently makes remittance to the treasury or the bank should keep a remittance book (Form T.R. 15) in which he should make an entry of the amount of each remittance and should send this book as well as a single chalan along with each remittance, so that the Treasury Officer or the Bank may acknowledge receipt, by signing the entry in the book. As regards remittance of cheques, see Rule 98.

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PART III

KERALA TREASURY CODE

RULE 106

SECTION III Procedure in Treasuries (i)

TREASURIES WHICH DO NOT TRANSACT THEIR CASH BUSINESS THROUGH THE BANK

(A) District Treasuries 106. *(a) The chalan with which money is tendered for payment into the treasury shall be presented first to the Section Head/Junior Superintendent (Receipts) who shall check it to see whether it is in order in all respects and, if he is satisfied, put an initial in the chalan and affix a seal in token of having verified the correctness and sent it to the treasurer for accepting the remittance. The Treasurer shall receive the money as per the chalan, count and test the money, enter the amount in his Cash Book, give it a serial number, sign the chalan and then send it back to the Section Head/Junior Superintendent. The Section Head/Junior Superintendent shall make a brief entry of the particulars in the “Chalan Number Book” (Form T.R. 16) noting the chalan number assigned by the Treasurer under his initial and put his signature in the original copy of the chalan and return the original chalan to the party if it is for the amount mentioned in item (a) of sub rule (f) of rule 120. If the remittance is for the amount mentioned in item(b) of the sub rule (f) of rule 120, the chalan shall be sent along with the Chalan Number Book to the Assistant Treasury Officer who shall sign the chalan after initialling the corresponding entry in the Chalan Number Book. At the end of the day, agreement shall be effected between the Chalan Number Book (T.R. 16) and the Day Book on the one hand and the usual agreement between the Day Book and the Treasurer’s Cash Book on the other. The Section Head/Junior Superintendent shall examine the Chalan Number Book at the close of every day and certify that the amounts credited to Government and the amounts for which receipts have been given, have been agreed to and initial the certificate. The Treasurer’s Cash Book shall have a continuous serial number for each month both for receipt and payment items. Entries shall be made in the chalan number book in the serial order, so that a cross check with the entries in the Treasurer’s Cash Book would be easy. * Substitution [G.O.(P) 77/78/Fin., dated 16th January, 1978]

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KERALA TREASURY CODE

RULES 106-110

Postings of Subsidiary Registers and the Day Book shall be made after the issue of original chalans to the parties with reference to the duplicate copy of the chalan and other connected records. 106. (b) [Omitted.] [G.O.(P) 334/77/Fin., dated 6th September 1977.] (B) Sub Treasuries 107. *(a) The procedure prescribed in sub-rule (a) of rule 106 for the District Treasuries shall apply mutatis mutandis to the Sub Treasuries also, except that the Head Accountant/Junior Superintendent and the Sub Treasury Officer in Sub Treasuries shall perform the functions prescribed for the Section Head/Junior Superintendent and the Assistant Treasury Officer respectively in the District Treasuries. 107.(b) [Omitted.] [G.O. (P) 334/77/Fin., dated 6th September 1977.] (C) General for all Treasuries 108. A cheque received at a treasury should be treated as a final payment only after it has been met and the amount has been actually credited to the Government. The provisions of Rules 90(b) and 91 regarding the preliminary acknowledgment and final receipt to be given by a departmental officer when a payment is made by cheque, the procedure to be followed when a cheque is not honoured, and the date to be treated as the date of payment if the cheque is honoured, apply mutatis mutandis to a cheque received at a treasury. 109. **Deleted **This amendment shall be deemed to have come into force on the 1st day of October, 1985. 110. When departmental officer has a claim against a Post Office Savings Bank deposit pledged to him as security by a government servant or a contractor, the amount due to the Government should be withdrawn in the manner indicated in Article 313(e) of the Kerala Financial Code. The Postmaster should send a treasury voucher to the departmental officer for the amount * Substitution [G.O.(P) 77/78/Fin., dated 16th January, 1978] * Deletion [G.O.(P) 82/88/Fin., dated 3rd February, 1988]

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PART III

KERALA TREASURY CODE

RULES 110-113

withdrawn instead of cash. On receiving this voucher, the departmental officer should verify the entries in it, countersign it and forward it to the treasury or sub treasury concerned as soon as possible, to enable the Treasury or Sub Treasury Officer to initial the entry in Postmaster’s treasury pass book when he receives it and complete the transaction. 111. A Treasury or Sub Treasury Officer should receive payment of a revenue money order in cash. The transaction should be adjusted by a transfer in the accounts on a receipt in the prescribed form signed by the Postmaster for total amount of the revenue money orders to be paid each day. This procedure applies also to the payment of an ordinary money order payable to a Collector, Treasury Officer or Sub Treasury Officer in his official capacity. The transaction should be adjusted by a transfer in the accounts, and the necessary entries in the revenue registers should be made from the money order coupon or treasury advice. Ordinary money orders payable to any other government servant in his official capacity should also be paid by transfers in the accounts, if the Treasury or Sub Treasury Officer sends a Postmaster a written requisition to that effect. Money orders payable to a local body which has a banking account with the treasury should also be paid by transfers in the accounts. 112. Numbering of chalans.—The chalans relating to each subsidiary register shall be numbered in a separate monthly consecutive series, and those which are entered directly in the day book shall bear a separate series of numbers. The chalans which accompany payments of revenue deposits or civil and criminal courts’ deposits shall however be numbered in a separate annual series for each department. 113. Village remittance.—The money shall be sent to the treasury in sealed bags together with a village remittance list in the form prescribed in the Departmental Manuals or orders and a chalan in the form of an extract of the cash book prescribed in the Departmental Manuals or Orders. After the remittance list and the chalan have been checked, the Treasury Officer shall sign the remittance list and return it to the person who brought the remittance to be tendered to the Treasurer along with the sealed bags. The Treasurer shall take the bags, break the seals in the presence of the village official or messenger who brought the remittance, and count and test the money. If the amount is found to be correct the Treasury Officer shall certify to that effect at the foot of remittance list and return it to the person who brought the remittance.

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RULES 113-114

If any counterfeit or uncurrent note or coin or any deficiency is found, the Treasurer shall at once bring the fact to the notice of the Treasury Officer, who shall, if satisfied that the note or coin is counterfeit or uncurrent or that there is a deficiency, examine the village official or messenger who brought the remittance and record the fact on the remittance list. 114. Anamaths.—All moneys paid into the Government account at a treasury shall be credited immediately on the receipt under the appropriate heads of account in the Government accounts and shall form part of the general treasury balance. As a general rule, no sums of money shall be kept in a treasury strong room unless they have been paid into the Government account and form part of the general treasury balance, but the following items shall be treated as exceptions to this rule and dealt with in accordance with the special instructions which apply to them:— (a) a village remittance which is received, when the treasury is not open for transactions, (b) a treasury or currency remittance which is received when the treasury is not open for transactions, (c) other money sent by a government servant from a distance for payment into the treasury (or paid in respect of postal money orders) which is received when the treasury is not open for transactions, (d) money contained in the cash chests, etc., deposited by other offices for safe custody (See Rules 157 to 160), and (e) the balance of the permanent advance and imprests, and undisbursed balances of amounts drawn from the treasury or otherwise received for disbursement (See Rules 432 and 433). The moneys described under items (a) to (e) above shall be placed in the strong room on the day when they are received and brought to account immediately when the treasury opens on the next working day. The treasurer shall maintain an Anamath Balance Register in Form T.R. 19 for recording these Anamath transactions and a separate column shall be provided for each class of items concerned. The opening balance, the totals of the daily receipts and the daily disbursement respectively and the closing balance shall be entered in each column. The Treasury Officer shall check this register every

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KERALA TREASURY CODE

RULES 114-116

evening, verify the various closing balances with the actual cash, bags of coin and cash chests, etc., in the strong room and initial the register in token of the correctness of the entries. 115. If a village remittance arrives at a treasury when it is not open for transactions, the sealed bag or bags containing it should be placed in the strong room as soon as possible and kept in a special late remittance chest. A counterfoil receipt form from a book consecutively numbered should be given in exchange for the bag. As soon as the treasury opens on the next working day, the bag should be taken out, the money counted and tested, and the amount brought to account. The receipt given for the sealed bag should be taken back and pasted on to the counterfoil. A register should be maintained in Form T.R. 20 and the date of receipt and date of return of each sealed bag containing a village remittance and the date on which the amount is brought to account should be noted in it. NOTE.—Remittances received by 3 p.m. should, if possible, be shroffed and brought to account that day. The treasury should be closed by sunset. Remittances received after 3 p.m. but before sunset should simply be sealed and kept in the strong room for the night, no attempt being made to shroff them and bring them to account. 116. If a treasury or currency remittance arrives at a treasury when it is open for transactions but it is not possible to count and test the money completely on the day of receipt, it should nevertheless be brought to account on the day of receipt and should also be entered in a register in Form T.R. 21. The counting and testing should be completed as soon as possible and, if any deficiency or any counterfeit or uncurrent note or coin is discovered, it should be made good by the Chief Treasurer or Treasurer, if any, who came with the remittance. Otherwise, the amount should be drawn on a simple receipt as an advance and placed in the treasury or currency chest and the necessary steps taken for the adjustment of the advance. If a treasury or currency remittance arrives at a treasury when it is not open for transactions, it should be entered in the same register in Form T.R. 21 and placed in sealed bags in the strong room as soon as possible without opening the receptacles in which it arrives (See Rule 158). It should be brought to account as soon as the treasury opens on the next working day.

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KERALA TREASURY CODE

RULES 117-120

117. If any money sent by postal money order or by a Government servant from a distance, for payment into the treasury arrives at the treasury when it is not open for transactions, it should be recorded in the register in Form T.R. 19 mentioned in Rule 114, placed in the strong room in sealed bags as soon as possible and brought to account as soon as the treasury opens on the next working day. 118. No sums of money which have been sent to a treasury for payment into the Government account should be kept in Anamath for want of information as to the nature of the credit or pending confirmation of a sale.The total cash balance of all the outstanding items in the Anamath Balance Register (See Rule 114) should be entered at the close of the day in following places in the accounts:— (1) In a sub-treasury : Treasurer ’s daily balance sheet (Form T.R. 4) Day Book (Form T.A. 4 in the Kerala Account Code, Vol. II). Daily sheet (Form T.A. 7 in the Kerala Account Code, Vol. II). (2)

In a district treasury :

Treasurer’s daily (Form T.R. 4).

balance

sheet

The Treasury Officer should verify the balance every evening. 119. Undisbursed balance.—Separate registers should be maintained for recording the transactions relating to each class of undisbursed balances such as those relating to amounts payable for the acquisition of land, cash orders or military pensions. [In regard to undisbursed balances of pay and allowances, See Rule 432 (c)]. Each such register should show the opening balance, receipt, disbursement and closing balance of each day on which there is any transaction. The Treasury Officer should verify daily that the closing balance in each such register agrees with the balances entered in the Anamath Balance Register (Form T. R. 19).Alternatively, a combined register in Form T.R. 22 may be maintained for watching all the undisbursed balances, if it is considered more convenient (See Rule 432 (c)]. 120. Receipts for money.—(a) When a chalan in duplicate is received with the money, the treasury shall use the original for the receipt to be given to the payer and shall retain the duplicate for record. If there is a third copy the treasury shall forward it to the government servant or other person to whom the credit relates.

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RULE 120

(b) When a treasury receives a cheque under *[Rules 106(b) and 107(b),] the tenderer shall be given a preliminary acknowledgement in Form T. R. 6 for the cheque only. A final receipt for the payment on the original chalan shall be sent to the payer after the amount has been realized. (c) When money is received on account of State Excise revenues, the treasury shall receive with it only a single chalan countersigned by the Excise Inspector or any higher departmental authority, and shall give the payer a separate receipt in Form T.R. 14 and send a copy of it to the Excise Inspector or higher departmental authority who has countersigned the chalan, to serve as an advice. When any money is received on being tendered along with a single chalan and a pass book or a remittance book, receipt shall be acknowledged in the pass book or remittance book. When any money is received in payment for a cash order, no separate receipt need ordinarily be given as the cash order issued in exchange for the moneys is a sufficient acknowledgment of the receipt of the money; if, however, the payer insists on being given a separate receipt in any such case, he shall be required to present a chalan in duplicate in Form T. R. 12 with the money and the treasury shall give him a receipt on the original chalan. (d) When the fees of a number of candidates for a government examination, e.g. the S.S.L.C. Examination, are paid into the treasury in a lump sum, only a single receipt shall be given for the lump sum as a whole. (e) For every payment made by cash or cheque for service postage stamps issued by it, the treasury shall give a receipt in machine numbered form T.R. 23. **(f) The receipts for money paid into the treasuries shall be signed by the following persons as shown below: When the amount involved is—

District / Sub Treasury

(a) Below ` 2,500

(b)

Head Accountant or Junior Superintendent and the Treasurer Assistant Treasury Officer/ Sub Treasury Officer, Head Accountant or Junior Superintendent and the Treasurer.

` 2,500 and above

* Rules 106(b) and 107 (b) Omitted [G.O.(P) 334/77/Fin., dated 6th September, 1977] ** Substitution [G.O.(P) 431/77/Fin., dated 4th November, 1977]

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RULE 120

(g) Every treasury shall prominently exhibit notices in English and the local language embodying the substance of clause (f) above one in the room of the Treasurer or the Sub Treasury Officer, as the case may be, and one near the Treasurer’s counter, in order that the persons who make payments may verify that the receipts given to them satisfy the rule. (h) Every receipt issued by a treasury shall show distinctly the name of the treasury, the date of issue, the designation of each government servant who signs it and the head of account to which the amount has been credited. Each signature on it shall be written legibly and in full. NOTE 1.—Duplicate receipts.—The provisions of Rule 94 regarding the issue of duplicate receipts apply to all government servants including those attached to treasuries. With a view to avoiding the misuse of duplicate chalan as a duplicate receipt, special care should be taken to see that the treasury officials mentioned in Rule 120(f) sign in full only the copy or copies. See Rule 102(g) of the chalan to be returned to the payer, and merely initial the remaining copy or copies of the chalan. *NOTE 2.—The receipt for a sum paid by transfer in the accounts at a district/sub treasury shall not be signed by the Treasurer. All such receipts irrespective of the amount involved shall be signed by the Section Head/Head Accountant/Junior Superintendent and the Accountant concerned. This instruction does not apply to receipt for sums paid by transfer in the accounts for service postage stamps (See note 3 below). NOTE 3.—Payments for service postage stamps.—The treasury should not give any receipt for a payment made for service postage stamps by transfer in the accounts.The draft receipt for a payment made by cash or cheque for service postage stamps should always be sent to the Sub Treasury Officer at a sub-treasury or the Assistant Treasury Officer at a district treasury for signature through a government servant employed in the treasury and not through any person from outside the treasury. After the receipt has been duly, signed, it should be handed over together with the service postage stamps concerned simultaneously to the person who paid the cost of the stamps into the treasury. * Substitution [G.O.(P) 431/77/Fin., dated 4th November, 1977] 75

PART III

KERALA TREASURY CODE

RULES 121-122

121. Special to Judicial Department.—A person who wishes to pay any money into a civil court dealing with a treasury, which does not transact its cash business through the Bank, should obtain from the court a chalan in Form T.R. 24 and pay the money into the treasury along with it (See also Rule 96). A person who wishes to pay any money into a court dealing with a treasury which does not transact its cash business through the Bank should deliver the money along with the chalan and counterfoil receipt obtained from the court to the treasury, which should retain the chalan and return the counterfoil receipt duly signed. He should then take the receipt to the court, which should enter the credit in its account and give the person who made the payment a court receipt for the amount duly signed in exchange for the treasury receipt, which the court should retain. The treasury receipt should, when filed in the court, be attached by gum to the office counterfoil chalan. NOTE—A District Judge or a Subordinate Judge may authorise his Sherishtadar to sign chalans and a District Munsiff may authorise his Head Clerk to do so. The chalan should bear a serial number, it should be duly filled in at the court, and particulars of the notes and coin tendered should be noted on the reverse. The counterfoil receipt should be duly filled in at the court, except as to the date of payment into the treasury and the signature of the Treasury Officer. Issue of consolidated receipts relating to certain departments 122. Forest Department.—On the first working day of each month the Treasury Officer shall send to each of the Divisional Forest Officer who deals with the treasuries in his district a consolidated receipt in Form T.A. 11 in the Kerala Account Code, Volume II, for the total amount received and credited under Forest Remittances during the previous month in respect of the Forest Officer’s Division. If any remittances relating to a Divisional Forest Officer have been received and credited to Revenue deposits, the Treasury Officer shall enter in the consolidated receipt the numbers assigned to the several deposits in the treasury [See also rule 129(b)]. As soon as the consolidated receipt is received from the treasury, it shall be compared with the postings in the cash book and the Divisional Forest Officer shall satisfy himself that the amounts remitted have been actually credited in the treasury or the Bank.

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KERALA TREASURY CODE

PART III

RULES 123-124

123. Public Works Department and Commercial Services.—A Public Work Officer or an officer of a Commercial Service who keeps a remittance book (Form T.R. 15) in which the Treasury Officer is required to acknowledge receipt of remittances shall prepare at the end of each month a consolidated receipt in Form T.R. 25 for the whole of the remittances made during the period and send it to the Treasury Officer with the remittance book. The Treasury Officer shall verify the entries by comparison with the Schedule of Receipts (Form T.A. 9, Kerala Account Code, Volume II) in which the treasury records all receipts relating to the Public Works Department and Commercial Services. If the entries are correct he shall sign the book and the consolidated receipt and return them to the officer concerned. The Treasury Officer shall sign the consolidated receipt himself, however small the amount may be, and, if there is any difference between the amount shown in the consolidated receipt and the credit in the treasury account, he shall explain the reasons for the difference in detail in the consolidated receipt (See also rule 129(b)]. {ii)

TREASURIES WHICH TRANSACT THEIR CASH BUSINESS THROUGH THE BANK

(A)

Payment into the Bank by private persons

124. When a private person desires to pay any money into the Bank on Government account he shall first present at the treasury concerned a chalan (Form T.R. 12) prepared in duplicate, or otherwise, as the rules require. The Government servant whose duty is to examine the chalan shall do so and, if it is in order, he shall specify the head of account, if it has not already been done. *NOTE—In the case of income tax chalan form, the Bank may return the ‘original’ copy of the chalan direct to the Income Tax Officer concerned, instead of routing it through the treasury. If the chalan is in order, the words “Correct” on all parts of it and shall also be initialed at a district/sub treasury by the **Section Head/Head Accountant/ Junior Superintendent for all the chalans irrespective of the amount involved, and when so initialled, it shall amount to an order to the Bank to receive the money and grant a * Insertion [G.O.(P) 346/76/Fin., dated 10th November, 1976] ** Substitution [G.O.(P) 431/77/Fin., dated 4th November, 1977]

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KERALA TREASURY CODE

RULE 124

receipt to the payer. The person making the payment shall then take the chalan (both or all parts) to the Bank. The Bank shall receive the money and credit it to the proper head of account, give an acknowledgment of receipt to the payer on the original chalan and forward the duplicate chalan to the treasury along with the daily account. [G.O.(P) 40/77/Fin., dated 31st January, 1977] When private persons have been duly authorised to make payments of a particular kind direct into the Bank on Government account and desire to make payments accordingly, the procedure laid down in Rule 126 shall be followed mutatis mutandis. [G.O.(P) 113/78/Fin., dated 24th January, 1978 *NOTE 1.—If a chalan on which a date of validity has been specified by the departmental officer is presented after that date, it shall not be accepted at the bank or money thereof accepted by the bank until it is revalidated by the departmental officer. NOTE 2.—[Omitted] [G.O.(P) 40/77/Fin., dated 31 st January, 1977] NOTE 3.—The acknowledgment on the chalan, for moneys received may be signed by the officer authorized by the Bank, under his full signature, only in the original and such other copies as are required to be returned to the tenderer, the acknowledgment in the other copies being merely initialed by him. † [G.O.(P) 334/77/Fin., dated 6 th September 1977] NOTE 4.—For rules regarding the acknowledgment of cheques, the procedure to be followed when a cheque is dishonoured and the date to be treated as the date of payment, see [Rules 90(b), 91 and 108.] * Substitution [G.O.(P) 839/79/Fin., dated 31st August, 1979] † Omitted the para beginning the words “Every cheque which is to be credited to Government” and ending with the words “has been cleared.” [G.O.(P) 334/77/Fin., dated 6th September, 1977]

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PART III

KERALA TREASURY CODE

RULES 124-125

NOTE 5.—Payments for stamps sold to the public by ex officio vendor may be made direct to the ex officio vendors instead of the Bank. At places where the treasury and the bank are closely situated and it is, therefore, not inconvenient to follow the procedure laid down in Rule 124 above, that procedure may be followed. A government servant should pay for any service postage stamps for which he indents on the treasury by means of an adjustment bill or a cheque and should not make any payment direct into the Bank on this account. The treasury should not give any receipt for a payment made for service postage stamps by transfer in the accounts. 125. Special to Judicial Department.—A person who wishes to pay money into a civil court dealing with a treasury which transacts its cash business through the Bank should follow the same procedure as that prescribed in Rule 121 except that he should pay the money into the Bank with a chalan in Form T.R. 26 together with a counterfoil receipt. The chalan will be signed by the Bank Agent instead of the Treasury Officer. The chalan and the counterfoil receipt need not be first presented at the treasury. The procedure laid down in the second paragraph of rule 121 should be followed mutatis mutandis in regard to the issue of receipts by the Bank and the court concerned for such payments and filing of the Bank receipts in the court. Every civil court dealing with a treasury which transacts its cash business through the Bank should maintain a register in Form T.A. 13 in the Kerala Account Code, Volume II and make the necessary entries in it regarding all moneys which private persons pay into the court as deposits with reference to this instruction. Each deposit should be entered separately in the register and numbered. There should be a fresh series of numbers for each year. The Judge of the court should carefully check the particulars of each entry and then write his initials against it in the proper column in token of its correctness. NOTE—The procedure relating to the receipt of money in the High Court is governed by the Original and Appellate Side Rules of the High Court contained in the “Civil Rules of Practice”.

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PART III

KERALA TREASURY CODE

RULES 126-128

(B) Payment into the Bank by the government servants 126. When a government servant realises a fine, forfeiture or other miscellaneous receipt on behalf of the Government, he shall pay the money direct into the Bank with a chalan in duplicate which need not be first presented at the treasury. The bank shall retain one copy of the chalan and forward it to the treasury with the daily account and shall return the original, duly receipted, to the government servant for record in his office. The government servant who tenders the money at the Bank shall, before leaving the Bank, obtain the Bank’s receipt for the money on the original chalan, which may be in the form of a remittance book sent along with the money for signature. * NOTE—The chalan for remittances of principal or interest on loans and advances, and revenue deposits and security deposits shall be routed through treasuries - vide also note below clause (vii) of sub-rule (g) of rule 102. 127. Anamaths.—A district treasury which transacts its cash business through the Bank need not maintain the Anamath Balance Register in Form T.R.19 (See Rule 114; but the closing balance under each of the heads mentioned in Rule 114 under which it is possible for the treasury to have transactions shall be noted in the Treasurers Daily Balance Sheet (Form T.R.3) NOTE—The total cash balance of all the outstanding items should be entered at the close of the day in the accounts of the district treasury or sub treasury in the place specified in Rule 118 and verified in the manner indicated there. 128. Village remittances.—Except where a special order of the Government requiring that village remittances be paid directly into the Bank is in force, they shall not be paid directly into the Bank, but shall be paid into treasury, which shall receive the money and subsequently remit it to the Bank. The procedure laid down in Rule 113 and 115 shall apply also to such money received at a treasury which transacts its cash business through the Bank. Credit shall be given under the proper heads of account in the treasury accounts for the amounts received, and they shall be remitted to the Bank as soon as possible along with chalan in duplicate which shall be prepared in the treasury * Substitution [G. O. (P) 839/79/Fin. dated 31st August,1979]

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KERALA TREASURY CODE

RULE 128

and entered in the register of chalans issued. Whenever a remittance of this kind is send to the Bank from the treasury, the Treasury Officer shall send an advice to the Currency Officer, Reserve Bank of India, Madras, on the same day showing the amount and the date of despatch to the Bank. The Treasury Officer shall debit the amount remitted in his accounts under the head “Cash remittances - Reserve Bank of India”. If there are any sums of money of this kind in the treasury on the same day fixed for the closing of the monthly accounts, they shall be remitted to the Bank in full on that day, so that no cash balance shall be shown against the treasury in the monthly accounts. In order to ensure that every village remittance is duly credited in the treasury, which transacts its cash business through the Bank, every treasury concerned shall maintain a register in Form T.R. 27 and enter in it with a serial number the particulars of each village remittance as soon as it is tendered at the treasury. After the money in a village remittance has been duly counted and tested and an entry of the receipt made in the day book or subsidiary register, the Treasury Officer shall tick the entry in the register in Form T.R. 27. When the money has been paid into treasury or the Bank and the chalan has been received back from the treasury or Bank duly receipted, the Treasury Officer shall write his initials in the last column of the register. After duly counting and testing the money tendered in a village remittance, the treasurer shall enter the receipt in his cash book. When closing the treasury for the day, the Treasury Officer shall verify, by comparing the Treasurer’s cash book with the village remittance register (Form T.R. 27), that all the village remittance received have been brought to account. NOTE 1.— Whenever the Bank receives a remittance sent by a sub treasury under the above rule, the Bank Agent should credit the amount to the Government under the head “Cash remittances-Reserve Bank of India” and send an advice of the receipt of the remittance, showing the amount and the date of receipt, to the Currency Officer, Reserve Bank of India, Madras on the day of receipt, NOTE 2.—In the case of treasuries at the following places, village remittances shall be paid direct to the Bank:-Cochin, Tellicherry, Palghat and Cannanore. 81

PART III

KERALA TREASURY CODE

RULES 128-129

The procedure to be followed in receiving and checking these remittances is laid down below: (a) The Bank will make every effort to receive all village remittances tendered before the closing hour and shroff and acknowledge them the same day. If it receives a remittance, it will invariably complete the shroffing and acknowledge the remittance the same day. If the Bank is unable to receive for shroffing on the same day a remittance tendered shortly before its closing hour, it will direct the village official who tenders it to return to the treasury with the remittance and will give him a memorandum stating the time when the remittance was tendered and the fact that the Bank is unable to receive it for shroffing on the same day. The bags should then be sealed in the presence of the village official and kept in the treasury strong room according to the usual procedure and should be handed over to the village official to be tendered at the Bank as soon as it reopens the next day. (b) The Bank will give the village official who presents a remittance full facilities for watching the shroffing of it. If the Bank finds that there is a shortage on account of bad or defective coins or otherwise, the village official will be given an opportunity of making it good at once. If he does not do so, the Bank will inform the Treasury Officer and the Tahsildar of the taluk concerned the amount and nature of the shortage, and will credit the Government account only with the amount actually received by it. 129. (a) When a treasury transacts its cash business through the Bank, the treasury and not the Bank shall issue any advices or certificates of receipts which have to be sent to public officers and the periodical consolidated receipts which have to be sent to certain public officers, unless the Government, with the concurrence of the Bank, specially order that in a particular class of cases this shall be done by the Bank. (b) The Treasury Officer of a district treasury which transact its cash business through the Bank shall send a monthly consolidated receipt to each of the Divisional Forest Officers who deal with the treasuries in the district in the manner laid down in Rule 122. He shall also follow the procedure laid down in Rule 123 in regard to signing the remittance books and consolidated receipts prepared by Public Works Department Officers and Officers of Commercial Services at the end of each month.

82

PART IV

KERALA TREASURY CODE

RULES 130-131

PART IV CUSTODY OF MONEYS RELATING TO OR STANDING IN THE GOVERNMENT ACCOUNT SECTION I Cash in Departmental Chests RULES APPLICABLE TO DEPARTMENTS GENERALLY

130. Moneys received by a government servant on behalf of the Government and not immediately remitted to a superior authority or a treasury [See Rule 92 (b) and (c) of Part III] shall, until they are so remitted or otherwise disposed of in accordance with the rules, be lodged in a cash chest, which shall be kept in the government servant’s office or in his personal custody, as may be convenient. The government servant who is responsible for the moneys shall keep the key of the chest and the duplicate key shall be deposited in the treasury. When a large amount of cash is frequently kept in the chest, it shall be fitted with double locks of different patterns and the keys of the two locks shall be kept in the custody of two different government servants, unless the Government have given special permission in any case to dispense with this procedure. When an office is provided with an iron safe for the custody of cash or other valuables, the safe shall, if practicable, be embedded in masonry so as to prevent removal by thieves. 131. (a) Subject to the provisions of clauses (b) and (c) below, the contents of the cash chest or the cash on hand shall be counted by the head of the office or, under his orders, by a gazetted subordinate at the close of business on each working day and verified with the book balance as shown, in the cash book and other registers after they have been closed for the day. A memorandum of verification, as shown below, shall be signed and dated by the government servant who counted the cash:Balance shown in cash book Balance shown in acquittance rolls or Register of undisbursed pay, etc. Balance of permanent advance shown in contingent register or permanent advance disbursement register Total book balance Cash balance ascertained by counting

83

..

..

..

..

.. ..

.. ..

PART IV

KERALA TREASURY CODE

RULES 131-132

If there is any difference between the book balance and the actual cash balance which cannot be reconciled at once, action shall be taken under Article 315 in the Kerala Financial Code. (b) In an office in which there are no regular daily transactions or the transactions are few, the head of the office may, with the previous approval of his immediate superior, order the closing of the cash book etc., less frequently than every day, e.g. once a week; but the registers should be closed and the cash balances verified often enough to prevent malpractices and in no case less frequently than once a month. (c) When the head of office is absent on tour or otherwise the Officer (Gazetted or non-gazetted) next below in rank and present shall discharge all the duties of the head of office with regard to the maintenance of cash book and verification of cash balance in accordance with the rules. The head of office on his return, shall verify the correctness of the entries in the cash book and other connected records, attest them and verify the cash balance and shall record a certificate to this effect in the cash book. (d) Cash received and despatched book.—Every office dealing with cash should maintain a small note book in Form T.R. 27-A in which the officer in charge of money will enter items as he hands over money, cheques and drafts to the last grade government servant messenger and obtain his signature against the entry. The officer will similarly sign in the book when he receives money from the messenger. For amounts handed over to the clerk, the latter’s signature shall be taken and it shall be seen that these amounts are brought to the cash book promptly. 132. The Government in the Finance Department shall arrange to hold surprise inspection of cash, stores and accounts in Government offices by the Inspection Wing of the Department. Any grave or important irregularities detected during the local inspection shall be intimated to the Accountant General also.

84

PART IV

KERALA TREASURY CODE

RULES 133-134

SPECIAL TO THE FOREST DEPARTMENT 133. Verification of monthly closing cash balance.—Each Divisional Forest Officer should verify in person his monthly closing cash balance as at the close of business on the last day of each month and append a certificate of verification to the monthly classified abstract of cash account .If, however, a Divisional Forest Officer is absent on tour when his monthly closing cash balance has to be verified and certified, or is so incapacitated by sickness that, it is physically impossible for him to attend to these duties, the senior subordinate Forest Officer present at the Divisional Forest Officer’s headquarters (excluding the Head Clerk and other office employees) should do so, but in that case the fact of the Divisional Forest Officer’s absence or sickness should be distinctly noted in the return. Except with the special permission of the Chief Conservator of Forests on each occasion, a Divisional Forest Officer should not allow more than two consecutive months to elapse without personally verifying his monthly closing cash balance. The result of each verification of the monthly closing cash balance should be reported to the Accountant General. SPECIAL TO THE PUBLIC WORKS DEPARTMENT

134. Verification of monthly closing cash balance.—The actual balance in the cash chest of each office should be counted on the last working day of each month immediately after closing the cash account of the month or, if this is not possible, at least on the morning of the next working day before any further transactions take place. A statement of the details of the actual cash balance should be prepared in the prescribed form. A certificate of verification specifying the actual cash balance (exclusive of imprests and temporary advances) both in words and figures and stating that it was ascertained by actual counting by himself should be recorded below the closing entries in the cash book and signed and dated by the disbursing officer. When it is impossible for the disbursing officer, owing to absence from headquarters or illness, to count the cash balance on the prescribed date, he should do so at the earliest opportunity and record the reason for the delay on the cash balance report [Form No. 5, Book of Form (P.W. Accounts)].

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SECTION II Moneys held in the Treasury A.

135.

CUSOTDY OF TREASURY CASH BALANCES

(i) District Treasuries Custody and verification of the treasury balance.—

(a) The bulk of the treasury cash balance, generally known as the “main store” or the double lock balance, shall be kept in the treasury strong room under double locks. The Treasury Officer shall hold the key of one of the two padlocks placed on the entrance to the double lock strong room of a district treasury and the Chief Treasurer, the key of the other. The Treasury Officer and the Chief Treasurer shall both be present in person whenever the double lock strong room is opened and shall remain there till it is closed. When opening the strong room, the Treasury Officer and the Chief Treasurer respectively shall himself unlock the padlock of which he holds the key and immediately remove the key, similarly, when closing it, each shall himself lock the padlock of which he holds the key. When closing the strong room, each double lock officer shall satisfy himself that each double lock receptacle has been double locked and that no one remains inside the strong room; the entrance to the strong room shall then be closed and double locked, and each double lock officer shall satisfy himself that this has been properly done. When the strong room is finally closed for the day, the Treasury Officer and the Chief Treasurer respectively shall, after locking the padlock on the entrance to the strong room of which he holds the key, place the key in a leather bag and have the bag sealed in the presence of both the officers by a subordinate, who shall not take the key out of the bag. Both the official seal and the private seal of the Treasury Officer shall be affixed to each of the bags. Each double lock officer shall take his bag from the subordinate immediately after it has been sealed. Both the seals shall then be affixed to each of the two padlocks on the entrance to the strong room and each double lock officer shall satisfy himself that this has been properly done before he leaves the place. The Treasury Officer and the Chief Treasurer respectively shall never, under any circumstances, hand over the key held by him to anyone other than a government servant who has been duly authorized to take charge of the duties of his post from him. (For the corresponding rule for a sub treasury, see Rules 140 and 141)

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(b) The Treasurer may be allowed to hold in his separate custody a sum sufficient for the convenient transaction of Government business. The Treasury Officer shall see that the amount so held does not ordinarily exceed ` 5,000 and that any request by the Treasurer for a larger sum is carefully scrutinized taking into consideration the cash receipts of the day which may also be utilised for the expenditure for the day. Before signing the Treasurer’s daily balance sheet when closing the treasury for the day, the Treasury Officer shall verify the balance in the Treasurer’s sole charge as shown in that sheet and satisfy himself that it does not exceed the current requirements, that it contains no uncurrent coin and that it does not contain more of any kind of small coin than is needed for current use. He shall also verify that the total value of the cash, stamps, opium, gunja and banderols held in the Treasurer’s sole charge does not exceed the amount of the security furnished by the Treasurer, and shall then have them placed in the double lock strong room. NOTE 1.—Treasury balance and currency chest balance.—The moneys held in a treasury as part of the Government’s cash balance form the treasury balance, from which Government disbursements are made and into which Government receipts are paid. A separate currency chest also is ordinarily kept in the treasury. The currency chest balance consists partly of notes which are treated as not “in circulation” and partly of coin (rupees and gold coin) which is part of the assets held by the Issue Department of the Reserve Bank of India against the note issued in accordance with the provisions of the Reserve Bank of India Act, 1934 (India Act II of 1934). The contents of the currency chest are the property of the Reserve Bank but the Government are responsible to the Reserve Bank, for them. All the government servants concerned should take the same care to safeguard the currency chest balances as in the case of the treasury balance. NOTE 2.—Deposit in currency chest of sealed bag of coin or bundle of notes relating to a loss of cash from the currency chest or the treasury balance.—In cases of losses of money due to theft from currency chests, the amount recovered is sealed in a packet or bag and deposited into the currency chest. When the loss is due to defalcation, the deficient bags or bundles, from which money has been removed, are also kept

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sealed in the currency chest. When it becomes necessary to take out the sealed packet and/or bag or deficient bag and/ or bundle for exhibition in court, the transaction should be treated as a definite withdrawal from the chest on the day of withdrawal and included in the advice and currency chest slip to be sent on that day to the Currency Officer, Madras. Similarly, when these are deposited into the currency chest (which should be done as soon as possible), the transactions should be treated as a deposit into the currency chest and included in the transactions of the day and in the chest slip to be sent to the Currency Officer, Madras. Whenever a sealed packet of notes or bag of coins is deposited into the currency chest, there should be a clear certificate attached to the packet or bag as the case may be, in the handwriting of and over the full signature with the date and designation of the officer whose private seal is affixed on it, stating the contents and value of the sealed packet or bag. The certifying officer should be someone other than the officer-in-charge of the treasury or sub treasury and should be either the Magistrate who is dealing with the case in question or an officer of the Revenue Department not below the rank of a Revenue Divisional Officer. In respect of a bag so sealed and till the case is finally disposed of, there is no need to break open the seal every time the currency chest has to be verified. The officer verifying the currency chest balance should accept the certificate so long as the seal is intact and include the amount in the balance. When the case is over and the sealed bag is no longer required for production in a court of law, the usual procedure for making up the notes into bundles or coins into bags and for verifying their contents should be followed. The above instructPART IVions apply also to cases of losses from the treasury balance. If, for any specially strong reason, the Magistrate finds it necessary to seal the bags the following procedure should be observed:— If the sealed bags do not contain any small coin and contain only rupee coin or notes in even hundreds of rupees, the sealed bags should be deposited into the currency chest and

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an equivalent amount taken out from it in exchange for the contents of the sealed bags. Whenever a need arises for taking the sealed bags out of the currency chest for production in court, the transaction should be treated as a definite withdrawal on the day of taking them out and included in the advice and currency chest slip to be sent for that day to the Currency Officer, Madras. Similarly, when sealed bags are replaced in the currency chest, the transaction should be treated as a deposit into the chest and included in the transactions of the day and in the chest slip to be sent to the Currency Office, Madras. If, however, the sealed bags contain small coin or amounts which are not in even hundreds of rupees, such exchange from the currency chest is not permissible. Once a bag is sealed by the court as an exhibit in a case, the contents of the bag cannot be taken out for treasury disbursements till the case is closed. Such sealed bags which cannot be deposited in the currency chest should be accounted for as valuable property in the Safe Custody Register Form T.R. 28 until the final disposal of the case, i.e., they should be excluded from the treasury balance by making a debit to the head “Suspense-Payments in Cash”, which will be cleared on the close of the case. Each issue of the sealed bag from the treasury for production in court and receipt of the bag back from the court should be noted in red ink in the register mentioned above. 136.

Treasury strong room.—

(a) No place should be used as a strong-room, unless an officer of the Public Works Department not lower in rank than an Executive Engineer has certified that it is secure and fit for use as a strong room. He should examine particularly the condition of any part of the enclosing walls which is not, on the outside, under the observation of the guard. When giving his certificate, he should prescribe any conditions that may be necessary as to the manner of storing the coin e.g., that it should not be piled on trestles but should be kept in boxes, or that no bag or box should be placed within a prescribed distance of the wall or in any particular part of the room. (b) An iron safe used in the strong room should be embedded in masonry, so that the handles of the lid just reach the ground level. Locks and bolts should be kept well oiled and free from dust.

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(c) Every strong room should be inspected annually by the Executive Engineer or by an experienced Assistant Engineer or an officer holding sub divisional charge deputed by the Executive Engineer for the purpose and the Treasury Officer should obtain a certificate of safety from the Inspecting Officer after each annual inspection. (d) The Superintendent of Police should record an order prescribing the positions of the sentries, and may require any additional precautions to be taken in regard to the strengthening of fastenings, burning of lights, etc. The responsibility for the security of the building and its fixtures will, however, remain with the Executive Engineer, and the responsibility for the security of chests and other treasury furniture not forming part of the building or fixtures will remain with the Treasury Officer. (e) A copy of the latest certificate given by an Inspecting Public Works Officer under clause (c) above and a copy of the order of the Superintendent of Police under clause (d) above should be hung up in a conspicuous place inside the strong room. The Treasury Officer should see that any conditions as to the manner of storage of treasure mentioned in these documents are complied with. (f) The doors and windows of the strong room should be kept permanently closed and locked, except during the time necessary for moving coin or other valuables into or out of it. As an exception to this rule, the opening of shutters is permitted during office hours in an aperture, which is otherwise barred, if it is necessary for the admission of light or air to any other part of the building, provided that all coins and valuables remain securely packed in locked receptacles. (g) Chubbs, Hobbs, Godrej or Dindigul Padlocks or Sparling patent padlocks manufactured at the Sparling Lock Works at Aligarh should be used as the double locks on the entrance to a strong room, and also on double lock receptacles kept in the strong room. 137.

Treasury padlocks and keys.—

(a) A register of all the padlocks and keys belonging to the district treasury and its sub treasuries should be maintained in Form T.R. 29 and kept in the strong room of the district treasury. Separate pages should be assigned to the district treasury and to each sub treasury. Each sub treasury should also keep a list of its own padlocks and keys in the same form.

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*The Treasury Officer or the Treasurer, as the case may be, shall initial in column 9 of the register against each original key in his charge as an acknowledgment that he has received it. In regard to each duplicate key, which is kept in the box of duplicate keys under the joint custody of the Treasury Officer and the Treasurer, a note shall be made to that effect and initialed by the Treasury Officer and the Treasurer in column 7 of the register. The Treasury Officer shall note the number and date of safe custody deposit item of the sealed box containing the duplicate keys of the padlocks used on the entrance of the district treasury strong room, etc., [See clause (e) below] in the appropriate place of the register. The Treasury Officer shall obtain the acknowledgment from each Sub Treasury Officer for the original Sub Treasury keys in his possession and the number and date of each acknowledgement shall be noted in the register. All padlocked boxes, locks and keys used for remittance purposes are the property of the Reserve Bank which will be responsible for repairs to, and replacements of, such boxes, locks, keys, etc. All Treasury Officers and Sub Treasury Officers should maintain a separate account of all such articles in their custody in the form prescribed by the Reserve Bank. The boxes should be marked “R.B.M.” and used for remittance purposes, when necessary. Any charges for repair or replacement of these boxes, locks and keys should be incurred only with the previous sanction of the Currency Officer and debited to the Reserve Bank. (b) Every padlock should have a number impressed upon it or attached to it by a metal or other label, and the same number should be impressed on, or attached to each key belonging to it. No two padlocks in the same district should bear the same number. (c) Whenever a padlock is out of order or no longer required the Treasury Officer should sent it to the Superintendent, Public Works Department, Engineering Workshop, Trivandrum for repairs or for disposal. If a key is lost, the Treasury Officer should at once report the fact to the Director of Treasuries and send the padlock to the Superintendent, Public Works Department, Engineering Work shop, Trivandrum, requesting him to have its lever altered and provide new keys for it. If the key lost is the property of the Reserve Bank, the loss should be reported to the Bank. No padlock of which a key has been lost may be used again in the districts, until it has been so altered. The Treasury Officer should ordinarily recover the cost of the alteration and the new keys from the person or persons to whose carelessness he attributes the loss of the key.No local mechanic may ever be allowed to repair a treasury padlock or to make a new key for one. * Substitution [G.O.(P) 181/76/Fin., dated 26th June, 1976]

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(d) No spare padlocks should be kept at a sub treasury or except with the permissions of the Director of Treasuries at a district treasury. The Director of Treasuries should see that no necessary padlock and keys and no unnecessary duplicate keys are supplied to, or retained in any treasury. No duplicate keys should be kept at a sub treasury. (e) All spare padlocks with their keys which are kept in a District Treasury with the approval of the Director of Treasuries and all duplicate keys pertaining to the District Treasury and the Sub Treasuries in the District, except the duplicate keys of the locks used in the entrance to the strong room of the District Treasury and the District Stamp Depot if any and that of the duplicate key receptacle shall be kept in the District Treasury strong room in a receptacle with double locks as an item of deposit under safe custody. The key of one of the locks of this duplicate key receptacle shall be kept with the District Treasury Officer and the key of the other with the Treasurer. The District Treasury Officer and the Treasurer shall keep these keys in their personal custody and shall not hand them over to any one except under the written orders of the Director of Treasuries. But the District Treasury Officer shall hand over the keys in his possession to the Assistant Treasury Officer/Officer-in-charge of the District Stamp Depot if any, when he is absent from headquarters on account of tour or inspection work or otherwise. The District Treasury Officer may also authorise another Treasurer of the District Treasury to keep the key in the custody of the Treasurer present when the regular Treasurer is absent on leave or for some other valid reasons. (f) The District Treasury Officer shall, in the presence of the Treasurerin-charge of the keys of the strong room of the District Treasury put the duplicate keys of the locks used on the entrance of the District Treasury strong room as well as those of the locks of the entrance door of the strong room of the District Stamp Depot, if any, and those duplicate keys of two locks used on the duplicate key receptacle referred to in sub-rule (e) in a box having double lock arrangement and fitted with chubbs, hobbs, godrej or dindigul padlock or sparling patent padlocks and keep one key of the lock of the box, with himself and one key of the other lock being kept by the Treasurer; the duplicate keys being kept in duplicate receptacle. The box shall then be wrapped and tied around by means of a tape or thread. The Treasury Officer and the Treasurer shall affix their seals on the tape or thread in such a way that the wrapper cannot be opened without tampering with the seals. The District Treasury Officer shall then deposit the box in the nearest branch of

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the State Bank of India/State Bank of Travancore. The District Treasury Officer and the Treasurer shall keep their respective keys of the box in their personal custody and shall never under any circumstances hand over the key held by them to any one other than a government servant who has been duly authorised to take charge of the duties of their respective posts from them. Once in a year, in April, the District Treasury Officer shall take back the box from the Bank and open the safe in the presence of a Treasurer, examine the keys, lock the box and seal it again in the aforesaid manner and return it to the appointed person. He should also make a note at the same time in the register of padlocks and keys stating that the keys were examined by him and the Treasurer found them to be correct under attestation by both. (g) Whenever the Collector, or the Treasury Officer hands over charge, all padlocks and duplicate keys belonging to or kept in the treasury should be examined and compared with the register of padlocks, and keys and the relieving officer should sign a certificate in the register showing whether he has found them to be correct. The padlocks and duplicate keys need not, however, be examined when the Collector or the Treasury Officer is transferred only temporarily or goes on casual leave and the temporary incumbent is not likely to have any occasion to open the receptacle containing spare padlocks and duplicate keys. If it becomes necessary for the temporary incumbent to do so whilst in charge, he should at once carry out the examination of all padlocks and duplicate keys and sign a certificate in the register as prescribed above. *In sub rule (g) for the words “The Collector or the Treasury Officer” in both the places where they occur, the words “The Treasury Officer or the Treasurer” shall be substituted. Whenever either of the two government servants who hold the two sets of keys of the double locks in use at a sub treasury hands over charge otherwise than temporarily, all the padlocks and keys in use in the sub treasury should be checked with the register of padlocks and keys and the relieving government servant should sign a certificate showing whether he has found them to be correct. (h) Whenever an officer of the Indian Audit and Accounts Department inspects a treasury, he will report whether the rule prescribed by the government for the custody of the padlocks and keys of the treasury strong room and chest are duly observed. *Substitution [G.O. (P) 181/76/Fin., dated 26th June, 1976.]

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RULES 137-138

Whenever the Director or one of his assistants inspects a sub treasury, he should check all the padlocks and keys in use in the sub Treasury with the register of padlocks and keys and record the result in the register. The Assistant should also report the result of his check to the Director. (i) The Director of Treasuries may modify these instructions in matters of detail to suit local convenience, when necessary, but there should be no departure from the essential instructions relating to important matters, such as the responsibility for the custody, of duplicate keys, the examination of duplicate keys periodically and when there is a transfer of charge, and the report to be made when the key is lost. 138. Storage of treasure.— (a) Coin shall be stored in a strong room in one of the following three ways.—(i) In bags of uniform size and contents placed in strong iron boxes or safes, or wooden chests, or built recesses or wells, each of which shall have two independent locks and be so constructed that it is impossible to have any access to the contents until both locks have been opened. Bags made of net material shall always be used for storing whole rupees. The Treasury Officer shall hold the key of one of the two locks on each double lock receptacle in a district treasury and the Treasurer, the keys of the other. The Treasury Officer and the Treasurer respectively shall never, under any circumstance, hand over any double lock key held by him to any one other than a government servant who has been duly authorised to take charge of the duties of his post from him. (For the corresponding rule for a sub treasury, See Rule 140). (ii) In bags of uniform size and contents piled upon trestles. Bags made of net material shall always be used for storing whole rupees. This method must not be adopted unless every door, window, drain, sky-light, ventilator, or other aperture in the walls or ceiling of the strong room is so closed, as to make it impossible to insert any rod or instrument into the strong room. (iii) Temporarily in preparation for making a remittance, in stout boxes capable of containing ` 4,000 to ` 6,000 each, nailed down and bound with iron, without gunny covering or ropes. The iron hoops on each box should be rivetted or nailed together where they cross. Each box should bear a number and the name of the despatching treasury cut into or painted on it.

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(b) All notes shall be stored in separate receptacles and not along with coin. High value notes shall be stored in a tin box, and the remaining notes in suitable receptacle that will protect them from injury by damp, insects, etc. They shall be kept in bundles of not more than a hundred notes, each, and each bundle shall contain notes of one denomination only. Explanation.—Notes of the denomination of ` 100 or more shall be treated as high value notes. NOTE—Nottams should not be placed in charge of the keys of the treasury nor should they be made to keep any accounts other than those pertaining to the Nottams. They should be liable only for bad coins received and over payments made by them during the day. A Treasurer going on casual leave should hand over his key to an Assistant Treasurer (if there is such a post in the treasury). If there is no post of Assistant Treasurer, the Treasurer going on casual leave should hand over his keys to another government servant employed in the treasury (who may be either an Accountant or a Nottam) as nominated by him on the clear understanding that the responsibility in the event of loss during the period of charge of such nominee rests on the Treasurer. 139. Receipt of moneys into and issue of moneys from double locks.— The following procedure shall be followed:— (a) Coin of each denomination shall be made up in bags of uniform size and contents by the Treasurer for reception into the double locks. The Treasury Officer shall verify the contents of each bag, and shall then count the bags into the double lock receptacle. (b) Notes intended for delivery into double locks shall be made up in bundles according to denomination in the order of receipt. No bundle shall contain more than a hundred notes. The Treasury Officer shall count the notes in each bundle with his own hands and satisfy himself that it does not contain any note of a denomination different from that specified on the label in Form T.R. 31 affixed on top of the bundle, and shall sign the label as a token of his verification. He shall then count the bundles so verified into the tin box containing high value notes or the double lock receptacle with his own hands and, if the tin box has been taken out of the double lock receptacle shall replace it therein with his own hands. The detailed check of fresh notes of the denomination of ` 10 and ` 5 received in a remittance from the Currency Office may be confined to one bundle in every ten taken at random.

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(c) Notes shall be given out of double locks by counting the number of bundles. The bundles shall be arranged in the double lock receptacle in the order of receipt and given out in the same order, taking first those which were received earliest, so that notes of the older issues shall not be stored indefinitely. As soon as the Treasury Officer and the Treasurer have opened a double lock receptacle for the purpose of taking out notes, the Treasury Officer shall take out with his own hands the requisite bundles of notes (or, if it is required, the tin box containing the high value notes) and the receptacle shall immediately be closed. The Treasury Officer shall take out with his own hands all notes that have not be taken out of the tin box containing high value notes and, during any period required for counting the notes, the tin box shall be kept closed. As soon as the transaction relating to the notes kept in the tin box has been completed, the Treasury Officer shall replace it in the appropriate double lock receptacle with his own hands. (d) A double lock receptacle shall not be kept open or unlocked for longer than is necessary and in no circumstances shall more than one double lock receptacle be kept unlocked at a time. As soon as the transaction relating to a receptacle has been completed, it shall be properly double locked. (e) The provisions in clauses (b) and (c) above requiring the Treasury Officer to take out notes from double lock receptacles with his own hands and to count them himself in no way affect the responsibility of the Treasurer for the handling of the moneys in the treasury as laid down in Rule 135. (f) A memorandum in Form T.R. 32 for coin, or one in Form T.R. 33 for notes, shall be kept in each double lock receptacle showing its contents. Whenever any amount is passed into or out of double locks, the Treasury Officer shall make the necessary entries in these memoranda and in Form T.R. 4 (Treasurer’s Daily Balance Sheet) at the time with his own hands. (g) When notes are prepared in accordance with clause (b) above for reception into double locks, a slip in Form T.R. 31 stating the number of notes the bundle contains and their denomination, and bearing the full signature of the government servant who made up the bundle and the government servant who last counted the notes in it shall invariably be affixed to the top of each bundle, so that if any deficiency or defect of any kind is detected subsequently, there may be no uncertainty as to who counted and examined the notes. A slip in Form T.R. 30 shall be duly filled up and placed in each bag of coin which is prepared for reception into double locks.

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RULES 139-144

(h) The Treasury Officer shall “prove” the balance whenever money is transferred from double locks to single lock and vice versa and from double locks to the currency chest and vice versa. Explanation.—The scope of the term “proving” is explained in note under Rule 152(iii). (ii) Sub Treasuries General 140. Subject to the provisions contained in rule 141 the provisions in rules 133 to 137 shall apply generally to the sub treasuries also. Duties and responsibilities assigned to the Treasury Officer in the district treasury shall rest with the Sub Treasury Officer in the case of sub treasuries. 141. The amount of cash required for current purposes to be left in the custody of the Treasurer in a sub treasury shall be fixed by the District Treasury Officer and such cash should be kept by the Treasurer under single lock in the strong room. If on account of the receipt, the amount in the hands of the Treasurer becomes larger than the maximum fixed by the District Treasury Officer he shall at once inform the Sub Treasury Officer or other officer-incharge of the sub treasury so that the latter may transfer the excess to the main sub treasury balance under double locks. 142.

[Deleted]

143.

[Deleted] SECTION III

Verification and Certification of Cash Balance of Treasuries 144. The monthly cash balance in the treasury, i.e., the cash balance at the close of the day on which the accounts of the month are closed, shall be verified as follows:— (a) Copper, bronze and nickel coin.—The Collector or other verifying government servant shall adopt such method of verification as he thinks satisfactory, remembering that he is personally responsible for the correctness of the balance stated by him. He shall always count the number of bags at the time of verification, and shall examine their contents at frequent intervals, though it is not essential to do so every month.

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RULES 144-147

(b) Notes.—(i) The verifying government servant shall personally examine and count all notes of *denominations above ` 100. (ii) The following method shall be adopted for verifying notes of other denominations, if the verifying government servant cannot count them personally without undue inconvenience:— The notes shall be kept in bundles of a certain marked number. In each bundle a few notes at the top shall be folded back and the rest counted by clerks or assistants, who are not persons responsible for the correctness of the bundles. The verifying government servant shall then see whether the addition of the notes folded back to the number already counted makes up the total number marked on the bundle. The verifying government servant shall also satisfy himself that the notes in each bundle are all of the alleged value, e.g., that a five rupee note is not counted as one of a bundle of ten rupee notes. 145. These rules shall be printed and pasted on a board and hung up in the strong room in a conspicuous place. 146. The Collector or other government servant who verifies the monthly cash balance in the treasury shall certify to the balance in the District Treasury Cash Balance Report (Form T.R. 39) in the following form:— “I hereby certify that I have personally ascertained by counting, that the balance in the district treasury, for which I am responsible, amounted on the …………………………………………..…….……. to `……………. (in words) …………………………………………………………. I further certify that the bulk of the treasure is kept under double locks the key of one of which is in the exclusive custody of the Treasury Officer and that of the other with the Treasurer. I further certify that the balance under single lock with the Treasurer amounted on the above date to ` ………………….. and that at no time did the Treasurer hold in his separate custody a sum larger than was necessary for the convenient transaction of Government business or a sum which, together with the value of stamps, opium, etc., in his sole custody, was larger than the security given by him. 147. When the cash balance is verified on any date other than the first working day of a month, it should be verified in the manner prescribed in Rule 144 above and the balance should be reported to the Government in the Finance Department, and to the Accountant General in the usual form of cash balance report (Form T.R. 35) (vide also Rule 311). * Substitution [G.O.(P) 385/77/Fin., dated 7th October, 1977]

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RULES 147-148

This provision regarding reports does not apply to the reports of the verification of the cash balance on account of a transfer of charge; they should be sent in accordance with Treasury Rule 4(4) of Part I and Rule 52 of Part II. The provisions of Rules 142, 143 and 145 are applicable to the verification of sub treasury balances also. 148. The Sub Treasury Officer or other government servant who verifies the monthly closing cash balance of the sub treasury shall sign a certificate as follows on the sub treasury cash balance report (Form T.R. 36): “I hereby certify that the balance in the sub treasury amounted on the ……………...........................………. to Rupees …………………….. and that I have personally examined and ascertained that the said balance was actually in the said sub treasury had agreed with the details of notes and coins entered above.” NOTE 1.—When verifying the stamps kept under double locks, it will be sufficient for the Sub Treasury Officer or other government servant who verifies the cash balance personally to check 10 per cent of the stock in each class of stamps and to supervise the checking of the remaining stock in each class by a reliable subordinate. The clerk who maintains the stamp accounts and the Treasurers, Gollahs and Peons working in the sub treasury office should not be allowed to assist in verifying the stamps. The result of the verification should be recorded in the stock register of stamps and attested by all the government servants who are required to be present during the verification. NOTE 2.—A sub treasury which transacts its cash business through the Bank should have no cash balance at the close of any accounts month, and any cash in hand on the last day of the accounts month should be remitted into the Bank on the same day without fail.

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RULES 148-149

NOTE 3.—Whenever the whole balance under double lock is verified, a certificate of verification should be entered in the Treasurer’s daily balance sheet. The fact of verification of the contents of each double lock chest should also be noted in the memorandum kept in the chest, whenever the contents are verified. SECTION IV Currency Chest Balances LOCATION OF CURRENCY CHESTS

149. Unless in any case the Government after consultation with the Reserve Bank of India direct otherwise, permanent currency chests should be maintained at all treasuries and sub treasuries where the transactions are of such a magnitude that the additional facility for the transfer of funds thus afforded reduces appreciably the locking up of moneys or the frequency of remittances of coins and notes. At sub treasuries where a permanent currency chest is not maintained, temporary chests for period not exceeding six months may be opened during the revenue collecting season, in order that the money collected at the sub treasury may be available at once for transfer through currency. Treasury Officers are authorized to open temporary chests at sub treasuries when required, but they should report the opening of each chest and the amount of the first deposit into it by telegram to the Currency Officer. Explanation.—Under the provisions of the Reserve Bank of India Act, the amount of currency and bank notes in circulation, which constitute the liabilities of the Issue Department of the Bank, should not exceed the assets of that department held in gold, sterling securities, rupee coin (including rupee notes), and rupee securities. A portion of these assets is held in the various currency chests in the form of rupee coin and rupee notes. The currency and bank notes held in these chests are notes in circulation but pass into circulation only when they are transferred to the treasury balances. Assuming that there are no transactions elsewhere, the deposit of currency and bank notes in a currency chest decreases the amount of such notes in a circulation and the deposit of rupees 100

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and rupee notes inthe chest increase the assets of the Issue Department of the Bank. A deposit notes or coin in a currency chest thus enables the Bank to issue notes elsewhere upto the amount deposited without increasing the total amount of the notes in circulation. If, therefore, a transfer of funds from the treasury balance at ‘A’ to the treasury balance at ‘B’ is required, this can be effected at short notice and without the actual remittance of coin or notes by transferring money from the treasury balance to the currency chest at ‘A’ and transferring the same amount from them enables the treasury balance at a treasury or sub treasury to be kept at a low figure, as it is always possible to replenish the balance quickly by a transfer of money from the currency chest. It also obviates the necessity for frequent remittances of coins and notes, as surplus funds can always be deposited into the currency chests and made available for use elsewhere, pending a convenient occasion for remittance. NOTE 1.—At places where the cash business of the treasury is conducted by the Bank, the currency chests are kept in the sole custody of the Bank. NOTE 2.—The Currency Officer will be responsible for maintaining the required form of currency chests. It is the duty of the Treasury Officers to see that currency chests at district and sub treasuries are adequately stocked with notes and rupees to meet all reasonable demands for change. CUSTODY

150. At a treasury which does not transact its cash business through the bank, an entirely separate receptacle or receptacles should be set apart for the contents of the currency chest and kept under double locks. The keys of these double locks should be held in the same manner as the keys of the double locks placed on receptacles used for the double lock treasury balance— See Rules 136 (a) (i) and 138. 101

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RULES 151-152

151. The notes and coin held in the currency chest should be kept quite distinct from the treasury balances and should not be touched, except in accordance with the rules contained in this Code or the instructions of the Currency Officer, Reserve Bank of India, Madras. The procedure described in Rule 139 for receiving moneys into, and issuing moneys from, double locks should be followed in making deposits in or withdrawals from, the currency chest. 152. The following instructions apply to all currency chests for which the Government are responsible:— (i) Every transaction should be in even hundreds of rupees. (ii) Copper, bronze and nickel coins should never be deposited in the chest. (iii) A currency chest book in Form T.R. 37 should be kept in the chest and the balance entered in the book, proved and signed at every transaction by the officials in joint charge of the chest. They should satisfy themselves that the transaction has correctly entered and that the balances have been correctly calculated. They should invariably see that the currency chest book is found within the chest when it is opened, that it is replaced in the chest as soon as each transaction has been completed and the entry in the book signed, and that the chest is then properly double locked at once. NOTE 1.—For the purpose of “proving” the currency chest balance as contemplated above at every transaction involving an addition to or subtraction from the contents of the chest, the number of bundles of notes and bags of coin under the various denominations and any loose amounts less than a full bundle or bag should be counted and tallied with the currency chest book. It is not necessary for this purpose to verify in detail by actual counting all the coin and notes in the chest. NOTE 2.—A currency chest book should be retained for three complete financial years after it ceases to be in use. (iv) The officials in charge of the currency chest may deposit notes in it in exchange for coin or notes of other denominations, or coin in exchange for notes. These exchanges should not ordinarily be of small sums and they should be avoided, as far as possible, during the last week of the month. If important exchanges are made during the last three days of the month, the transactions should be telegraphed to the Currency Officer.

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RULES 152-153

(v) On every day on which the chest is opened, a serially numbered currency chest slip in Form T.R. 38 should be prepared, signed by the two government servant in charge of the currency chest and sent to the Currency Officer, Madras, when the treasury is closed for the day. Further detailed instructions regarding currency chest transactions and currency chest slips contained in Appendix 7 should also be followed. VERIFICATION OF CURERNCY CHEST BALANCES

153. (i) The Reserve Bank of India will conduct through its own officers the verification of the balance in a chest in the sole custody of the Bank in such manner as its considers desirable. (ii) The balance in the currency chest at a district treasury which does not transact its cash business through the Bank should be verified at the close of each month by the Government Servant who verifies the treasury balance under rules 4(3), 47 and 142* subject to the conditions stated in those rules. (iii) The balance in a sub treasury currency chest should be verified at the close of business on the day on which accounts for the month are closed by the Sub Treasury Officer or other officer who verifies the sub treasury balance under Rule 61 and he should send a verification certificate in Form T. R. 39 to the Treasury Officer. An inspecting officer who verifies the treasury balance at such a sub treasury should also verify the currency chest balance and send a verification certificate to the Currency Officer. (iv) At every change in the incumbency of the post of either of two government servants holding joint charge of a currency chest, the balance should be verified by the relieving government servant in the presence of the outgoing Government servant and of the other government servant who holds joint charge and a report of the correctness of the balance of notes and coin should be sent to the Currency Officer. (v) The Treasury Officer should send the Currency Officer every month a consolidated verification certificate in Form T.R. 39 for the currency chests in his districts other than chests in the sole custody of the Bank, showing the balance in each chest separately and certifying that the balance in the district treasury chest, if any, is correct and that he has received from * Rule 142 Deleted

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RULES 153-154

the Sub Treasury Officers or the Government servants holding their keys certificates of the correctness of the balances in the sub treasury chests. Sub Treasury Officers or the Government servants holding their keys should submit these certificates to the Treasury Officer in Form T.R. 39. Each certificate in Form T.R. 39 should be retained by the Currency Officer or the Treasury Officer as the case may be, until the next one relating to the same district or chest has been received. (vi) The balance in a currency chest not in the sole custody of the Bank should be verified in the following manner:— (a) The balance of notes or coin kept in receptacles which have not been operated on since the last verification and which are under the previous verifying government servants seal need not all be examined at each verification, but the examination should be so arranged that no receptacle is left unverified for over six months. The seal to be affixed on such receptacles should be the private seal of the verifying government servant or a special seal kept in the custody of the Collector or a gazetted assistant of the district staff other than the Treasury Officer. The seals on the receptacles left unverified at any monthly verification should be scrutinised carefully to see that they are intact. (b) Notes should be counted and examined in the manner prescribed in clause (b) (i) of Rule 144. SECTION V Custody etc., of Other Valuables (a)

STAMPS

154. The bulk of the stock of adhesive stamps and stamped papers should be kept in the double lock strong room in one more double lock receptacles, of which the keys should be held in the same manner as those of double lock receptacles used for moneys. Every place in which any stamps are stored should always be kept properly dry. Stamps should be made up for reception into double locks in parcels each of which contains a known quantity of stamps of a single denomination. In a district treasury a limited amount of stamps, not exceeding the probable amount required for sale during a week, may be kept in the Treasurer’s sole custody under single lock. In a sub treasury a small stock of stamps required for current purposes, not exceeding a maximum amount which the District Treasury Officer should fix for each sub treasury,

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RULES 154-156

may be kept in the Treasurer’s sole custody under single lock. Stamps should be sold from the single lock store. The detailed rules regarding manufacture, custody, supply, sale, etc, issued under the Kerala Stamp Act and the Indian Stamp Act should also be strictly followed. When a supply of stamps is received at a treasury, the officer in charge of the treasury should personally, examine the outward appearance of the boxes or packets and satisfy himself that they bear no marks of having been tampered with. He should then have them opened in his presence and the contents of each box or packets should be counted, either by himself or in his presence, immediately on its being opened. He should compare the number and value of the stamps received with the invoice or the passed indent and send a receipt for them at once to the government servant who supplied them. (b)

BANDEROLS

155. The procedure prescribed in Rule 154 should be followed generally in regard to receipt, custody and issue of banderols also. (c)

OPIUM AND GANJA

156. The main stock of opium and ganja should be kept in the double lock strong room in one or more double lock receptacles, the keys of which should be held in the same manner as those of double lock receptacles used for moneys. In a district treasury no stock need ordinarily be kept in the Chief Treasurer’s sole custody, but, if it is found necessary in practice to permit the Chief Treasurer to keep a small amount of opium and ganja under single lock, the District Treasury Officer should, with reference to the conditions in his district, fix the maximum amount which may be so kept. Sales should be made from the single lock store, if there is one. In a sub treasury a small amount of opium and ganja required for current purposes, not exceeding the maximum amount which the District Treasury Officer should fix for each sub treasury may be kept in the Treasurer’s sole custody under single lock, and opium and ganja should be sold from the single lock store. The detailed rules contained in the State Excise Manual and special orders, if any, regarding the custody, sale, etc., of opium and ganja should be strictly adhered to.

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RULE 157

(d) CASH CHESTS, VALUABLE, ETC., RECEIVED AT THE TREASURY FOR SAFE CUSTODY

157. The following articles should be kept in safe custody in the treasury when sent there for that purpose:— (a) Sealed boxes purporting to contain jewellery or other valuables brought into court of law under the Civil Rules of Practice and Criminal Rules of Practice provided that a written request is received from the presiding officer of the court. (b) Sealed packets purporting to contain duplicate keys and padlocks of strong rooms and currency chests for the branches of the State Bank of India/State Bank of Travancore and sealed boxes purporting to contain duplicate keys of the padlocks used on remittance boxes held by the Agents of the State Bank of India/State Bank of Travancore on behalf of the Reserve Bank of India. (c) Sealed packets purporting to contain duplicate keys of iron safes and cash chests provided for the use of government institutions and government servants. (d)

Cash chests of Co-operative Land Mortgage Banks.

(e) Box containing the duplicate keys of the cash chests of local bodies and co-operative societies registered under the Co-operative Societies Act. (f) Sealed packets purporting to contain duplicate keys of iron safes and cash chests of Union Government Departments. (g) Sealed covers purporting to contain National Savings Certificates, if tendered by the holders on written request. *(gg) Confiscated weapons sent for safe custody under the orders of the Collector or Additional District Magistrate (Personal Assistant to the Collector) pending their disposal in auction, provided a written request is received from the officer concerned; (h) Sealed cash chests and sealed packets purporting to contain valuables not falling under clause (a), (b), (c), (d), (f), (g), or (gg) above and iron safes and chests of private banks provided that no such safe, chest or packet may be received unless the District Treasury Officer has issued an * Insertion [G.O.(P) 104/76/Fin., dated 30th March, 1976]

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RULE 157

order authorising the treasury to receive it for safe custody. Such orders issued by the District Treasury Officer shall be subject to scrutiny and approval post facto by the Director. In doubtful cases the District Treasury Officer shall obtain the sanction of the Director in advance. Whenever a District Treasury Officer issues an order authorizing a treasury to receive a safe, chest or packet for safe custody with reference to sub para above, he should communicate a copy of the order (together with a copy of the application when necessary) to the Accountant General so that he may examine the propriety of the grant of permission. As regards the receipt of iron safes and chests of private banks for safe custody in treasuries with reference to the first sub para above the following further instructions shall be followed:— If the chests or safes of any private bank are small in size and not too many, they may be accommodated in treasuries and sub treasuries where, space is available. Application for such accommodation should be made to the District Treasury Officer. If the accommodation is to be made in a sub treasury, the District Treasury Officer shall deal with such applications in consultation with the Sub Treasury Officer. In the event of a refusal to give such accommodation, the District Treasury Officer should make a report to the Director explaining in detail the reasons for refusal to afford the facility to the applicant banking company. The Director will forward to the Government the report of the District Treasury Officer with his remarks and the Government will then review the case. In cases where the facility is granted, the depositing banks will have to keep and remove their safes or chests with reference to their daily or periodical requirements in the presence of both the double lock officers of the treasury. With a view to avoid dislocation of work in treasuries and sub treasuries on this account, it is necessary to fix definite hours for the agents of the private banks for operating on their chests in the strong room. The hours between 10.30 a.m. and 4 p.m. on working days other than Saturdays between 10.30 a.m. and 1 p.m. on Saturdays may be generally suitable. The Treasury Officer concerned will fix a definite time for this purpose in consultation with the bank concerned. 107

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RULES 157-158

The Treasury or Sub Treasury Officer accepting the cash chests or safes of private banks for safe custody in the strong room will not take any cognizance of the contents of the chests or safes and the receipts to the banks will be issued in the form prescribed in Rule 158 below with a remark that the contents of the chests or safes are unknown. Rent at a flat rate of `.5 per mensem or part thereof will be collected in advance for each safe or chest for which accommodation is lent. The receipts on account of this should be credited to the Government under “0070. Other Administrative Services”. 158. (1) No cash chest or packet containing valuables should be received at a treasury for safe custody unless it is properly sealed. When any such article is received at a district treasury, the Treasury Officer and the Chief Treasurer should examine it carefully to see that the seals are intact and place it under double locks, and the Treasury Officer should give a receipt for it merely acknowledging the receipt of sealed cash chest or packet. When any such article is received at a sub treasury, the Sub Treasury Officer should follow the same procedure. The Treasury Officer or the Sub Treasury Officer as the case may be should insist on the return of any written acknowledgement or safe custody receipt granted by the treasury before he returns any cash chest or packet containing valuable out of safe custody. The treasury should maintain a safe custody register in Form T.R. 28 and record in it the necessary particulars regarding all sealed cash chests and sealed packets received for safe custody. The receipt to be issued by the officer in charge of a district treasury or sub treasury as the case may be, when acknowledging receipt of a sealed cash chest or packet for safe custody, should be in the form of a printed receipt with counterfoil bound into a book, serially numbered. The counterfoil alone should be signed and issued for every receipt of cash chest or sealed packet. When the sealed cash chest or packet is returned the counterfoil issued at the time of its receipt at the treasury should be got back, signed and pasted on to its original bearing the same number in the printed receipt book. The printed receipt should be in the form noted below:— 108

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RULES 158-158A

…………………...............................................……. Treasury. Received this…………………….day of ……………20……… cash chest/ sealed packet said to contain ……………………………………from the………………………………and entered as item ……………….........of ……………………in the safe custody register ………. This should be produced when the article is required back. Dated …………………

Officer-in-charge of Treasury.

*(2) The Treasury should maintain a separate register in Form T.R. 28, in which the particulars of the confiscated weapons accepted for safe custody shall be noted. Separate serial numbers shall be assigned for the weapons accepted for safe custody during each financial year. A receipt in the Form prescribed in sub-rule (1) with suitable modifications shall be given to the depositor at the time of receipt of the weapons. A separate receipt book shall be utilised for the purpose. Whenever weapons deposited for safe custody are to be returned to the depositing officer, the original receipt issued at the time of deposit of the weapon, shall be got back and kept pasted on the treasury copy of the receipt concerned, kept in the treasury. **158A. In the case of articles deposited for safe custody in treasuries and which remain unclaimed for a period of more than 25 years from the date of original deposit, the District Treasury Officer shall publish a notification in the Kerala Gazette specifying the name and address of the depositor, the item number and a brief description of the articles deposited and calling upon claimants, if any, to take back the articles within a period of one month from the date of publication of the notification duly furnishing proof of their claim. If no claimant comes forward to claim back the item within the prescribed period, then the District Treasury Officer shall open the packets in the presence of the Additional District Magistrate [i.e., the Personal Assistant (General) to the District Collector] and prepare a ‘Mahazar’ of the contents of the packet duly signed by the double lock officers of the District Treasury and the Additional District Magistrate. The entries in respect of the article shall be * Insertion [G.O.(P) 104/76/Fin., dated 30th March, 1976] ** Insertion [G.O.(P) 1030/79/Fin., dated 24th November, 1979]

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deleted from the safe custody register and the entries regarding such deletion in the register shall be duly signed by both the double lock officers. The contents of the packets shall then be disposed of in public auction and if they are of no marketable value, destroyed. The proceeds, if any, of the sale shall be credited to the miscellaneous receipts of the Treasury Department. In the case of such articles available at the Sub Treasuries, they shall be transferred to the concerned District Treasury and included in the Register of safe custody articles of the District Treasury and thereafter action taken as envisaged above. Such articles in the District and Sub Treasuries shall be taken up for disposal once in a year, in April and action completed within 3 months. DEPARTMENTAL CASH CHESTS

159. In regard to a departmental cash chest *or a sealed box containing thondi articles deposited by a court, only a single entry should be made in the safe custody register; this should be made at the time when the chest *or sealed box is first deposited and the authority under which it is received for safe custody should be quoted. A separate departmental cash chest register in Form T.R. 40 should also be kept for each such chest *or sealed box showing the particulars of the daily (or periodical) return and re-deposit of the chest *or sealed box. On each occasion when the chest *or sealed box is deposited in the treasury, the District Treasury Officer/Sub Treasury Officer or the Section Head/Head Accountant, as the case may be, should acknowledge its receipt in this register, which should remain with the depositing officer so long as the chest *or sealed box is in the treasury. When the depositing officer wishes to withdraw the chest *or sealed box, he should send the register to the treasury after signing in column (3) in token that he has authorized the messenger named in column (2) to receive the chest *or sealed box. On receipt of the signed register, the Treasury Officer or the Sub Treasury Officer, as the case may be, should return the chest *or sealed box and obtain the messenger’s signature in column (4) of the register as an acknowledgment of his having received the chest *or sealed box. * Insertion [G.O.(P) 629/85/Fin. dated 11th October, 1985]

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RULES 159-161

A treasury should not receive any cash chest *or sealed box for safe custody unless it is properly locked as well as sealed, and should not take charge of any key of a cash chest *or sealed box received for safe custody. The Treasury Officer or the Sub Treasury Officer is responsible only for duly returning the sealed chest *or sealed box with the seals intact when the depositing officer sends necessary acknowledgment. If the chest *or sealed box is duly returned with the seals intact, the depositing officer remains fully responsible for the correctness of its contents. NOTE— The above procedure will apply to the cash chests *or sealed boxes of Co-operative Land Mortgage Bank also. 160. The Treasury Officer or the Sub Treasury Officer, as the case may be, should verify the presence of all the sealed chests and packets in safe custody in the treasury periodically at intervals not exceeding six months and satisfy himself that the seals of each chest or packet are intact and note the result of his verification in the safe custody register. Whenever a Treasury Officer or a Sub Treasury Officer hands over charge (otherwise than temporarily in such circumstances that the government servant temporarily in charge will have no occasion to deal with the articles in safe custody), the relieved and the relieving government servants should personally hand over and take charge, respectively of all the sealed chests and packets in safe custody in the treasury, and sign the safe custody register in token that they have done so. Whenever the Chief Treasurer of a district treasury or Treasurer of a sub treasury hands over charge (otherwise than temporarily in such circumstances that the government servant temporarily in charge will have no occasion to deal with the articles in safe custody), the relieving government servant should verify the presence of all the sealed chests and packets in safe custody in treasury and note the result of his verification in the safe custody register. 161. The following additional precautions should be observed in connection with the receipt, custody and delivery of any sealed packet purporting to contain the duplicate keys of the padlocks used on the strong room and currency chest at a branch of the State Bank of India:* Insertion [G.O.(P) 629/85/Fin. dated 11th October, 1985]

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RULE 161

(i) The agent of the branch of the State Bank of India should personally deliver the sealed packet purporting to contain the duplicate keys to the Treasury or Sub Treasury Officer and obtain his receipt. (ii) The sealed packet should not be taken out of double locks except on joint personal application by the Agent of the branch of the State Bank of India and the Head Cashier of the branch. When such joint application is made the Treasury or Sub Treasury Officer should deliver the packet to the Agent and the Head Cashier jointly on receiving back the receipt given by him for the sealed packet under sub-paragraph (i) and also obtaining the joint receipt of the Agent and the Head Cashier for the packet. (iii) The Agent of the branch of the State Bank of India will periodically, at intervals of not less than six months, verify the presence of the sealed packet under double locks in the treasury and satisfy himself that the seals on it are intact. NOTE—The procedure is applicable to the State Bank of Travancore also.

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RULE 162

PART V WITHDRAWAL FROM THE GOVERNMENT ACCOUNT SECTION I Rules applicable to Government Officers in general CHAPTER I GENERAL

162. *(a) Save as hereinafter provided, bills presented by a departmental officer, personal claims preferred by a Government Officer and all cheques tendered at the treasury or at an authorised office of disbursement shall be duly receipted for payments and stamped, wherever necessary. Receipts, duly stamped, where necessary, for all other payments made on bills shall be given at the time of payment. Every bill or other document shall contain full details as to the amount and the nature of the claim, and all particulars necessary for the proper classification of the payment in the account. A bill or other document drawn by a government servant shall be signed and, when necessary, countersigned by the government servant competent to do so under the relevant rules. A bill or other document drawn in respect of a claim of a person who is not in government service shall ordinarily be signed or countersigned by the head of the department or some other responsible government servant belonging to the department concerned with the payment. Explanation.—A bill is a statement of claims against the Government containing specification of the nature and amount of the claim either in gross or by items, and includes such a statement presented in the form of a simple receipt A bill or other document becomes a voucher when it is only receipted and stamped “paid”. (b) The treasury shall receive and carefully scrutinize all bills and other documents presented. If the Treasury or Sub Treasury Officer is satisfied that a bill or other document is in order and that the claim is one which he is authorised to pay, he shall sign a payment order on it. Payment shall then be made accordingly and entered the accounts. * Substitution [G.O.(P) 386/77/Fin., dated 7th October, 1977]

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RULE 162

(c) At a place where the treasury transacts its cash business through the Bank, the Bank shall make all government payments other than those included in classes of payments which the Government have specially ordered to be made elsewhere. At such a place every bill or other document shall, in the absence of a special rule or order to the contrary, be presented at the treasury for scrutiny and authorisation of the payment and after such scrutiny and authorization the Treasury Officer shall forward it to the Bank. At a district headquarters station where the district treasury transacts its cash business through the Banks, the Bank shall not conduct the business of the headquarters sub treasury, if there is any. *NOTE—Requisitions by the Accountant General or an Officer of the Indian Audit and Accounts Department authorised by the Accountant General in this behalf for obtaining Reserve Bank of India drafts for effecting monetary settlement of inter Governmental and other miscellaneous transactions need not be presented at the treasury, but may be presented at the bank direct without the express pay order from the treasury. #(d) Claims against the Government relating to the following departments shall be presented to the department Government servants concerned, who are authorized to draw cheques on the treasury in respect of all authorized expenditure. (i) The Forest Department; (ii) The Public Works Department; (iii) The Public Health Engineering Department; (iv) The Harbor Engineering Department. NOTE—The drawing officers of cheque drawing departments shall send a cheque for L.I.C. deductions direct to the concerned Divisional Manager of the L.I.C. along with the connected records. #(e) When a Government servant of another department authorized to incur expenditure against the appropriation placed at the disposal of any of the department specified in sub-rule (d) above, he shall have authority to draw cheques on the treasury as a disburser of the particular department whose funds are operated upon by him in the same way as a Government servant that department itself ; * Addition [G.O.(P) 613/81/Fin., dated 23rd September, 1981] # Substitution [G.O.(P) 175/84/Fin., dated 26th March, 1984]

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RULES 162-163

(f) The detailed procedure to be followed by drawing officers in preparing bills, and other documents and the cheques to be exercised by the Treasury or the Bank before making any payment are laid down in Rules 163 to 269 below. Rule 15 to 25 of these rules also relate to these matters. (g) The duties imposed on the Treasury Officer in the rules mentioned in sub rule (f) above shall be performed by the Forest Disbursing Officer in respect of payments made by him through cheques drawn on treasuries. (h) In every case in which it is deemed necessary to utilize the treasury of other States or the agency of a bank or of a private banker for disbursement of any claims due by the Government, such claims shall, unless there are express orders of the Government to the contrary be presented in accordance with the procedure prescribed in these rules for presentation of claims at a government treasury. FORM OF BILLS, ETC.—GENERAL TO ALL DEPARTMENTS

163. (a) A bill or other document presented at the treasury as a claim for the payment of any amount by the Government shall contain particulars of— (1) the nature of the claim, (2) the amount claimed, (3) the period to which the claim relates if it arises periodically, e.g., a claim for pay and fixed allowances, (4) the orders sanctioning the charge, if it was incurred under special orders, (5) the authority for any deduction made in the bill, (6) the major head, minor head, sub head and detailed account head to which the charge (or each part of it) is debitable, and (7) the allocation of the charge between Governments (including the Central Government) and departments, if any, such allocation is necessary.

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RULE 163

(b) Every bill or other document shall be prepared in the form prescribed under these rules or in the departmental manual or code concerned for bills or other documents of the kind in question. Such forms shall be printed in English *or in Malayalam or bilingually in English and Malayalam. As far as possible, all bills and other documents shall be prepared in English. When it is necessary to prepare a bill or other document in Malayalam, a brief abstract shall be endorsed on it in English stating the payee’s name, the amount claimed and the nature of the claim, and the drawing officer shall sign this abstract. When printed forms are not available, stenciled or typed forms may be used; but the use of the latter should be avoided as far as possible. **NOTE 1.—The entire Non-Gazetted establishments under the control of a drawing officer shall, ordinarily be treated as a single unit and a single bill shall be prepared for the claims relating to the entire establishment preferred on a day. A similar procedure shall be adopted for the preparation of Travelling Allowance bills, Overtime bills, and Contingent bills other than those payable to third parties by clubbing the same kind of transactions on the same day in one bill. In the case of amounts debitable to #more than one sub head of account, separate bills shall be prepared in respect of amounts debitable to each such head of account. In respect of charges debitable to plan expenditure a separate bill shall be prepared. $ NOTE 2.—In respect of cases where the strict adherence of rules in Note 1 have been rendered impossible the reason therefore may be stated in the bill in the form of a certificate. (c) Every bill or other document shall be filled in, in ink. Original copies of typewritten bills or other documents may, however, be honoured at the treasuries at the risk of the drawing officers. The total amount claimed shall, so far as the whole rupees are concerned, be written in hand, in words as well as in figures in ink. So also every bill or other document shall be signed in ink. The entry with ‘Below Rupees…………………’ should be recorded in * ** # $

Substitution [G.O.(P) 335/77/Fin., dated 6th September, 1977] Note renumbered [G.O.(P) 1065/92/Fin. dated 14th December, 1992] Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992] Addition [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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red ink. The amount of paise may be written in figures after the words stating the number of rupees e.g., Rupees Twenty five and Paise 78. If there is no paise, the word ‘only’ shall be written after the number of whole rupees e.g., Rupees Twenty five only”. In either case, great care shall be taken to leave no space that could be used for making an interpolation. The spaces left blank either in the money column or in the column for particulars of the bill should invariably be covered by oblique lines. A note to the effect that the amount, of the bill is below a specified amount expressed in whole rupees should invariably be recorded (in words and figures) in the body of the bill in red ink. The amount so specified should be a sum slightly in excess of the total amount of the bill. # NOTE 1. —*Use of ball point pen shall also be permitted for filling in bills and other documents presented to the treasuries. †NOTE 2.—The detailed contingent bill shall, as far as possible be typewritten and presented .The total amount of the Bill and the endorsement shall however be made in hand in words as well as in figures in ink and shall invariably be signed in ink. (d) No bill or other documents containing any erasure shall be presented at the treasury. Every correction or alteration in the total of a bill shall be separately attested by the full signature with date of the person who signs the receipt. Every correction or alteration in the payment order shall be similarly attested by the signing officer, if it is drawn on the Bank, and, in other cases, by the Treasury or Sub Treasury Officer who signs it. (e) When a charge is debitable to more than one major head of account, the drawer shall ordinarily present a separate bill for the amount debitable to each major head. (f) Claims for which no other specific form has been prescribed shall be made in Form T.R. 42 e.g., claims for house building advances, advances for the purchase of motor car or other conveyances, etc NOTE—Claims of Government servants for any advances of pay and for travelling allowances shall be preferred in the respective forms prescribed for claiming pay and travelling allowances. *Addition [G.O.(P) 68/77/Fin., dated 22nd February, 1977] # Renumbered, † Insertion [G.O.(P) 582/2004/Fin. dated 13th December, 2004]

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(g) Unless the Government have expressly authorised it in the case of any specified office, no bill or other document and no payment order shall be signed by a clerk for the head of the office, even if it is customary for the clerk to sign letters for him when he is absent. No bill or other document and no payment order shall be signed with a stamp (facsimile). The head of an office may authorise a gazetted government servant serving under him to sign bills, other documents and payment orders for him but, if he does so, he shall communicate the government servant’s name and specimen signature to the treasury or treasuries concerned. A delegation of powers of this kind shall not in any way, relieve the head of the office of his responsibility for the accuracy of the bill, etc., and for the disposal of the moneys drawn from the treasury. When a claimant or payee is unable to sign his name, he may furnish his signature on a bill or other document in the form of a mark or preferably a thumb/great-toe-impression. No payment shall be made on any bill or other document so signed, unless some person known to the treasury or bank, as the case may be appears with the payee and identifies him and attests his mark or thumb impression in token of his genuineness. Similarly, when an illiterate person, who is unable to sign his name in any language, draws a cheque on the treasury or the Bank by furnishing his thumb/great-toe-impression on the cheque, no payment shall be made unless some person known to the treasury or the Bank, as the case may be, appears with the drawer and identifies him and attests his thumb impression in token of its genuineness. The person who attests the thumb impression should be one who is not employed in the treasury or the Bank and he should also furnish his address. NOTE—Bills affixed with facsimile signature of the authorised officer presented by the Posts and Telegraphs Department for telegram and trunk call charges, by the Municipalities and Corporations for water and electricity charges and by the Air India International and the Indian Airlines on account of their dues against Government (for passage fares, cargo and excess luggage charges) forming subvouchers of the contingent bills, may be accepted for payment, if otherwise in order. (h) When a rule or order requires that bills of a certain kind shall be countersigned before payment, no such bill shall be presented at the treasury until it has been duly countersigned.

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NOTE—On all bills on which countersignature is required before payment or which have to be enfaced for payment at a treasury or both, the words “contents received” which are usually printed above the place for the signature of the drawing officer should be struck out at the time the bill is first signed and before it is sent for countersignature or for enfacement for payment at the treasury. When the bill is received back, the words “contents received” should be written on it and signed and the bill then sent for encashment. All Treasury Officers should be careful to see that such bills are not paid unless they bear a second signature (acquittance of the officers concerned, below the words “contents received”.) (i) When a bill relates to a charge incurred under a special order of sanction, the particulars of the order shall be entered on the bill, and a copy of it shall be attached to the bill and duly certified to be a true copy by the government servant who signs the bill. *NOTE 1.—If an order of attachment against a government servant is received before a previous order of attachment against the same government servant, has been fully complied with, the recoveries shall be made by the disbursing officer so long as the total amount recoverable with reference to the attachment orders is within the maximum limits prescribed in Article 102, Kerala Financial Code, Volume I. NOTE 2.—If a new attachment order has the result of increasing the amount beyond the maximum limits prescribed, the disbursing officer shall return the attachment order to the Court concerned with a statement showing:— (i) Particulars of the existing attachment. (ii) Particulars of the amount withheld and paid into the Court concerned upto date in respect of the existing attachment; and (iii) (a) the balance amount available to be recovered after effecting the existing attachment.— (b) the actual attachable amount. * Insertion [G.O.(P) 7/75/Fin., dated 3rd January, 1975]

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(j) The drawing officer shall deduct from a bill for the pay, etc., of an establishment any amount attached by a prohibitory order of a court of law. He shall attach to each establishment pay bill, in which any such deduction is made, an advice list containing particulars of the suit, the name of the government servant whose pay is attached and the amount deducted from the bill. When the court which issued the attachment order is not suited at the headquarters of the treasury which pays the bills the drawing officer shall also attach to the bill a postal money order form duly prepared for the remittance of the amount by the Treasury Officer to the court. The commission payable to the post office on the money order shall be shown as a deduction in the bill as well as the amount to be remitted. The procedure to be followed by the Treasury Officer for remitting such amounts to the courts is laid down in Rule 211 and also the procedure that he should follow in paying attached amounts to courts located at this headquarters. (k) Recoveries from the salary of government servants on account of dues to co-operative societies registered under the various Co-operative Societies Acts, where such Acts impose a statutory obligation on the Government to make such deductions, shall be made by the drawing and disbursing officers in the case of non-gazetted government servants who do not draw their own bills, and in other cases, by the treasury Officers or other disbursing officers concerned, as the case may be, in accordance with such procedure as may be laid down by Government from time to time. (l) Deductions made in bills shall, where required by the rules relating to such deductions, e.g., Provident Funds, Postal Life Insurance, State Life Insurance (Official Branch), etc., be supported by schedule in the prescribed form detailing the deductions made Schedules for Provident Fund deductions shall be prepared in Form T.R. 104. If such deductions are made in a bill in respect of two or more subscribers whose accounts are maintained by different Audit Officers separate schedules shall be attached to the bill in respect of the deductions which are to be accounted for by each Audit Officer. When recovery is made from occupants of Government residential buildings by deductions from pay bills, one copy of the demand statement, which will be rendered in duplicate in T.R. 43 giving particulars of the recoveries shall be attached to the pay bills. After the recovery has been made, the remaining

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copy of the demand statement shall be returned to the authority from which it was received after noting the amounts recovered and recording a certificate to the effect if the recoveries are in order, that the recovery has been made and the emoluments are correct. When recovery is made on account of an interestbearing advance a schedule of recovery in Form T.R. 106, separately for each type of such advance, shall be attached to the bill in which the recovery is made. In the case of such recoveries from the claims of non-gazetted government servants, the drawing officer shall certify on the recovery schedule attached to the bill for the month of February encashed in the month of March every year that the balance shown as outstanding therein have been accepted as correct by the government servants concerned.

Rs.

Rs.

3

4

5

Remarks

Rs.

2

Balance yet to be recovered

Amount recovered in the bill

1

Amount of the original advance

Name of the governme nt servant

District, department and the month in which the advance was drawn

Where recovery is made on account of an advance of pay or traveling allowance, or both sanctioned to a government servant on transfer, a schedule in the following form shall invariably be attached to the pay or traveling allowance bills in which the recovery is made.

6

Disbursing officer, that is, Treasury Officer in the case of gazetted officers and heads of offices in the case of non-gazetted officers should, as required by section 289 of the Indian Income Tax Act, 1961 issue to the person from whose salary income tax is deducted at source, an annual consolidated receipt in Form T.R. 44 for the tax so deducted during a financial year. *The Treasury Officer shall not accept the salary bills for the month of February and August every year, unless such bills contain a certificate, from the concerned Self Drawing Officers in the case of gazetted bills and Drawing and Disbursing Officers in the case of establishment pay bills to the effect that profession tax *Addition [G.O.(P) 249/98/Fin. dated 19th January, 1998]

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due to the Corporation/Municipality/ Panchayat from the officers/ employees for the half year concerned is remitted and details of remittance communicated to the authorities concerned. (m) No copies of orders regarding promotions and similar changes or of correspondence, etc., regarding a claim shall be attached to any bill or other documents. (n) When payment is desired wholly or partially in Government drafts, a formal application for them shall be presented with the bill, and the manner in which payment is desired shall also be indicated in the drawer’s receipt on the bill. (o) When the drawer of a bill other than a bill for pay, allowances, leave salary or pension, desires that the treasury should remit the whole or a part of the amount of the bill to a person or persons (other than the drawer) by postal money order, the necessary money order form or forms duly filled up, except for the date and the Treasury Officer’s signature, shall be presented with the bill, and the drawer shall show both the amount to be sent by money order and the commission due on it as deductions in the bill. Exception—The money order forms relating to payment of the bill for the Police Department and bus warrants to bus owners shall be signed by the drawing officers instead of by the Treasury Officers. (See Article 98 of the Kerala Financial Code.) (p) A head of an office whom the Government have specially authorised to send bills of a specified kind of the treasury by post shall send along with each such bill, a postal money order form duly filled up except for the date and the Treasury Officer’s signature. The money order commission shall be treated as a contingent charge of the drawing officer and not shown as deduction in the bill. Exception.—The money order commission for the remittance of pay and allowances of Government Medical Officers employed in out of the way places shall be debited to the contingencies of the remitting treasury. (q) When the drawing officer desires that the treasury should pay to some other person the amount of a bill, cheque or other document drawn by him, except those relating to the claims of government servants he shall

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specifically endorse on it and sign an order to pay to that person specifying his name as well as his designation. All such bills, cheques or other documents preferable at a treasury for payment being non-negotiable instruments, can be endorsed only once in favour of the specific party to whom the money is to be paid: Provided that— (1) when the endorsement is made on a bill or cheque in favour of a banker, a second endorsement can be made by the banker in favour of a messenger or an agent for collection only; (2) in the case of a contingent bill which has been endorsed in favour of a firm of suppliers or private parties under the provisions of Rule 188 (viii), the firm of the private party can re-endorse to its banker or to a messenger for collection only and the banker can in turn endorse it to a messenger or an agent for collection only. Thus, in all three endorsements are permissible in such cases provided that, of the three, one is to the payee’s banker and one is to a messenger or agent for collection only; and (3) an agent may, notwithstanding anything contained in (1) and (2) for the purpose of collecting the bill or cheque endorse it in favour of his messenger. Explanation.— *In this rule a Banker includes Post Office Savings Bank and Treasury Savings Bank and an ‘Agent’ means any banks including Post Office Savings Bank and Treasury Savings Bank acting as a collecting agency for and on behalf of the payee’s banker. NOTE—(1)

NOTE—(2)

Cheque drawn directly on the Bank without the intervention of the Treasury Officer are negotiable instruments and are not subject to the provisions of this Rule. When an illiterate person endorses a bill or other document by means of his thumb impression, he should affix the thumb impression in the presence of the Treasury Officer and have it attested by a person well-known to the Treasury. The person attesting the thumb impression should be one who is not employed in the Treasury or the Bank and he should also furnish his address.

*Substitution [G.O.(P) 208/75/Fin., dated 31st May, 1975]

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(r) A government servant shall not issue a copy of any bill or other document which has already been paid on the allegation that the payer’s copy has been lost or is not available, although a certificate may, when necessary, be given that on a specified day a certain sum was paid to a certain person on a certain account. A fee of one rupee shall be levied for each certificate issued to a private party. This prohibition extends only to the issue of a copy on the allegation that the payee’s copy has been lost or is not available, and does not apply to a copy marked “Not payable at the treasury” and tendered at the treasury with the original in accordance with the rules. If a bill or other document that has been passed for payment at the treasury is alleged to have been lost before payment, the government servant who drew the original bill or other document shall ascertain from the treasury whether payment has already been made on the original or not, and shall request the treasury not to make payment on the original if presented subsequently. If the treasury has not made payment on the original, he may issue a duplicate which shall bear distinctly on its face the word “duplicate” written in red ink. (s) Every receipt for a sum exceeding # ` 500 shall be duly stamped by the payee *with a revenue stamp as required by section 3 of the Indian Stamp Act, 1899 (Central Act 2 of 1899) read with article 53 of Schedule 1 there of, subject to the exemptions, etc., listed in Appendix 8. #This amendment shall be deemed to have into force on 13th May, 1994. NOTE—(1)

In determining whether the receipt obtained in respect of an amount drawn on a bill preferred against Government should be stamped or not, the net amount of the bill and not the gross amount payable should be taken into account, unless the receipt is exempted under exceptions referred to above.

NOTE—(2)

Receipts for payments made outside India should be obtained from the payees and stamped in accordance with the local laws, if any, governing the stamping of such receipts.

NOTE—(3)

A single receipt, stamped where necessary given by a payee in acknowledgement of several payments or a lump sum payment, either in cash or by cheque, made to him, on one occasion, shall constitute a valid quittance and the disbursing officer in such cases, should give cross reference on all vouchers to which the receipt relates.

*Substitution [G.O.(P) 434/81/Fin., dated 7th July, 1981] #Substitution [G.O.(P) 572/97/Fin. dated 7th June, 1997]

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(t) †Every government servant, who is authorised to drawn cheques or sign ^bills payable at a treasury shall send a specimen of his signature to the Treasury Officer in Form T.R. 74A duly attested by his superior officer or another officer whose specimen signature is already on record with the treasury. When such an officer hands over charge of his office to another, he shall likewise send a specimen of the signature of the relieving officer duly attested by him (relieved officer) to the Treasury Officer concerned. NOTE— The specimen signature of every non-gazetted Drawing Officer shall be attested by his Gazetted Controlling Officer or official superior; ‡(u)

[Deleted] C HAPTER II

PAY AND ALLOWANCES (INCLUDING LEAVE SALARY) OF GOVERNMENT SERVANTS

A. Gazetted government servants 164. (a) In the absence of any special order of the government to the contrary, a gazetted government servant may draw the bills for his own pay, allowances and leave salary based on the pay slip or the leave salary certificate issued by the Accountant General. A claim by gazetted government servant for pay and fixed allowances shall be presented on a bill in Form T.R. 46. A gazetted government servant who draws a special pay or allowance in respect of a separate office of which he is in additional charge, need not present a separate bill for it, unless it is met from some source other than the revenues of the State. *NOTE 1#—Gazetted officers are authorised to draw their pay and allowances provisionally without pay slip from the Accountant General up to a period of 3 months after the expiry of sanction to the continuance of posts, at the same rate as they were drawing in these posts on the basis of a certificate in Form T.R. 112 being attached to the pay bill. The certificate should be signed by the Controlling Officers authorised to sign their T.A. bills. In cases where the officer is himself the Controlling Officer for T.A claims, †Substitution G.O.(P) 25/78/Fin., dated 6th January, 1978] ^Omission [G.O.(P) 207/88 dated 9th March, 1988] ‡Deletion [G.O.(P) 367/76/Fin., dated 27th November, 1976] *Added vide G.O.(P) 180/77/Fin., dated 8th June, 1977 #Renumbered vide G.O.(P) 99/89/Fin. dated 24th February, 1989.

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the certificate should be obtained from the next higher authority. In cases where further delays are anticipated necessitating continuance of such provisional payment of salary beyond the period of 3 months, the officer concerned shall have to approach the Audit Officer through his Head of Department for authorisation of provisional salary explaining the circumstances for the delay in issue of sanction for the continuance of post. #This amendment shall be deemed to have come into force with effect from 19th May, 1988. **NOTE 2—The Gazetted Officers specified under item(1) to (4) below shall be allowed, without insisting on the production of pay/leave salary slip from the Accountant General, to draw their pay and allowances at the rates indicated against each for a period of three months or till the receipt of the pay/leave salary slip from the Accountant General whichever is earlier. Categories

Pay and allowances admissible

1. Officers who are promoted to a gazetted post from a non-gazetted post

Pay last drawn in the lower nongazetted post or the minimum pay in the gazetted post whichever is higher, Dearness Allowances shall be paid at the rate applicable to such pay. House rent allowance shall be at the rate applicable at the station where posted.

2. Gazetted Officers who are promoted to another post

Pay last drawn in the lower post or the minimum pay in the higher post whichever is higher, Dearness Allowance shall be at the rate applicable to such pay. House Rent Allowance shall be at the rate applicable at the station where posted.

# G.O.(P) 99/89/Fin. dated 24th February, 1989. **Insertion [G.O.(P) 99/89/Fin dated 24th February, 1989]

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3. Gazetted Officers who are transferred from one post to another at a different station

Pay equivalent to that drawn in the old post. Dearness Allowance shall be at the rate applicable to such pay. House Rent Allowance shall be at the rate applicable to the Station where posted.

4. Gazetted Officers who return from leave on the expiry of leave already sanctioned

1. The rate at which pay, Dearness Allowance and House Rent allowance were drawn on the date prior to the date on which the Officer proceeded on leave, when there is no change in station. 2. When there is change in station the rates of pay and Dearness Allowance applicable shall be those drawn prior to proceeding on leave. House Rent Allowance shall be at the rate applicable to the station to which the officer is transferred.

In all the above cases where there is any change in the rates of pay, Dearness Allowance and House Rent Allowance as per the pay slip received from the Accountant General, the payments made shall be regularized as soon as the pay slip from the Accountant General is received and adjusted in the bill presented thereafter at the Treasury for encashment. ** This amendment shall be deemed to have come into force with effect from 19th May, 1988. (b) When a gazetted government servant draws his first pay bill on being appointed to a post in government service for the first time or on being reemployed after resignation, or forfeiture of past service, he shall attach to the bill a certificate from the authority to whom he reported for duty on first appointment that the health certificate required by rule 13 of Part I of the Kerala Service Rules has been furnished by the officer. His copy of the pay slip shall also be attached to the bill. (c) A claim by a gazetted government servant for traveling allowance shall be presented on a bill in Form T.R. 47. When the government servant has **Insertion [G.O.(P) 99/89/Fin dated 24th February, 1989]

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travelled by a circuitous route, he shall state the reason for doing so in the bill. When he claims actual expenses, he shall, in the absence of any order to the contrary, set them out in detail. When he claims travelling allowance on account of any members of his family, he shall furnish a certificate showing the number and relationship to himself of the members of his family on account of whom he makes the claim and all other relevant details. When he claims the cost of carriage of personal effects or a conveyance, etc., he shall furnish the receipt granted by the railway or steamer company for the amount actually paid. A travelling allowance bill shall be countersigned by the controlling officer referred to in rule 113 of Part II of the Kerala Service Rules unless the claimant has been declared to be his own controlling officer (See rules 113 and 115 of Part II of the Kerala Service Rules). (d) When any special pay, allowance, honorarium or other recurring additional remuneration is claimed in a bill by a gazetted government servant for any additional or part time work rendered by him, the following certificate issued by the Head of the Office or Institution in which the work is rendered shall be attached to the bill:“Certified that Sri/Smt……….........……(Name and designation) has actually discharged during the period from…………….to........…………………the duties for which the remuneration of..................…………………..is claimed. Dated signature………………………. Name…………………………………. Designation……………………………” 165. (a) Pay, leave salary and travelling and other allowances payable to a gazetted government servant in India shall be paid on his personal claim and to his personal receipt and not otherwise, except as provided in rule 167 or with the Government’s special sanction in each case. The government servant may, if he wishes, send a messenger to the Treasury or the Bank with a separate letter requesting that the moneys be sent through him, and the moneys shall then be handed over to the messenger, but only on the strict understanding that the Government accept no responsibility whatever for any fraud or misappropriation in respect of any moneys, cheque or bill handed over to him. (b) Subject to any orders or procedure that may be prescribed by the Government, the leave salary of a gazetted government servant, when payable in India, shall be drawn from the treasury from which his pay was being drawn immediately before proceeding on leave and he should make his own arrangements, where necessary for getting his leave salary remitted to him. He shall not begin to

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draw the leave salary without producing a leave salary certificate in Form No. 48 from the Audit Officer who audited his pay before he proceeded on leave. In case where a period of leave is followed by transfer, such portion of the leave salary as could not be drawn at the old station may, however, be drawn at the treasury from which the pay in respect of the new post is drawn. (c) If gazetted government servant signs his bill himself, he must either appear in person at the place of payment or furnish a life certificate signed by a responsible officer of Government or some other well known and trustworthy person. If he draws his leave salary through an authorised agent, the agent whether he has or has not the power of attorney, must either furnish a life certificate as aforesaid, or execute a bond to refund overpayments. A life certificate may be given periodically, a bond being given to cover intermediate payments not supported by the life certificate. (d) ^No gazetted government servant may draw a changed rate of pay, leave salary or fixed allowance, unless the bills in which he claims it is accompanied by a letter from the Accountant General authorising the changed rate. A fresh authorisation from the Accountant General is also required when there is a change in designation of a gazetted officer, even if there is no change in emoluments. The Accountant General shall issue these letters as early as possible, but when any such change occurs near the end of a month or takes effect from a date which cannot immediately be ascertained and cannot be fixed by a certificate of transfer of charge appended to the bill, the government servant concerned should draw his bill at not more than the old rate, if he does not receive the letter of authority by the end of the month. ^This amendment shall be deemed to have come into force on 7th day of April, 1986. NOTE—1 In case, where, on the expiry of leave, an officer is appointed to the same post from which he proceeded on leave, he shall draw bills for his pay and allowances from the date of his assumption of such charge on the basis of the authority for pay and allowances issued to him by the Accountant General before his proceeding on leave and, if such authority has been superseded, on the basis of such revised authority for pay and allowances. *NOTE—2

In the case of payment of dearness allowance and other allowances to the Gazetted Officers sanctioned by Government from time to

^Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989] *Insertion [G.O.(P) 409/75/Fin., dated 8th September, 1975]

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time, a general letter of authority shall be issued by the Accountant General to the Treasury Officers authorising them to make payments thereof to the Gazetted Officers on the basis of the rates prescribed by the Government without a specific authority from the Accountant General for each individual case. *NOTE—3

Transfers from one post to another in groups of posts like(a) (b) (c)

Munsiff, Principal Munsiff, Additional Munsiff; Sub Judge, Additional Sub Judge; and Tahsildar, Special Tahsildar, etc., will be treated as involving a change in designation, only in case any change in emoluments is involved.

166. (i) At his written request, the pay bill of a government servant who is permitted to draw his own bills may be made payable to some well-known banker or agent provided that the receipt of the banker or agent shall not be accepted as a final acquittance, unless the bill itself is duly endorsed in favour of the banker or agent by means of a distinct pay order. The receipt of the banker or agent alike, if it is recorded on the bill itself or separately, shall be stamped unless the receipt on the bill has already been duly signed and stamped by the government servant himself. No re-endorsement of such a bill by the bank or agent otherwise than to a messenger for collection shall be recognised [See also the second paragraph of Rule 163(q)]. (ii) No government servant or other individual shall be recognised as an “agent” for the purpose of this rule or the next one unless he holds a valid power of attorney to act for the government servant concerned. 167. (a) A gazetted government servant who claims leave salary or vacation allowances or subsistence allowance otherwise than through a bank or agent shall, either appear in person at the place of payment or furnish a life certificate showing that he was alive on the last day of the period to which the claim relates and signed by a responsible government servant or if there is no such government servant at the place where the gazetted government servant resides, some other well known and trustworthy person. A gazetted government servant may draw his leave salary or vacation allowances or subsistence allowance through a well known bank or agent (See the previous rule) if he gives the bank or agent a power of attorney for the purpose of leave his signed bills with the bank *Insertion [G.O.(P) 527/75/Fin., dated 19th November, 1975]

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or agent for presentation, provided that, unless the bank or agent has executed an indemnity bond in Form T.R. 49 or Form T.R. 50 duly stamped, as security for the refund to the Government of any overpayment to the government servant, a life certificate showing that the government servant was alive on the last day of the period to which the claim relates and signed by a responsible government servant, or, if there is no such government servant at the place some other well known and trustworthy person shall be furnished along with each bill. Life certificates may be furnished at intervals, as may be convenient, provided that an indemnity bond has been executed which will cover intermediate payments not supported by a life certificate. The Treasury Officer shall enter the particulars of all powers of attorney furnished with reference to this rule in the register (in Form 16 of the Government Securities Manual) kept in the treasury for the purpose. NOTE— When separate bills for leave salary, vacation pay, etc., relating to different periods are presented and paid simultaneously it is not necessary to furnish separate “Life Certificates” for the different periods. Only one certificate in respect of the date of presentation of the bills should be enough. Exceptions— In the following cases the life certificates should not be insisted on:— (i) when the arrears of leave salary are drawn by a Gazetted Officer after he has resumed duty; (ii) when the leave salary is claimed in the same bill as the duty pay for the period following that of leave salary; and (iii) when the report of taking over charge after the expiry of leave has already been sent to Treasury Officer. (b) An indemnity bond executed by a bank or agent for the purpose of drawing pay, etc., on behalf of a single government servant shall be in Form T.R. 50. When a well known bank (or a firm or agents acting as bankers) of good standing has a number of constituents who are government servants and desire to draw their pay, etc., through it, the Government, in consultation with the Accountant General, may, if they think fit, permit the bank (or firm) to execute a single indemnity bond in respect of all pay, etc., drawn by it from the Government on behalf of such government servants. Such a bond shall be in Form T.R. 49 and shall be duly stamped. Appendix 9 contains lists of the banks, etc., which have executed such bonds. All indemnity bonds whether in Form T.R. 49 or Form T.R. 50 shall be properly stamped.

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RULES 167-168

The authority competent to accept the indemnity bond on behalf of the Government shall, before accepting the bond, verifies that the person who signs a bond of indemnity on behalf of a firm or bank has authority to bind it. Indemnity bonds in Form T.R. 50 executed by a bank or agent for the purpose of drawing pay, etc., on behalf of a single government servant shall be kept in the custody of the Treasury Officer. General indemnity bonds in Form T.R. 49 for the purpose of drawing pay, etc., on behalf of government servants of the Kerala Government alone shall be kept in the custody of the Government. No endorsement of a bill drawn on behalf of a government servant by a bank or agent permitted to draw the Government servant’s pay, etc., under this rule shall be recognised with the exception of an endorsement to a messenger for collection. (c) A bond in Form T.R. 49 executed by an unincorporated firm requires that information be given to the Government at once if there is any change in the constitution of the firm. As soon as any such information is received, the new partnership shall be required to execute a fresh bond in Form T.R. 50 by a specified date or acknowledge in writing that it is bound by the existing bond by which the old partnership was bound, if it wishes to retain the privilege of drawing pay, etc., on behalf of government servants. *168. (a) Place of Payment.—The claims of a Gazetted Government Servant shall be drawn from the District/Sub Treasury to which his institution is attached either under the orders of the Accountant General for under the orders of the Director of Treasuries or in accordance with the notifications published by the Government realigning the jurisdiction of District/Sub Treasuries. (b) When any pay is due in India to a government servant who is absent from India, he should make his own arrangements to receive it in India. Provided that when the government servant has finally quitted India and it is not possible for him to make his own arrangements for receiving his pay and allowances in India, payment may be made to him through the High Commissioner for India or through the India Office. NOTE—When a government servant who is away from the State on study leave or undergoing a course of training, etc., desires payment of his leave salary or pay and allowances within the State, the procedure prescribed in Rule 165 (c) should be followed. *Substitution [G.O.(P) 89/82/Fin., dated 25th February, 1982]

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(c) When a government servant is transferred from one district to another within the same Audit Circle, the last pay certificate granted to him should specify last the regular monthly payment and his entire pay for the month in which the transfer takes place should be paid in the new district, except as provided in Article 87 (d) of the Kerala Financial Code. Payment on account of his claims for travelling allowance arising in the old district in respect of journeys performed before the transfer may also be made in the new district, provided that the controlling officer for the old post certifies that claims are correct. (d) A government servant who is transferred may be allowed to draw an advance of pay on transfer at his new station within a month of his arrival there, if his last pay certificate show that he did not draw any such advance at his former station. A government servant, who receives an order of transfer during his leave, may draw an advance of pay and travelling allowance from the treasury from which he drawn his leave salary. NOTE—The drawal of advance under the above rule is subject to the condition that the government servant concerned is entitled to and has been sanctioned by the proper authority an advance of pay under Article 260 of the Kerala Financial Code. (e) [Deleted.] B. Non-gazetted Government Servants 169. (a) *The pay and allowances of an establishment should be drawn by the gazetted officers-in-charge of it. Exception.—(1)

Such classes of non-gazetted officers as are mentioned in Appendix 10 may draw bills relating to the pay and allowances of their own and their establishment without counter signature provided they possess the prescribed test qualification which should be certified in the bill. If they do not possess the prescribed test qualification the bill should be countersigned by the Controlling Officer referred to in Rule 113 of Part II of the Kerala Service Rules.

(2) A Government Servant who is reverted from a Gazetted post to a Non-Gazetted post may draw his arrear claims for pay and allowances in respect of the period of Gazetted service in bills in Form T.R. 46 on the strength of the pay slip/letter of authority issued by the Accountant General. Such bills being subject *Substitution [G.O.(P) 1065/92/Fin, dated 14th December, 1992]

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to countersignature by the Gazetted controlling Officer. In such cases, the surrender of Last Pay Certificate as required in rule 19 of the Kerala Treasury Code to the Treasury Officer is not necessary. NOTE.—(i)

In the case of non-gazetted heads of offices having separate establishment of their own their pay and allowances shall be drawn in their Establishment Pay Bills.

NOTE.—(ii) In the case of non-gazetted officers like Co-operative Inspector of Co-operation Department, Junior Engineer, Industries Extension Officer etc., who have no separate establishments of their own, their pay and allowances shall be included in the establishment bills of their Controlling authority. NOTE.—(iii) The pay and allowances of Policemen and Sub Inspector of Police should be included in the establishment pay bills of the concerned Superintendent of Police. NOTE.—(iv) The claims on account of pay and allowances of the Nongazetted personnel should be deemed to arise at the station where the drawing officer who draws the claims is stationed. NOTE.—(v) The aforesaid provision and note (i) to (iii) above apply only for the drawal of pay and allowances of the concerned persons and do not extend to the drawal of Travelling Allowance claims for which the provision of rule 178 Kerala Treasury Code Volume I shall apply. (b) Form T.R. 51 shall be used for bills for the pay, fixed allowances and leave salaries of Non-gazetted government servants drawn by the head of the office for disbursement to them. *A single bill shall be prepared in three parts for the following classes, if it exists:— (i) Permanent Establishment. (ii) Temporary Establishment. (iii) Establishment for whom no service books are maintained. This amendment shall be deemed to have come into force with effect from 1st April, 1980. *Substitution [G.O.(P) 121/80/Fin., dated 8th February, 1980]

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With the exceptions mentioned in Rule 171, the name of every substantive, officiating or temporary government servant on whose behalf a claim is made shall be shown in column (2) against his post in column (1). Against each temporary post the number and date of the order sanctioning it and the name of the authority which passed the order shall be entered. The rate of pay, etc., claimed shall be shown against each name in column (2). If the payment of any claim for the month to which the bill relates if postponed, it shall not be omitted from the bill, but the amount of each claim held over for future payment shall be noted in red ink in the appropriate columns (3) to (6) and ignored when totalling the bill. When pay, etc., is claimed only for part of the month, the number of days, for which it is claimed shall be entered either against the government servant’s name or in a note at the foot of the page. The part of a bill relating to each section (See Article 86 of the Kerala Financial Code) shall be marked off in red ink. The component items of an establishment bill shall be checked, and the total shown in the bill shall also be checked by adding up the items. If the bill relates to a small establishment the drawing officer shall either check it himself, or have it checked by a gazetted government servant under his order, before he signs it. If the bill relates to a large establishment, the drawing officer shall ensure that the whole bill is thoroughly checked by someone other than the clerk who prepared it, and shall himself check a part of the bill or arrange for a gazetted government servant to do so, before he signs it. *NOTE. 1— In the case of non-gazetted officers, the drawing officers who are authorised to draw pay and allowances of the establishment in accordance with sub rule (a) of rule 169 are empowered to draw the pay and allowances of their establishment provisionally upto a period of 3 months, after the expiry of sanction to the posts at the same rate as they were drawing in these posts pending sanction for the continuance of the posts on the basis of a certificate in Form T.R. 113 being attached to the pay bill. In such cases where provisional payment is authorised, the fact should be noted both in the office copy and fair copy of the pay bill. When the sanction for the continuance of temporary posts is received, the number and date of Government Orders should be noted in red ink in the office copy of the pay bill and attested by the Drawing Officer. It * Inserted vide G.O.(P) 180/77/Fin., dated 8th June, 1977, Note renumbered vide G.O.(P) 1065/92/Fin. dated 14th December, 1992.

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shall be the responsibility of the drawing officer concerned to intimate the fact of provisional payment immediately to the higher authorities for obtaining sanction for the continuance of temporary posts in such cases. Exception—The pay and allowances (including leave salary and travelling allowances) of the following classes of officers shall be drawn separately in the form provided for gazetted officers instead of being included in the pay bill of the establishment. But they should be treated for purposes of audit, etc., as other nongazetted officers:(1) Supervisors, Junior Engineers, Head Draftsman and Overseers of the Public Works Department. (2) Rangers and Deputy Rangers of the Forest Department. (3) Inspectors of Co-operative Societies. (4) [Deleted] [G.O.(P) 130/82/Fin., dated 22nd March, 1982] (5) Superintendents of Rescue Homes and the Assistant Superintendent, Rescue Home, Ernakulam. (6) Sub Inspector of Police. (7) Inspectors of Plantations. (8) Sub Officers of Fire Force Department. (9) Overseers of Rural Housing Cells of the Village Housing Project Scheme one for each district. (10) Industrial Extension Officers. (11) Claim Inspectors working in the accident Insurance Branch of the State Insurance Department. (12) Junior Electrical Inspectors of the Electrical Inspectorate. However, the bills for pay and fixed allowances of each of the above officers should be countersigned before payment by a gazetted officer in control over him; or by the head of the department, at the discretion of the latter and the traveling allowance bills should be countersigned by the controlling offices referred to in Rule 113 of Part II of the Kerala Service Rules.

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Copies of all orders of appointment, promotion, transfer or leave of the above classes of officers should be sent to the Accountant General. *NOTE. 2—The stipend and kit allowance payable to Sub Inspector Cadets who are undergoing training in Police Training College shall be drawn consolidated in establishment pay bills on the basis of an attendance statement prepared under due attestation of the Principal, Police Training College and disbursed on proper acquittance through the Inspector, Training Team. † NOTE—3

The shift allowance payable to the staff of the Printing and Stationery Department shall be drawn in Form T.R. 51A.

(c) The leave salary of a non-gazetted government servant on leave cannot be drawn in India, except over the signature of the head of his office; and the latter is responsible for any overcharge. The leave salary of a non-gazetted government servant holding a permanent post in one office and officiating in a post in another office may be drawn at the office from which he proceeded on leave, if he would have continued in that office but for his leave and is expected to return to it on its expiry. No last pay certificate should be issued in such cases but the fact of the government servant having gone on leave should, however, be intimated to the head of the first office so that he can show the necessary arrangements in the absentee statements of his office. The bills in which leave salary is drawn should also indicate the permanent post on which the absentee holds a lien to facilitate correct classification of leave salary. In the case of a non-gazetted officer whose substantive appointment is not a local appointment, but simply that of a member of a State staff, leave allowances should be drawn either at the place where the office of the head of his department is located, by the head of his department or at the place where his salary was last disbursed and in the latter case, if he was not himself the head of an office, he should be regarded as attached to the office in which he was last employed, and the head of that office should draw the leave allowances and he regarded as responsible for over charges. *Added vide G.O.(P) No. 389/75/Fin., dated 27th August, 1975, Note renumbered vide G.O.(P) 1065/92/Fin. dated 14th December, 1992. †Insertion [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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RULES 170-171

170. If for any reason the rate of leave salary to be drawn on behalf on a non-gazetted government servant on leave is not known (e.g., when the kind of leave to be granted has not been settled by the sanctioning authority), the pay to which he would have been entitled if he had remained on duty shall be entered in red ink in the money column of the bill intended for entering leave salary and the amount shall be left undisbursed and treated as held over till the rate of leave salary becomes known. When a drawing officer claims leave salary based on average pay on behalf of any government servant he shall sign and attach to the first bill in which the claim is made a statement of the calculations determining the amount of leave salary claimed. If any pay drawn outside the government servant’s substantive office or section enters into the calculations, the statement shall include references to the vouchers on which, or the office in which, such pay was drawn. When a drawing officer claims leave salary based on actual pay on behalf of any government servant, he shall sign and attach to the bill a certificate that the leave salary is claimed at the same rate as the substantive pay of the government servant on the day immediately preceding that on which the leave commenced within the meaning of the note under Rule 93, Part I of the Kerala Service Rules. This certificate is however not necessary in the case of maternity leave even though leave salary is claimed at the same rate as full pay. NOTE.—No statement of the calculations determining the amount of leave salary claimed need be attached to pay bills in respect of those Government servants whose names are omitted from the bill (See Rule 171 below:) 171. The names of government servants of the following classes may be omitted from pay bills:— (i) Government servants for whom service books are not required to be maintained (Vide Rule 172 of Part III of the Kerala Service Rules.) (ii) All government servants in last grade service. Each bill from which names have been omitted in accordance with the rule shall contain sufficient information to enable the treasury and the Accountant General to apply the necessary arithmetical checks and the drawing officer shall certify on it as follows:—

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“Certified that every government servant on whose behalf pay or leave salary is claimed in this bill has actually been on duty or on authorised leave, as the case may be, during the month for the period on account of which his pay or leave salary is claimed and that full details of the names of the government servants concerned and the emoluments drawn for them working upto the total included in this bill have been duly shown in the office copy”. The government may in consultation with the Accountant General extend the provisions of this rule to other specified classes of establishments, when the entry of names in the bills is not essential for audit purposes. Claims on behalf of government servants whose names are omitted from a bill under this rule shall not be included in a single item except so far as they are identical in all respects. For example, a claim for the whole month for five Head Constables each of whom draws a pay of ` 57 a month may be entered as a single item. Claims on behalf of government servants with different designations or government servants who have the same designation but draw pay at different rates or for different periods shall always be shown separately. 172. The drawing officer shall have the office copy of every pay bill relating to government servants of the two classes mentioned at the beginning of Rule 171 prepared separately so as to show full details of names, leave, etc. Total of this pay bill shall then be entered in the pay bill for government servants of other classes and the drawing officer shall see that the grand total of the latter agrees with the total amount shown in the fair copy. The “pay of menials” charged to “contingencies” shall not be included in establishment pay bills—See Appendix II. 173. Absentee statement.—The drawing officer shall ordinarily attach an absentee statement in Form T.R. 52 to the monthly establishment pay bill if any person other than a last grade servant has been absent during the month on leave (other than casual leave), or deputation, or suspension, or without leave or if a post has been left vacant substantively, whether or not any government servant officiated in it (c.f. Note 5 on the form itself). When signing the absentee statement the drawing officer shall see that a diagonal line is drawn across the blank space, if any, below the last entry. If no such government servant has been absent otherwise than on casual leave during the month the drawing officer shall sign second certificate printed on the establishment pay bill. Form T.R. 52 also makes provisions for separate

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RULES 173-175

statements of substantive changes in regard to members of the establishment and must, therefore, be filled up and attached to the monthly establishment pay bill, whenever there has been any change that has to be included in these statements of substantive changes, even if there is no entry to be made in the absentee statement proper. When the scale of an establishment is fixed for the State or a District, the controlling authority shall submit to the Accountant General, not later than the date fixed by the latter, a consolidated absentee statement for each month showing the complete chain of arrangements. The head of an office need not attach an absentee statement in Form T.R. 52 to his monthly establishment pay bill so far as it relates to any establishment the scale of which is fixed for the State or a district. 174. First drawal of pay.—When the name of a government servant appointed to a post other than in the last grade service appears for the first time in the pay bill of an establishment, the previous post in government service, if any held by him shall be stated and a last pay certificate attached showing the date of handing over charge advance, outstanding, etc. If he was not holding any such appointment previously or is re-employed after resignation or forfeiture of past service the drawing officer shall furnish a certificate in the bill to the effect that the health certificate required by Rule 13 of Part I, Kerala Service Rules has been obtained from the competent authority and filed in the office. In the case of nongazetted government servant mentioned in Exception to Rule 169 (b) above instead of the drawing officer the Gazetted Officer countersigning the bill shall record the necessary certificate in the bill. NOTE.—Rules 163 (d) to 163 (g) above will apply to non-gazetted establishment also. 175. *Increment.—(a) “A register of increment” will be maintained by the Drawing Officer, in Form 9A prescribed in Volume II of Kerala Financial Code. When an increment is claimed the drawing officer will make a note in red ink against the relevant claim in the pay bill. Increment raising pay to `………………… with effect from ………………….. authorised and noted in the Service book. NOTE.—Also see Articles 89, 90 and 91 of the Kerala Financial Code, Volume I. (b) When an increment claimed, has been specifically withheld/operates to carry the government servant over an efficiency bar/is conditional on the acquisition of departmental tests or completion of the period of probation, a copy of the order issued by the competent authority, sanctioning the increment *Substitution [G.O.(P) 5/75/Fin., dated 3rd January, 1975]

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RULES 175-176

and specifying that the order is fit to cross the efficiency bar/has passed the departmental examination(s) or completed the period of probation satisfactorily, as the case may be, should be attached to the pay bill in each case in addition to the notings required under (a) above. In case the increment claimed involves reckoning of broken periods of service an explanatory memorandum showing briefly how the date of increment has been arrived at, shall also be attached to the bill. 176. Arrear bills.—Arrear pay shall be drawn on a separate bill and not in the ordinary monthly pay bill. The amount of arrears claimed for each month shall be entered separately in the bill with a reference to the bill from which the amount was omitted, or withheld or in which it was recovered by deduction. If the claim relates to an allowance or special pay newly sanctioned, the name of the authority which sanctioned it and the number and date of the sanction order shall be entered in the bill. Arrear bills may be presented at any time subject to the conditions prescribed by the Government in that regard (See Articles *52 to 58 of the Kerala Financial Code) and may include as many items as are necessary. The drawing officer shall certify in every arrear bill that no part of the amount claimed has been drawn previously. A note of the arrear bill shall invariably be made in the office copy of the bills for the period to which the claim pertains, over the dated initials of the drawer of the arrear bill, in order to avoid the risk of the arrears being claimed over again. *This amendment shall be deemed to have come into force on 17th day of April, 1986. NOTE—1

A travelling allowance bill presented after the end of the month succeeding that in which the journeys covered by the claims are performed shall be treated as arrear bill for the purpose of this rule.

NOTE—2

The pay of a person, transferred from one Local Fund or Municipality to another or from government service to service under a Municipality or Local Fund or Vice versa, upto the date of his transfer, should be drawn on a separate bill of the office from which he is transferred and disbursed to him. His pay for the period of joining time and for the rest of the month should be drawn in the pay bill of the establishment to which he is transferred.

*Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]

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RULES 176-177

** NOTE —3 Arrears of pay and allowances, if any, due to a gazetted government servant in respect of a non-gazetted post held by him prior to his promotion to the gazetted post, should be drawn and paid to him by the drawing officer of his last non-gazetted post and a revised Last Pay Certificate issued to the Gazetted Officer concerned with copy to the Treasury Officer. **This amendment shall be deemed to have come into force on 17th day of April, 1986. NOTE —*4

Where arrears of pay and allowances of government servant who is transferred from one Division/Office/Department to another and in respect of whom last pay certificate has been issued has to be drawn and disbursed by the drawing and disbursing officer of the Division/Office/Department to which the government servant is transferred he shall prepared “Due and Drawn Statement” in respect of arrears of pay and allowances of such government servant and send it to the office from which the government servant has been transferred for verification of the claim. The latter office shall check these statements, make entries in their records (i.e., in the office copy of the bills) and return to the concerned drawing and disbursing officer with a certificate to the effect that the arrears relating to the government servant have been noted in the relevant office copies of bills. On receipt of the “Due and Drawn Statement” with the certificates, the drawing and disbursing officer shall prepare the arrear bills of the government servant in the proper form, record the necessary certificate and draw the bill from the Treasury and disburse the arrears to such government servant on proper acquittance. The expenditure on this behalf shall be debited to the budget provisions of the office in which the government servant is serving at the time of drawing the arrears.

177. Private police guards and additional police.—The cost of police guards, whose services are placed at the disposal of private parties is recoverable monthly in advance. The drawing officer who draws bills on the treasury for the charges on account of such guards shall certify on each bill that the full amount due has been recovered from the parties concerned and credited into the treasury and shall attach to the bill a memorandum in Form *Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989] *Addition [G.O.(P) 363/76/Fin., dated 26th November, 1976]

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RULES 177-179

T.R. 54 in duplicate giving particular of the total amount recovered towards the charges included in the bill and the numbers and dates of the chalans under which the amounts were credited into the treasury. The Treasury Officer shall record on both copies of the memorandum certificates of verification of credits in the treasury accounts for the amount stated to have been recovered retain one copy with the bill and return the other to the drawing officer for making the necessary entries in the departmental accounts. The Inspector General of Police, the District Magistrate or any other officer authorised by the Government in this behalf recovers the cost of additional police employed under section 14 of the Madras District Police Act, 1859 section 15 of the Indian Police Act, 1861 and the Travancore-Cochin Police Act not in advance but subsequently. The drawing officer shall attach to the monthly pay bill for any such additional police a memorandum in Form T.R. 55 in duplicate showing the total charges incurred on the additional police and the demand, collection and balance in respect of the recoveries. He shall obtain from the District Magistrate concerned particulars of the recoveries made and credited into the treasury every month, and shall be responsible for seeing, that the necessary demands are issued and the recoveries are made without undue delay. The Treasury Officer shall record on both copies of the memorandum certificates of verification of credit in the treasury accounts for the amount stated to have been recovered, return one copy of the drawing officer and retain the other with the bill. 178. Travelling allowances.—The claims of travelling allowance of clerks and other subordinates who have accompanied an officer on tour or have performed other authorised journeys shall be prepared in Form T.R. 56 [See also article 97(c), Kerala Financial Code]. The treasury shall pay such bills on the receipt of the head of the office, after countersignature by the controlling authority when the head of the office is not the controlling officer, [See also Rules 113 to 116 of Part II of the Kerala Service Rules]. Drawing Officers shall pay special attention to the detailed Instructions and the certificates printed on the travelling allowance bill forms. 179. Special to the Police Department.—The procedure to be followed for payment of the cost of tickets issued on motor bus warrants to Sergeants, Sub Inspectors, Head Constables and Constables in the Police Department who have to travel on duty by motor bus has been laid down in Article 98(c) of the Kerala Financial Code. The bill for the amounts should be prepared in Form T.R. 59.

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RULES 180-182

180. [Omitted] [G.O.(P) 386/80/Fin., dated 18th June, 1980] 181. Other miscellaneous payments to government servants.— Overtime fees.—Every bill on which overtime fees are claimed under the rules in force or with the sanction of a competent authority shall contain a certificate as follows: “Certified— (1) that the government servants for whom overtime fees are claimed in this bill have actually earned them by working overtime; (2) that the periods for which overtime fees are claimed in this bill have been checked with the initial records and found to be correct; (3) that the overtime fees are claimed at rates sanctioned by a competent authority; and (4) that the overtime fees have been taken into account in calculating the income tax to be recovered from the government servants noted in this bill”. When the overtime fees are to be paid out of fees collected from private parties, the drawing officer shall certify on the bill that the prescribed fees payable by private parties on account of the overtime have been realised and credited into the treasury. C. Last Pay Certificate 182. The form prescribed for last pay certificates and the rules according to which they should be prepared, are contained in Appendix 12. A Treasury Officer (or the head of the office in the case of non-gazetted government servant) should on no account disburse any pay or allowances to a government servant to whom he has granted a last pay certificate, unless the certificate is first surrendered. #Exceptions—*(1)In respect of a Gazetted Government Servant deputed to foreign service and in respect of whom Last Pay Certificate has already been issued, arrears of salary, if any, due for the period of his service under the Government shall be paid by the Treasury Officer of the Treasury from where *Addition [G.O.(P) 616/82/Fin., dated 22nd October, 1982] # Substitution [GO(P) 65/83/Fin. dated 4th February, 1983]

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RULE 182

the pay of the employee was drawn prior to his deputation to foreign service, on the basis of specific authorisation issued by the Accountant General. The surrender of Last Pay Certificate already issued shall not be insisted in such cases. The Treasury Officer shall also issued revised Last Pay Certificate to the Foreigner Employer after the disbursement of the arrears through the Accountant General for refixing the officer ’s emoluments in Foreign Service. The outstanding T.A. claims of such an employee shall be paid by the Treasury Officer only after such claims are subjected to †pre-check by the Accountant General. †This amendment shall be deemed to have come into force on 17th day of April, 1986. (2) In respect of a Government Servant other than a Gazetted Officer deputed to Foreign Service, and in respect of whom Last Pay certificate has already been issued, the Head of the Office from where the employee was deputed to Foreign Service shall, draw and disburse the arrears of salary, if any, due to such employee for his period of service under Government, without insisting on the surrender of the Last Pay Certificate already issued. The Head of the Office shall also issue a revised Last Pay Certificate to the Foreign employer after the drawal and disbursement of the arrear salary for refixing the emoluments of the officer, in the Foreign employment. The outstanding travelling allowance claims of such an employee shall be drawn and disbursed in the usual manner by the Head of the Office from where the Government Servant was deputed to Foreign Service. (3) All claims of a retired Gazetted Government Servant whether it relates to salary or travelling allowance ‡for the journeys performed whether before or after retirement shall, be paid by the Treasury Officer only after †precheck by the Accountant General, provided that such †pre-check shall not be required for payment of last salary in respect of those governed by the Kerala Service Rules in which case the procedure outline in sub rule (a) of rule 212 of these rules shall be followed. The surrender of any Last Pay Certificate previously issued, shall not be insisted on in such cases and a revised Last Pay Certificate shall be issued after the disbursement of the arrear claims. †Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989] ‡Insertion [G.O.(P) 208/89/Fin. dated 12th April, 1989]

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RULES 182-186

† This amendment shall be deemed to have come into force on 17th day of April, 1986. (4) The arrears of salary, if any, due to a retired Government Servant other than a retired Gazetted Government Servant, in respect of whom as Last Pay Certificate has already been issued shall be drawn and disbursed in the same manner as regular monthly pay, allowances etc. by the Head of the office from which the Government Servant retired, on the responsibility of such Head Office without reference to the departmental authorities and the Accountant General. The surrender of Last Pay Certificate already issued shall not be insisted in such cases. A revised Last Pay Certificate shall also be issued after the drawal and disbursement of the arrear salary, where necessary. Outstanding T.A. claims of such officers, may also be drawn and disbursed in the usual manner by the head of the office from which the Government Servant retired. NOTE— The term Government Servant used in exceptions (2) and (4) above includes a non-gazetted officer who was drawing the pay and allowances on salary bills countersigned by a gazetted officer having control over him as mentioned in the exception to rule 169 (b). 183. If the emoluments of a government servant upto the date of his transfer to a new post are not drawn before he proceeds to the new post [See sub clause (ii) of clause (d) of article 87 of the Kerala Financial Code] and his emoluments for the whole month are therefore drawn together in the new post, the allocation of the charge between the old post and the new post should be clearly indicated in the bill. The last pay certificate of a non-gazetted government servant should give the information necessary to enable the drawing officer to note the allocation correctly in the bill of the new office. A gazetted or other government servant who draws his own bills is himself responsible for showing the correct allocation of the charge in any bill relating to service in more than one post. 184. [Deleted G.O.(P) 386/80/Fin., dated 18th June, 1980] 185. [Deleted G.O.(P) 386/80/Fin., dated 18th June, 1980] 186. Pensioners.—A government servant who retires on a pension is required to produce a last pay certificate before he can draw his pension for the first time. A last pay certificate should therefore be granted to every government servant who retires on a pension by the Treasury Officer concerned in the †Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]

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KERALA TREASURY CODE

RULES 186-186A

case of gazetted officers and the drawing officer in the case of non-gazetted officers. If a non-gazetted officer is himself the drawing officer his last pay certificate should be countersigned by his immediate superior gazetted officer. The Accountant General will direct, when he issues the order for the payment of the pension, that no payment be made until a last pay certificate has been produced at the treasury where the first payment of pension is made. In cases where the application for pension to the Accountant General is made after retirement, the last pay certificate should be submitted along with the application for pension. 186 A.Notwithstanding anything contained in rule 164 (a), 165 (a) and 432 (a), the pay and allowances of a government servant gazetted or nongazetted, who is certified by a Magistrate to be lunatic should be paid in accordance with the following procedure under the provisions of section 95 (1) of the Indian Lunacy Act, 1912. (1) (a) On receipt of information that a government servant has been certified to be a lunatic, the head of the office in which the government servant, before his being certified to be a lunatic was last employed should on the basis of the orders issued by the appointing authority indicating the person(s) to whom and the proportion in which the pay and allowances admissible to the government servant may be disbursed in accordance with the provisions of section 95 (1) of the Indian Lunacy Act, 1912, draw the pay and allowances of the government servant in the appropriate bill form, gazetted or non-gazetted as the case may be, from the treasury or other office of disbursement. The claim should be supported by all the relevant certificates which the Head of the Office is required to furnish in the normal circumstances. However, in respect of the certificates which solely depend on the personal knowledge of the government servant and which cannot be furnished in such cases, the head of the office should record, if he is satisfied about the reasonableness of the claim a certificate to the effect that the claim is not susceptible of verification but is considered reasonable. If the government servant is invalided from service, the claim would be the last one in respect of him and the requisite payment in case he was a gazetted government servant shall be made only after the head of the office has satisfied himself by the reference to the Accountant General, the department authorities, if any, and his own records, that no government dues are outstanding against him. In other cases payment may be made on the responsibility of the head of the office concerned.

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RULES 186-187

(b) The amount withdrawn in the manner stated above may be paid to the person(s) referred to in sub paragraph (a) above, in the proportion determined by the appointing authority and receipts obtained, stamped, where necessary. (2) Where a government servant has been invalided from service and it is found that some Government dues are outstanding against him even after the adjustment of his claims for pay and allowances, the same may be adjusted against the amount of his death-cum-retirement gratuity, if any, and if the same is also insufficient, the balance of the outstanding dues may be written off under sanction of the competent authority. CHAPTER III CONTINGENCIES AND OTHER MISCELLANEOUS EXPENDITURE

187. (a) “Permanent advances” are granted to certain government servants to enable them to meet contingent charges relating to their offices before drawing bills for the amounts. When a permanent advance is sanctioned it shall be drawn from the treasury on a bill in Form T.R. 42 supported by a copy of the order sanctioning the advance. The several items of contingent expenditure which are met from the permanent advance shall be recorded in one or more registers to be maintained on each office in the form prescribed for the purpose. (b) A gazetted government servant who is the head of an office may draw his office contingent bills. He may also delegate this power to a gazetted government servant serving under him—[See Rule 163 (g)]. A non gazetted government servant who is the Head of an office may draw his office contingent bills subject to the condition that such bills should be countersigned before payment by a gazetted officer in control over him or by the head of the department at the discretion of the latter. *No such countersignature shall be required for the drawal of wages of contingent employees listed in Appendix II by those officers as listed in Appendix 10 Kerala Treasury Code, Volume II. Exception.—(1) The Assistant Educational Officers shall draw rent bills of Government Primary Schools in their jurisdiction; such bills need not be countersigned. *Addition [G.O.(P) 170/81/Fin., dated 13th March, 1981]

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RULE 187

Exception. — *(2) The Assistant Educational Officers shall pass contingent bills relating to petty construction and repair works of primary schools for amounts upto `1,000 without the countersignature by the District Educational Officers. (c) Bills for contingent expenditure that require the countersignature of the controlling authority before payment shall be drawn in Form T.R. 59. The Treasury Officer shall not pay such bills unless they have been duly countersigned. (d) In regard to contingent expenditure that requires the countersignature of the controlling authority after payment, the drawing officer shall present abstract bills in Form T.R. 60 at the Treasury for payment, and send monthly detailed bills in K.F.C. form No. 11 to the controlling authority for countersignature and transmission to the Accountant General. The detailed bills duly countersigned by the controlling officer shall be sent to the Accountant General direct not later than the 20th of the month succeeding that to which the bills relate. In the abstract bills the expenditure shall be classified under the detailed account heads. The numbers assigned to the sub vouchers pertaining to each entry in an abstract bill shall be shown against the entry, and the amount of each sub voucher for more than $ ` 1000 shall be stated. A certificate shall be attached to every abstract contingent bill to the effect that the detailed contingent bills have been submitted to the controlling officer in respect of abstract contingent bills drawn more than a month before the date of that bill. On no account may an abstract contingent bill be cashed without this certificate. **While forwarding the detailed contingent bill to the Accountant General after counter signature by the controlling authority, the Drawing and Disbursing Officers shall attach all sub-vouchers of rupees five hundred and above, therewith. All sub-vouchers below rupees five hundred shall be defaced, and a certificate of having defaced and retained all such subvouchers shall be recorded in the detailed contingent bills by the controlling authority. **This amendment shall be deemed to have come into force on 25th April, 2003. (e) Bills for contingent expenditure that do not require countersignature shall be drawn in Form T.R. 61. The drawing officer shall *Addition [G.O.(P) 102/75/Fin., dated 21st March, 1975] $ Substitution [G.O.(P) 5/84/Fin., dated 3rd January, 1984.] **Substituted the notification issued vide G.O.(P) 80/88/Fin. dated 3rd February, 1988 with G.O.(P) 289/2008/Fin. dated 8th July, 2008.

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RULES 187-188

show full particulars of the charge in the bill, attach to it all sub vouchers for individual payments exceeding $ `1000 and sign the prescribed certificate in regard to the other sub vouchers. 188. The following further directions shall be followed when preparing contingent bills:— (i) The heads of account relating to contingent expenditure, i.e., the sub head of appropriation, the detailed account head, and the descriptive item subordinate to the detailed account head are generally printed in the form prescribed for the purpose, according to the needs of the department concerned. If any such relevant entries have not been printed in a bill form, they shall be entered in manuscript in the bill, and the totals from the contingent registers shall be posted against them. (ii) Full details regarding any expenditure which requires explanation, e.g., miscellaneous charges, shall be entered in the bill, except when they are available in sub vouchers that will be sent to the Accountant General. (iii) As a rule, charges debitable to more than one major head of account shall not be included in a single bill. Separate bills need not, however, be drawn for such charges when they are shared in a fixed proportion by two branches of the same office and are reviewed by the same authority, but the incidence of such charges shall be carefully indicated on the bills, so that the charges may be properly classified in the accounts. (iv) Certain prescribed certificates regarding items of contingent and miscellaneous expenditure of various classes are required on contingent bills and bills for miscellaneous expenditure—[see Rules 181, 187 (d) above and 188 (x) below and also Appendix 4 of the Kerala Financial Code, Vol. II]. Certain certificates of the same kind are also prescribed in departmental manuals or codes or are printed on the form of bills intended for particular departments. (v) Contingent charges that require the special previous sanction of superior authority and those (other than the payment from contingencies) that arise periodically (e.g., rents, rates, taxes, etc.) including those for which a fixed allowance has been sanctioned, shall be drawn on separate bills, which shall show clearly that the charges are of a special or periodical nature. Particulars of the sanction of the expenditure shall be furnished on each such bill. When more than one bill is drawn in respect of expenditure for which a lump sum has been $ Substitution [G.O.(P) 5/84/Fin., dated 3rd January, 1984.]

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RULE 188

granted under a single special sanction, a note shall be made on the second and each subsequent bill of the total amount spent up-to-date under the sanction. NOTE— In the case of contingent bills payable at treasuries on account of rents, rates, taxes, etc., due to local bodies which have a banking account at the treasury, the bill shall be endorsed in favour of the local body concerned irrespective of the amount involved. (vi) The pay and fixed allowances of a member of the staff borne under contingencies who has been declared to be ineligible for pension and actually discharge duties appertaining to one of the classes of staff described in Appendix II whatever his designation may be, shall be drawn on contingent bills. No other pay and allowances of any kind shall be drawn on a contingent bill. (vii) When a permanent advance is running short and payments exceeding the balance have to be made at once, these items too may be included in the bill, entering against them the numbers that the sub-vouchers will bear when the payments have been made—[see also Article 122 (a) of the Kerala Financial Code.] †(viii) When a contingent charge exceeding ` 1,000 is payable to a firm of suppliers, a single party etc., separate contingent bill shall ordinarily be prepared for the amount and endorsed for payment by Reserve Bank Remittances drafts in cases in which the drawing officer concerned is attached to a banking treasury or a treasury having currency chest facility. Where the drawing officer is attached to a non-banking treasury without currency chest, the bill for the contingent charges above ` 1,000 shall be drawn in cash from the non-banking treasury and disbursed to the payee in cash or by money order or by Bank Draft at the expense of the payee. When payment is made by draft, the draft as and when obtained shall be forwarded to the payee. ‡A proper receipt for the amount should be obtained from the party/firm concerned and retained by the drawing and disbursing officer. ‡This amendment shall be deemed to have come into force on 9th October, 1985. Note:—This amendment has been given effect to w.e.f. 9th October, 1985 as per the circular No. 87/85/Fin. dated 9-10-1985 in modification of the contrary contained in G.O.(P)No. 548/87/Fin. dated 23-6-1987. †Substitution [G.O.(P) 548/87/Fin. dated 23rd June, 1987] ‡Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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KERALA TREASURY CODE

RULE 188

*A proper receipt for the amount should be obtained from the party concerned. If the amount involved is above `100 the receipt should be forwarded to the Accountant General. After effecting payment a certificate to the effect that the payment has been made to the proper person and that a proper acknowledgment has been obtained and filed in his office may be sent to the Accountant General by the drawing officer. Whenever a contingent bill is endorsed to a private party, the drawing officer shall, before signing the bill, obtain the specimen signature of the party on the body of the bill which he shall attest before signing the bill. The drawing officer shall simultaneously issue an advice (in Form T.R. 106) to the Treasury Officer [* *] giving full particulars of the bill. The bill must at once be entered in the Contingent Register and a note made to the effect under the initials of the drawing officer that the amount has been drawn. The Treasury Officer should invariably return the duplicate copy of the advice with the date of payment to the drawing officer after payment is made. Where the endorsee wishes to collect payment on the bill through a messenger (other than a banker) the messenger must produce a letter of authority in Form T.R. 103. †The letter of authority should be preserved in non-banking treasuries for 10 years (See Appendix 25 of K.T.C., Vol. II). In the case of grants-in-aid, scholarships, stipends, book allowances, etc. of non-Government institutions including those referred to in Rule 197 (a) the Officers authorised to countersign or pass the bills, shall simultaneously with countersigning or passing of such bills, issue an advice to the Treasury Officer in Form T.R. 105 giving full particulars of the bill. The Treasury Officer should order payment on such bills only after referring to the advices received. Exception.—Grants-in-aid bills pertaining to the pay and allowance of teachers and non-teaching staff of the Aided Schools referred to in Rule 197 (a) do not require the advice referred to. NOTE— [Omitted] [G.O.(P) 669/79/Fin., dated 30th July, 1979] (ix) The amount of the bills to be paid by book transfer shall not be included in the body of the bill itself but only in the memorandum of appropriations, expenditure and balance at the foot of the bill. * Addition [G.O.(P) No. 12/75/Fin., dated 6th January, 1975] ** Omitted [G.O.(P) 20/81/Fin., dated 8th January, 1981] †Addition [G.O.(P) No.147/74/Fin., dated 25th June, 1974]

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KERALA TREASURY CODE

RULES 188-191

(x) Supply of water.—Expenditure incurred on the supply of water to offices should be restricted to what is really necessary. The drawing officer should attach a certificate in the following form to every contingent bill which includes such charges:— “Certified that the expenditure on watermen for the supply of water has been scrutinised and is necessary”. 189. [Deleted] 190. Works expenditure charged as contingent expenditure.—Bills for charges on account of petty works and repairs allotted to departments other than the Public Works Department shall be drawn in Form T.R. 62. The name of the work, the serial number of the bill in the series of bills for that work, the number and date of the last bill, the number and date of the order sanctioning the work and the amount of the sanctioned estimate shall be entered on each such bill in the spaces provided for the purpose. Each item of charge shall be fully described and details furnished where necessary, as to the rates and quantities. All sub-vouchers for individual payments exceeding $ ` 1000 shall be attached to the bill. If it is not possible to furnish full details of the charges with the necessary sub-vouchers when drawing the bill, they shall be furnished within one month in a bill headed “Not payable at the treasury” with the necessary sub-vouchers attached. When a bill contains a charge for labour engaged departmentally the drawing officer shall certify that the amount charged was paid on muster rolls maintained in accordance with the rules to labourers who actually worked on the work. These muster rolls shall be submitted to the Accountant General, if he calls for them. In the case of contingent employees for whom no muster rolls are maintained, disbursing officer concerned shall furnish a certificate as follows:“Certified that all contingent employees whose pay has been charged in this bill were actually entertained in Government service during the period concerned.” 191. Renting of private building for office and residential purposes.— (a) When claiming the first charge for rent in every year, for a private building to provide office or residential accommodation the drawing officer should attach to the bill, a certificate from the Executive Engineer, Buildings and Roads having territorial jurisdiction over the area, that a suitable Government building was not available. (b) When claiming the first charge for rent for the first year, the drawing officer should attach to the bill, a certificate from a competent authority in the P.W.D. (Buildings and Roads) under whose jurisdiction the building is situated that the amount of rent fixed is reasonable, having regard to the local conditions and the scale of accommodation provided. $Substitution [G.O.(P) 5/84/Fin., dated 3rd January, 1984.]

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RULE 191

(c) When the building rented is in a municipality the first bill on which the rent is drawn should also be supported either by a letter from the Executive Authority of the Municipality stating what amount he considers to be a reasonable rent for the building, such amount being not less than the rent charged in the bill or by an order of the Head of the Department sanctioning the payment of the rent, if the rent is higher than that recommended by the Executive Authority of the Municipality. The first bill on which the rent is drawn in each subsequent year should also be supported by a certificate of the Executive Authority of the Municipality, that the rent charged is reasonable, or by an order of the Head of the Department sanctioning payment of the rent. This requirement is in addition to the certificates by the other authorities mentioned above. NOTE 1—For the purpose of this rule, the following officers of the P.W.Department (Roads and Buildings Branch) are competent to issue rent certificates for the amounts noted against each in places where there is no Rent Controller. (i) Chief Engineer (ii) Superintending Engineer (iii) Executive Engineer

..

Any amount

.. do. .. Rent not exceeding ` 200 per mensem (iv) Assistant Engineer .. Rent not exceeding ` 50 per mensem NOTE 2—In the case of departments, in which a Civil Engineering Unit is functioning, the certificate of reasonableness of rent, issued by officers, exercising the powers of their counterparts in the P.W.D. may be accepted. The non availability of Government Buildings even in these cases should be certified by the Executive Engineer of the Division concerned. NOTE 3—In cases where the rent of building occupied is ` 10 or below, the Head of the Department may certify that no Government building is available and that the rent charged is reasonable. In such cases no certificate need be insisted from the officer of the P.W. Department. NOTE 4—No annual renewal of certificate of reasonableness of rent need be insisted, if the same department occupies the same building

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PART V

RULES 191-195

continuously at the same or lower rate of rent. If however the occupation of the building prolongs over 3 years, the Head of Department should furnish a certificate that there has been no reduction in rental value of buildings in the locality. This certificate should be attached to the first bill for rent after the expiry of the period of 3 years. Unless the periods of lease have been specified in the original sanction it is not, however, necessary to revise sanction for the continued occupation of the same buildings in subsequent years. 192. *Service postage stamps.—The Service Postage Stamps required for an office shall be purchased from the respective Head Post Offices on payment. The amount required for this purpose shall be drawn from the Treasury/Bank by means of contingent bills, by bill drawing officers and cheques, by cheque drawing officers. *This amendment shall be deemed to have come into force on the 1st day of October, 1985. 193. Discount on stamps.—The discount on stamps allowed to certain class of vendors under the rules framed under the Kerala Stamp Act, 1959 is credited to them by deduction from the purchase money to be paid by them for stamps. Receipts in Form T.R. 64 should be taken for the payment of the discount, besides the indent on the treasury for stamps. It is the duty of the Treasury Officers to see that the discount has been correctly calculated. They should certify to this effect in the subsidiary schedule of receipts on account of stamps sent to the Accountant General with the monthly accounts. The full face value of the stamps should be shown as a credit in the stamp accounts and the discount shown separately as a payment. 194. [Omitted] [ G.O.(P) 386/80/Fin., dated 18th June, 1980] 195. Recovery of amounts attached by courts.—When any moneys due by the Government to any person, otherwise than as pay and allowances of a government servant, are attached by a prohibitory order of a court of law, the government servant responsible for making the payment shall give effect to the court’s order, unless he has reason to think that the amount payable is exempt from attachment, in which case he shall report the matter to the Government for orders before making the payment. *Substitution [G.O.(P) 82/88/Fin. dated 3rd February, 1988]

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KERALA TREASURY CODE

RULES 195-196

When the attachment relates to an amount for which a bill has to be drawn on the treasury, the treasury and the department concerned shall, in giving effect to the court’s order follow the same procedure as that prescribed in Rule 211 for deducting from the bill and remitting into court an amount attached from a government servant’s pay and allowances. When the attachment relates to an amount which has to be disbursed by means of a departmental cheque, the procedure laid down in Rule 442 shall be followed. (Please See note after the first paragraph of Rule 208 in the case of attachment on Personal Deposit Accounts). 196. Grants in lieu of magisterial fines.— (a) The Government make grants to the local funds and private bodies concerned on account of the fines that magisterial courts levy under certain enactments and credit to the Government (See Article 327 of the Kerala Financial Code). The grants payable to the Trivandrum and Calicut Corporations and other local funds and to private bodies shall be paid annually on the basis of the amount realised in the previous year. Departmental registers showing fines collected shall be maintained by the District Magistrates. The amount due on account of the files collected in each financial year shall be paid early in July, in the following year. (b) *The District Magistrate shall draw bills in form T.R. 61 annually for grants payable on account of magisterial fines to local funds and private bodies. A consolidated bill of all panchayats coming under the jurisdiction of the District Treasury shall be prepared for the payment to be made at the District Treasury concerned and presented at the District Treasury along with a copy of the order sanctioning the payment, and a detailed statement showing the particulars of annual credits, the refunds made during the year, the amount deducted as expenditure on account of the services of processes and batta to witness and the net amount due to each local fund or private body concerned. He shall state against Municipalities, Port Funds, Port Trust Funds that the amount are to be credited by book transfer in the banking accounts of the respective local fund at the treasury. The District Treasury Officer, on receipt of the bill, shall transfercredit the amount to the Personal Deposit Accounts of the panchayats concerned and send intimation to the respective sub treasuries for raising the balance in the banking Personal Deposit Accounts maintained at the sub treasuries. The Treasury Officer shall then send advice to the District Magistrates for the purpose of intimation to the local fund authorities. Separate bills shall be prepared by the District Magistrate in respect of the private bodies falling under the jurisdiction of *Substitution [G.O.(P) 221/77/Fin., dated 13th July, 1977]

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KERALA TREASURY CODE

RULES 196-197

different District Treasuries. In such cases the District Magistrate shall furnish his specimen signatures and observe other formalities as required under the rules. For every payment of this kind to a local fund, exceeding $ ` 1000 made in the banking account of the local fund at the treasury or sub treasury, the Treasury Officer/Sub Treasury Officer shall obtain receipt to be sent to the Accountant General. NOTE— In the case of institutions which are not having accounts with the treasuries, the District Magistrate shall prepare a bill separately for such institution and present them at the treasury, in which the District Magistrate is a drawing officer, along with money order form duly filled up or application for R. B. R. as the case may be. (c) The District Magistrate shall draw in cash the amounts payable to panchayats and the branches of the society for the Prevention of Cruelty to Animals and send them to the authorities concerned by money order at their expense. If, however, there is a treasury or sub treasury at the headquarters of the authority concerned, or if it has servants of its own, the Treasury or Sub Treasury Officer shall intimate to it the amount due and state that, unless the amount due is collected within a month, it will be sent to it by money order at its expense. When such amounts are sent to the authorities concerned by money order, the money order receipts shall be treated as vouchers. Exception—Payments due to branches of the society for the Prevention of Cruelty to Animals, which are at the headquarters of districts, may be made by endorsement of contingent bills in accordance with the procedure laid down in Article 128 of the Kerala Financial Code [See also Rule 188 (vii) above]. 197. (a) Educational grants-in-aid, scholarships, stipends and book allowances.—When claiming payments due by the Government to a non Government institution under these heads, the Correspondent, Manager or Headmaster of the institution shall prepare bills in form T.R. 114, and furnish particulars of the orders sanctioning each payment. The bill for a grant-in-aid requires the countersignature of the government servant specified in the sanction, and shall be accompanied by a duplicate in coloured form headed “Not payable at the Treasury”. The head of a Government institution shall prepare bills in Form T.R. 114, for the scholarships, stipends and book allowances sanctioned for his institution and furnish particulars of the order sanctioning each payment. $Substitution [G.O.(P) 5/84/Fin., dated 3rd January, 1984.]

157

RULE 197

KERALA TREASURY CODE

PART V

The following procedure shall be adopted for the drawal and disbursement of salary of teachers and non-teaching staff of aided schools:— *(i) On the 20th day of every month the Headmaster shall prepare in triplicate an establishment bill for the salaries of teachers for that month in accordance with the sanctioned strength and the rates of pay allowed and forward the same to the Assistant Educational Officer/District Educational Officer concerned, as the case may be, attaching the undermentioned enclosures to the duplicate bill only. Other enclosures, if any, to be attached to the bill such as Provident Fund Schedules, Family Benefit Scheme Schedule shall be enclosed with the original and duplicate bills: (a) Absentee statement

..

In duplicate

(c) Last Pay Certificate, wherever necessary

..

do.

(d) Combined statement of demand, collection and balance of fee income for the period from the 21st of previous month to the 20th of the current month in the prescribed form.

..

In duplicate

(b) **[Omitted]

(e) Triplicate copies of the chalan for the remittance of the fee collection into the Treasury from the 21st of the previous month to the 20th of the current month. .. (f)

do.

A manuscript certificate in the bill itself signed by the Headmaster as follows:

“Certified that the tuition fees collected from the 21st day of the previous month to the 20th day of the current month have been remitted into the Treasury.” *This amendment shall be deemed to have come into force on the 4th day of February, 1975. *Substitution [G. O. (P) 209/88/Fin. dated 9th March, 1998] **Omission [G.O.(P) 1065/92/Fin. Dated 14th December, 1992]

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KERALA TREASURY CODE

RULE 197

**(ii) The Controlling Officer, i.e., the Assistant Educational Officer or the District Educational Officer, as the case may be, shall carefully check and pass the bill after satisfying himself that the fee income due to Government has been remitted into the Treasury and return two copies of the bill (the original and the duplicate with enclosures) duly signed (countersigned in the case of Secondary and Training Schools) to the Headmaster within three days of their receipt in his office with the following manuscript certificate in the original bill for encashment. “Certified that all the documents required for audit have been enclosed with the duplicate bill”. The triplicate copy of the bill shall be retained in the office of the Controlling Officer (with other enclosures) with information that “all the documents required for audit have been enclosed with the duplicate bill”. **This amendment shall be deemed to have come into force on the 4th day of February, 1975. †(ii A) NOTE—If the Headmaster in whose favour the bill is endorsed for payment by the Assistant Educational Officer or the District Educational Officer, as the case may be, desires that the amount of the bill should be paid to some other persons employed in his school, he shall append a letter of authority authorizing such person to receive the proceeds of the bill duly attesting the signature of such other person. The bill shall be paid by the Treasury/the Bank to the person so mentioned in the letter of authority at the risk of the Headmaster of the Institution concerned. †This amendment shall be deemed to have come into force with effect from 6th day of April, 1985. †NOTE:—This amendment has been given effect to w.e.f. 6th April, 1985 so as to make it inclusive of the provisions in G. O. (P) 205/85/Fin. dated 6-4-1985. (iii) The Headmaster will disburse the salaries to the teachers immediately on encashment and get their acquittance in the acquittance roll register and also in two more copies (loose sheets) in the same form. The two copies signed also by the Headmaster should be sent to the controlling officer **Substitution [G. O. (P) 209/88/Fin. dated 9th March, 1988] †Addition [G. O. (P) 1065/92/Fin. dated 14th December, 1992]

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KERALA TREASURY CODE

PART V

RULE 197

with an encashment statement as in the form given below within three days from the last date of disbursement of the money. Any failure to disburse the amount as above if the failure is due to the fault of the Headmaster, or to remit into the treasury the fee collection within two days of collections will be dealt with as defalcation of Government money. ENCASHMENT STATEMENT Name of School etc. 1. Bill No. 2. Period of claim 3. Amount 4. Date of passing 5. Date of encashment 6. Name of Treasury 7. Date of disbursement and amount 8. Balance of undisbursed amount (Signature of the Headmaster) (iv) The procedure outlined above will be adopted mutatis mutandis in the case of the pay of the non-teaching staff also. (b) When the head of an institution prefers a claim on account of Government scholarships granted through the Harijan Welfare Department, he should prepare a bill *in the Form T.R. 114 or in the Form prescribed by the concerned department, with the approval of the Government and send it to the District Welfare Officer for the district concerned. The District Welfare Officer should check the bill and countersign it if he is satisfied that it is in order. If the institution is situated at a place where there is a treasury, he should then return the bill duly countersigned to the head of the institution for encashment at the treasury and disbursement of the amount to the scholars. If the institution is situated at a place where there is no treasury, the District Welfare Officer should cash the bill and remit the amount to the head of the institution at the Government’s expense for disbursement to the scholars. *Substitution [G.O.(P) 553/79/Fin., dated 19th June, 1979]

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PART V

KERALA TREASURY CODE

RULES 198-200

198. Statement of amounts due to the Government by a local body.— Any amount due to the Government by a local body, including an amount due on account of a loan which it has taken from the Government shall, if it remains unpaid be subject to recovery by adjustment from grants payable to it by the Government other than those payable under the provisions of a statute. A statement showing all the amounts due to the Government by the local body and remaining unpaid shall be presented at the treasury along with every bill on which a local body claims payment of a non statutory grant-inaid. Out of the grant payable to the local body, the Treasury Officer shall credit to Government the amount shown in the statement of amounts due by it or the whole of the grant, whichever is less, and he shall credit the local body’s account only with the balance of the grant, if any. The treasury shall send the statements of amounts due by local bodies prescribed above to the Accountant General along with the bills. 199. Compensation awarded by courts out of fines to injured parties.— When a court orders the payment to an injured party of an amount kept in deposit in the treasury which was awarded to him as compensation out of a fine imposed in criminal case, it shall certify on the order either— (1) that the sentence and award have been confirmed by the appellate court and no order has been received from the court of revision reversing or modifying the order of compensation, or (2) when the order as to compensation has been modified in appeal or revision, that the payment ordered is in conformity with such modification, or (3) that the appeal time has expired and no appeal has been preferred, and that no order has been received from the court of revision reversing or modifying the order of compensation. 200. Refunds of revenue.—Bills for drawing moneys from the treasury on account of refunds of revenue shall be prepared in Form T.R. 65 unless some other form has been prescribed in regard to any particular class of such refunds. Every refund shall be noted against the original receipt entry in the departmental accounts. The government servant who is responsible for the maintenance of the departmental accounts containing the original receipt entry shall certify on the bill that the refund has been so noted and shall fill in columns (1) to (5) of the Form. The Treasury or Sub Treasury Officer shall not

161

PART V

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RULE 200

pay any such bill unless particulars of the order of sanction of a competent authority are furnished on the voucher and a certified copy of the order is attached to it if no copy is separately communicated to the Accountant General. A government servant who draws a bill for a refund of revenue shall certify on the bill that the restrictions prescribed by the Government in regard to time limits for claims for refunds (See Article 44 of the Kerala Financial Code) have not been contravened. The certificate shall be in that one of the alternative forms provided for the purpose in the form of refund bill (Form T.R. 65) that is appropriate in each case. When he is himself the sanctioning authority, he shall also certify on the bill that the refund claimed satisfies the conditions, if any, prescribed in the departmental rules and administrative orders; in other cases, this certificate shall be furnished by the competent authority in the order of sanction. Unlike sub-vouchers for contingent charges, sub-vouchers relating refunds of revenue shall not be cancelled. The Treasury or other Officer, who disburses the amounts by money order or otherwise, shall forward to the Accountant General for audit all sub-vouchers, however small the amount involved. The Secretary, Kerala Public Service Commission, however, shall, in respect of the amounts drawn by him from the District Treasury, Trivandrum for remittance by money order to the parties, send only a certificate of disbursement to the Accountant General retaining the money order receipts with him. NOTE

1—Refunds of land revenue.—Revenue Inspectors are required to make refunds of land revenue, when necessary, during their tours. Each Revenue Inspector should estimate the amount that he is likely to require for the purpose each month and apply to the Tahsildar for the necessary funds. The Tahsildar should check the amount with the published list of excess collections that the Divisional Officer has authorised him to refund, draw the required amount on a bill containing details of the items included and send it to the Revenue Inspector. The Revenue Inspector should submit the receipts obtained from the payees to the Tahsildar, who should attach them to the bill submitted to the Treasury Officer in support of the charge in the sub treasury account. The Revenue Inspector should refund to the sub treasury by the date of closing its monthly account any part of

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the amount drawn and sent to him that he has not disbursed and any amount that he so refunds should be deducted at the foot of the refund voucher on which the amount was originally drawn. Jamabandi Officers are also required to make such refunds, when necessary, and should obtain the amount required from the Tahsildar concerned. The Tahsildar should draw a sum equal to the excess collections to be refunded in respect of the villages to be dealt with at each Jamabandi camp and hand it over to the Jamabandi Officer before he starts work at the camp. The Jamabandi Officer should make the refunds to claimants who are present at the camp and return any undisbursed balance to the Tahsildar together with the payees’ receipts before leaving the camp. NOTE

2—Refunds on account of stamp.—When a refund has to be made on account of spoilt or damaged stamps (other than stamps received back from a vendor), the Tahsildar should draw a bill in Form T.R. 66 and obtain the payee’s receipt on it. If the order of sanction of the competent authority is not recorded on the bill itself, a certified copy of the order should be attached to the bill.

NOTE

3—Refunds of process and poundage fees by courts of law.—Refunds of process and poundage fees should be treated as refunds, of stamp revenue. The court should make such refunds, when necessary, from its permanent advance and recoup its permanent advance by drawing a contingent bill headed “Refund of process and poundage fees” on the treasury at the end of each month. It should attach to every such bill at the relevant refund vouchers in the form prescribed by the High Court containing the signatures of the payees in token of having received the amounts refunded. When a refund has to be made after a process has been transmitted for service from one court to another, the refund order should be forwarded for payment to the Judge of the court in which the process fees have been deposited.

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NOTE 4—Refunds of registration fees.—A registering officer should make refunds of registration fees, when necessary, from his permanent advance and recoup his permanent advance by drawing a contingent bill headed “Refund of registration fees” on the treasury. He should attach to every such bill all the relevant refund vouchers in Form T.R. 65 containing the signatures of the payees in token of having received the amounts refunded. NOTE

5—Refunds of excess receipts on account of advertisements in the Gazette and other official publication.—The Superintendent, Government Press, should meet in the first instance from his permanent advance refunds of excess receipts on account of advertisements in the Kerala Gazette and other official publications, and subsequently recoup the permanent advance by presenting bills at the District Treasury, Trivandrum. These bills should be supported by money order acknowledgments of the parties concerned.

NOTE

6—Refunds of college and examination fees.—When any college fees have to be refunded under the rules and orders in force, the Principal of the College should draw a bill for the amount to be refunded, attach to it the order of a competent authority sanctioning the refund and present it at the treasury for payment. If an examination fee or a part of such fee has to be refunded, the government servant who received the fee (the Secretary, Kerala Public Service Commission, or the Commissioner for Government Examinations or the Text Book Officer) should endorse a certificate on the original receipt for the fee, specifying the amount to be refunded. The person who paid the fee should present the receipt so endorsed for payment at the treasury which issued the receipt. When the fees payable by more than one candidate in a school have been remitted into the treasury in a lumpsum and a single collective receipt issued and a part of the amount has to be refunded, the procedure laid down in Rule 200 above should be followed.

NOTE

7—Refunds of fines.—When a appellate court or court of revision, other than the High Court, reverses or reduces a sentence of

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fine on appeal, it should issue a refund order in the form prescribed by the High Court. When the High Court reverses or reduces a sentence of fine the court which passed the original sentence should issue a refund order on receiving the High Court’s certificate under section 425 and 442 of the Code of criminal Procedure in regard to its order on appeal or in revision. NOTE 8—Refunds of salestax and agricultural income-tax.—Refund of sales tax and agricultural income-tax shall be claimed in Form 49 of Kerala General Salestax Rules and the form prescribed in rule 32 A of the Agricultural Income Tax Rules, respectively. When a refund is sanctioned, the assessing authority concerned, shall forward a refund order in the relevant form mentioned above, to the party concerned, simultaneously giving due intimation to the Treasury Officer regarding the issue of refund order. The refund order shall be made payable only at the treasury in which the original credits have been made. The Treasury Officer shall verify the original credits noted in the refund order and put his initials in the column provided for the purpose in the refund order, as token of having checked them. The refund order shall be passed for payment, only after verification of the credits, as mentioned above. 201. Loans and advances.—Particulars of the order sanctioning the loan or advance shall be furnished in every bill or other document on which a loan or advance is drawn. In the case of a loan sanctioned to fully owned Government Company/ Corporation, a written undertaking in the form prescribed by the Government in that behalf should be got executed before the loan is actually disbursed. A certificate that the written undertaking has been obtained from the loanee should be recorded by the countersigning authority on the bill for the drawal of the amount of the loan. In cases where the bills for drawal of loan amounts are not required to be countersigned by the sanctioning authority, the following procedure shall be followed in regard to furnishing/execution of the undertaking by the loanee institutions. The sanction should specifically state that the undertakings/agreement would be furnished executed by the loanee before the drawal of the amount of loan. It should also include a clause that the Accountant General/Disbursing Officer

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would authorise payment only on the receipt of a certificate from the sanctioning authority that the undertaking/agreement has been obtained from the loanee. The sanctioning authority should ensure that the requisite certificate is furnished to the Accountant General/Disbursing Officer as soon as the undertaking/agreement is received from the loanee, so that payment of money is not unduly delayed.The sanction of a competent authority to a personal advance may, if preferred, be obtained in the form of countersignature on the bill itself before it is presented at the treasury, instead of in a separate order. The treasury shall not pay a bill for an advance under the head “Advances to cultivators” (See Article 246 of the Kerala Financial Code) unless it is signed by an officer who has power to sanction the advance. If it is presented at the treasury duly signed together with the borrower’s receipt for the amount of the advance, duly stamped when necessary, the treasury shall pay the amount direct to the borrower or his duly authorised agent. As an alternative, an officer who has to disburse advances may draw on his own receipt on an abstract bill such portion of the amount of the sanctioned advances awaiting disbursement as he is likely to require for payment to the borrowers during his tours. When this latter alternative is adopted, the Collector shall prescribe for each officer concerned, with due regard to the circumstances, a maximum amount which he may draw on such an abstract bill, and the following rules shall be observed:(1) No disbursing officer shall cash another abstract bill, before furnishing a detailed bill to account for the disbursements from the amount drawn on the last abstract bill and refunding into the treasury any balance remaining undisbursed. A disbursing officer who cashes an abstract bill shall under no circumstances delay the submission of the corresponding detailed bill beyond the end of the second month following that in which he cashed the abstract bill. (2) The disbursing officer shall take the receipts of the borrowers or their duly authorised agents on the spot when he disburses the advances and shall certify at the foot of the detailed bill that all the advances included in it were paid in his presence. (3) The Collector shall retain the borrowers’ receipts and after checking the detailed bill with them, shall forward it to the Accountant General through the Treasury Officer in support of the debits appearing in the treasury account.

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NOTE— In the case of advances granted to cultivators by officers of departments other than Revenue, the Government may, by special order, entrust the duties of the Collector under the above rule, to the district heads of the departments concerned. In the absence of any such special order, such duties shall be done by the Collector of the District in respect of ‘advances to cultivators’ granted by officers of other departments also. 202. Survey Department Bills.—Bills for temporary advances sanctioned for survey parties for demarcation purposes shall show the state of the advance for which a statement showing the amount drawn up-to-date, the amount covered by recovery lists advised to the Collector and the balance available should be attached to each bill. Bills for amounts due to contractors for survey stones and other charges recoverable from ryots shall be in the forms prescribed in the departmental manuals or orders. No bill for an amount due to a contractor for survey stones shall be paid, unless both the contractor and the survey officer-incharge of the survey party have signed it and the survey officer has certified on it that the stones bought for use as survey marks have been brought into the stock registers and the necessary notes regarding payment made in order to prevent payment of any second claim on the same account. 203. Bills for survey charges in the Revenue Department.—The Tahsildar shall, when necessary, draw bills for advances for replacing missing boundary marks in the form prescribed in the Standing Orders of the Board of Revenue and shall attach to each bill for the cost of survey stones both the contractor’s receipt for the amount and the acknowledgment of the village officer who took charge of the stones. They shall prepare the necessary bills in due course for adjusting these charges in the manner laid down by the Government and shall certify on each such bill that the amount charged to the Government under cost of survey marks has been checked and found to be correct. 204. Repayment of deposits.—Every order issued by a court or other authority for the repayment of a deposit from a treasury shall be in English. The order of a court or other authority for the repayment of a deposit and the voucher for such repayment shall be in Form T.R. 67 except when some other form has been specially prescribed for the purpose for any class of deposits. When only a part of a rupee is to be repaid, the space against the words “rupees” shall be scored through or the word “nil” shall be written in it, in order to prevent interpolation. As a safeguard against fraud, the authority

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which orders the repayment shall enter the name of the payee after the words “Passed for payment” thus; “Passed for payment to…………..” the authority revalidating an order of repayment which lapsed under the provisions of Rules 207 and 237 (3) shall verify that a note of repayment over the initials of the authority ordering the repayment has been made against the original entry in the check register. Deposits, the detailed accounts of which are not kept at the treasury and which are credited to the Government under Article 296 of the Kerala Financial Code, Volume I, cannot be repaid without the sanction of the Accountant General who will authorize payment on ascertaining that the item was really received and was carried to the credit of Government as lapsed and that the claimant’s identity and title to the money are certified by the Officer signing the application for refund. *Deposits, the detailed accounts of which are kept at the treasuries and which are credited to the Government under Article 296 of Kerala Financial Code, Volume I, may be refunded without the sanction of the Accountant General. The Treasury Officer shall before authorising refund in such cases, ascertain that the item was really received and is traceable in his records was carried to the credit of Government as lapsed and was not paid previously and that the claimant’s identity and title to the money are certified by the officer signing the application for refund. 205. Repayment of revenue deposits.— (a) A revenue deposit should only be repaid on an order of the court or authority which ordered the acceptance of the deposit. When an earnest money deposit has to be repaid, the departmental government servant in whose favour the amount was deposited, should endorse a repayment order on the receipt which the treasury issued when receiving the deposit. When, however, he decides that the deposit should be credited to the Government, he should return the receipt to the treasury with an order endorsed on it for payment by transfer to the appropriate head of account. (b) When an earnest money deposit made by intending tenderer in another State has to be repaid, the departmental officer concerned should arrange for the repayment through the Accountant General and for this purpose he should forward to the Accountant General the original deposit receipt of the Treasury Officer with the refund order duly endorsed thereon. (c) When a deposit is to be transferred to another head of account whether at the district treasury or at a sub treasury, the government servant who ordered the acceptance of the deposit should prepare and sign a voucher in Form *Substitution [G.O.(P) 136/74/Fin., dated 13th June, 1974.

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T.R. 69 and send it to the treasury. If several items of the same nature are to be transferred on the same day, they may be included in one voucher, but transfers to be effected on different days should not be entered on the same voucher. (d) [Deleted] 206. Repayment of civil courts deposits.— (a) At stations where the treasury does not transact its cash business through the Bank.—A person who claims that any moneys are due to him from a court should present a receipt for the amount to the court with his application. If the claim is in order, the court should issue an order to the treasury for the payment in Form T.R. 70 specifying the date on which the order is issued, the amount to be paid and the account to which the payment is debited. The receipt taken from a party for a sum paid out of the court should, when filed in the court, be attached by gum to the office counterfoil of the original order book. The claimant should present the order at the treasury in the account month in which it is issued or, if he fails to do so, should return it to the court, which may re-issue it after the presiding Judge has re-dated it and initialed the correction. When an order is thus re-dated and re-issued, the further date should be entered in the office counterfoil of the original order book. (b) At stations where the treasury transacts its cash business through the bank.—The procedure for obtaining payment of moneys due from these courts is the same as that described in the preceding clause, except that the court should compare the application with the entry in the register of receipts and verify that the balance in deposit is sufficient to meet the payment before issuing an order on the bank for payment of the amount and that the order should be issued in Form T.R. 71. (c) At stations where there is no treasury or where the treasury is located at a great distance from the court.— The civil court should refund the moneys claimed from the permanent advance and recoup the permanent advance later by drawing contingent bills on the treasury, supported by the relevant individual deposit repayment vouchers duly completed. 207. Repayment of revenue deposits and criminal court’s deposits.— An entry should be made on every order for the repayment of a revenue deposit or a criminal court deposit stating that no payment will be made on it after the close of the financial year in which it is issued or three months from the date of issue, whichever is earlier.

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208. Repayment of personal deposits.—The treasury should make payments only on cheques taken from a cheque book issued by the treasury, signed by the responsible administrators of the personal deposit account and presented within three months from the date of issue. The Treasury or Sub Treasury Officer, as the case may be, should see that no payment is made on any cheque unless the balance in hand is sufficient to meet it. As a rule, the responsible administrator of each personal deposit account should have a drawing account with, and draw cheques, on either a district treasury only or any one sub treasury only. The Government will specify the treasury or sub treasury on which he should draw cheques in the order sanctioning the opening of the personal deposit account. If an administrator has to carry out transaction in more than one district, Government may permit him to have a personal deposit account in each of them. When a personal deposit account relates to an estate which has dealings with more than one sub treasury in a district, its drawing account should be with the district treasury only and Government drafts or cash orders should be obtained for payments to be made at sub treasuries [See Rule 213 (a) below]. If an estate, the drawing account of which is kept at a sub treasury, requires occasionally to have payments made at the district treasury, the Treasury Officer may make the payments and adjust them in his accounts for the estate; he should inform the Sub Treasury Officer at once of any such payment, so that the necessary entries may be made in the personal deposit account of the estate. NOTE 1—[Deleted] [G.O.(P) 362/76/Fin., dated 25th November, 1976] NOTE

2—If a government servant attaches an estate or part of an estate he is the “responsible administrator” of it and should sign the cheques relating to it. If, however, the attaching officer is the District Collector it is permissible for him to delegate this power to a Revenue Divisional Officer, if he wishes; if he does so, he should inform the Treasury Officer and the Accountant General at once.

NOTE

3—*When a prohibitory order is received from a Court attaching a certain amount from a personal deposit account maintained in the Treasury, the Treasury Officer shall withdraw the said sum including M.O. commission, if necessary, from the personal deposit account concerned by presenting a bill in form T.R. 42 duly signed by him and arrange remittance of the amount to the Court concerned in the usual manner. The Treasury Officer shall intimate the Administrator of the personal deposit account as and when the attachment order is effected.

*Substitution [G.O.(P) 362/76/Fin., dated 25th November, 1976]

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NOTE 4—The Examiner of Local Fund Accounts and Treasurer of Charitable Endowments, Trivandrum may delegate to any of the gazetted officers in his office at Trivandrum his powers to operate on the account in the District Treasury, Trivandrum styled ‘Personal Deposit Account of the Treasurer of Charitable Endowments.’ NOTE

5—When a personal deposit account is opened in the Treasury with reference to Note 2 under Rule 93 of these Rules the head of the institution concerned (Principal of the College or a similar head of a post-matric institution other than a college) is the “responsible Administrator” of that account. If the institution is situated at the headquarters of a district or anywhere in the taluk in which the district headquarters is located the drawing account shall be in the District Treasury and in other cases the drawing account shall be in the sub treasury at the headquarters of the taluk in which the institution is situated unless specifically ordered otherwise by the Director of Treasuries.

NOTE

6—The administrator of each personal ledger account shall furnish to the Treasury Officer, at the close of each financial year, a certificate of acceptance of the closing balance as worked out in the Treasury Accounts, after reconciling differences, if any, between the Treasury Accounts, and the Administrator’s Accounts. The Treasury Officer shall not permit withdrawals from the Personal Deposit Account after 31st May of any year unless and until the closing balance certificate in respect of the previous financial year has been received by him.

209. Special to the Forest Department.—In the Forest Department only the Divisional Forest Officer has power to order the payment of an earnest money deposit. He should do so, when necessary by endorsing his orders on the treasury receipt. No such deposit should ever be repaid in part leaving a balance still in deposit.

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SECTION II Procedure in Treasuries CHAPTER I TREASURIES WHICH DO NOT TRANSACT THEIR CASH BUSINESS THROUGH THE BANK

A. District Treasuries 210. (1) A bill or other documents presented for payment at a District Treasury shall be received and scrutinized in the Accounts Department and then placed before the Treasury Officer. If he is satisfied that the claim is admissible, the authority good, the signature genuine and in order, and the receipt a valid discharge, the Treasury Officer shall sign and order for payment at the foot of the bill, or other document. After the bill, or other document has been completely entered in the accounts and Treasury Officer has signed the order to pay, it shall be sent to the treasurer’s Department and the payee shall be directed to the Treasurer’s counter. The Treasurer shall make the payment and enter it in his account, which is a cash book (without subsidiary registers) in which each cash transaction is posted as it occurs. The Treasurer shall punch the stamp, if any, affixed to the payees receipt, stamp the document ‘paid’ and retain it for delivery of the Accounts Department when the books are compared. All bills and other documents passed for payment on any day shall be paid on the same day and no payment shall be made otherwise than in accordance with a written order of the Treasury Officer. NOTE

1—In treasuries where the “token system” has been introduced the instructions issued in that regard should be strictly adhered to.

NOTE

2—*In respect of treasury savings bank cheques presented for encashment, the Treasury Officer or the Officer authorised for the purpose will examine the cheque and the amount thereof and after satisfying himself that the claim is admissible, affix rubber stamp “Pay Cash” on the face of the cheque and put his dated signature in token of his order of payment. Necessary entries regarding the amount withdrawn will be made in the savings bank ledger account and the cash scroll simultaneously by the Officer who passes the cheque. When the payment is

*Insertion [G.O.(P) 303/73/Fin., dated 23rd July, 1973]

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made by the Treasurer, he will affix rubber stamp “Cash Paid” and affix his dated signature in the cheque after passing necessary entries in his cash book. NOTE

3—** Bills sent to Treasuries through messengers should be endorsed by the drawing officer in the name of messengers. The signature of the messenger shall be taken on the bill itself,—

(i) in the drawing office, when it is endorsed in the messengers name, duly identified and attested by the drawing officer; (ii) at the Treasury Counter before payment is obtained, (In cases where more than one bill is paid to a messenger at one and the same time it is enough if the signature of the messenger is obtained in any one of the bill, as the messenger’s signature is obtained for the purpose of identification of the payee only); (iii) the messenger should acknowledge receipt of the bill amount and discharge the claim before token is obtained from the Treasury. (2) In checking bills and making payments, the Treasury Officer shall observe the following rules:— (a) The Treasury Officer shall not make any payment without obtaining adequate information as to its nature, and shall not accept any bill or other document which does not formally present this information, unless there are valid reasons, which he shall record in writing, for not insisting that the information be shown in the bill or other document (See Rule 21, Part I of these Rules). He shall make sure, that he will be in a position to satisfy the Accountant General that the claim made in every bill that he pays is valid and to prove to him that the payee actually received the amount of the bill. He shall also check carefully, that the rules regarding the completion of vouchers and the endorsements on bills have been observed. (b) Before paying a bill on the authority of an order purporting to have been issued by the office of the Accountant General, the Treasury Officer shall, in addition to checking the bill in the usual manner, verify the signature on that order by comparison with the specimen signature of the signing officer furnished to him by the Accountant General. ** Addition [G.O.(P) 626/81/Fin., dated 29th September, 1981]

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A bill *pre-checked or passed by the Accountant General and enfaced for payment at a Treasury or an authorisation issued by the Accountant General for non-recurring payments due to a gazetted government servant such as fees, honoraria, etc., should not be paid if it is presented at the treasury three months after the date of enfacement or authorisation as the case may be: Such bills or authorisations for payments debitable to traveling allowance, contingencies, grant-in-aid scholarships, stipend etc., passed for payment and issued in one financial year shall not be paid after the close of that year evenif three months have not elapsed since the date of enfacement/ authorisation. In all such cases where the period of validity, is over, the bills/ authorisations should be returned to the Accountant General by the Treasury Officer with a non payment certificate for cancellation of the enfacement/ authorization, if fresh sanction or allotment of funds is necessary or for revalidation of the *pre-checked enfacement/authorisation as the case may be, by the Accountant General. *This amendment shall be deemed to have come into force on 17th day of April, 1986. (c) The Treasury Officer shall not accept any document bearing an erasure. He shall return any bill, or other document bearing an erasure and inform the drawer that he may present a fresh one. If documents bearing erasures are received frequently from any office the Treasury Officer shall bring the fact to the notice of the head of that office. (d) The Treasury Officer shall correct any arithmetical inaccuracy or obvious mistakes in a bill, presented to him for payment, but shall intimate to the Drawing Officer at once any correction which he makes (See Rule 22, Part I of these Rules). Similarly when a bill contains any inadmissible or doubtful item which can easily be eliminated, the Treasury Officer shall disallow it, pay the reminder of the bill, give the person who presented the bill a memorandum containing details of the disallowance and the reasons for making it, and attach a copy of the memorandum to the bills. When there is a change in the office or rate of pay of a gazetted government servant, the Treasury Officer shall check the bill, in which the new rate of pay is first claimed with reference to the order directing the change, before he passes it. When the special authority of the Accountant General is required under rule 175 above for passing an increment, the Treasury Officer shall not pay the increment, unless an increment certificate approved by the Accountant General or by an authorised assistant on his behalf is attached to the bill. *Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]

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Treasury Officer shall check the correctness of any deduction made in a bill with reference to the Indian Civil Service Family Pension Regulations or the Superior Service (India) Family Pension Fund Rules. NOTE— Every treasury should keep a register in Form T.R. 72 showing the names of all gazetted government servants who draw their pay from it. As soon as each pay slip issued by the Accountant General is received, the amount stated in it should be entered against the name of the government servant concerned. Whenever the pay bill of a gazetted government servant is presented for payment, reference should be made to this register to see that the rate claimed does not exceed the sanctioned rate. Whenever last pay certificate is issued to a gazetted government servant, the word “nil” together with the date from which payment at the treasury has ceased should be written in the money column of the register against his name and the number and date of the last pay certificate should be quoted. Every entry made in this register should be submitted immediately to the Treasury Officer for attestation by his dated initials. $(e) The Treasury Officer shall use a book of counterfoil forms in Form TR 73 for communicating to drawing officers objections raised in the course of pre-audit of bills and other claims. Such objections shall not be written as endorsement on the bills themselves. A list of objections that are commonly found necessary to be raised in the course of pre-audit of bills and other claims is furnished in Appendix 27. When a bill or other claim is to be objected, the relevant item of objection in Appendix 27 should be fully written up in the original and counterfoil of Form TR. 73 in the blank space above the space for signature of the Treasury Officer. The list in Appendix 27, is not exhaustive. If the objection to be raised is one not included in Appendix 27 that may also be written fully with the relevant authority for the objection in the blank space above the space for the signature of the Treasury Officer. (f) When checking arrear claims, the Treasury Officer shall pay special attention to the rules laid down by the Government in regard to suchclaims (See Articles 61 to 68 of the Kerala Financial Code). $ Substitution G.O.(P) 385/83/Fin., dated 11th July, 1983]

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(g) When an endorsement or re-endorsement on a bill is unauthorised, incomplete or otherwise irregular [See Rule 163 (p), 166, 167 and clause (c) of this rule] the Treasury Officer shall refuse payment and return the bill to the person who presented it with a memorandum explaining why payment is refused. (h) The Treasury Officer shall on no account pay any abstract bill for contingent expenditure requiring countersignature after payment, in which the drawing officer should have furnished the certificate prescribed in the sentence of rule 187 (d) but has not done so. (i) When contingent bill endorsed in favour of a private party is presented at the Treasury for payment, the Treasury Officer shall check the particulars of the bill with the advice received from the drawing officer before making payment. When a single claim for an amount of `50 or more is included in contingent bill for several items, the Treasury Officer may honour the bill provided the drawing officer has recorded in the bill the special and exceptional reasons for doing so. If the bill is in order and is paid, he shall make a note accordingly on the advice and return the slip in Form T.R. 45 accompanying the bill duly filled in. The same procedure will apply in the case of bills for grants-in-aid, scholarships, stipends and book allowances referred to in rule 188 (viii). After payments is made, the Treasury Officer should return the duplicate copy of the advice to the drawing officer noting therein the date of payment. An endorsement on a contingent bill shall lapse three months after the date of the endorsement, or at the end of the financial year, whichever is earlier, and the Treasury Officer shall not pay an endorsed contingent bill if the endorsement has lapsed. (j) The Treasury Officer shall not pay any contingent bill for an amount less than one rupee, except on the last working day of the month or when the drawing officer is about to hand over charge. (k) Before paying a bill for overtime fees payable out of fees recovered from private parties, the Treasury Officer shall verify that the prescribed fees have been realised and credited into the treasury and certify to that effect on the bill, stating the amount of the fees realised and the item or items in the accounts in which they were included. (l) The Treasury Officer shall not pay any bill relating to scholarships or stipends, unless the sanctioning authority has communicated to him the necessary sanction for the payment.

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RULE 210

(m) The Treasury Officer shall not pay a bill for a loan or interest bearing advances to gazetted and non-gazetted government servants unless the claim is drawn or countersigned by the officer specified in the sanction order and a certified copy of such sanction order is attached to the bill. The signature of the departmental officer should be verified at the treasury before the bill is passed for payment. The Treasury Officer shall not pay a bill for a loan to fully owned Government Company/Corporation unless the countersigning authority has furnished a certificate on the bill to the effect that a written undertaking in the form prescribed by the Government for the purpose has been obtained from the loanee, or in cases where the bill is not required to be countersigned by a departmental authority, unless the sanctioning authority has furnished the above certificate separately to the Treasury Officer as required in Rule 201. However, if the bill for such a loan is presented at the Treasury on the basis of an authorisation from the Accountant General, the furnishing of this certificate need not be insisted by the Treasury Officer as in such cases, the certificate is to be furnished to the Accountant General direct and the authorisation will be issued by the Accountant General only on receipt of the certificate. (n) Before paying a Survey Department bill referred to Rule 202 the Treasury Officer shall satisfy himself with reference to the statement attached to the bill that the amount applied for can be met from the balance of the advance standing to the credit of the survey party. (o) The Treasury Officer shall make payment on a refund bill only after verifying the credit for the original receipt by means of the particulars in columns (4) and (5) of the bill (Form T.R. 65) affixing his signature in column (6) in token of his having done so and certifying on the bill that the items included in it have not been refunded previously. (p) A deposit shall only be repaid under an order of the authority which originally ordered the acceptance of the deposit and ordinarily, only on the appearance of the person entitled to it and on his furnishing a proper receipt. A deposit not exceeding ` 100 may however, be repaid by money order under the rules applicable to refunds of revenue (See also Rule 216 below) on receipt of the order of the competent authority. The Treasury Officer shall credit to the Government any deposit or balance of a deposit amounting to less than fifty paise which is due for refund. If a valid claim for repayment is subsequently received, the repayment shall be treated as a refund of revenue.

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Exception—The limit of ` 100 prescribed in the above rule for the issue of money orders shall not apply to refunds of deposits made under the Co-operative Societies Act and to surcharge on a stamp duty levied under section 71 of the Kerala Panchayat Act, 1960 (Act 32 of 1960), section 125 of the Kerala Municipalities Act, 1960 (Act 14 of 1961), section 133 of the Calicut City Municipal Act, 1961 (Act 30 of 1961), and the orders in G.O.(Ms.) 101/62/DD, dated 15th February 1962. (q) When a claim is presented for repayment of a revenue deposit, the Treasury Officer shall compare the refund order of the Court or other authority, which directed the acceptance of the original deposit, with the entry in the register of receipts. If the amount in deposit is sufficient, he shall take the payee’s receipt, make the payment and immediately record the amount and the date of the repayment in the register of payments (Form T.A. 14 of the Kerala Account Code, Volume II) and also in the register of receipts. If there is not a sufficient balance at the credit of the particular item to meet the payment ordered, the Treasury Officer shall endorse that fact on the refund order and return it to the person who presented it. An earnest money deposit shall never be repaid in part. (r) *Refund orders under Section 63, 66, 67, 68, 69, 70 or 71 of the Kerala Court Fees and Suit Valuation Act, 1959 (Act 10 of 1960) shall be issued to the party either in Form T.R. 65 or in Form No.70 of the Civil Rules of Practice, Kerala. In all cases in which such refund is made in cash, a deduction of seven paise for each rupee or fraction thereof shall be made, except in cases when the refund pertains to any fee paid in pursuance of an order of court which has been varied and reversed in appeal. The authority ordering the refund shall specify in the refund order in Form T.R. 65 or Form No. 70 of the Civil Rules of Practice, Kerala, as the case may be, the amount if any, to be deducted at seven paise per rupee or fraction thereof and the net amount payable to the party. The refund order shall also contain the particulars of the suit and the party should have signed the order in token of having received payment before presentation of the order at the Treasury. Such orders can be endorsed to a messenger who shall also receive the payment as aforesaid. While making any such payment the Treasury Officer shall observe, with special care, the precautions in rule 214 below in regard to payments to persons not in Government service. *Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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RULES 210-211

(s) The Treasury Officer shall not make payment on a refund order that has lapsed under the rules (See Rules 206 and 207 above). (t) The procedure in regard to payment of interest on different forms of Government securities shall be regulated by the rules and orders on the subject contained in the Government Securities Manual and any other rules or orders issued by the Government in this behalf. (u) Letters of credit.—(1) Every payment made on the authority of any letter of credit must be noted without fail, at the time of payment either in the appropriate register of payments or on the reverse of the letter of credit. (3) The Treasury Officer must bear in mind that the letter of credit shows the maximum amount he has authority to pay or the Departmental Officer credited has authority to ask for and that any further payment is made at the Treasury Officer’s own risk, the balance of credit after each payment must therefore be so recorded that there can be no risk of over payment. 211. (a) The Treasury Officer shall deduct from a bill for the pay, etc., of a gazetted government servant (or a non-gazetted government servant who is permitted under Rule 169 above to draw his pay, etc., on bills in the forms prescribed for gazetted Government servants) any amount attached by a prohibitory order of a Court of Law. He shall remit to the proper courts, in accordance with the procedure prescribed below, all amounts deducted from the pay, etc., bills of government servants on account of court attachment orders, whether deducted by himself or by the drawing officer. No such amounts may be remitted to the court by cash order or Government draft. *NOTE 1—If an order of attachment against a gazetted government servant (or a non-gazetted government servant who is permitted under rule 169 above, to draw his pay, etc., on bills in the form prescribed for gazetted government servants) is received before a previous order of attachment against the same government servant has been fully complied with, the recoveries shall be made by the Treasury Officer so long as the total amount recoverable with reference to the attachment orders is within the maximum limits prescribed in Article 102, Kerala Financial Code, Volume I. *Insertion [G.O.(P) 7/75/Fin., dated 3rd January, 1975]

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RULE 211

NOTE 2—If the new attachment order has the result of increasing the amount beyond the maximum limits prescribed, the Treasury Officer shall return the attachment order to the Court concerned with a statement showing— (i) particulars of the existing attachment; (ii) particulars of the amount withheld and paid into the court concerned up-to-date in respect of the existing attachment; and (iii) (a) the balance amount available to be recovered after effecting the existing attachment. (b) the actual attachable amount. (1) When the court is located at the headquarters of the treasury which cashes the bills.—The Treasury Officer shall clear the amounts deducted, once a month, by payment to the court in cash. When making the payment, the Treasury Officer shall send to the court a covering memorandum together with the original advice list prepared by the drawing officer [See Rule 163 (j) above] for each deduction made by a drawing officer and an advice list prepared by the treasury for each deduction made by the Treasury Officer. (2) When the court is not located at the headquarters of the treasury which cashes the bills.—The Treasury Officer shall remit each amount deducted to the proper court, at once, by postal money order in the manner indicated below:(i) When the Treasury Officer himself makes the deduction from a bill, he shall prepare a money order form for the amount in favour of the court, deduct the money order commission as well as the amount to be remitted from the bill, pass the bill for the net amount and then send the money order form to the post office for issue, furnishing a certificate that he has credited to the post office by book transfer the amount of the money order together with the money order commission due on it. (ii) When the drawing officer has made the necessary deduction from a bill under Rule 163 (j) above, the Treasury Officer shall credit the amount deducted to the post office by transfer and send the money order form to the post office for issue, furnishing a certificate as prescribed in sub-clause (i) above. When he receives the receipt furnished by the post office for the money order, he shall check it with the amount deducted from the bill and then transmit it to the drawing officer for record.

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RULES 211-212

NOTE— A similar procedure shall be adopted in the case of attachment of salary of a government servant under the provisions of the Revenue Recovery Act. (b) It is possible that a government servant whose emoluments have been attached, may refrain from signing the acquittance roll and intentionally allow them to remain undisbursed, or if he is a government servant who draws his pay on a separate bill, may refrain from presenting his bill at the treasury in order to evade or delay the recovery of an amount attached by a court. If a Treasury Officer has received a court attachment order relating to the emoluments of any government servant who draws his pay on a separate bill and that government servant does not present his bill for pay due for the previous month by the third working day of the month, the Treasury Officer shall at once bring the facts to the notice of the government servant immediately superior to the government servant whose emoluments have been attached. When he considers it necessary in order to avoid delay in recovering an amount attached by a court from the emoluments of a government servant working under him, the head of the office, or, in the case of a government servant who draws his pay on a separate bill, the administrative government servants immediately superior to the government servant whose emoluments have been attached, may draw the emoluments of the government servant concerned to the extent to which they have been attached, subject to the prescribed restrictions and apply the amount so drawn in satisfaction of the attachment order by remitting it to the court. The amount so drawn shall be charged in the accounts, and the particulars of the attachment order shall be entered in the acquittance roll or the bill, as the case may be, as an authority for the charge. The money order receipts received from the courts shall be filed with the attachment register. NOTE— The Treasury Officer should maintain a register in Form 4A of Kerala Financial Code to record the details of prohibitory orders received from courts and the recoveries effected by him in pursuance thereof. 212. (a) The Treasury Officer shall, subject to the usual checks at the treasury, make payment of the last pay and allowances of a regular gazetted government servant governed by the Kerala Service Rules who finally quits the service of the government on retirement, resignation, removal or dismissal or is placed under suspension, on the strength of a certificate from the Head of the Department as follows:

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PART V

RULE 212

# “I certify that there is no outstanding liability/arrangements have been made *to recover the amount of `………….............………… (Rupees …….........................................……) towards assessed liabilities other than compulsory deductions like House Buildings Advance, Motor Conveyance Advance in the monthly bills, from the arrears of pension and/ or death-cum-retirement gratuity*/to withhold from the death-cum-retirement gratuity the estimated amount of outstanding liability plus 25 per cent thereof amounting to `……................……….. (Rupees …………..............................…….) */to accept a cash deposit of ` ………...…(Rupees…………..........…………)/or a surety bond for ` ……………………. (Rupees ……………............………..) towards unassessed liabilities or to withhold the entire death-cum-retirement gratuity of ` ……..……… (Rupees……...………………..) when departmental proceedings have been taken*, from/against Shri………………… employed as ……………………………… and retired/ …………………………….......…on......…………………… *Delete portion inapplicable. Signature(withdate)…………….... Station ……………

Designation……………………”

The bill claiming the last pay and allowances shall be presented to the Head of the Department who shall attach to the bill the aforesaid certificate and transmit the bill to the treasury of payment under intimation to the government servant. (b) The disbursement of last pay and/or allowances of those gazetted officers who are governed by service rules other than the Kerala Service Rules of those who are not entitled either to pension or death-cum-retirement gratuity such as contract officers, provisionally appointed persons of nonofficials like Members of the Legislative Assembly, Members of Committees and Commissions, etc., and of re-employed pensioners whose death-cumretirement gratuity has been released, shall be made only after *pre-check of the claim by the Accountant General. The Treasury Officer should satisfy himself with reference to the certificate regarding liabilities if any, from the countersigning authority or the Head of Department as the case may be, the orders of the Accountant General and the treasury records (including rent # Substitution [G.O.(P) 547/87/Fin. dated 23rd June, 1987] * Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]

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RULE 212

demand statements, advices for recovery for loss of government property due to the negligence of the government servants, Court attachment orders, co-operative recoveries, etc.,) that no demands are outstanding against them to the Government. *This amendment shall be deemed to have come into force on 17th day of April, 1986. (c) The last payment of pay, allowances, etc., to any other government servant in any of the circumstances mentioned in clause (a) above, may be made in the same manner as the regular monthly pay, allowance, etc., without reference to the departmental authorities and the Accountant General on the responsibility of the Head of the Office. **Exception.—In the case of officers in the cadre of Personal Assistant to the District Educational Officers and above, the authority to countersign the last salary bills shall vest with the Senior Administrative Officer of the Office of the Director of Public Instruction and in the case of officers in the cadre of Headmaster/ Assistant Educational Officer/Senior Superintendent and of those having identical scales of pay in the Department the authority shall vest with the Deputy Director of Education. NOTE 1. —The term ‘government servant’ used in clause (c) includes a non-gazetted officer who draws his pay and allowances on salary bills countersigned by a gazetted officer in control over him as mentioned in the exception to Rule 169 (b) and in his case the responsibility for payment will be that of the gazetted officer countersigning his salary bill. NOTE 2. — When an amount found to be due to a government by a government servant on any of the occasions mentioned in the previous clauses represents (a) over payment of his pay, allowances or leave salary, (b) house rent or postal and State Life Insurance premia due by him, or (c) an outstanding balance in respect of any advance made to him by the government, it shall be adjusted against the last pay and allowances or leave salary due to him. If the amount due to the government exceeds the amount payable to the government servant * Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989] ** Insertion [G.O.(P) 187/2005/Fin. dated 25th April, 2005]

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RULES 212-212A

as aforesaid the excess shall be recovered from his claim for deathcum-retirement gratuity after giving the officer concerned a reasonable opportunity to explain [Vide Note 2 and Ruling No.25/ 68 below rule (3) of Part III, K.S.R.]. If the amount proposed to be recovered exceeds the death-cum-retirement gratuity the excess over the death-cum-retirement gratuity, can be recovered from the arrears of pension, if any, due to the officer if written consent is obtained from him as pension (as distinct from deathcum-retirement gratuity) enjoys the protection of the Pension Act. A written consent is valid only to the extent it covers the amount of pension earned by him till the date of such written consent. If there is balance still to be recovered from the government servants steps shall be taken to proceed against him in a Court of Law unless the Executive Authority concerned considers that it is not worthwhile to adopt that course. NOTE 3. — The certificate from the Head of Department indicated in subclause (a) above shall be in triplicate. The original copy shall be sent to the Accountant General for safe custody along with the pension papers of the gazetted government employee prepared by him; the duplicate shall be attached to the bill and the triplicate filed by the Head of Department. 212 A. Claims of deceased government servants.—In the case of claims of a deceased government servant, on receipt of the claims for the payment of arrears of pay and allowances from his/her heir/heirs the Head of Office in which the government servant was last employed should draw the amount in the appropriate bill form from the Treasury according as the deceased government servant held a gazetted or non-gazetted post at the time of his death. The claim should supported by all the relevant certificates which the Head of the Office is required to furnish in the normal circumstances. However in respect of the certificates which solely depend on the personal knowledge of the government servant, but which obviously cannot be furnished by the Head of the Office, the Head of Office should record, if he is satisfied about the correctness of the claim, a certificate to the effect that “the claim is not susceptible of verification; but is considered reasonable”. Further, as the claim would be the last one in respect the deceased government servant, the requisite payment in the case of a government servant whose pay is drawn on a gazetted government servant’s bill form, shall be

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RULES 212A-213

made only after the Head of the Office has satisfied himself by reference to the Accountant General, the Departmental authorities concerned if any, and his own records that there are no demands outstanding against him. In the case of other government servants, payment may be made without reference to the Accountant General on the responsibility of the Head of the Office concerned. The amount so withdrawn should be disbursed to the claimant or claimants determined with due regard to the provisions of Article 95 of the Kerala Financial Code, Volume I, after obtaining a formal receipt, stamped wherever necessary, from the rightful claimant or claimants. 213. *(a) A Treasury Officer may issue either a draft or a cash order for the purpose of defraying service expenditure from a Sub Treasury in his district in exchange for properly prepared bills. In the case of non banking Sub Treasuries, cash orders may also be issued in the following cases, namely:(1) for the payment of collections of one court into another; (2) for the payment of land acquisition charges (land compensations) originally credited under Revenue Deposit/ Work Deposit into the account of a court in another Sub Treasury within the same District. Sub Treasury Officers may accept remittances under the head of “Cash Orders” under personal deposits, for the purposes mentioned above and grant to the remitter a receipted chalan in Form T.R. 88A. The Sub Treasury Officer shall transmit the duplicate chalan to the District Treasury in a separate cover on the same day (not with the daily accounts) for the disbursement of cash or for the issue of a cash order, as the case may be. The District Treasury Officer, on receipt of the original chalans from the payer, shall debit the item to “Personal Deposits”, “Cash Orders” and pass it for payment of cash if it is payable at the District Treasury, or issue a cash order if payable in another Sub Treasury. The conditions under which a draft can be issued are explained in the rule in Part VI of these Rules, one of which is that the minimum amount for which a draft can be issued is `50 except in special circumstances, such as family remittance in the case of Officers and men of the Police Department. For amounts below this minimum, cash orders in Form No. T.R. 87 are to be issued on any desired Sub Treasury within the district. * Substitution [G.O.(P) 41/77/Fin., dated 31st January, 1977]

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RULE 213

Exception 1.—Cash orders may be issued even for sums over `*50 in the case of payments to be made at the Sub Treasuries which have no currency chest facilities and cannot, therefore, act as Treasury Agencies of the Reserve Bank of India and issue drafts. Exception 2.—Cash orders will be issued, irrespective of the amount and whether the treasuries drawn on are banking or non-banking with or without currency chest facilities, for the pay and allowances for the non-gazetted personnel of the Police Department. Exception 3.—A cash order may be issued by a Treasury Officer in exchange for a cheque drawn on the District Treasury by a Presiding Officer of a Land Tribunal (in whose name a P.D. account is maintained at the treasury) if so desired by the Presiding Officer, irrespective of the amount involved, the nature of the Sub Treasury on which the cash order is drawn (i.e. banking or non-banking with or without currency chest facilities) and the purpose of the remittance. The following rules shall be observed in connection with the issue of cash orders:— (i) When the Treasury Officer passes for payment a bill or other document which is payable in full at a single Sub Treasury, he shall not issue a cash order, but shall endorse the bill or other document for payment at the Sub Treasury. An endorsement of this kind shall remain current, like a cash order for three months only. A cheque drawn by the administrator of an estate on his personal ledger account at a District Treasury for an amount required at a Sub Treasury shall not, however, be endorsed for payment at the Sub Treasury. The Treasury Officer shall retain it, treating it as paid at the District Treasury, and issue a cash order on the Sub Treasury. (ii) The Treasury Officer shall not issue a cash order for the remittance of amounts due to private parties, such as decree amounts, costs, sale proceeds of attached estates and the like. Such remittances are not in the interest of the public service and shall, therefore, be made by postal money order at the expense of the parties entitled to receive the amounts. * Substitution [G.O.(P) 279/73/Fin., dated 17th May, 1973]

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RULE 213

(iii) The Treasury Officer shall use cash order forms in the order of the numbers printed on the books, and shall use one book, at a time for issuing cash orders on all Sub Treasuries. He shall inform all Sub Treasuries when he begins to use a fresh book. He shall have the orders issued on each Sub Treasury numbered in separate annual series, and these numbers shall be noted below the number of the book printed on cash order. Both the numbers which appear on each cash order shall be quoted in the lists of paid orders furnished to the Accountant General. (iv) The directions laid down in Rule 253 below, regarding the custody of cheque forms supplied for drawing cheques on treasuries shall apply also to the custody of cash order forms. (v) When a cash order is issued, the Treasury Officer shall assign serial number to the order and enter the amount and other particulars in the appropriate register prescribed in the Kerala Account Code, Volume II. An advice in Form T.R. 88 shall then be sent by first post to the Sub Treasury drawn upon and the cash order handed over to the person tendering the money or the bill against which the order is issued. (vi) On receipt of the advice of a cash order from the Treasury Officer, the Sub Treasury Officer shall immediately enter the particulars in register in Form T.A. VII of the Kerala Account Code, Volume II and when a cash order is presented the advice register must be consulted before payment; the cash order with the receipt endorsed will be the voucher for the payment, which must be noted at the time in the advice register. NOTE—The adjustment of cash order will be watched at the treasury in accordance with the directions contained in the Kerala Account Code, Volume II. (vii) A cash order shall lapse three months after the date of issue if not cashed within that time. Payment of a lapsed cash order shall be stopped, and the charges, which it represent, shall be cancelled and adjusted. If payment is subsequently claimed, the claimant shall be required to forward the lapsed cash order to the Treasury Officer, who shall arrange for the payment and make a note against the relevant entry in the cash order ledger Form T.A. 16 in the Kerala Account Code, Volume II so as to prevent any possibility of making a second payment.

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RULE 213

*NOTE—The following procedure shall be followed in the case of claims for payment of a lapsed cash order:— The original cash order shall be presented at the Treasury from which it was issued by the Head of Office who drew the bill in payment of which the cash order was issued, duly endorsing on the reverse “Payment received in cash” or a fresh cash order obtained on……………….. Treasury as the case may be. The Treasury Officer shall treat the cash order as voucher and pay the amount to the officer either in cash or in the form of a fresh cash order as required by the drawing officer. In both cases, the payment shall be debited in the treasury accounts under the service head debiting which the original cash order was issued. If payment is made in the form of a fresh cash order the amount shall also be credited simultaneously under “Personal Deposit Cash Orders”. The original item which appeared in the statement of lapsed cash orders referred to in Article 115, Kerala Account Code, Volume II and the month of cash account with which the statement was forwarded to the Accountant General under Article 120 of Kerala Account Code shall be quoted on the lapsed cash orders while effecting payment in the above manner. For payment of a lapsed cash order sanction of the Accountant General is not ordinarily required. But, if payment is claimed after the period specified under clause (a) of Article 53 of the Kerala Financial Code for the payment of a claim without pre-audit from the date of issue of the cash order, the claim shall be referred to the Accountant General for audit and sanction. (viii) When it is reported that a cash order has been lost or destroyed within three months from the date of issue, the Treasury Officer shall follow the procedure indicated in Rules 410 to 412 of Part VI of these Rules for the issue of duplicate draft. If a duplicate cash order is issued, it shall lapse three months after the date of issue of the original, if not cashed within that time. (b) A Sub Treasury Officer shall not issue any cash order unless, for special reason, he is authorised to issue cash orders in any case by a general or special order of the Government. If, for special reasons, a Sub Treasury Officer is authorised to issue cash orders on the District Treasury or any Sub Treasury in the same district the procedure shall be the same as that prescribed for the District Treasury. *Addition [G.O.(P) 654/81/Fin., dated 15th October, 1981]

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RULES 213-214

NOTE.—Cash orders for co-operative societies remittances may issue from the District Treasury to the Sub Treasuries and vice versa and from Sub Treasuries or other Sub Treasuries within the districts. 214. Payments to persons not in Government service.—When a person not in government service claims payment for a service rendered or supply made, the Treasury Officer shall observe the following rules:— (a) He shall refuse payment, if the bill is not drawn or countersigned by the Head of the Department or other responsible government servant, under whose immediate order the service was rendered or the supply made and shall inform the applicant for payment that he may either present a bill so drawn or countersigned, or apply to the Accountant General for the issue of an order for payment. If the bill is so drawn or countersigned but the Treasury Officer considers that the authority of the drawing or countersigning officer is not sufficient for making the payment he shall refuse payment and inform that Officer that he may refer the matter to the Accountant General. (b) He shall invariably take special precautions to satisfy himself as to the identity of the applicant for payment in respect of any bill drawn by a person who is not a government servant or drawn by a government servant and endorsed for payment to a private party. (c) When a bill endorsed for payment to a contractor or supplier is re-endorsed by him in favour of a bank, the Treasury Officer shall not pay the bill, unless the contractor or supplier has receipted the bill and also signed a separate endorsement in favour of the bank. NOTE— Payments due to contractors may, if so desired by them, be made to their Banks instead of direct to contractors provided that, the department concerned obtains; (1) an authorisation from the contractors in the form of a legally valid document such as a power of attorney or transfer deed conferring authority on the Bank to receive payment, and (2) the contractor’s own acceptance of the correctness of the account made out as being due to him by Government or his signature on the bill or other claim preferred against Government before the settlement of the account or claim by payment to the said Bank. While the receipt given by the Bank will constitute a full and sufficient discharge for the payment, contractor should, wherever possible, be induced to present their bill duly receipted and charged through their Bankers.

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RULES 214-218

Nothing herein contained should operate to create in favour of the bank any right or equity vis-à-vis the Government. 215. Payment of pensions.—The procedure to be followed by treasuries in paying pensions is detailed in the rules in Section IV of this part. 216. (a) Payment of endorsed bills.—When a bill is endorsed or endorsed and re-endorsed strictly in accordance with the provisions of Rule 163 (q) above, and the payment is duly made to the person specified in the endorsement or re-endorsement and his signature duly taken in acknowledgment of the payment, the drawing officer’s signature on the bill is a valid discharge. (b) Payment by postal money order.—When the drawing officer desires that the whole or part of the amount of a bill, other than a bill relating to the claims of Government servants be sent to some other person by postal money order and has made the necessary deductions in the bill, the Treasury Officer should pass the bill for the net amount, credit the deductions by transfer to the Post Office and send the money order form to the Post Office with a certificate stating that he has credited the amount of the money order with the commission due on it to the Post Office by book transfer. He should obtain an individual receipt from the Post Office in respect of each such money order, check it with the amount deducted from the bill and transmit it to the drawing officer for record. 217. When the Government have authorised the head of an office to send bills of specified kind to the treasury by post the Treasury Officer should remit to the drawing officer by postal money order the amount passed for payment (less the money order commission) in respect of each such bill duly sent to the treasury, and should treat the money order commission as a contingent charge of the drawing officer. 218. Refunds of revenue and deposits.—The Treasury Officer or other disbursing officer concerned should observe the following directions in regard to amounts not exceeding `100 due for refund from revenue or from deposits:(i) Subject to the exceptions described in direction (ii) below, the Treasury Officer or other disbursing officer concerned should remit to the person entitled to the refund any amount not exceeding `100 that is due for refund by postal money order at the expense of the payee on receipt of a refund order passed by the competent authority, without any avoidable delay,

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RULE 218

and, in any case, within one month from the date of the refund order, without waiting for an application from the payee. In rare cases, where he feels that it would be risky to send the amount straight away to the person entitled to it by postal money order, the Treasury Officer or other disbursing officer may issue a notice inviting the payee to appear and receive payment in person at the treasury or other office concerned, and inform him that, if he fails to appear within one month (or such longer period as may, when necessary, be specified), the amount to be refunded will be remitted to him by postal money order at his expense. (ii) Any amount not exceeding 12 P. which is due for refund and any amount exceeding 12 P. which is due for refund and is payable to several parties in sums not exceeding 12 P. each should be credited to the Government. Any amount exceeding 12 P. but not exceeding 50 P. which is due for refund and any amount exceeding 50 P. which is due for refund and is payable to several parties in sums not exceeding 50 P. each (and not all below 12 P.) should remain credited to the Government unless a claim is preferred by the person entitled to the refund, in which case the amount to be refunded to him should be sent to him by postal money order at his expense unless he appears in person to make his claim and takes payment in person. (iii) When the Treasury Officer sends an amount by postal money order with reference to these directions, he should follow the procedure laid down in Rule 216 (b) above for sending money orders. He should state briefly the purpose of the remittance in the acknowledgment portion of the money order form in continuation of the printed entry “ Received the sum specified on the reverse on ………………………………….” leaving sufficient space below this manuscript entry for the payees’ signature or thumb impression. When he receives the money order acknowledgment duly signed by the payee, he should attach it to the usual form of receipt (Form T.R. 67) in which he should show clearly the full amount of the refund and the deduction made from it on account of the money order commission and then dispose of it as a paid voucher in the usual way. (iv) The Treasury Officer should issue postal money orders with reference to these directions only in the first half of the month, so that he may be able to send complete vouchers for the payments with the monthly treasury account.

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KERALA TREASURY CODE

RULES 219-221

219. Repayment of civil courts deposits.—Before the Treasury Officer pays an order of a civil court for the repayment of deposit, he should require the person who presents the order to acknowledge receipt on the reverse of the order. If that person is not the person named in the court’s order, he should be required to satisfy the Treasury Officer that the signature purporting to be that of the person named in the court’s order is authentic and that he is authorised to receive payment. 220. Receipt stamps.—The Treasury Officer should take special care to see that all receipt stamps on vouchers are so defaced that they cannot be used again, so that no one may be tempted to steal vouchers for the sake of the stamps on them. 221. Transfer payments.— (a) When a bill, or other document is paid wholly by “transfer”, that is, by entry of the amount in the accounts as a receipt under some head of account, no cash is paid out and the Treasurer should neither enter the item in his cash book nor stamp “Paid” on the bill, or other document. When the entries in the accounts in respect of a payment by transfer are complete, the Section Head in the Accounts Department should stamp “Paid by transfer” on the bill, or other document. Exception.—*(1)

Deleted.

* This amendment shall be deemed to have come into force on the 1st day of October, 1985. #Exception.—(2) In respect of inter departmental adjustment involving manufacturing, production or supply of articles or repair operations the following procedure shall be followed. No adjustment is required if the cost of supplies/services is ` 250 or less in each case except in respect of issues of stores of stock or material on account of the work within a Public Works Division or between two such divisions or between one Public Works Division and another service department which shall be settled by adjustment irrespective of the amount involved. * Exception renumbered vide G.O.(P) 39/88/Fin. dated 13th January, 1988. Exception-1 deleted vide G.O.(P) 82/88/Fin dated 3rd February, 1988. #Insertion vide G.O.(P) 39/88/Fin. dated 13th January, 1988.

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(b) When a payment is to be made by transfer to a revenue or receipt head for which a subsidiary register is maintained (e.g., Land Revenue) the Treasury Officer’s payment order should indicate the major and detailed heads affected as in the following example:— *Pay `…….....by transfer to credit of 029. Land Revenue (a) Land Tax”. (c) When a bill is presented for an amount to be paid in the form of service postage stamps required by the drawing officer, the Treasury Officer should pass it for “payment by transfer”, issue the stamps, enter the amount in the list of payments and credit the amount of the bill to the appropriate head. He should refuse payment if the certificate as to the disposal of the previous supply of such stamps, referred to in Rule 192 (a) above, is not furnished with the bill. (d) When the amount of a bill or other document is payable partly in cash and partly by transfer credit to some head of account, an entry should be made in the number book for the transfer credit and the Treasury Officer should show separately in his payment order the amounts payable in cash and by transfer respectively. The Treasurer should stamp “paid” on the bill or other document in respect of the cash payment, and the Section Head in the Accounts Department should, after completing the necessary entries in the accounts, stamp “Paid by transfer” on it in respect of the payment by transfer. (e) When the amount of a bill or other document is to be paid partly at the district treasury and partly by one or more cash orders payment at sub treasuries, the Treasury Officer’s payment order should be in the following form:“Pay `…… in cash and `……… by transfer credit to personal deposits.” 222. Duplicate “not payable” copies of bills.—A duplicate unreceipted copy prepared on coloured paper and headed “Not payable at the treasury” should be presented at the treasury along with every bill relating to charges of any of the following kinds:— (1) Grants-in-aid to local bodies, private institutions, etc., (except grants to universities and grants to local bodies for water supply and drainage schemes). * Substitution [G.O.(P) 169/76/Fin., dated 17th June, 1976]

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RULES 222-223

(2) Scholarships and stipends. (3) Contributions (except those accounted for under the head “71— Miscellaneous”). (4) Pay of Accountants under local bodies who are not Government servants. (5) Leave salaries of gazetted government servants. (6) Pay and allowances of government servants whose services have been lent to local bodies when charged direct to the Government in the first instance. The Treasury Officer’s pay order should appear only on the original bill payable at the treasury. He should endorse a certificate of payment on the “Not payable” duplicate bill and transmit it to the prescribed departmental controlling officer. NOTE— Bills relating to charges referred to in item (1) of the list in this rule should be transmitted by the Treasury Officers to the departmental officers at the same time as each bi-monthly list of payments is forwarded to the Accountant General. 223. *Treasury Bill Book.—Every officer shall enter particulars of all bills in a book called the “Treasury Bill Book” in Form T.R. 74 which shall be presented at the treasury along with each bill. Treasury Officers shall not pass any such bill for payment unless the treasury bill book is presented with it. The drawing officer shall be held personally responsible for entries in columns 1 to 6 and columns 12 and 13 of the book and omissions to make the entries required in respect of any bill and similarly the Treasury Officers shall be responsible for the entries or omission to make entries in columns 7 to 11 except in respect of the bills endorsed to private parties. Column 14 shall be filled in and attested by the Drawing Officer/Treasury Officer as required by the nature of the entry therein. Exception 1.—Bills for personal claims of gazetted government servants and of non-gazetted government servants who are specially authorised to draw their claims on Gazetted Officers’ Salary or T.A. bill Forms under Rule 169 for pay etc., need not be entered in the Treasury Bill Book. * Substitution [G.O.(P) 25/78/Fin., dated 6th January, 1978]

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RULE 223

Exception 2.—The Treasury Bill Book need not be presented along with any contingent bill endorsed in favour of a private party or with police department’s bill relating to bus owners claim or with travelling allowance bills of the Railway Police and Criminal Investigation department which may be paid at Sub Treasuries without pre-audit by the Treasury Officer. NOTE 1.— Bills for personal claims of gazetted government servants and of non-gazetted government servants who are specially authorised to draw their claims on Gazetted Officers’ bill forms under Rule 169 for pay, etc., if they are drawn by superior officers under Rule 211 (b) shall be entered in the Treasury Bill Book pertaining to the office of the Superior officer which should be presented at the treasury along with such bills and in such cases the restriction in Note (4) below shall not be applicable. NOTE 2.— In respect of contingent bills endorsed to private parties, the particulars of the bill shall be entered in columns 1 to 3 the details of the party in column 5 and the word “Endorsed” shall be entered in column 14, under the signature of the officer signing the bill in column 13. As the proceeds of these bills are not to be entered in the Cash Book, columns 7 to 11 to be filled in by the Treasury Officer may be left blank. NOTE 3.— The Treasury Bill Book shall be supplied by the Treasuries at the rate of one book for each institution maintaining independent sets of accounts and cash book, on requisition from the drawing officer concerned. The Treasury Officer shall fill up, attest and sign the first fly leaf of the Bill book before it is made over to the drawing officer. The drawing officer concerned shall be responsible for the proper maintenance of each of the Bill Books so obtained by him. An officer drawing bills on more than one treasury or sub treasury shall obtain separate Treasury Bill Books from the respective Treasuries. He shall enter the bills to be presented in each treasury or sub treasury in the Bill Book issued by the concerned Treasury.

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RULE 223

NOTE 4.— A Treasury or Sub Treasury Officer shall refuse to accept any bill if it is presented along with a Bill Book which has been used for presentation of bills on another Treasury. NOTE 5.— A Treasury Bill Book shall be used till all the pages in the Book are exhausted or till the end of the financial year, whichever is earlier or till the Bill Book in use is irrecoverably lost. A fresh Bill Book shall be issued by the Treasury or Sub Treasury on presentation of the requisition in the printed form appended to the Bill Book, except for the issue of a Bill Book for a new financial year or in continuation of a lost one all requisitions for Bill Book shall be accompanied by the Bill Book in use, so as to enable the Treasury or Sub Treasury Officer to satisfy that the book has been completely used up and the blank columns have been cancelled by the drawing officer. NOTE

6.—A fresh Treasury Bill Book shall be brought into use at the beginning of each financial year (i.e. entering the particulars of bills to be encashed from the 1st April onwards) and a second or subsequent volume shall not be brought into use in the same financial year unless the pages of the previous volume are completely used up or when the Bill Book in use is irrecoverably lost and a certificate to that effect is recorded by the drawing officer above the 1st entry in the new volume.

NOTE 7.— (a) When a Treasury Bill Book is found missing the drawing officer concerned shall intimate the details to the concerned Treasury Officer. The latter shall thereupon take necessary precautionary measures to ensure that bills, if any, presented along with the Bill Book, alleged to be lost are not honoured by the Treasury. (b) The drawing officer shall initiate an enquiry into the loss of the Bill Book and fix up the responsibility for its loss and take such further action as is deemed necessary. (c) If the drawing officer is convinced that the Bill Book is irrecoverably lost, he may send a requisition with office seal duly affixed to the Treasury concerned stating that fact and requesting for the issue of a new Treasury Bill Book. The Treasury/Sub Treasury Officer shall there upon

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RULE 223

issue a new Bill Book to the drawing officer concerned recording the fact that it is issued in lieu of the lost Bill Book on the first page of the book. The treasury officer shall simultaneously intimate the fact of issue of the new Bill Book in place of the lost one, to the controlling officer of the concerned drawing officer. (d) The drawing officer shall also reconstruct the lost Bill Book, with reference to the entries in the cash book, contingent registers, etc., of his office and verify the entries in the reconstructed book with reference to the subsidiary registers in the Treasury/Sub Treasury. The reconstructed Bill Book with the certificate reconstruction and verification with the Treasury/Sub Treasury figures recorded by the drawing office shall be made available to the inspecting officers for scrutiny. (e) In case, a lost Bill Book is found out subsequently the drawing officer shall immediately cancel the blank pages and the requisition slip attached to the Bill Book under proper attestation. He shall also take steps to keep the same under safe custody, along with other used-up Bill Books. The fact of recovery of lost Bill Book shall also be reported to the Treasury/Sub Treasury Officer concerned. NOTE 8.— The Treasury/Sub Treasury Officer shall not honour the bills presented for encashment, if he notices erasures or unattested corrections in a Bill Book, without reference to the Drawing Officer. It shall be the duty of the Drawing Officer to ensure that there are no erasures or unattested corrections in the Bill Book. NOTE 9.— If columns 1 to 6 and 12 and 13 in respect of bill already encashed are not properly filled up by the Drawing Officers, the bills are liable to be objected to by the Treasury or Sub Treasury. NOTE 10.— The Drawing Officers are personally responsible for the correct maintenance and safe preservation of the Bill Book.

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RULES 223-227

NOTE 11.—A stock-cum-issue register of blank Bill Books shall be maintained at the Treasuries in Form 74 B and the stock shall be subjected to verification by the Inspecting Officers and audit parties. The serial number of the books received and issued shall be noted in the register together with the invoice/letter number of Government Press for receipt and requisition letter number and date of issue. The blank Treasury Bill Book shall be kept under double lock under the joint responsibility of the Treasury Officer and the Treasurer. Bill Book shall be issued according to serial number (first in first out method.) 224. Memorandum of deductions from bills.—When the Treasury Officer pays a bill drawn by a Survey Officer or other Drawing Officer whose headquarters is at a distance from the treasury, he should give the messenger, who brought the bill, a memorandum in (Form T.R. 75) showing clearly the amount of cash and Government drafts (if any) handed over, to him and explaining the deductions, or alterations if any, made in the bill or bills presented. The memorandum should be bi-lingual (i.e., in English and Malayalam), since it is important that the messenger should satisfy himself that the amount of cash and drafts (if any) shown in it as handed over to him is correct; when the messenger is not able to read, the Treasury Officer should himself explain to him the entries in the memorandum. 225. The Treasury Officer should maintain in Form T.R. 76 a Register of Bills received for pre-audit before payment at a sub treasury. 226. When making any payment amounting to ` 250 or more to a nonofficial on behalf of the Government or any local authority on account of fees, commission, bonus, remuneration or reward of any kind, the Treasury Officer should furnish details of the payment and the payee’s address to the Income Tax Officer concerned, or, if he has any doubt as to which Income Tax Officer is concerned to the Commissioner of Income Tax. The minimum limit of ` 250 applies to each single payment made to any one person and not to the total payments made to him during the year. B. Sub Treasuries 227. The procedure prescribed in rules 210 to 229 in regard to the payment of moneys at district treasuries at stations where the treasury does not transact its cash business through the Bank, shall apply generally mutatis mutandis also to sub treasuries at such stations and at the headquarters of

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RULES 227-228

districts, except that, unless there is a specific order of the Government to the contrary in regard to any class of payments, no payment shall be made at any sub treasury except upon a cash order drawn by the Treasury Officer on the sub treasury or a bill passed by him for payment at the sub treasury. Alterations and corrections in pass orders on bills payable at sub treasuries should be attested by the full signature of the Treasury Officer concerned. Bills passed for payment at sub treasuries should be sent by the Treasury Officers concerned direct to the sub treasuries where they are payable, intimation being sent at the same time to the departmental officers concerned asking them to take payment at the sub treasury on production of the intimation duly endorsed by them in favour of the person to whom, or to whose authorise messenger, payment is desired. The intimation should be triplicate in Form T.R. 77. *A register in Form T.R. 18 shall be maintained at the Sub Treasuries for noting details of passed bills for payment before the bills are sent to the Treasurer for effecting payments. This register is to be maintained by the Sub Treasury Officers, duly initialling each entry simultaneously with the signing of the Pay Order, and before they are entrusted to the Treasurers for making payment. At the end of the day, if any bill is returned by the Treasurer without actual payment, the corresponding entry in Form T.R. 18 along with the related entries in the subsidiary and other registers should be cancelled under his initials. 228. (a) A sub treasury shall pay valid claims of the classes specified in Appendix 13 without the Treasury Officer’s express pay order. A district treasury shall not, except under special arrangements or on particular occasions, pay claims which fall into any of those classes. (b) When the office of the Accountant General issues an order to make a payment at a sub treasury, it shall ordinarily send the order to the Sub Treasury Officer through the Treasury Officer. If, on account of urgency, it is sent direct, the Accountant General shall inform the Treasury Officer to the fact and furnish the Sub Treasury Officer direct, if it has not already been done, with a specimen signature of the Audit Officer who has signed the order. (c) Items placed in deposit by the Sub Treasury Officer himself without the authority of the Treasury Officer may be repaid on his own authority but amounts credited in other Sub Treasuries can be paid only on * Insertion [G.O.(P) 77/78/Fin., dated 16th January, 1978]

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PART V

RULES 228-229

the orders of the Treasury Officer. The Director may, however, issue orders that, before repayment, all deposit repayment orders shall be forwarded to the district treasury for being passed for payment. If any class of deposit is repayable at the sub treasury, it shall not be payable at the District Treasury also. *NOTE [Deleted] *This amendment shall be deemed to have come into force on the 1st day of October, 1985. 229. (a) Payment of land cess and fishery rentals to panchayats.— For paying fishery rentals or half-yearly or final instalments of land cess due to panchayats the Treasury Officer or Sub Treasury Officer should prepare a consolidated bill in triplicate, including the amounts payable by book adjustment as well as by cash, with full details as to the amount due to each panchayat which should be obtained from the Collector and draw the total amount only on the date fixed and notified to the President of panchayats to appear at the treasury to receive payment. The Presidents should be given 15 clear days’ notice of the day so fixed. The three copies of the bill should be disposed of as follows:(i) Original to the treasury as a voucher with the list of payments. (ii) Duplicate to be kept in the treasury or sub treasury. (iii) Triplicate to be sent to the District Panchayat Officer. The Treasury Officer or the Sub Treasury Officer concerned should disburse the amounts in the following manner:— If a panchayat has a banking account with the Sub Treasury, the panchayat should be effected by book adjustment. The Treasury Officer or the Sub Treasury Officer concerned should certify that such amounts have been credited to the accounts of the respective panchayats. When the Presidents appear in person the officer-in-charge of the treasury should disburse the amounts due to them and obtain their acknowledgments in the special register prescribed for the purpose. The amounts due to those panchayats, whose Presidents fail to appeal at the Sub Treasury on the day fixed, should be remitted to them at their expense either on * Deletion [G.O.(P) 82/88/Fin. dated 3rd February, 1988]

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RULE 229-230

that date, if convenient, or on the next days and the postal money order receipts and the payee’s acknowledgment; should be filed with the duplicate of the bill.If the disbursement is made by a Sub Treasury Officer he should after disbursing the amounts in the above manner, furnish a certificate of disbursement to the Treasury Officer retaining the special register. The Treasury Officer will arrange to receive individual certificates from each sub treasury, and on the strength of the same and on the strength of the records of disbursement made at the District Treasury furnish to the Accountant General along with the treasury account, a consolidated certificate of disbursement for purposes of audit. A certificate of payment should also be endorsed on the triplicate bill sent to the District Panchayat Officer concerned who is responsible for auditing the accounts of the class II panchayats. (b) Payment of surcharge on stamp duty.—The procedure laid down in sub rule (a) above namely, preparation by the treasury of bills in triplicate and sending the triplicate copy to the District Panchayat Officer shall be followed for payment of surcharge on stamp duty. CHAPTER II TREASURIES WHICH TRANSACT THEIR CASH BUSINESS THROUGH THE BANKS

230. At places where the treasury transacts its cash business through the Bank, all payments shall be made at the Bank unless the Government have specially ordered, in regard to any class of payments, that they shall be made elsewhere. At district headquarters stations where the district treasury transacts its cash business through the Bank the sub treasury payments shall nevertheless be made at the sub treasury. NOTE 1.—In treasuries where cash business is transacted through the Bank, all pension claims will be paid at the treasuries themselves irrespective of any monetary limit. The amounts required for the payment of the pensions will be drawn from the Bank as an imprest. Exception—As an exception to Note I above, pensions which are collected through the State Bank of India or the State Bank of Travancore, through their branches conducting Government business, will be paid at the Bank counters instead of a treasury counters.

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RULES 230-231

NOTE 2.—All cash transactions relating to Treasury Savings Bank will be done at the treasury. *The procedure prescribed in Note 2 to sub rule (1) of rule 210, will be followed in Bank Treasuries as well. 231. (a) Except for bank drafts and cheques which shall be presented at the Bank for payment direct, all bills and other documents shall first be presented at the treasury. The Officer-in-charge of the treasury shall examine the bill or other document and if he approves and passes the charge, he shall enface on it an order to pay a specified amount. The order shall be numbered, dated and signed and the particulars of it shall be entered in the register of payment orders issued. The treasury shall then send the bill or other documents together with a list in duplicate of such bills or other documents to the Bank in a box through a special messenger who should be an employee of the treasury. The box should be properly locked and sealed in the presence of the Officerin-charge of the treasury who should keep one of the two keys of the lock in his personal custody. The duplicate key should be in the personal custody of the agent of the Bank. On receipt of the box the agent will after verifying the seal to ascertain that there has been no tampering on the way, open the box with his key, verify the contents with entries in the list of bills or other documents and return one copy of the list with his acknowledgment of the bills and other documents and the box to the treasury through the messenger. Payment will be made by the Bank when the payee presents the token received by him from the treasury at the Bank. In passing bills and other documents for payment at the Bank, the Treasury or Sub Treasury Officer shall observe generally, rules 210 to 229 above. **NOTE 1.—Bills sent through messengers to the Treasury and the Bank should be endorsed by the drawing officer in the name of the messenger. The messenger’s signature should be taken on the bill itself,— (i) in the drawing office, when it is endorsed in the messengers name, duly identified and attested by the drawing officer; (ii) at the Bank, when the bill amount is actually paid to him; (iii) the messenger should acknowledge receipt of the bill amount and discharge the claim before token is obtained from the Treasury. *Addition [G.O.(P) 303/73/Fin., dated 23rd July, 1973] **Substitution [G.O.(P) 626/81/Fin., dated 29th September, 1981]

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RULE 231

**NOTE 2—Requisition by the Accountant General or an Officer of the Indian Audit and Accounts Department authorised by the Accountant General in this behalf for obtaining Reserve Bank of India drafts for effecting monetary settlement of inter Governmental and other miscellaneous transactions need not be presented at the treasury, but may be presented at the bank direct without the express pay order from the Treasury. (b) The above procedure should be followed mutatis mutandis in cases where bills are sent to the Treasury or the Bank by Government servants other than drawing officers. When the amount of a bill is to be paid partly at the Bank at the district headquarters and partly at sub treasuries, the Treasury Officer shall authorise payment of the bill partly in cash for the amount required for disbursement at headquarters and partly in drafts or cash orders for which formal applications should be attached to the bills. (c) The Bank shall make payment strictly in accordance with the pay order of the officer-in-charge of the treasury, after obtaining on the bill or other documents a proper discharge from the payee in addition to the signature at the foot of the bill. All bills, cheques and other documents, passed by Treasury Officers and the Accountant General for payment at the Bank, as well as Interest Payment Orders, etc., being non-negotiable instruments warrant special precaution on the part of the Bank in the matter of identification of the payee. All such claims have normally to be presented by the payee personally, but where payment is desired to be made to an endorsee (other than a banker) or a messenger, the provisions of rule 188 (viii) or the rule in the Note under (a) above, as the case may be, should be strictly followed by the drawing officer. The Bank will not, however, disburse payments of such claims unless the Bank is satisfied about the identity of the person receiving payments as attested by the drawing officer in accordance with rule 188 (viii) or Note under (a) above, as the case may be. The Bank shall also verify before making the payment that the signature of the drawing officer attesting the payee’s signature tallies with that on the bill as passed by the Treasury Officer. Payment of cheque including Public Debt Office interest warrants which are governed by the Negotiable Instruments Act shall be made in accordance with the provisions of that Act and any generally recognised practice established among bankers by custom. **Addition [G.O.(P) 613/81/Fin., dated 23rd September, 1981]

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RULES 231-232

A bill *pre-checked by the Accountant General and enfaced for payment at a Treasury or an authorisation issued by the Accountant General for non-recurring payments due to a gazetted government servant such as fees, honoraria, etc., should not be paid if it is presented at the Treasury three months after the date of enfacement or authorisation as the case may be. Such bills or authorisations for payments debitable to travelling allowance, contingencies, grant-in-aid, scholarships, stipend, etc., passed for payment and issued in one financial year shall not be paid after the close of that year even if three months have not elapsed since the date of enfacement/ authorisation. In all such cases where the period of validity is over, the bills/ authorisations should be returned to the Accountant General by the Treasury Officer with a non-payment certificate for cancellation of the enfacement/ authorisation, if fresh sanction or allotment of funds is necessary or for revalidation of the *pre-checked enfacement/authorisation as the case may be, by the Accountant General. *This amendment shall be deemed to have come into force on the 17th day of April, 1986. (d) Payment orders issued by the Treasury shall be valid only for a period not exceeding ten days to be fixed by the Collector. If the payee does not turn up to receive payment at the Bank before the expiry of the fixed time, the Bank shall return the bill to the Treasury Officer for revalidation on further application of the party. NOTE—T.A. Contingent, Grants-in-aid, Scholarship and Stipend bills which have been passed for payment by the Treasury Officer during a financial year will not be paid at the Bank in the next financial year. In such cases the passed bills which remain unpaid at the close of the 1st working day of the financial year should be returned by the Bank to the Treasury Officers concerned who shall cancel the ‘Pay Order’ and sent back the bills to the parties concerned. This restriction will also apply to other types of bills which are payable from the allotment of a specified year only. 232. When the drawing officer desires payment of a bill or other document to be made wholly or partly in drafts, he shall submit a formal application with the bill and indicate the manner in which he desires payment to be made in his receipt on the bill. If the Officer-in-charge of the treasury is satisfied that the issue of drafts is permissible he shall specify accordingly in the pay order the manner in which payment shall be made. *Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]

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RULES 233-237

233. When the holder of a Government promissory note registered for payment of interest at a Treasury which transacts its cash business through the Bank desires to claim interest, he shall present it to the Treasury or Sub Treasury Officer concerned, who shall examine it make the necessary record in the manner prescribed in the Government Securities Manual and, if interest is payable to the holder under the rules, give him an order on the Bank for payment of the amount due. 234. The treasury shall prepare all advices or certificates of payment which have to be sent to any public officer or department under any rule since the point to be advised or certified is not that the moneys have been, paid out by the bank but that the payment has been duly entered in the treasury accounts. 235. Treasury Bill Book.—The Treasury Bill Book need not be presented at the bank along with any bill passed for payment at the Bank. The Treasury should fill up columns 7 to 11 of the book even when the payment is made at the bank and the government servant in the Treasury who initials the entries in the Treasury Bill Book should make a note of the objection or disallowances in the relevant columns and remark columns as the case may be over his initials. 236. [Omitted][G.O.(P) 386/80/Fin., dated 18th June, 1980] 237. Special to Judicial Department.—Repayment of Civil Court’s and Criminal Court’s deposits.(1) High Court.—The repayment of deposits in the High Court is governed by the original and appellate side rules of the High Court contained in the “Civil Rules of Practice”. (2) Other Civil Courts.—When any person presents an order of a civil court for repayment of a deposit in whole or in part, the Bank should require him to acknowledge receipt of the amount on the reverse of the order. If he is not the person named in the court’s payment order, the Bank should require him to satisfy it that the person named in the court’s order has signed an acknowledgment of receipt on the reverse of the order and has authorized him to receive the payment. Every order of a civil court for repayment of a deposit should be taken to the Treasury Officer for countersignature before it is presented at the Bank,

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RULES 237-238

unless the Bank keeps a personal ledger account for the deposits of each court. Each civil court for which the Bank maintains such an account should intimate the Bank, from time to time the amount of the lapsed deposits which should be deducted from the balance shown in the account and the pass book. The Bank should not make payment on any order for the repayment of a civil court deposit which is presented after the end of the account month in which it was issued (c.f. Rule 206 above). NOTE—The personal ledger accounts for the deposits of civil courts dealing with treasuries which transact their cash business through the Bank are maintained by the Bank. (3) Repayment of Revenue and Criminal Courts’ deposits.—A deposit standing at a person’s credit in a Treasury Officer’s Judge’s or Magistrate’s accounts should be repaid only on the order of the government servants who maintain the registers in which it is entered. A person who claims the repayment of any such deposit should apply to the government servant who received it. If the claim is in order, the government servant should, after examining the check register and making the necessary entry regarding the repayment, give the applicant an order for payment at the Bank. A repayment order signed by a Judge or Magistrate should be taken to the Treasury Officer for countersignature before it is presented at the Bank, unless the Bank keeps a personal ledger account for the deposits of each court. Each Magistrate’s Court for which the Bank maintains such an account should intimate to the Bank, from time to time, the account of the lapsed deposits which should be deducted from the balance shown in the account and the pass book. The bank should not make payment on any order for the repayment of a revenue deposit or a criminal court deposit, unless it is presented before the expiry of three months from the date of issue or before the close of the financial year in which it is issued, whichever is earlier (c.f. Rule 207 above). 238. Special to Local Funds.—In cases where the banking accounts of the local funds are kept at the bank (See Instruction III in Chapter V in Part VIII below) all adjustments made to the debit/credit of such account, either by the treasury or by the Accountant General, should without delay, be communicated by the treasury to the bank.

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RULES 239-241

SECTION III Cheques CHAPTER I GENERAL

A. Applicable to Departments generally 239. (a) Save as expressly provided in these rules, no person is authorized to draw on a treasury by means of cheques without the special order of the Government and before he has been placed in account with the Treasury by the Accountant General. (b) Cheques shall ordinarily be drawn on the district treasury but certain government servants of certain departments are authorized to draw cheques on sub treasuries also. [See Rule 260 (b) * in regard to Public Works Officers]. When the Collector considers it desirable, he may give permission to a drawing officer to draw cheques on the sub treasuries in his district. Cheques from a cheque book obtained from a particular district treasury (See Rule 252) shall not be drawn on any treasury outside that district. A drawing officer shall use a different cheque book for the district treasury and for each sub treasury on which he draws and enter a distinguished letter and a separate series of numbers on the cheques from each book. 240. Whenever a cheque is presented, the treasury shall carefully examine the number printed on it in order to ascertain that it was really taken from the book notified as in use by the drawing officer whose signature it purports to bear. If the payee is not known at the treasury the Treasury Officer shall carefully consider the date, serial number and amount of the cheque as well as the handwriting and make any enquiries that he considers necessary; if he then feels any doubt as to the genuineness of the cheque or the identity of the payee, he shall defer payment and refer to the drawing officer. A cheque drawn on a treasury may be crossed in accordance with the provisions of Chapter XIV of the Negotiable Instruments Act, 1881 (Indian Act XXVI of 1881), and such crossing is no bar to its being paid at the treasury on which it is drawn. 241. Whenever a government servant draws cheque (other than a cheque the amount of which is typed in words with perforated letters by a * Omitted [G.O.(P) 386/80/Fin., dated 18th June, 1980]

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KERALA TREASURY CODE

RULES 241-242

special cheque-writing machine), he shall see that it has written across it at right angle to the type the word “under” followed by an amount a little larger than that for which he draws the cheque. For example, “under rupees thirty only” means that the cheque is for an amount less than ` 30 but not less than ` 20, whilst “under rupees eight hundred only” means that it is for an amount less than ` 800 but not less than ` 700. No abbreviation such as “eleven hundred” for “one thousand one hundred” may be used. The amount of a cheque shall be written in the manner prescribed for bills in Rule 163 (c) above. A common form of fraud in regard to cheques consists in altering the word “one” into “four” by prefixing an ‘ f ‘ and changing the ‘e’ into ‘r’ as the figure can easily be altered correspondingly to 4. The word “twenty” when written carelessly., has also sometimes been changed into “seventy”. A government servant who draws a cheque in which the word ‘one’ or ‘twenty’ occurs shall therefore write the word very carefully in order to make such a fraud impossible. The Treasury Officer shall examine the words “four” and “seventy” and the corresponding figures in cheques with special care. All cheques shall be written and signed in indelibile (unwashable) ink only, which can be obtained from the Controller of Stationery, Trivandrum. Exception—*The protective endorsement “under” followed by amount a little larger than that for which the cheque is drawn need not be insisted in respect of Treasury Savings Bank cheque and fixed deposit certificates presented at the treasuries for encashment. 242. (a) Cheques drawn in favour of Government Officers or departments for payment on account of interdepartmental or intergovernmental dues shall always be crossed “Account Payee” if drawn on the Bank and in other cases superscribed with the words “Account Government-not payable in cash” without any crossing. Cheques, the amounts of which are payable to officers of (b) the Government to enable them to make disbursement of pay and allowances of non-gazetted staff, contingent expenditure etc., on behalf of Government shall be issued in favour of the government official concerned by designation, the word “only” being added after the designation of the payee officer on the cheque. Such cheques shall not be crossed but shall bear the superscription ‘Not transferable’. *Insertion [G.O.(P) 303/73/Fin., dated 23rd July, 1973]

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RULES 242-244

(c) (i) Subject to the provisions of the sub-clause (b) all cheques in payment of personal claims of government servants and pensioners shall invariably be to the “order” of the payee. (ii) Cheques coming within the purview of sub-clause (a), if drawn on the bank, shall be crossed generally with the words “………………….. and Co.” but without the superscription “Account payee only” wherever the amount exceeds ` 1,000. Such cheques for amounts not exceeding ` 1,000 also shal normally be crossed, unless the payee specifically asks for an “Open” cheque in which case it need not be crossed. (d) In all other cases, cheques if drawn on the bank, shall invariably be crossed with the superscription “Account Payee only” added between the lines on crossing. Where the payee is believed to have a banking account, further precaution shall be adopted, wherever possible, by crossing the cheque specially (instead of by the general crossing) “…………………………. and Co.” by quoting the name of the bank through which the payee will receive payment and by adding the words “Account Payee only-not negotiable”. Such cheques for amount not exceeding ` 1,000 may, however, be issued as “open” cheques if so desired by the payee, but only as “order “ cheques. NOTE—Cheques drawn on a Treasury should not be crossed and in cases in which any such cheque has been crossed inadvertently such crossing will have no significance in making payment. The Treasury Officer may decline to make any payment on a cheque endorsed as payable to “order” or to any person if he is unable to satisfy himself as to the identity of the person claiming payment. 243. [Deleted] 244. As a general rule, the Treasury Officer shall not pay a cheque payable to order, unless it is receipted by the payee himself or another person in whose favour it has been regularly endorsed for payment. If, in special circumstances, the head of an office is unable himself to receive cheques payable to his order owing to absence on our or some other sufficient cause and considers that strict compliance with the ordinary rule would cause undue inconvenience, he may by a written order specially authorize a gazetted government servant to endorse “for” him cheques drawn in his favour by his official designation. The head of the office shall send a copy of any such order at once to the Treasury Officer, and the Treasury Officer shall then treat an endorsement by the duly authorized government servant as though it were an endorsement by the head of the office.

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RULES 245-248

245. (a) As a general rule, no cheque shall be issued for a sum less than `10, except when it is done in order to comply with the provisions of a law or a rule having the force of law. Exception—(1)

Government servants who are permitted to draw cheque for the pay and allowances of their staff (such as officers of Public Works Department who draw cheques for payment to work establishment staff) may draw cheques for a sum less than `10 for remitting the insurance premia or the contribution to a Provident Fund.

Exception—(2)

Cheques for sums less than `10 may be drawn in respect of withdrawals from Personal Deposit Accounts.

Exception—(3)

*Cheques for sums less than `10 may be drawn in respect of withdrawals from Treasury Savings Bank Accounts.

(b) A cheque shall remain current only for three months from the date of issue. 246. When a government servant issues a cheque in payment of any amount due by the Government and the cheque is honoured on presentation, payment shall be deemed to be made on the date on which the cheque is handed over to the payee or his authorized messenger or on which the cover containing it is put into the post. If, however, the cheque is marked as “not payable before a certain date” which is later than the date mentioned in the previous sentence, payment shall be deemed to be made on the date on which the cheque becomes payable. Such a cheque shall not be charged in the accounts until the date on which it becomes payable. 247. When a government servant pays an endorsed bill by cheque, he shall not disregard the endorsement and issue the cheque in favour of drawer of the bill. 248. Local fund Cheque.—The Treasury or Sub Treasury Officer shall not permit the withdrawal of any moneys relating to a local fund from the treasury otherwise than on cheques taken from a cheque book issued by the treasury and signed by the duly authorized officer of each fund, e.g., the *Insertion [G.O.(P) 303/73/Fin., dated 23rd July, 1973]

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RULES 248-249

president of a local board and the executive authority of a municipal council. No local fund cheque shall be paid, unless the balance at the credit of the fund is sufficient to cover the payment. NOTE

1—The account of a local fund at the treasury is Purely a banking account, and the nature of the disbursement need not be specified on any local fund cheque.

NOTE 2—When the executive authority or other officer of a municipal council who is authorized to draw cheques against the funds of the municipal council lodged with the Government, makes over charge of his office either temporarily or permanently, he should send a specimen of the relieving officer’s signature together with a certificate in Form T.R. 78 to the Treasury Officer. NOTE

3—When the president or other officer of a local body who is authorized to draw cheques against the funds of the local body lodged with the Government makes over charge of his office either temporarily or permanently he should send a specimen of the relieving officer’s signature together with a certificate in Form T.R. 78 to the Treasury Officer: Provided that when the functions of the president devolve on the vice-president under the provisions of any enactment under which the local body is constituted, it shall not be necessary for the president to send the specimen of the relieving officer’s signature and the certificate mentioned in his rule if they have been sent to the Treasury Officer on a previous occasion, but the president shall, in every such case report the fact of such devolution of powers on the vice-president, mentioning the latter by name.

249. Time expired cheques.—If a cheque, the currency of which has expired owing to its not being presented at the treasury for payment within three months from the date of issue, is returned to the drawing officer, he shall destroy it and may then draw a new cheque in place of it, if necessary. He shall record on the counterfoil of the old cheque the fact that the cheque has been destroyed and the number and date of the new cheque and shall enter on the counterfoil of the new cheque the number and date of the old one.

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KERALA TREASURY CODE

RULES 250-251

250. Lost cheques.—When a drawing officer receives a report that a cheque drawn by him has been lost, he shall at once report the fact to the Treasury Officer and request him to stop payment of the cheques. The Treasury Officer shall at once examine the lists of paid cheque and, if he finds that the cheque has not been paid take steps to stop payment. A board showing the particulars of all “stopped” cheques shall be hungs up before the clerk concerned. The Treasury Officer shall also send the drawing officer a certificate in the accompanying form, when a cheque reported as lost has not been paid and he has stopped payment:— “Certified that cheque No……………..…… dated…………… for `……………………… reported by the ……………….. (drawing officer) to have been drawn by him on this treasury in favour of ………………………………………… has not been paid and will not be paid, if presented hereafter...............................treasury,….......................……… The……………………………20……………. Treasury Officer”. On receipt of the certificate duly signed by the Treasury Officer the drawing officer shall cancel the original cheque and make the necessary entries in his accounts and may then issue another in its place. If any “stopped” cheque is presented at the treasury for payment the clerk concerned shall at once bring the fact to the notice of the Treasury Officer and the latter shall refuse payment and return the cheque to the person who presented it with the words “payment stopped” written across it. NOTE— *If the currency of a cheque expires on Saturday, the Treasury Officer shall also verify the list of cheques paid for the subsequent working day of the Bank before the issue of non-payment certificate, wherever necessary. 251. Cancelled cheques.—The drawing officer shall cancel any cheque which has remained unpaid for twelve months from the date of issue. When a cheque is cancelled for any reason, the fact shall be recorded on its counterfoil and the cheque, if in the drawing officer’s possession, shall be destroyed. If the cheque is not in his possession and payment has not already been stopped under the preceding rule, he shall at once request the Treasury Officer to stop payment of the cheque. If the Treasury Officer then finds that the cheque has not been paid, he shall stop payment and send the drawing officer a certificate in the manner prescribed in the preceding rule. *Addition [G.O.(P) 563/75/Fin., dated 20th December, 1975]

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RULE 252

252. (a) Cheque books required by the officers of Government and administrators of the personal deposit accounts, local fund accounts or any other fund are printed by the Superintendent, Government Presses. All supplies of cheque book forms should be made by Treasury Officers who will receive their supply from the Government Press. The Treasury Officers should examine the cheque book forms carefully on receipt and count the number of forms in each book. They should keep the cheque books in their stock and issue them one by one as books are used up. Every Treasury Officer should ascertain the requirements in his district and send a consolidated indent to the Superintendent, Government Presses, Trivandrum. NOTE

1—The Treasury Officers should examine carefully, on receipt the unused cheque books or blank cheque forms returned to them by drawing officers, count the number of forms in each book, check them with reference to the advice of return sent by the drawing officers (See note under Rule 253) and keep them safely in stock.

NOTE

2—The stock of cheque books which have become obsolete and used and unused cheque books returned to the Treasury by the drawing officers shall be destroyed under the orders of the Director of Treasuries. The period prescribed in Article 358, Kerala Financial Code shall also be satisfied in the matter of destruction of counterfoils of used cheque books. The destruction shall be done by incineration in the presence of the Deputy Director duly authorised by the Director of Treasuries. The fact of destruction shall also be recorded in the concerned stock register under the attestation of the Treasury Officer and the Deputy Director in whose presence the destruction is conducted.

(b) A drawing officer who requires a fresh cheque book should sign and send to the Treasury Officer the printed requisition form inserted towards the end of each cheque books. The Treasury Officer should then supply a cheque book if the request is in order, but he should never supply more than one cheque book on a single requisition form. He should examine every cheque book again at the time of issue and should be careful to see that it is duly and promptly acknowledged. *He should issue the cheque book only after signing an endorsement on the following lines on the requisition slip presented by the drawing officer, namely:— *Addition [G.O.(P) 599/84/Fin. dated 17th October, 1984]

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RULES 252-254

Cheque book with leaves bearing numbers from………….………to…………………issued to………………… on ………….. (Dated Signature) District/Sub Treasury Officer Place…………………….. 253. A drawing officer should invariably keep the cheque book supplied to him in his personal custody under lock and key. Whenever a drawing officer hands over charge of his office, a note should be recorded over the signature of both the relieved and the relieving government servants showing the number of cheque books and unused cheques handed over. The note should be made in the cash book or other permanent register in which the expenditure for which cheques are drawn is recorded. If a cheque book or a blank cheque form is lost, the drawing officer should, at once, inform the Treasury Officer, furnishing the numbers of the lost cheque forms. The Treasury Officer should then stop payment of all cheques drawn on forms bearing any of those numbers. NOTE—If a drawing officer has to return to the Treasury Officer unused cheque books or blank cheque forms, he should examine them carefully, before sending them by registered post to the Treasury Officer by name and should take care to see that they are duly and promptly acknowledged. A separate advice of despatch of the cheque books or forms giving full details of numbers of the cheque books and cheque forms should also be sent to the Treasury Officer simultaneously. 254. Whenever a Government servant sends a cheque to the treasury for payment, not in cash, but by transfer credit in the treasury accounts, he should endorse on it the words “Received payment by transfer credit to ………………..” and sign below them. Failure to do this would facilitate criminal misappropriation of the amount. The treasury should enter in the number book every cheque that is to be paid by transfer in whole or in part. NOTE— *When cheques are presented by Departmental Officers for adjustment in Treasury accounts or for collection, they shall present the cheques with a covering list in duplicate and the Treasury Officer, in turn, shall return one copy to the Departmental Officer as acknowledgment. *Addition [G.O.(P) 291/77/Fin., dated 5th August, 1977]

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RULES 255-257

255. When a pass book or list of cheques cashed (Form T.R. 79) is maintained for any banking or drawing account at the treasury, it should remain in the custody of the drawing officer, except when it is sent periodically to the Treasury Officer to be written up. Ordinarily the drawing officer should send it to be written up at least once a month. On receipt of the pass book, the Treasury Officer should have the amount of each paid cheque recorded in it with reference to the registers maintained in the treasury and (in regard to cheques paid at the Bank or at a sub-treasury) the daily sheets. The cheque book number and distinguishing letter, if any, as well as the individual cheque number should be shown for each cheque entered in the pass book. The Treasury Officer should ordinarily return the pass book to the drawing officer the same day. 256. When a cheque is drawn on a treasury or sub treasury for a refund of revenue and the amount is to be remitted by money order, the payment to the Post Office should be made by a separate cheque drawn on the treasury or sub treasury in favour of the Postmaster. 257. A Land Acquisition Officer may, under the orders of the Government make all or any of his payments by issuing cheques on the treasury, provided that the property is not so far from the treasury that this method of payment would cause undue inconvenience to the payees. The rules prescribing the procedure for the payment of compensation for land acquired under the Land Acquisition Act should be strictly adhered to in respect of such payments. 257 A. Letters of credit.—(1) When under the provision of this rule or under any special order of Government a letter of credit is issued in favour of a drawing officer, such letter of credit shall specify the maximum amount upto which the officer credited shall have authority to draw on the particular Treasury on which the letter of credit has been issued. (2) A drawing officer in whose favour a letter of credit has been issued is not permitted to draw the whole amount and place it in a separate drawing account at the Treasury or the Bank or in a private account. #B. Special to cheque drawing departments mentioned in sub rule (d) of rule 162, # Substitution [G.O.(P) 175/84/Fin., dated 26th March, 1984]

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RULE 258

*258 (a) The Treasury Officer shall pay claims relating to # the department specified in sub-rule (d) of rule 162 including those of pay and allowances and contingencies, on cheques drawn by an officer of the Department concerned (or a Government Servant of some other department acting as disburser of the department) whom the Accountant General has placed in account with the treasury. (b) The Accountant General shall ordinarily place each Divisional Officer in account with one or more District Treasuries within his jurisdiction for the purpose of drawing cheques and may when necessary, place other officers of the departments in account with District Treasuries within their respective jurisdiction for the same purpose. (c) An Officer who is authorised to draw cheques on one District Treasury may also, when necessary, draw cheques on any sub treasury subordinate to it. (d) A Divisional Officer may authorize any Sub Divisional Officer working under him to draw cheques against his own account with a District Treasury (including Sub treasuries under it). No separate accounts shall be opened for a Sub Divisional Officer so authorised. When the Divisional Officer has issued the necessary letter of authority, the cheques drawn and paid under it shall be charged to his account as if drawn by himself. (e) Letters of credit specifying the monthly limits of drawals on Treasuries shall be issued by Government in the Finance Department to the Divisional Officers in # the department specified in sub-rule (d) of rule 162 , and Divisional Officer shall restrict the drawals from the Treasury to the limits prescribed in the letter of credit. It shall be the responsibility of the Treasury Officer to ensure that cheques issued in excess of the permitted limits are not cashed #but are returned uncashed. (f) The Finance Department shall issue letters of credit of each Divisional Officer with copies to the Head of the Department, Circle Officer, Divisional Officer and the District Treasury Officer. Letters of credit shall be issued at a time for every subsequent three months. The Divisional Officers shall further distribute their allotments among the various subordinate officers including himself to the extent necessary and intimate the concerned sub treasuries of the distribution. The * Substitution [G.O. (P) 386/80/Fin., dated 18th June, 1980] # Substitution [G.O.(P) 175/84/Fin., dated 26th March, 1984]

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RULE 258

treasury shall maintain a register in Form T.A 10 to note the credit limits allowed to each officer and regulate the encashment of cheques on the basis of letters of credit. (g) If found necessary the Circle Officer/Divisional Officer shall make reallocation of the allotments of the divisions in his jurisdiction in a month subject to the condition that the total allotment for all the divisions in that circle/sub division in the division in the months is not exceeded. The officers making reallocation shall promptly intimate the details of such allocations to the Head of the Departments, Finance Department and the concerned Treasuries.The total credit of Public Works Department Stores for each quarter shall be allotted to the Executive Engineer, Public Works Department Stores and he is authorised to distribute the credits to the various District Stores on different treasuries according to requirements. He is also empowered to exercise the powers of circle office so far as the system of letters of credit is concerned. (h) The Divisional Officers are authorised to carry forward unutilized amounts under the letters of credit from month to month as well as from quarter to quarter. However, the Sub Divisional Officers shall carry over the unutilized balance of the month allotted for a particular treasury in that treasury itself after giving specific requisition to the Treasury Officer concerned unless the Divisional Officer concerned has not given any intimation to the contrary. In such cases the Sub Divisional Officer shall intimate such carrying over to his Divisional Officer promptly. If for any unavoidable reasons the limit allowed for a month has to be exceeded, the Divisional Officers are permitted to make excess drawals upto 20 per cent of the credit limit for that month, provided such excess is adjusted in the remaining months of that quarter. In case of Divisional Officer is exceeding the monthly limit in the above manner, he shall promptly report the fact to the superior officers in the Department to the Finance Department and to the concerned treasury simultaneously, indicating how he proposes to adjust the excess. (i) If a Divisional Officer is authorised to draw from more than one District Treasury, credit limits to the drawing on each District Treasury shall be proposed and fixed separately.

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RULE 258

(j) The following items shall be kept outside the purview of the letters of the credit for the Present, namely:— (i) salaries and wages; (ii) refund of deposits (earnest money, security and retention money); (iii) cheques issued to works relating to National Highways debited to Central allocations, etc; (iv) disbursement on Provident Fund Accounts, payment of scholarships and Life Insurance Premia; and (v) wages to the N.M.R. workers. (k) The items specified in sub-rule (j) shall be distinguished by affixing rubber stamps on the cheques drawn under each of the items under the attestation of the Drawing Officer. The requirements of the funds for other purposes shall be aggregated and the limit fixed for the total. Encashment of all cheques representing non-exempted items shall be watched against the credit limit, by the concerned departmental authorities. (l) Cheques issued on or before the last day of March which are cashed in April and subsequent months shall not be taken against the credit limit for the months of encashment since the expenditure relates to the appropriation for the previous financial year. The Director of Treasuries shall obtain from the treasuries, statement of cheques issued in the previous year but paid in the subsequent financial year and furnish it to the Finance Department on or before 31st July of each financial year. NOTE—The cheques drawn under letters of credit system shall be presented at the treasury concerned even if such treasury conducts its cash transactions through the Banks and the Treasury Officer shall verify the availability of credit and enface on them an order to Bank to pay the amount, if any, which he finds to be properly payable. Rules 259 to 262 [Omitted] [G.O.(P) 386/80/Fin., dated 18th June, 1980]

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KERALA TREASURY CODE

RULES 263-266

263. Before a drawing officer of # any of the departments mentioned in sub-rule (d) of rule 162 brings a cheque book into use, he should mark all the cheque forms in it with distinguishing letter. The letter marked on the cheques in a cheque book which is to be used by a particular drawing officer for drawing cheques on a particular treasury should be different from the letters marked on cheques drawn by other drawing officers of the division on that treasury and also from those marked on cheques drawn by himself on other treasuries. 264. A drawing officer should ordinarily send the advice to a sub treasury regarding a cheque book to be brought into use for drawing cheques on it (See Rule 24 of part I) through the district treasury; if it needs to be sent urgently, he may send it direct to the sub treasury and forward a copy simultaneously to the district treasury. 265. The Treasury Officer should send quarterly to each Divisional Officer a statement showing the numbers and dates of all public works cheque books issued on requisitions received from Divisional Officers. 266. When the headquarters of all the subdivisions are at the headquarters of the division, the Divisional Officer should send his pass book to the treasury to be written up at the end of each month. When that condition is not fulfilled, he should send it twice a month, namely, on the 10th and at the end of each month. A Divisional Officer who has banking accounts with more than one district treasury should have a separate pass book for the account with each of them. The identity and the amount of the cheques entered as cashed should be examined at the earliest opportunity, the pass book being initialled, (and dated) by the Divisional Accountant in token of the check.

# Substitution [G.O.(P) 175/84/Fin., dated 26th March, 1984]

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RULE 267

CHAPTER II SPECIAL RULES FOR DRAWAL OF CHEQUES WHEN THE TREASURY TRANSACTS ITS CASH BUSINESS THROUGH THE BANK

Rules applicable to Departments generally 267. Cheques.—The rules contained in rules 239 to 251 shall apply mutatis mutandis to cheques drawn by government servants on the Bank where the treasury transacts its cash business through it except that every correction or alteration in a cheque drawn on the Bank shall be attested by the full signature of the government servant who signs it. When such cheques are presented at the Bank direct in accordance with the rules without the pay order of the officer-in-charge of the treasury the Bank shall see that the relevant rules are duly observed. When a cheque drawn by a government servant on the Bank is, in accordance with the rules, first presented at the treasury before it is presented for payment at the Bank, the Treasury Officer shall examine it and enface on it an order to the Bank to pay the amount, if any, which he finds to be properly payable. Explanation.—*Cheques drawn by Government Servants in #the departments mentioned in sub-rule (d) of rule 162 in respect of item kept outside the purview of the letters of credit referred to in sub-rule(j) of rule 258, may be presented at the bank direct for payment and no pay order of the Treasury or Sub Treasury Officer is necessary. Similarly cheques drawn on the personal deposit accounts and the banking accounts of local funds which, are maintained by the Bank, may be presented at the Bank direct for payment without the pay order of the Treasury or Sub Treasury Officer. Rules 208 and 248 should be observed mutatis mutandis in regard to withdrawals from these accounts. All other cheques drawn by government servants shall first be presented at the treasury and Bank shall make payment only on the pay order of the officer-in-charge of the treasury. * According to G.O.(P) 386/80/Fin., dtd. 18th June, 1980 the first sentence of the explanation is deleted and revised. # Substitution [G.O.(P) 175/84/Fin., dated 26th March, 1984]

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PART V

RULES 267-269

NOTE 1.— Cheques.—Rules 248 to 266 above apply mutatis mutandis to cheques drawn by government servants on the Bank where the treasury business is transacted through it. The specimen signature and certificates mentioned in notes 2 and 3 under rule 248 should be sent to the Bank, when the cheques are drawn on the Bank. NOTE

2.— Lost cheques.—The provisions of rules 250 and 253 should be observed mutatis mutandis in regard to cheques drawn by departmental officer on the Bank direct. When such a cheque is lost, the loss of the cheque will be reported by the drawing officer to the officer of the Bank who will issue an acknowledgment to him. This acknowledgment would imply that the Bank will take the necessary precautions against payment of the cheque if presented thereafter. The drawing officer will then advise the Treasury Officer that the acknowledgment has been received by him from the Bank. On the basis of the receipt on such advice, the Treasury Officer, will verify his records and if no payment has been made, he will issue the certificate on non-payment to the drawing officer.

*267A. Letters of credit.—If the Drawing Officer in whose favour a letter of credit is issued requires funds both at the headquarters and at a subtreasury, the Treasury Officer shall provide funds at the sub treasury also. 268. [Deleted] [G.O.(P) 386/80/Fin., dated 18th June, 1980 269. [Deleted] [G.O.(P) 386/80/Fin., dated 18th June, 1980 * Substitution [G.O.(P) 386/80/Fin., dated 18th June, 1980]

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RULES 270-271

SECTION IV Payment of Pensions CHAPTER I GENERAL

270. Subject as hereinafter provided, the rules in this section shall regulate the procedure with regard to the payment of pensions from the treasuries of this State, provided that,— (1) in the case of pensions debitable to the Central Revenues, the rules in the Central Treasury Rules shall be followed; (2) nothing contained in these rules shall be taken as affecting the provisions of the Indian Pensions Act (Act XXIII of 1871) or any of the Rules made thereunder and the provisions of the Kerala Service Rules or any other rules or departmental regulations issued by the Government prescribing the procedure for payment of any pension payable by or out of the general revenues of the Government; (3) othing contained in these rules shall apply to the payment of allowances to the members of the Ruling Family of Travancore and of the Ruling Family of Cochin or to the Payment of Jenmibhogam, Karathilchilavu, Arthapalisa, etc., in so far as they are repugnant to the special rules given in Appendices 14 to 16. *(4) Nothing contained in this rule shall be taken as affecting the procedure and conditions prescribed in special orders issued by the Government from time to time for payment of pension by authorized Public Sector Banks on behalf of the Government, payable out of the Consolidated Fund of the State. 271. In this section except where it is expressly otherwise provided or the context otherwise requires.— “Service pension” means a pension payable to, or in respect of a person in consideration of past employment under the Government of India of any of the States and includes a gratuity or family pension so payable.”Political pension” means a pension, not being a service pension granted or customarily payable to or in respect of a person on political consideration or compassionate grounds, or in consideration of distinguished or meritorious services, or of the surrender of rights of emoluments and includes assignment or compensations when payable in the form of fixed allowances or grants. * Insertion [G.O.(P) 542/87/Fin. dated 23rd June, 1987]

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KERALA TREASURY CODE

RULE 272

CHAPTER II MANNER OF PAYMENT OF PENSIONS AND IDENTIFICATION OF PENSIONERS

A. Pension Payment Orders 272. $(a) All Service Pensions and Service Family Pensions debitable to the consolidated fund of the State shall become due for payment from the first day of the month to which the pension relates. All other pensions shall be paid from the first working day after the month succeeding to which they relate This amendment shall come into force w.e.f. 31-8-1981 as per G.O.(P) 562/ 81/Fin. dated 31-8-1981 and G.O. (P) 155/83/Fin. dated 26-3-1983. **(aa) Except in the case of military pensions which are payable on pension certificate or other authorities, issued by the Controller of Defence Accounts and pension, or unless the Government order otherwise in the case of any particular class of pensions, payment of pensions can be made only upon pension payment orders issued by an Accountant-General. Each Pension Payment order will be in two halves of which one, known as the disburser’s half will be kept in the treasury at which payment is to be made and the other delivered to the pensioner in person when he appears to receive payment of his pension for the first time. •NOTE 1.—*In cases where pension is drawn through authorised agents (who have indemnified Government against overpayments) personal appearance of the Pensioner is not necessary even on the first occasion. †NOTE 2.—Pension to State Government Pensioners and All India Service Pensioners who retired from a post under the State Government and pensions to those who were borne on the State Cadre and retired from posts under the State Government are also payable through authorized Public Sector Banks. $ Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992] ** Relettered [G.O.(P) 177/84/Fin., dated 26th March, 1984] • Note renumbered vide G.O.(P) 542/87/Fin. dated 23rd June, 1987. * Insertion [G.O.(P) 176/77/Fin., dated 6th June, 1977] † Insertion [G.O.(P) 542/87/Fin. dated 23rd June, 1987]

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KERALA TREASURY CODE

RULE 272

#NOTE 3.—A Register in Form 83 (a) should be maintained in Treasuries for noting the details of pensions transferred to Public Sector Banks. In the case of all pensioners whose pensions are paid from the Consolidated Fund of the State** and whose pensions are payable by money order the pensioner’s half of the Pension Payment Order need not be handed over to the pensioner. (b) In issuing a Pension Payment Order, the Accountant General will— (i) attach to each half of the order a specimen signature of the pensioner if he can sign his name and thumb and finger impressions of the left hand of the pensioner, if he cannot sign his name or where this is not possible due to physical incapacity, the thumb and finger impressions of his right hand, failing which his toe impressions the specimen signature or thumb, finger or toe impressions being duly attested by the head of office concerned or by some other responsible person; and (ii) paste a certified copy of the pensioner’s photograph in passport size on the disburser’s half of the Pension Payment Order provided that this requirement (pasting of a photograph) will not apply to Indian women who do not appear in public, European women, persons who hold Government titles, persons who are in receipt of family pensions under the wound extraordinary pension rules or to any other person specially exempted by the Government from the operation of this rule. NOTE

1.—A pensioner shall be required to pay for the photographs required for this purpose.

NOTE

2.—The photographs should be renewed whenever the disbursing officer considers it necessary. The cost of the renewal should also be met by the pensioner.

(c) A pensioner drawing pension direct from the treasury shall produce his half of the Pension Payment Order before the disbursing officer whenever he claims payment of his pension, and no payment shall be made if he fails to produce it. # Insertion [G.O.(P) 542/87/Fin. dated 23rd June, 1987] **Omitted [G.O.(P) 142/81/Fin., dated 25th February, 1981]

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RULE 272

(d) *In commutation cases, the Accountant General shall issue the authority for payment of the commuted value of the portion of pension commuted, along with a communication, intimating the date of commutation and the reduced amount of pension to be payable with effect from the date of commutation. The reduced rate of pension payable after commutation and the date from which it is payable shall be noted in both halves of the Pension Payment Order by the Disbursing Officer under his attestation, quoting Accountant General’s letter as authority, under intimation to the Accountant General. After the commuted money is paid, the voucher for the commuted value shall be sent to the Accountant General in a separate schedule. Payments of pension from the date of commutation shall be made at the reduced rates, based on the amended Pension Payment Order. In case where an anticipatory pension payment order has been issued by the Accountant General, the final pension, when intimated by the Accountant General, shall be noted in both halves of the Pension Payment Order by the Disbursing Officer under his attestation, quoting Accountant General’s letter as authority. An intimation to this effect shall be sent to the Accountant General simultaneously. Future payments shall be made to the pensioner at the revised rates, based on the amended pension payment order. The voucher for the first payment of the final pension shall also be sent to the Accountant General in a separate schedule. Whenever there is an occasion for revision of pension, the Accountant General shall issue only an amendment letter to the Disbursing Officer for making necessary amendments on both halves of the Pension Payment Order under his attestation and effect payments thereof. **The Treasury Officers shall make payment of Dearness Relief to Pensioners on receipt of the orders from the Government without specific authorization from the Accountant General. In regard to payment of Dearness Relief to Pensioners drawing pension outside the State issuance of special seal authorization by the Accountant General shall continue. (e) The payment in rupees of pensions fixed in sterling or any other external currency shall be regulated by such general or special instructions as may be issued by the Government in this behalf. In issuing Pension Payment Orders for such pensions, the Accountant General shall either mention the exact amount to be paid in rupees or indicate the rate at which the amount stated in sterling or any other external currency shall be paid. * Substitution [G.O.(P) 161/77/Fin., dated 27th May, 1977] ** Addition [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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RULES 272-273

(f) The disburser’s halves of the Pension Payment Orders should be filed in serial order in separate files, one for each class of pensions. The Disbursing Officer should keep the files locked up and should keep the key always in his personal custody and see that no one has any access to the files except under his authority and supervision and on his responsibility. B.

Register of Pension Payment Orders

273. (a) Service pensions paid at a district treasury.—The Treasury Officer should keep a register in Form T.R. 80 of the Pension Payment Orders issued on his treasury. This register will serve as an index to the files of Pension Payment Orders referred to in Rule 272 (f) above. Whenever a new order is received, the Treasury Officer should see that it is correctly entered in this register with a red ink line ruled across the page below the entry, and should then write his initials against the entry in the column headed “Name of pensioner”. The column headed “Remarks” should be left blank so long as the Pension Payment order is in force. When both halves of the order are returned to the Accountant General on account of the pensioner’s death or are sent out of the office as a result of an application for transfer of payment out of the district, the order should be removed permanently from the register and the file; the Treasury Officer should have the date and reason for sending away both halves of the order entered at once in the column headed “Remarks” and initial the entry. (b) On receipt of an intimation about the death of a pensioner, prompt action should be taken to record the fact in the register referred to in clause (a) above and on the disburser’s half of the Pension Payment Order. In the case of pensioners whose pensions are paid by money order under the provisions of Rule 286 the necessary note should be made on both halves of the Pension Payment Order. (c) Service pensions paid at a sub treasury.—The registers should be maintained at a sub treasury in the same manner as at a district treasury - See clause (a) above. (d) Political pensions.—The provisions of clauses (a) and (b) above should be followed, mutatis mutandis in regard to political pensions also. There should be a separate register for political pensions.

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RULES 274-275

C. General Rules of Payment 274. (a) As a rule, a pensioner shall take payment of his pension in person and the Disbursing Officer shall identify him with reference to the details available in the Pension Payment Order before making any payment. When claiming his pension for the first time, a pensioner shall also be required to produce his copy of the letter of the Accountant General forwarding his Pension Payment Order to the Treasury Officer. Whenever a pensioner appears to take payment of his pension the Disbursing Officer shall check his personal marks with those recorded on the disburser’s half of the Pension Payment Order and compare his signature on the receipt with that pasted on the disburser’s half of the Pension Payment Order. If a pensioner cannot sign his name, the Disbursing Officer shall compare his thumb-great-toe impression on the receipt with the original thumb-greattoe impression previously taken on the disburser’s half of the Pension Payment Order. (b) Pensions payable at a treasury which transacts its cash business through the Bank shall be actually disbursed at the Bank or at the treasury in accordance with the general or special orders of the Government applicable to each case - See also note under Rule 230 above. When such a pension is to be disbursed at the Bank, the officer-in-charge of the treasury shall be the Disbursing Officer for the purpose of these rules except in regard to the actual disbursement of cash on the bill passed for payment by him. 275. (a) Pensioners specially exempted from personal appearance by the Government (See Rule 126, Part III of the Kerala Service Rules, V Edition), women who are not accustomed to appear in public and pensioners who produce satisfactory evidence that they are unable to appear because of bodily illness or infirmity, need not appear at the treasury in person to claim payment of their pensions. (b) The pension due to any pensioner belonging to one of the classes mentioned in clause (a) may be disbursed to a messenger who presents the pensioner’s half of the Pension Payment Order along with (1) a proper bill signed and receipted by the pensioner and bearing an endorsement also duly signed by him authorizing payment to such messenger and (2) a life certificate in respect of the pensioner signed by a responsible officer of the Government or some other well known trustworthy person (Vide note to Rule 126 of Part III of the Kerala Service Rules, V Edition).

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RULES 276-278

276. The pension due to any pensioner may be disbursed to a messenger who presents the pensioner’s half of the Pension Payment Order along with (1) a proper bill signed and receipted by the pensioner and bearing an endorsement also duly signed by him authorizing payment to such messenger, and (2) a life certificate in respect of the pensioner signed by any of the person mentioned in Rule 126 of Part III of the Kerala Service Rules, V Edition. 277. A disbursing officer shall not pay a pension for any month to a messenger under Rule 275 or 276 if the date of the life certificate is earlier than the *date on which it is due for payment of that month. He shall also invariably take the signature of the messenger in whose favour the pensioner has endorsed the bill in token of the receipt of the amount specified in it. When the messenger is illiterate, his signature shall be taken in the form of his thumb impression, duly attested by a witness. The disbursing officer is personally responsible for any payment wrongly made. Whenever he feels a doubt as to the proper course of action he should consult the Accountant General. *This amendment shall come into force w.e.f. 31-8-1981. 278. (a) A pensioner of any description who is resident in India may claim and draw his pension admissible to him by giving a legally valid power of attorney in favour of another person in India. A pensioner desiring to receive his pension through another person to whom he has given a valid power of attorney should endorse a copy of the deed conferring the power of attorney to his disbursing officer and the audit officer. The person holding the power of attorney will then prepare and present the bills, making a claim on behalf of the pensioner and receive the payment on his (the person holding the power of attorney) giving the quittance. If the person holding the power of attorney is an agent (including a bank) who has also executed an indemnity bond agreeing to refund over payments, he can draw the pension for a period of not more than a year after the date of the life certificate furnished by him in respect of the pensioner in accordance with the provision of Rule 167. If, however, the person holding the power of attorney is not an agent (including a bank) who has executed a bond to refund over payments, he will either receive the payment in person from the disbursing officer after giving his quittance, or if he desires to draw the pension through an agent or representative *Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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RULE 278

nominated by him, he may receive payment through him but in either case of receiving payment in person or through an agent or representative he will append to the bills for pension for each month a life certificate in respect of the pensioner duly signed by any of the authorities stated in Rule 167 ibid and also furnish certificate signed by the pensioner required under the provisions of Rule 283 *below. When a pensioner draws his pension through an agent who is authorised to do so by conferring on him a power of attorney, and who has executed a bond of indemnity under Rule 167 ibid (e.g. a scheduled bank) the certificate regarding reemployment and acceptance of commercial employment, modified suitably can be signed by the agent and the pensioner himself should furnish once a year, a certificate concerning the period for which the pension has been drawn on the basis of the agent’s certificate. The pension disbursing officer shall maintain a register of power of attorney in the form prescribed in the Government Securities Manual and all cases in which the power of attorney has been granted shall be recorded therein. b) A pensioner not resident in India may, with the permission of the ( Reserve Bank of India, draw his pension in India through a duly authorised agent, possessing a legally valid power of attorney, who must produce a life certificate as referred to in Rule 129 of Part III of the Kerala Service Rules, V Edition on each occasion, unless the duly authorised agent has executed an indemnity bond to refund overpayments, in which case he has to produce the life certificate as aforesaid at least once a year. When a pension is drawn from a treasury outside the state and the procedure duly authorised for that treasury differs from thaprescribed above, the procedure authorised for that treasury shall be followed. Explanation.—The agent should have adequate financial stability capable of safeguarding the interests of Government. NOTE—In cases where the life certificate is furnished annually the Treasury Officer will require the Bank/Agent to furnish the life certificates of the pensioners whose pensions are drawn through them, in a separate statement either to be attached to the bills for pension for December drawn in January or to be furnished in January. He will note the date of the certificate in the disbursing officer’s half of the Pension Payment Order and file the certificate in a separate file in chronological order. * Omitted [G.O.(P) 568/79/Fin., dated 28th June, 1979]

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RULES 279-280

279. Leper pensioners.—A leper pensioner shall ordinarily appear before the disbursing officer to claim his pension without preparing a bill. The disbursing officer shall then direct one of his clerks or assistants to fill up a pension bill form on behalf of the pensioner. Payment shall be made at once to the pensioner on this bill, and the disbursing officer shall mark the bill by means of a stamp as having been paid in his presence and record the fact of payment in both halves of the Pension Payment Order under his initials. Both halves of the Pension Payment Order shall be retained in the treasury in these cases. When a leper pensioner is unable to appear before the disbursing officer due to bodily infirmity, he shall send a life certificate under Rule 275 but not a bill. The disbursing officer shall prepare the bill and remit the pension, irrespective of any money limit, by postal money order. 280. (a) The disbursing officer shall take adequate precaution to prevent the payment of any fraudulent claims, on account of the pension of a pensioner who does not appear in person to take payment. When a pensioner draws his pension in accordance with the provisions of Rules 275, 276 or 279 the disbursing officer shall require proof of his continued existence; independent of that furnished by the life certificate in the monthly pension bill to be furnished at least once a year. For this purpose he shall require each such pensioner either to attend in person at the treasury for due indentification at least once a year or to produce an annual life certificate from persons other than those who usually furnish life certificate for receiving monthly pension. The annual life certificate from any Gazetted Officer, Village Officer, Sub Registrar, Sub Inspector of Police and the Executive Officer of the Panchayat wherein the pensioner resides, with the respective office seal affixed to the certificate shall be accepted by the Treasury Officers as independent proof of the existence of the pensioner. The annual life certificate shall be issued by the officers concerned in the following form:— “I….…………………………………..(name and address) hereby certify that Sri/Smt…..………………………….holder of P.P.O.No…………………………for `…………whose signature thumb/great-toeimpression is given below is alive on this date and that I have not issued any life certificate to this pensioner during the last twelve months. .................................................... Signature (with date) (Office seal) Designation ........................................

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RULE 280

Such annual certificate shall be produced in the month of December every year, failing which the payment of pension for * January, as also the pensions for subsequent months shall be held up until the certificate is received. The Treasury Officer shall also send through the messenger receiving payment of pension for November a call in Form T.R. 84 or T.R. 85 for the purpose. (b) The Treasury Officer shall see that the Sub Treasury Officers furnish certificates showing that they have obtained at least once a year the necessary independent proof of the continued existence, etc., of pensioners exempted from personal appearance whose pensions are paid at the sub treasuries. (c) A pensioner of rank may be identified privately by the disbursing officer and need not be required to appear at a public office. (d) The disbursing officer shall take special care in regard to the payment of the pension of any woman not accustomed to appear in public, since such payments involve a special risk of fraud. No payment shall be made except on a life certificate as prescribed in Rule 275 (b), which shall be attested on each occasion, as an additional precaution, by two or more respectable persons of the pensioner’s town or village. The disbursing officer shall also arrange to have every such pensioner examined at least once a year by two non-pardah female pensioners who shall check her personal marks with these recorded on the disburser’s half of the Pension Payment Order, and shall compare her signature, or if she is illiterate her thumb/great-toe-impression or the receipt with that already taken on the disburser’s half of the Pension Payment Order. These examination shall be conducted as far as possible without any extra expenditure by the Government. Extra expenditure may be incurred in special cases when it is unavoidable. **(e) The disbursing officer, may at his discretion and for reason to be recorded privately identify and verify the continued existence of a pensioner, and dispense with his personal appearance prescribed in this rule but this power shall be exercised only in special cases such as of those who held high office before retirement. * Omitted vide G.O.(P) 177/84/Fin. dated 26th March, 1984. ** Substitution [G.O.(P) 410/79/Fin., dated 16th April, 1979]

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PART V

RULES 281-284

281. (a) The pensioner’s receipt for each payment shall be taken on a separate bill in Form “T.R. 81”, “T. R. 81-A” or “T.R. 81-B”, as the case may be, and attached to the respective schedule of payments of pensions of each kind. (b) Every payment of a pension shall be entered on the reverse of both halves of the Pension Payment Order and attested by the initial of the disbursing officer. (c) When the pension of a government servant who was transferred to the service of the Reserve Bank of India is paid at a treasury, the disbursing officer shall take the pensioner’s receipt for each payment in the special receipt form prescribed for the purpose. The Reserve Bank will supply the copies of this form required by the treasury on receipt of a requisition from the Treasury Officer. 282. When a pension is debitable partly to a local fund and partly to state Revenues, the amount debitable to a local fund in any bill and the name of that local fund shall be separately enfaced on the bill in red ink, and the amount shall be debited in the first instance to a suspense head. The suspense head shall be cleared by monthly recoveries from the local funds concerned. 283. [Omitted] [G.O.(P) 568/79/Fin., dated 28th June, 1979] 284. (a) When a pension is granted on condition that it shall be paid only so long as a specified event other than the pensioner’s debt has not taken place, no payment shall be made unless the pensioner furnishes a certificate in the form given in the bill for pension [Form T.R. 81 A] that event has not taken place. (b) A person whose pension is terminable on marriage or remarriage or on attaining majority shall furnish a declaration in the form given in the bill for pension ‘Form T.R. 81 A’ for the month of December every year that the specified event has not taken place till the last date for which pension is claimed in the bill. (bb) *Notwithstanding anything contained in sub rule (a) or sub rule (b), in the case of payment of Family Pension to a widow it shall be sufficient if she gives an undertaking that she would report to the pension disbursing officer, the event of her remarriage. * Addition [G.O.(P) 568/79/Fin., dated 28th June, 1979]

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RULES 284-285

NOTE—In cases where a declaration under this sub rule is required be furnished in the bill for pension for December the certificate referred to in sub rule (a) above need not be furnished in the bill for that month. (c) Every pension disbursing officer, shall, in the month of January, submit to the Accountant General a statement showing particulars and date of last payment of pensions in respect of the cases of failure to furnish the declaration mentioned in sub rule (b) above. Explanation.—If the pension is payable to a minor child through his/ her guardian, the certificate mentioned in sub rule (a) and/ or the declaration mentioned in sub rule (b) should be furnished by the guardian to whom the pension is to be disbursed. In such case the wording of the certificate/ declaration in Form T.R. 81 A may be modified suitably. (d) A father/mother of a deceased government employee in receipt of family pension should attach in the following form an annual certificate form the Tahsildar or a Gazetted Officer of the locality to the bill for pension, presented after one year of drawal of pension. “On conducting proper enquiries I hereby certify that the financial position of Sri/Smt………………………….………….(Name and address)……….…………… father/mother of …………………… (H.E. name and designation of the deceased officer) to whom a family pension of `………………. a month has been sanctioned in G.O. No……. dated ………….. has not improved and that he/she is eligible to get the family pension for another year from ………………… (H.E. the date ………………………) Place………………… Date………………….

Signature and designation”

285. The pension of an insane person may be paid to a guardian appointed under the Indian Lunacy Act, 1912 (India Act IV of 1912) or to any person authorised by the Government (or the authority which sanctioned the pension) to receive it. Such guardian or person shall be required to furnish with each claim a life certificate as prescribed in Rule 275 (b) stating that the pensioner was alive *on the first day of the month for which the pension is claimed. * Substitution [G.O.(P) 177/84/Fin. dated 26th March, 1984]

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RULE 286

C HAPTER III PAYMENT OF PENSIONS BY POSTAL MONEY ORDER

286. * The pension paid from the consolidated fund of the State shall, at the option of the pensioner, be sent to him/her by postal money order at Government cost, except for the first time. The payment of pension for the first time should be made to the pensioner on his appearing at the treasury. The disbursing officer shall observe the following rules in regard to the payments of subsequent pensions by money orders. (i) The disbursing officer shall identify the pensioner when he appears to receive payment for the first time in the manner prescribed in Rule 274 (a) and record the correct address of the pensioner with the name of the post office on the disburser’s half of the Pension Payment Order and instruct the pensioner to communicate any change in his address. The pensioner’s half of the Pension Payment Order will be made available to the pensioner for his scrutiny, if necessary and received back and kept under safe custody in the treasury. NOTE 1.— In the case of pensioners who are already drawing their pensions otherwise and who wish to avail themselves of the facility of pension payment by money order may surrender the pensioners half of the pension payment order in person at the treasury and get an acknowledgment from the Treasury Officer. NOTE 2.— Those pensioners who find it easier and convenient to get their pension direct may, however, be allowed to do so. NOTE 3.— **The first sentence in the opening paragraph shall be deemed to have come into force with effect from the 1st day of November, 1978. (ii) The necessary entries shall then be made in the ‘Register of pensions payable by money order’ in Form T.R. 82 and both halves of the Pension Payment Order shall be filed in a separate file headed ‘Pension Payable by Money Order’. * Substitution [G.O.(P) 170/80/Fin., dated 4th March, 1980] * *Addition [G.O.(P) 401/81/Fin., dated 22nd June, 1981]

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RULE 286

(iii) The Treasury Officers should arrange for the money order forms being written up sufficiently early, and presented to the Post Office from **10th of the month onwards. When the number of money order forms to be booked in Post Offices is very large, the Treasury Officers should contact the Post Masters concerned and decide how many filled-up forms should be presented on each day. The presentation of the forms should be completed however, by the last working day of the month to which the pension relates. The forms for a day will be arranged to be delivered in a lot to the Post Office in a cover addressed to the Post Master. The forms from a treasury should be presented to the same Post Office on all occasions to facilitate future references, if any, required. Normally the forms should be presented at the Post Office nearest to the treasury where the routine transactions of the treasury are carried out. But in cases where the nearest Post Office may not be having enough number of hands to handle the money order forms in bulk, another convenient Post Office with the concurrence of the Postal Department may be fixed for the purpose. He should see that the words “Pension money order not to be paid before the 1st of ……..” (Here enter the name of the month of disbursement) are inscribed on the top of each money order form presented in advance by a rubber stamp. (iv) †Whenever a pension is to be sent by money order at the cost of the State Government, the relevant service head may be debited with the amount of pension and transfer credited to the Money Order Personal Deposit Account in the name of Treasury Officer. The Money Order Commission due thereon shall be debited under the head of account 2071 and simultaneously transfer credited to Money Order Personal Deposit Account. In respect of Pension other than State Pension sent at the cost of the Government or authority to whom such pensions relate, the Money Order Commission as well as the amount payable to the pensioners shall be debited to the concerned Government (Central, Inter-State-Suspense, Tamil nadu etc.) and transfer credited to the Money Order Personal Deposit Account. In respect of pensions of other Governments paid at the cost of pensioners, the net amount due to the pensioner after debiting Money Order Commission as well as the amount of Commission shall be debited to the concerned Government and transfer credited to the Money Order Personal Deposit Account. The Money Order Forms in such cases shall be prepared only for the net amount due to the pensioners. The Money Order forms duly prepared along with a covering **Substitution [G.O.(P) 97/89/Fin. dated 24th February, 1989] †Substitution [G.O.(P) 97/89/Fin., dated 24th February, 1989]

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RULE 286

schedule and a Personal Deposit Cheque drawn by the Treasury Officer in favour of the concerned Post Master for the total amount due, inclusive of Commission as per the schedule may be tendered at the Post Office. ‡The Money Orders returned unpaid should be credited under Revenue Deposits except in the case of Central and other State Pensions. The unpaid Central Money Order Pensions should be credited back to Central Government as minus debit (R.O.P.) under the Major Head “2071-Pensions and other Retirement Benefits in the Central Section of Accounts of the Treasury after noting sufficient, details in the Pension Payment Order concerned. Similarly, the unpaid Money Order Pensions in respect of other State Government should be credited back to the Inter State Suspense Account of the State concerned. (v) Separate pension bills need not be prepared for each pensioner. The payments shall be shown in a separate schedule in Form T.R. 83. The total amounts of the payments shown in the schedule shall be written both in figures and in words. The disbursing officer shall satisfy himself that all the amounts shown as paid in the schedule have actually been remitted by money order and certify accordingly on it. The disbursing officer shall write his pay order on the schedule; it shall then be stamped “Paid by transfer” and forwarded to the Accountant General or the Treasury Officer as the case may be, with the corresponding list of payments as a voucher supporting the debit in the treasury accounts. (vi) The disbursing officer shall also see that the payees’ money order receipts are duly received for all the remittances shown in the register. He shall compare the signature (or thumb impression) on each such receipt every month with the pensioners’ signature (or thumb impression) on the Pension Payment Order and satisfy himself that it is genuine. The receipts shall then be filed in the treasury. In the next month’s schedule of pension payments the disbursing officer shall certify as follows:— “I certify that I have satisfied myself that all pension payments shown in the schedule for the previous month have been paid to the proper persons and that I have obtained the payee’s money order receipts in support of all these payments and filed them in my office.” ‡Substitution [G.O.(P) 358/93/Fin. dated 15th June, 1993]

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RULE 286

(vii) *The disbursing officer shall satisfy himself once in three years about the continued existence of the pensioner either by personal appearance of the pensioner before the disbursing officer or by obtaining a certificate of continued existence of the pensioner, issued by any of the authorities specified in sub-rule (a) of Rule 280, with his office seal affixed on the certificate. #Such life certificate shall be produced in the month of December once in every three years failing which the payment of pension for the month of January , as also the pension for the subsequent months shall be held up until the certificate is received; In token of having satisfied himself of the continued existence of the pensioner, the disbursing officer shall endorse on the schedule of payment for the month of January once in every three years or in respect of pension for ^January paid subsequently against the relevant entry of the schedule of the month concerned, a certificate to the effect that he has satisfied himself that the pensioners were actually alive on the dates on which the pensions were remitted to them. The disbursing officer shall also note the fact of personal mustering or the receipt of life certificate, as the case may be, in both halves of the pension payment order, under his dated signature. ^ This amendment shall come into force w.e.f. 31-8-1981. (viii) **The disbursing officer shall obtain from each woman whose pension would terminate on her marriage and whose pension is remitted by money order, an annual declaration in the form prescribed in Rule 284 (b) for the year ending on the 31st December. (ix) The certificates mentioned in clauses (iii), (vi), (vii) and (viii) shall be given by the Treasury Officer for payments made at the District Treasury. So far as payments made at sub treasuries are concerned the Treasury Officer need only certify that he has received the necessary certificates from the respective Sub Treasury Officers. (x) Where, owing to old age or infirmity or in consequence of some physical disability, it is not possible for a pensioner to present in person to the Treasury Officer, a declaration electing to have his pension paid by money order the Treasury Officer may accept, instead, a written declaration signed by the pensioner, which is duly verified by a Gazetted Officer, a Magistrate or a Justice of Peace. The Officer verifying declaration shall specify the *Substitution [G.O.(P) 284/82/Fin., dated 8th June, 1982] #Substitution [G.O.(P) 177/84/Fin. dated 26th March, 1984] ^Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992] **Substitution [G.O.(P) 568/79/Fin., dated 28th June, 1979]

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PART V

RULES 286-286B

circumstances in which he holds that it is not possible for the pensioner to present the declaration in person to the Treasury Officer. (xi) Should the pensioner be physically incapable of signing the declaration, the Treasury Officer may authorize payment to the pensioner on production of a certificate from the Civil Surgeon of the district or a registered medical practitioner to the effect that the pensioner is alive but is unable to sign the required declaration. In such a case, the pension may be paid to the heir, not being a minor, who would receive payment of the arrears of pension in the event of the pensioners death, provided it is certified by the Tahsildar in whose jurisdiction the pensioner lives that the person claiming to be the heir is in fact a heir and continues to be the heir throughout the period for which he draws the pension. 286 A. [Deleted] [G.O.(P) 360/76/Fin., dated 23rd November, 1976]

C HAPTER III A PAYMENT OF PENSION THROUGH TREASURY SAVINGS BANK ACCOUNT

*286B 1. The Pensions paid from the Consolidated fund of the State shall, at the option of the pensioner automatically be credited to the Treasury Savings Bank Accounts of the pensioners opened exclusively for crediting pension except for the first time, following the procedure detailed below. The payment of pension for the first time should be made to the pensioner after proper identification in the manner prescribed in rule 274(a). 2. The Pensioner may open Treasury Savings Bank Account exclusively for crediting pension and submit a written request to the pension Disbursing Officer for payment of pension through Treasury Savings Bank, with the pensioners half of the pension payment order and a letter of undertaking in Form T.R.83B. On receipt of the written request of the pensioner the pension disbursing officer, shall make necessary entries in the registers of pension payable through Treasury Saving Bank Account (Form T.R. 82A) furnishing of the details of Pension Payment Orders, Number, Name of the pensioner, amount of Pension and the number of Treasury Savings Bank Account in which the amount shall be credited. In order to distinguish the *Insertion [G.O.(P) 733/93/Fin. dated 20th October, 1993]

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KERALA TREASURY CODE

RULE 286B

Pensioner’s Treasury Savings Bank Accounts from other Treasury Savings Bank accounts separate ledger for Pensioners with separate serial number for such Savings Bank Accounts should be maintained. Treasury Savings Bank accounts of pensioners may be distinguished as Pensioner’s Treasury Savings Bank (Pensioners Treasury Savings Bank). Both halves of the Pension Payment Order shall be filed in a separate file superscribed Pension “Payable through Pensioners Treasury Savings Bank” and the Treasury Savings Bank account should be noted at the top of the front cover of the Pension Payment order, and in the front page of the disburser’s half on the top portion. 3. After 20th of every month a schedule in triplicate in the prescribed form T.R. 83A should be prepared category wise. The amount will be totalled and a transfer pay-in-slip attached for the total amount. Necessary entries regarding the date of Payment (Ist of the next month) should be made in both halves of the Pension Payment order. 4. After the preparation of the pension schedule as above, the pension disbursing officer shall sign the pay order in the original of the schedule for the total amount of each category of pension for transfer credit to each pensioners Treasury Savings Bank account noted in the Schedule and also sign the pay-in-slips attached for the total amount by transfer adjustment. 5. The original, duplicate and triplicate copies of the schedule duly signed by the Pension Disbursing Officer will be handed over to the concerned Savings Bank Section. The Savings Bank Accountant will enter amount of each pensioner in his/her respective Pensioners Treasury Savings Bank account on the basis of the signed schedule. Necessary certificates to the effect that all the amount of pension furnished in the schedule has been credited in the respective Pensioners Treasury Savings Bank account of the pensioners should be signed by the savings Bank Passing Officer on the first working day of every month in the triplicate copy and the same returned to the pension section for record purpose. The Original (Voucher) shall be handed over to the section concerned for incorporation to the Treasury Accounts and the duplicate copy along with the transfer pay-in-slip should be kept by the Savings Bank Accountant.

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RULES 286B-287

6. The Disbursing Officer shall satisfy himself once in a year about the continued existence of the pensioner either by personal appearance of the pensioner before the Disbursing Officer or through life certificates. The Disbursing Officer shall also note the fact of personal mustering or the receipt of life certificates as the case may be in both halves of the Pension Payment Order under his dated signature. CHAPTER IV PERIODICAL APPEARANCE OF PENSIONERS FOR IDENTIFICATION

287. (a) On the first appearance of a pensioner the disbursing officer shall take an impression of the pensioner’s left hand thumb and fingers or where this is not possible due to physical incapacity, right hand thumb and fingers or the impressions of the toe, on the pension bill. He shall then identify the pensioner with reference to the particulars given in the disburser’s half of the pension payment order and by comparison of the thumb and finger impressions with those pasted on the Pension Payment Order. Once in the course of every year thereafter, the continued existence of the pensioner shall be ensured by obtaining the above impressions in the pension bill and an annual life certificate as contemplated under sub rule (a) of Rule 280. (b) A woman who is exempt from personal appearance under Rule 275 (a) because she is not accustomed to appear in public should affix an impression of her left thumb/right thumb/great toe on each bill in the presence of the person who signs the life certificate and the latter should attest it. An illiterate pensioner should similarly affix an impression of his left thumb/right thumb/great toe on each bill in the presence of the person who signs the life certificate, or whom he attends at the paying office in person to receive payment, before the disbursing officer, and the person who signs the life certificate or the disbursing officer, as the case may be, should attest it. In the case of an illiterate pensioner or a woman who is not accustomed to appear in public, quittance by a seal mark attested by some known and respectable person may be accepted in lieu of thumb/great toe impressions. (c) When a Pension Payment Order is renewed, the original signature of thumb and finger/toe impressions shall be cut off from the old order and attached to the new order.

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RULES 287-289

(d) If the disbursing officer entertains any doubt as to the identity of any person claiming to be a pensioner who has served in the Police Department, he may require the local Inspector of Police to identify him, and the latter shall then be responsible for the correct identification of the pensioner. (e) The procedure laid down in sub-rule (vii) of Rule 286 applies mutatis mutandis to pensioners receiving pension direct from the treasury also. 288. (a) In order to ensure that annual mustering/periodical verification of the pensioners has been done, the disbursing officer shall note the date of mustering or the date of the life certificate produced at the space provided for it in both halves of the Pension Payment Order. Similarly he shall write the letter “L.C.” with his initials against each monthly pension payment whenever disbursement is made on the strength of life certificate. He shall also send through the messenger who receives payment of the pension in November a call in Form T.R. 84 or T.R. 85 for the purpose. In the case of re-employed pensioners it will be sufficient if a certificate from the head of the office or department in which they are re-employed to the effect that the pensioner is re-employed in his office or department is produced before the pension disbursing officers. (b) When a pensioner draws his pension through an agent who has executed a bond to refund overpayments, the pension shall not be paid on account of a period of more than a year after the date of the life certificate last received. The Accountant General and the disbursing officer shall watch carefully for authentic information of the death of any such pensioner and see that no further payment is made after such information is received. 289. Place of payment:—A pension payable in India may be paid at any treasury in India. *Explanation 1—Treasury in India means any treasury maintained by the Kerala Government, the Government of India or any other State Government. **Explanation 2—Civil Pensions debitable to the Consolidated Fund of the State shall also be paid through Public Sector Banks nominated for the purpose. *Explanation renumbered vide G.O.(P) 542/87/Fin. dated 23rd June, 1987. **Insertion [G.O.(P) 542/87/Fin. dated 23rd June, 1987]

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RULES 290-291

CHAPTER V TRANSFER OF PENSIONS

290. (a)

Transfer of service pensions:—

(i) The Accountant General may, on application made by a pensioner, transfer the payment of his pension from any treasury in India to another. (ii)A Treasury Officer may, on application made by a pensioner, transfer the payment of his pension from the district treasury to a sub treasury subordinate to it or vice versa or from one sub treasury to another in the same district. A Treasury Officer may, on application made by a pensioner, also transfer the payment of his pension to another treasury within the State without the intervention of the Accountant General. He shall, however intimate the Accountant General, the details of such transfer as soon as the transfer is effected. (iii) When a pensioner has applied for transfer of payment of his pension to a treasury outside the State, either to the Accountant General or to the Treasury Officer the Treasury Officer shall, and in cases where the pensioner has so applied to the Accountant General on receipt of an authority from him, forward both halves of the pension payment order to the Accountant General with the application for transfer of pension made by the pensioner. Two slips containing specimen signature or thumb or great toe impression, as the case may be, of the pensioner shall also be sent to the Accountant General along with the pension payment order. The Accountant General will either issue an authority for making payment to the Treasury Officer where the payment is desired by the pensioner, if the latter is situated within his audit circle or move Accountant General of the State in which such treasury is located to arrange for the payment. (b) Transfer of political pensions:—The Government or the Accountant General may permit the transfer of the payment of a political pension from one treasury in India to another, provided that the Accountant General should, before ordering any transfer of a political pension, obtain the concurrence of the authority empowered to permit a change of residence by the political pensioner. 291. (a) A copy of any order issued by the Government or any subordinate authority under the preceding rule shall be forwarded to the Accountant General.

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RULES 291-293

(b) The following procedure shall be observed in regard to the transfer of payment of a pension from one district to another in the State:— The Treasury Officer shall forward both halves of the Pension Payment Order to the Treasury Officer of the new district with information as to the date upto which payment was made in the old district, and shall simultaneously forward a copy of the communication to the Accountant General. On receipt of both the halves of the Pension Payment Order, the Treasury Officer-incharge of the new district shall note the particulars in his Register of Pension Payment Orders in Form T.R. 80 and arrange for payment of pension. If at the time of transfer, the Pension Payment Order is renewed an account of the pensioner’s half having been lost, the Treasury Officer of the new district shall be informed of the loss and renewal. 292. [Deleted] CHAPTER VI RENEWAL OF PENSION PAYMENT ORDERS

293. (a) The District Treasury Officer is authorised to renew Pension Payment Order without reference to the Accountant General when the entries on the reverse of either the pensioner’s or the disburser’s half are completely filled up or the pensioner’s half is lost, worn or torn. When the renewal is due to the loss of the original Pension Payment Order, the circumstances of its loss should be investigated and a fee of *` 5 should be levied on the pensioner before the duplicate Pension Payment Order is issued, provided that, if the loss of the original Pension Payment Order is due to accident or causes beyond the pensioner’s control, or if the pensioner is too poor to pay the fee the Director of Treasuries may exempt him from payment of the fee. (See also Note under Rule 134, Part III of the Kerala Service Rules, V Edition.) The Old Pension Payment Orders, if available, shall be retained by the disbursing officers for three years and then destroyed. NOTE

1—The receipted chalan for the fee realized for renewal of Pension Payment Order should be filed along with the disburser’s half.

NOTE

2—In the case of pensions paid at sub treasuries the Pension Payment Orders shall be returned to the District Treasury for renewal.

*Substitution [G.O.(P) 544/87/Fin. dated 23rd June, 1987]

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RULE 293

Instruction 1—*If a pensioner alleges, loss of his half of the Pension Payment Order, he should make an application with the prescribed fee of † `5 to the officer-in-charge of the District/Sub Treasury from which he is receiving his pension, for a duplicate copy thereof. The Sub Treasury Officer will then forward the application received by him to the District Treasury Officer along with the Treasury half of the Pension Payment Order after duly furnishing his remarks on the application. The District Treasury Officer will then conduct such further enquiries as are deemed necessary on such applications and thereafter, issue a duplicate of the pensioners half, prominently marked ‘Duplicate’ in red ink. Instruction 2—If the disburser’s half of the Pension Payment Order which should be kept under the safe custody of the Treasury Officer is missing, the District Treasury Officer/Sub Treasury Officer should institute a thorough search to trace out the Pension Payment Order. If after such thorough search, the Treasury Officer is satisfied that the disburser’s half of the Pension Payment Order is irrecoverably lost, the matter should be reported to the Accountant General, through the District Treasury Officer in case of Sub Treasury. The District Treasury Officer should send the report to the Accountant General detailing the circumstances in which the disburser’s half was lost and request the Accountant General to issue a duplicate. The Accountant General will then arrange for the issue of a duplicate prominently marked “Duplicate” in red ink. Simultaneously, with the sending of the report to the Accountant General, the District Treasury Officer should fix up the responsibility for the loss and also stop payment of the pension on the Pension Payment Order till the disburser’s half is received in the treasury. The penalty of †`5 should be recovered from the person responsible for the loss. Instances of such losses should be reported to the Director of Treasuries also. *Substitution [G.O.(P) 833/81/Fin., dated 11th December, 1981] †Substitution [G.O.(P) 544/87/Fin. dated 23rd June, 1987]

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RULES 293-295

(b) When a Treasury Officer has issued a new Pension Payment Order in place of a lost one, he shall, by strict observance of Rule 281 (b), see that no payment is made on the Pension Payment Order alleged to have been lost. CHAPTER VII LAPSE OF PENSIONS

A.

Service Pensions

294. (a) If a pension payable in India remains undrawn for more than one year, the pension shall cease to be payable (Rule 135, Part III of the Kerala Service Rules, V Edition). (b) If the pensioner afterwards appears, the disbursing officer may renew his payments. He shall not, however, pay the arrears without the orders of the Accountant General and, if the pension in arrears is to be paid or the first time or if the amount of the arrears exceeds ` 5,000, without obtaining through the Accountant General the previous sanction of the Government (Rule 136, Part III of the Kerala Service Rules, V Edition). If, however the Accountant General considers that the suspension of payment was due to error or neglect on the part of any public officer, he may direct that the arrears be paid without the orders of the Government. (Rule 137, Part III of the Kerala Service Rules, V Edition). 295. (a) A pension chargeable under the head ”2071 Pension and Other Retirement Benefits” not drawn for three years shall cease to be payable without the previous sanction of the Accountant General. (b) The arrears of pension due on account of a deceased pensioner shall cease to be payable if they are not claimed within one year of the pensioner’s death. It cannot be paid thereafter without the sanction of the authority by whom the pension was sanctioned to be obtained through the Accountant General (See also Rule 138, Part III of the Kerala Service Rules, V Edition). **Provided that in cases where the pensioner’s nominee/nominees or heir/heirs apply for payment of any arrears of pension consequent on any Government orders for revision of pension for dearness allowance, such arrears may, subject to the rules relating to such arrear payments, be paid in case the **Insertion [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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RULES 295-297

applications were preferred before the disbursing officer within a period of three years from the date of issue of such orders. Reference to the Accountant General or the pension sanctioning authority shall not be required in such cases. (c) The Treasury or Sub Treasury Officer shall examine the files of Pension Payment Orders carefully every month and remove all the Pension Payment Orders relating to cases of the kinds mentioned in clauses (a) and (b) above. He shall return the disburser’s halves the Pension Payment Orders concerned to the Accountant General with a half yearly statement of such cases. The statement shall be prepared in two parts; the first part should show the names of all service pensioners entitled to pensions adjustable under the head “2071. Pension and Other Retirement Benefits” who have not drawn their pensions for three years and the second part should show the names of service pensioners other than those included in the former part who have not drawn their pensions for more than one year. The reason for the nondrawal, if known, shall be stated against each name. (d) When a pension ceases to be payable during the life time of a pensioner both portions of the Pension Payment Order shall be returned by the disbursing officer to the Accountant General after making the last payment and with a note recording the reasons for the cessation of the pension. 296. When a pensioner has failed to appear to receive his pension for three months, the disbursing officer should make inquiries through the Village Officer as to the cause of his non-appearance (See also Article 359 of the Kerala Financial Code). B.

Political Pensions

297.(a) A pension chargeable under the minor head “Political Pension” under the Major head “2071 or 2075 or 2235, as the case may be” not drawn for six years ceases to be payable without the previous sanction of the Accountant General. (b) A similar procedure to that prescribed in clause (c) of Rule 295 should be followed mutatis mutandis in regard to pensions chargeable to the heads mentioned in clause (a) above but the half yearly statement relating to them should show the names of only those pensioners who have not drawn their pensions for six years.

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RULES 298-299

CHAPTER VIII DECEASED PENSIONERS

298. †A pension shall be payable for the whole of the month in which the pensioner dies, irrespective of the date on which the death takes place. Payment of family pension, if any, in such cases shall commence from the first day of the month following the month in which the death of pensioners takes place. †This amendment shall come into force w.e.f. 31-8-1981. 299. (a) ‡In cases where pension could not be drawn as specified in Sub rule (a) of rule 272 above, and the pensioner dies leaving arrears, the disbursing officer may pay any arrears including commuted value of pension if any, actually due to the nominee or nominees, if the pensioner has filed a nomination as per the Payment of Arrears of Pension (Nomination) Rules, 1984 and if he has not filed any such nomination, the arrears including commuted value of pension, if any, due shall be paid to the pensioner’s heir or heirs provided that they apply within one year of the date of death. [See rule 295 (b) above and rule 138 (a) of Part III of the Kerala Service Rules, V Edition:)] If the application is made later, the arrears shall not be paid without obtaining through the Accountant General the previous sanction of the authority which sanctioned the pension [See Rule 138(a) of Part III of the Kerala Service Rules, V Edition]. If, however, the arrear of pension do not exceed #` 75,000 and the case presents no peculiar features, the Accountant General may direct that the arrears be paid on his own authority [See Rule 138 (b) of Part III of the Kerala Service Rules, V Edition]. • Provided that in cases where the pensioners nominee/nominees or heir/heirs apply for payment of any arrears of pension consequent on any Government Orders for revision of pension or dearness allowance on pension such arrears can subject to the rules relating to such arrear payments be paid in case the applications were preferred before the disbursing officer within a period of three years from the date of issue of such orders. Reference to the Accountant General or the Pension sanctioning authority shall not be required in such cases. †Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992] ‡Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992] #‡Substitution [G.O.(P) 196/2008/Fin. dated 5th May, 2008] •Addition [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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PART V

RULES 299-300

^(aa) Notwithstanding anything contained in Sub-Rule (a), where the person eligible to receive family pension dies before receiving the same or family pension for any period remains undrawn at the time of that person’s death, arrears if any, due to such person shall be paid to the next person/ persons eligible to receive family pension and on the death of that person/ persons before receiving the arrears, the arrears shall be paid to the next person/ persons eligible to receive family pension and so on, eligibility to receive the arrears shall be determined with reference to the position existing as on the date on which family pension has originally sanctioned: Provided that such arrears shall be payable to judicially separated husband/ wife: Provided further that if there is no person living and entitled to receive the arrears as aforesaid, the arrears due to the original family pensioner shall be paid to his/ her legal heirs, those due to the next family pensioner shall be paid to his/ her legal heirs and so on and if there be no legal heirs for any particular deceased family pensioner, the arrear due in respect of such family pensioner shall be paid to the legal heirs of the other family pensioner in equal shares. (b) After paying arrears of pension due on account of a deceased pensioner, the disbursing officer shall return both halves of the Pension Payment Order to the Accountant General with a note of the date of the pensioner’s death, except in the case of pensioner’s governed by the Liberalized Family Pension Scheme, in which case the pensioner’s portion of the Pension Payment Order will be returned to the person nominated to receive the family pension and the disburser’s portion retained by the Treasury Officer. NOTE—(i)

The fact of the death of the pensioner who is governed by the Liberalised Family Pension Scheme and the fact of Payment of Family Pension should be reported to the Accountant General quoting the relevant Pension Payment Order Number as soon as the information is brought to the notice of the treasury.

NOTE—(ii)

*Deleted.

300. (a) **The rule regarding the last payment of pay, etc., to a Government servant (See Rule 212) applies to the payment of arrears of pension, including commuted value of pension to the nominee/nominees of heir/ heirs of a deceased ^Insertion [G.O.(P) 543/87/Fin. dated 23rd June, 1987] *Deletion [G.O.(P) 1065/92/Fin. dated 14th December, 1992] ** Substitution vide [G.O.(P) 1065/92/Fin. dated 14th December, 1992

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PART V

RULE 300

pensioner. (i) †Arrears of pension due to a deceased pensioner who has filed nomination under the payment of Arrears of Pension (Nomination) Rules, 1984 shall be paid to the nominee/ nominees irrespective of the amount of arrears on proper identification provided the persons concerned produces necessary death certificate and pensioners half of the Pension Payment Order unless such half is kept by the treasury. The limitation prescribed in sub-rule (b) of Rule 295 shall also apply for payment in such cases. †Insertion [G.O.(P) 1065/92/Fin. dated 14th December, 1992] •(ii) A person who claims payment of arrears of pension as heir of a deceased pensioner shall be required to produce the pensioner’s half of the Pension Payment Order or if no Pension Payment Order has been issued the copy of the order in which sanction to the pension was communicated to the pensioner or his heir. He shall also be required to produce a death certificate regarding the death of the pensioner and sufficient evidence to establish his relationship to the deceased. (c) When the amount of arrears due to a deceased pensioner does not exceed # ` 75,000, **and if the pensioner has not filed nomination under the Payment of Arrears of Pension (Nomination) Rules, 1984, payment may, subject to the provisions of ^Rule 139 of Part III of the Kerala Service Rules, V Edition and Rule 299 (a) above, be made to the heirs of the deceased on production of an heirship certificate issued by a Tahsildar (under the State Government) in whose jurisdiction the pensioner lived and died or was drawing his pension or in whose jurisdiction the heirs of the deceased live. In that case the disbursing officer need not insist on the production of letters of administration or similar legal authority. #This amendment shall be deemed to have come into force on 27th December, 2004. (d) *When the amount of arrears due to deceased pensioner exceeds # ` 75,000 and if the pensioner has not filed a nomination under the payment of arrears of Pension (Nomination) Rules, 1984, payment to the extent of # ` 75,000 may be made by the disbursing officer as set •Renumbered vide G.O.(P) 1065/92/Fin. dated 14th December, 1992. # Substitution [G.O.(P) 196/2008/Fin dated 5th May, 2008] **Insertion, *, ^Substitution vide [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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KERALA TREASURY CODE

RULE 300

forth in sub rule (c) above. The excess over # ` 75,000 should be paid only under the orders of the Government on the execution of an indemnity bond in K.S.R. Form No.8 with sureties of proved financial ability to meet the obligations undertaken, provided that the Government are satisfied as to the claimant’s right and title and consider that undue delay and hardship would be caused by insisting on the production of letters of administration (See **Rule 139 of Part III of the Kerala Service Rules, V Edition). #This amendment shall be deemed to have come into force on 27th December, 2004. (e) Whenever there is any doubt as to the claimant’s right and title, payment shall be made only to the person producing legal authority. NOTE— Any person claiming to be a legal heir of a deceased pensioner shall produce or cause to be produced the pensioner’s half of the Pension Payment Order or if no Pension Payment Order has been issued the copy of the order in which sanction to the pension was communicated to the pensioner or his heir at the treasury along with the heirship certificate or letters of administration or other legal authority to prove his title to the arrears. If there are more than one legal heir, the heirship certificate or letters of administration or other legal authority (whichever is produced) shall clearly show the extent of the title of each person (i.e. the share to which each person is entitled) clearly. It shall also contain the personal marks of identification and specimen signatures of the heirs attested by the authority who issued the heirship certificate or other legal authority (in the case of heirs who are literate) or the thumb and finger impressions attested by that authority (in the case of illiterate heirs) with reference to which the Treasury Officer can identify the legal heirs. If such details necessary for identification of the heirs are not furnished in the heirship certificate or other documents produced to prove the title, the person who claims the arrears of pension as heir of the deceased pensioner shall be introduced to the Treasury by a Gazetted Officer or by some other well-known and trustworthy person i.e. he shall produce a specimen of his signature (if literate) or thumb and impression (if illiterate) which is certified by a Gazetted Officer or some other well # Substitution [G.O.(P) 196/2008/Fin dated 5th May, 2008] ** Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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PART V

RULES 300-301

known and trustworthy person to be the signature or thumb and finger impressions of the person specified in the heirship certificate or other documents. If the entire amount of arrears is due to one legal heir a claim in the proper form shall be obtained from him and the amount disbursed to him. If the amount of arrears is to be disbursed in parts to two or more persons the full amount of arrears of pension shall be drawn on a simple receipt by the Treasury Officer (bill form No. T.R. 42) and the shares due to the persons present on the day may be disbursed obtaining proper acknowledgments which shall be attached to the vouchers and sent to the Accountant General and the balance shall be kept under Revenue Deposit so that it can be withdrawn and paid as a refund of Revenue Deposit as and when the other heirs claim their shares. A certificate to the effect that the undisbursed balance has been kept under “Revenue Deposit” shall also be furnished by the Treasury Officer in the voucher sent to the Accountant General. The arrears of pension or any share thereof can be disbursed to a heir by postal money order at the cost of the claimant and at his written request. In that case the signature of the applicant on the requisition shall be attested by a Gazetted Officer or some other wellknown and trustworthy person. The maximum limit of ` 200 fixed in Rule 286 (A) for the payment of pension by money order is applicable to this cases. 301. (a) Every disbursing officer who pays any civil pension shall report promptly to the Accountant General the death of any civil pensioner whose pension he was paying (See also Article 369 of Kerala Financial Code. (b) Each Treasury or Sub Treasury Officer shall send to the Accountant General annually on the 1st December, a list of all retired Gazetted Government servants who were drawing their pensions from the treasury or sub treasury and whose deaths have come to his notice during the preceding year. The list shall give the following information: (1) Name

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RULES 301-303

(2) Service or appointment (3) Date of death (4) Honours and distinctions, if any, held by the deceased. 301A. (a) Arrears of pension due to a deceased pensioner shall be paid in the case of Political, Malikhana and Revenue Pensioners also. But payment in such cases shall be made to the claimants only on production of a succession certificate from the authority who sanctioned the pension to the effect that the arrears may be paid to him. (b) The authority who issues the succession certificate mentioned in para (a) above shall do so only after enquiring into in detail the right of the claimant for succession to the family right or sthanam and other relevant aspects. If there are more than one claimant, the names of the persons and the share of the amount to which each is entitled shall be specified in the certificate. (c) The provisions contained in Rule 299 (a) and (b) shall be applicable in the case of Political, Malikhana and Revenue Pensioners also. 302. [Deleted] CHAPTER IX GRATUITIES

303. (a) The Treasury Officer shall not pay any gratuity except on an authority received from the Accountant General, to whom, under Rule 152 of Part III of the Kerala Service Rules the sanction is communicated by the sanctioning authority or by another Audit Officer. The payment can be claimed on the letter of authority itself and no separate bill is necessary in such cases. (b) (i) When at the option of the gratuitant, the gratuity is drawn by the head of an office for disbursement, he shall furnish to the Accountant General within a month of the date of drawal, a certificate of disbursement. (ii) At the option of the gratuitant, the gratuity may be drawn by the head of an office and the full amount or a part thereof, may be adjusted against the dues payable by the gratuitant. In such cases, the details of adjustment shall be certified by the disbursing officer within one month from the date of

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RULES 303-304

drawal, to the Accountant General with receipts and vouchers wherever possible. If only a part of the amount is adjusted and the balance paid in case to the gratuitant, the certificate of disbursement shall be forwarded, as mentioned in sub-rule (i) above, over and above the certificate of adjustment. (c) If a gratuity remains undrawn for more than twelve months, the payment order shall be returned to the Accountant General, mentioning the cause, if known, of the non-appearance of the person entitled to the gratuity. 304. The Government will, while sanctioning a gratuity, communicate such order to the officer submitting the gratuity application who should promptly communicate the sanction to the gratuitant by furnishing him with a copy of the said order and direct him to apply in person to the treasury at which the payment of the gratuity is desired. The Accountant General will separately issue, to the treasury concerned, a letter of authority to pay in which particulars required for identifying the gratuitant will be furnished. On the identification being established and on the gratuitant producing his personal copy of the letter of the Accountant General to the Treasury Officer authorising payment of the gratuity payment shall be made to him or if the gratuitant is dead at the time of payment, upon the receipt of the person legally entitled to receive the gratuity: *Provided that the payment of gratuity may be made, without the personal appearance of the gratuitant through an authorised agent, including a bank, who shall be required to give the Government, separately in respect of each payment, a Bond of Indemnity, which shall be duly stamped, in the following form:— In consideration of our being authorised to draw the gratuity …………………………………(name of the gratuitant)in accordance with gratuity payment order No………………dated …………………..issued by the Accountant General..........……………….we, the……………… (name of the bank or agent) hereby engage to refund to the Government of Kerala on demand, any overpayment that may be made to us on this account. NOTE—The payment can be claimed on the letter of authority issued by the Accountant General and no separate bill is necessary in such cases. *Insertion [G.O.(P) 11/78/Fin., dated 3rd January, 1978]

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RULES 305-305A

CHAPTER X COMMUTATION OF PENSIONS

305. (a) Service Pensions.—(i) The amount payable in commutation of a civil pension under the Kerala Pensions (Commutation) Rules is payable at the treasury at which the pension is being, or is to be drawn. (ii) When a portion only of a civil pension is commuted, the amount of the unreduced pension due upto the day preceding that on which the commutation takes effect, shall be paid along with the commuted value of the portion commuted. NOTE—The above rule applies to the amount payable in commutation of a civil pension under the Madras Civil Pensions (Commutation) Rules also. (b) Revenue Pensions.—When a revenue pension is capitalized and paid off, the pensioner shall be paid his or her pension upto the date of payment of the commuted value. If in any case the commuted value is not paid to the pensioner before he or she attains the age next birthday, or if the rate of interest on deposits in the General Provident Fund, etc., adopted for purposes of calculating the commuted value is varied before the commuted value is paid to the pensioner, the amount of the commuted value shall be revised. Commutation shall invariably become absolute on the date of payment of the commuted value. (c) Political Pensions.—The provisions of rule (a) should be followed, mutatis mutandis, in regard to political pension also. 305A. * (i) Medical Allowance to Pensioners.—All State Service Pensioners who have completed the age of 65 years shall be paid a medical allowance at the rate as is ordered by the Government from time to time. The allowance shall be paid from the first of the month in which the Pensioner completes the age of 65 years by the District Treasury Officer/Sub Treasury Officer based on the details regarding date of birth furnished in the Pension Payments Order and necessary entries thereof made in both halves of Pension Payment Orders. (ii) The Medical Allowance shall be drawn alongwith regular pension bill for each month. In the bill form and other records of the treasury Medical Allowance shall be indicated separately. If in any case the date of birth of the pensioner is not available in the Pension Payment Order, the Treasury Officer *Insertion [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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shall gather the details from the Accountant General. If the Accountant General’s records are not helpful to intimate the date of birth of the pensioner, an affidavit filed by the Pensioner duly attested by a Magistrate or certified by two gazetted officers shall be accepted by the Treasury as proof of age. *This amendment shall come into force with effect from 1st July, 1988. SECTION V Special Instructions to the Treasury Officers AUTHORITY OF THE TREASURY OFFICER TO MAKE PAYEMNT

306. (a) (1) A Treasury Officer should not refuse to pay a bill merely on the ground that the drawing officer has not complied with the financial rule requiring that the particulars of the order sanctioning a charge of a certain kind should be quoted on the bill [See Rule 163 (i)]. If the drawing officer fails to obtain sanction before incurring a charge when the rules require him to obtain sanction, he alone is responsible. (2) When the Government sanction a grant-in-aid to a local body or a private institution, etc., or a contribution towards the cost of a public exhibition of fair or compensation to a Government servant for accidental loss, etc., the Treasury Officer shall not pass the claim for payment unless the claim is drawn and countersigned by the departmental officer who has been authorised to draw a countersign the bill in Form T.R. 108. The departmental officer shall attach to the bill a certified copy of the Government sanction. When an authority subordinate to the Government sanctions any such expenditure under the powers delegated to it by the Government, the Treasury Officer should disburse the amount on the authority of the order according sanction. Before making payment, the Treasury Officer should verify the signature or countersignature of the departmental officer with the specimen already available with him. (3) (i) Advances from General and other Provident Funds if permissible under the rules of the fund, may be drawn by gazetted government servants in the form of bill prescribed in the General Provident Fund (Kerala) Rules, the bill being supported by a duly certified copy of the order sanctioning the advance. In the case of non-gazetted government servants the advance, if admissible, be drawn in the form of bill prescribed in the General Provident Fund (Kerala) Rules the bill being supported by a copy of the sanction duly attested by the head of the office. *Insertion [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

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Payments may be made by the Treasury Officer on the authority and responsibility of the officer sanctioning the advance without the previous authority of the Accountant General, provided that the bill is supported by the certificates appended to the prescribed form of the General Provident Fund (Kerala) Rules. (ii) Withdrawals from the fund, when permissible under the rules of the fund, to meet payments towards policies of Life Insurance may be made in the same form as and when required, in a similar manner and under similar conditions. The particulars of the policy or policies on which premia are to be paid shall be noted on the bill. The bill in which the first withdrawal for payment of a premium is made shall contain the certificate that the details of the policy have been communicated to and accepted by the Accountant General. (iii) Save as provided above, no payment on account of any Provident Fund, whether as a refund of subscription or as a repayment of the whole or part of the amount accumulated at credit of a subscriber can be made without the express authority of the Accountant General. (iv) *When the final payment of the balance at the credit of a subscriber (other than Class IV government servant) to a Provident Fund is to be made outside the jurisdiction of the Accountant General who maintains Provident Fund Account of the subscriber that Accountant General shall make payment to the payee by a crossed bank draft. For this purpose the Accountant General will intimate the amount payable to the payee, and also send a form of receipt to be filled in by him which is given below. On return of the form of receipt duly signed by the payee, a bank draft shall be purchased by the Accountant General and sent to the payee by registered post. Received payment of `………… (Rupees……………….. only) being the accumulation in my …………………... Provident Fund Account No..………. Station:

Signature

Date:

Address Please pay by bank draft. Signature Address

*Insertion [G.O.(P) 364/76/Fin., dated 25th November, 1976]

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RULES 306-307

DOUBTFUL CLAIMS

(b) A Treasury Officer should not undertake on behalf of the claimant any correspondence with any authority in regard to a claim which he considers to be disputable. When he is doubtful whether a claim should be paid or not, he should take the orders of the **Director of Treasuries who is in general charge of the treasury. When such a case is referred to the **Director of Treasuries he may in his discretion authorize the payment if he is satisfied as to the validity of the claim after careful examination of all the circumstances of the case. Whenever the **Director of Treasuries authorizes payment of a claim referred to him by the Treasury Officer as being a doubtful claim, he should immediately report the facts to the Accountant General. PAYMENTS UNDER SPECIAL AUTHORISATIONS REFERRED TO IN RULE 23 OF PART I

307. When the Collector is absent on tour from headquarters or is incapacitated, the headquarters Sub Collector or the Divisional Officer or any other gazetted officer performing the duties of the Collector may exercise the powers specified in Rule 23, when money is very urgently required for expenditure connected with defence or other emergent purposes. If no such officer is on the spot, the Treasury Officer himself may make such payment.

** According to G.O. (P) 141/81/Fin., dated 25th February, 1981 the word “Collector” is changed to “Director of Treasuries”.

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PART VI

RULES 308-309

PART VI TRANSFER OF MONEYS STANDING IN THE GOVERNMENT ACCOUNT GENERAL

308. The rules in this Part apply primarily to transfers of Government moneys(a) from one treasury to another; (b) from the treasury balance to the currency chest balance in a treasury or vice versa; and (c) from a treasury to the Bank or vice versa. Such transfers are made to prevent any unnecessary locking up of moneys in treasuries and to replenish treasuries in which the cash balance has run short. The transfers are facilitated by the maintenance of currency chests in such district treasuries as do not transact their cash business through the Bank and in most of the sub treasuries which do not transact their cash business through the Bank. (See Rules 312* and 313 below). The detailed procedure to be followed in regard to transfers of funds of the kinds mentioned above is indicated below: 1. Resource 309. Maximum normal cash balance.—In January of each year, the Government fix the maximum normal balance for each district for the next financial year, i.e., the amount which the total treasury cash balances in the district should never exceed except in very abnormal circumstances. When the Government consider it necessary, they may fix a higher figure as the maximum normal balance for a district for the months of the year when transactions are heavy. The maximum normal balances so fixed are communicated to the respective Treasury Officers. The Treasury Officer should then fix the maximum normal balance for each treasury in his district which maintains a cash balance (i.e., each treasury which does not transact its cash business through the bank) and submit to the Government a statement (in duplicate) showing how he has distributed the maximum normal balance fixed for the district. If he alters this distribution later, he should submit to the Government a statement (in duplicate) showing the revised distribution. *Rule 312 Deleted

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RULES 309-311

The actual cash balance of a district or a sub treasury should ordinarily be kept much below the maximum normal balance prescribed for it. The cash balance in treasuries including the small coin and uncurrent coin held in them should be kept at a minimum at all times so that the Government's credit balance with the Reserve Bank may be as large as possible. The Treasury and Sub Treasury Officers should, therefore, promptly transfer any treasury balances in the form of notes and rupees which are in excess of requirements by making deposits into their currency chests. Such transfers from and to the currency chests should be reported to the Director so as to enable him to verify whether the Treasury Officers are promptly transferring surpluses of cash to the currency chests. When a surplus of small coin accumulates in any treasury in his district, the Treasury Officer should, if possible, order that it be remitted within the district to another treasury which needs it or to the Bank; when that is not possible he should request the Currency Officer, Madras to order the remittance of the surplus to some place outside the district (See Rules 317 to 319 and 327 to 334 below). 310. Weekly cash balance reports.—The Treasury Officers of the nonbanking district and sub treasuries should forward a weekly cash balance report in Form No. T.R. 89 to the Director of Treasuries every Saturday after the close of business giving the balances for each day of the week. If Saturday happens to be a holiday, the report should be despatched on the last working day of the week. In the report, the reason for retention of cash, if any, in excess of the limits prescribed and the steps taken to bring down immediately the cash balance within permissible limits should be clearly stated. Whenever, cases of retention of excess cash are noticed, the Director of Treasuries will, after investigation report such cases, to Government for appropriate action. While reporting such cases, the Director should clearly record his opinion, whether the retention of excess cash was inevitable. 311. Monthly cash balance report.—On the third working day of each month except April, the Treasury Officer should send a cash balance report in Form T.R. 35 to the Government in the Finance Department. The report for March should be despatched not later than the sixth working day of April. The total balance should be stated in the report in words and its distribution between the district treasury and the sub treasuries should be exhibited; the report should show separately the amounts held in each of them in each denomination of notes/coins. In the case of the balance in the district treasury, the report should show also the amount under double locks and that under the Treasurer's single lock. The figures entered in the report should be punctuated and should exhibit units under units, tens under tens and so on, since any misplacement of the figures causes great inconvenience when the addition is checked.

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RULES 311-312

In a district where any treasury transacts its cash business through the Bank, the report should show only the details of the balances at places at which the treasury does not transact its cash business through the Bank, but a separate memorandum should be attached showing the amount of small coin of each denomination and the amount of uncurrent coin of each class held by the Bank as reported by the Agent or Agents on the last day of each month. The memorandum on the reverse of Form T.R. 35 should show— (i) The remittances to other district despatched in the past month, and those, if any, despatched in previous months for which first acknowledgments have not been received, with date of despatch of each remittance; and (ii) the remittances received from other districts in the past month with the dates of despatch and receipt of each remittance and of the despatch of the first and the final acknowledgments. This memorandum should show only remittances which have been debited or credited in the treasury accounts, and should not include transactions of the following kinds:(i) Currency remittance, i.e., remittances between two currency chests or between a currency chest and the Issue Department of the Reserve Bank of India, Madras which do not affect the treasury account. (ii) Remittances not brought to account in the month to which the report relates, unless they are remittances despatched in previous months for which first acknowledgments have not been received. (iii) Exchanges of one kind of money held in the treasury balance for another kind taken from the currency chest. (The deposit of money into and withdrawal of money from the currency chest on account of any such exchange should be done on the same day, and should not be shown in the treasury account.) The Director is responsible for seeing that the cash balance report is submitted punctually; and delay in submitting it will be treated as a serious treasury irregularity. 312. [Deleted]

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RULES 313-314

SUPPLY OF FUNDS TO TREASURIES AND SUB TREASURIES

General 313. The currency chests maintained at treasuries contain rupees and notes which belong to the Reserve Bank of India. A permanent currency chest is maintained at each district treasury and at each sub treasury where the transactions are of such a magnitude that the additional facility for the transfer of funds thus afforded will make it possible to avoid locking up money unnecessarily in the treasury balance or to reduce the frequency of remittances of coin and notes. When however, the treasury transacts its cash business through a branch of State Bank of India (acting as the agent of the Reserve Bank) or a branch of State Bank of Travancore (acting as the agent of the State Bank of India), the currency chest is kept in the sole custody of the State Bank of India or the State Bank of Travancore, as the case may be, and the Government are in no way concerned with the operations on it. When a sub treasury has no permanent currency chest, a temporary currency chest should, ordinarily be opened during the land revenue collecting season in order that money received in excess of requirements may be transferred immediately to the Government's account with the Reserve Bank by making deposits in the currency chest. Temporary currency chests for purposes other than meeting the requirements of the revenue collecting season may also be opened at sub treasuries for periods not exceeding six months. The District Treasury Officer has power to order the opening of a temporary currency chest at a sub treasury in his district when necessary. He should report the opening of a temporary chest and the amount of the first deposit into it by telegram to the Currency Officer. 314. Under the provisions of the Reserve Bank of India Act, 1934 (India Act II of 1934), the total amount of the currency and Bank notes in circulation, which constitute the liabilities of the Issue Department of the Bank, should not exceed the assets held by the Issue Department in gold, sterling securities, rupee coin and rupee securities. A part of these assets is held in the currency chests in the various treasuries in the form of rupee coin. The notes held in the currency chests are not notes in circulation and pass into circulation only when they are transferred to the treasury balances. The deposit of notes into

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RULES 314-315

a currency chest decreases the amount of notes in circulation i.e., the liabilities of the Issue Department of the Bank, and the deposit of rupees into a currency chest increases the assets of the Issue Department of the Bank. A deposit of notes and/or rupees into a currency chest thus enables the Bank to issue notes and/or rupees from a currency chest elsewhere upto the amount deposited without affecting the adequacy of the assets of the Issue Department of the Bank in relation to its liabilities. Similarly, the effect of a withdrawal from a currency chest may be cancelled by an equal deposit into another currency chest. In a district in which there is no treasury which transacts its cash business through the Bank, every operation on a currency chest is balanced by an "opposite transfer" carried out in another currency chest situated either at the headquarters of the district or within the district. In a district in which there is at least one treasury which transacts its cash business through the Bank, every operation on a currency chest which is in the sole custody of the Government is balanced by an "opposite transfer" carried out under the instructions of the Currency Officer at the Madras Office of the Reserve Bank between its currency chest and the Government's account with the Banking Department of the Bank. The effect of an operation on such a currency chest together with the "opposite transfer" in Madras is from the Government's point of view, a remittance from the treasury balance to the Government's account with the Reserve Bank or vice versa. 315. Treasuries which do not transact their cash business through the Bank.—The Treasury Officer is responsible for keeping sufficient funds to meet disbursements at each treasury in his district which does not transact its cash business through the Bank, and for seeing that the treasury balance at each such treasury is kept as low as possible at all times, so that no money is locked up unnecessarily and the Government's balance with the Reserve Bank is always as high as possible. NOTE—The Currency Officer will be responsible for maintaining the required form of currency chests. It is the duty of the Treasury Officer to see that currency chests at district and sub treasuries are adequately stocked with notes and rupees to meet all reasonable demands for change.

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RULES 315-317

As far as possible, all transfers of funds from and to the treasury balance at a treasury which has a currency chest should be made only through the currency chest and actual remittances should be limited to remittances of small coin and uncurrent coin (See Rules 327 to 331 below). 316. Treasuries which transact their cash business through the Bank.—At a district treasury which transacts its cash business through the Bank the Manager or Agent of the Bank, as the case may be, is responsible for the provision of funds to meet disbursements on account of Government transactions. In order to enable him to make the necessary provision, the Treasury Officer should send him on each Saturday a statement showing as accurately as possible for each of the following two weeks:1. the probable receipts and disbursements on Government account at the district treasury; and 2. the probable receipts from or remittances to sub treasuries at the district treasury. The Treasury Officer should also inform the Bank at once of any expected payment exceeding ` 20,000 in amount, as soon as he receives information that the payment will have to be made. This instruction applies mutatis mutandis to sub treasuries which transact their cash business through the Bank. II.

Remittances

317. Transfers and remittances of moneys standing in the Government account are of the following kinds, namely:— A. TRANSFERS THROUGH CURRENCY

A transfer through currency is a transfer of money between the treasury balance and the currency chest at one place in consideration of an opposite transfer of the same amount at another place, e.g., a transfer at a district treasury against an opposite transaction at a sub treasury in the same district and a transfer at a treasury against an opposite transaction at the Reserve Bank in Madras under the instruction of the Currency Officer.

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PART VI

RULE 317

B. REMITTANCES OF COIN, NOTES

These comprise— (i) Bank remittances, i.e., remittances from the Bank to a treasury which does not transact its cash business through the Bank or vice versa. (ii) Remittances between treasuries, i.e., remittances from the treasury balance at one treasury to the treasury balance at another treasury. NOTE—This method of remittance applies only to remittances to and from sub treasuries where there is no currency chest and to the remittances of small coin, uncurrent coin and foreign notes and coin between treasuries. (iii) Small coin depot remittances, i.e., remittances of small coin from a small coin depot to a treasury or vice versa. NOTE—Remittances from one small coin depot to another are purely central transactions and the procedure prescribed in the Central Treasury Rules should be followed in regard to such remittances. (iv) Mint remittances i.e., remittances of uncurrent coin, or coin withdrawn from circulation, from a treasury to a Mint. NOTE—Currency remittances i.e., remittances of notes or rupees from one currency chest to another or between a currency chest and the Issue Department of the Reserve Bank of India, Madras, do not affect the Government account since the contents of the currency chests are property of the Reserve Bank of India. A remittance of this kind does not involve locking up any Government funds, and remittances of notes or rupees should therefore be sent wherever possible, as currency remittances. Subject to any general or special instructions that may be issued in this behalf by the Currency Officer, Madras, the provisions of Rules 324 to 368 below regarding remittances of coin and notes should be followed in regard to currency remittances also.

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PART VI A.

RULES 318-319

TRANSFERS THROUGH CURRENCY

(a) In a district where there is no treasury which transacts its cash business through the Bank 318. Transfers of funds between the treasury balance and the currency chest at a District Treasury.—The Treasury Officer may, at any time, deposit surplus funds into the currency chest, and shall so deposit the surplus notes and rupees whenever the treasury balance is larger than is necessary. Whenever net receipts cause the treasury balance to exceed the maximum normal balance prescribed for it (See Rule 309 above), the Treasury Officer shall deposit the amount in excess of immediate requirements into the currency chest. When additional funds are required to meet net disbursements, the Treasury Officer shall withdraw from the currency chest the funds needed to replenish the treasury balance. The Treasury Officer shall report every transfer of funds from the treasury balance to the currency chest or vice versa at once to the Currency Officer by telegram or by letter if a letter will reach Madras within 24 hours, and shall also send the necessary chest slip in Form T.R. 38 [See Rule 152 (v)]. 319. Transfers of funds between the treasury balance and the currency chest at a sub treasury.— (i) The Sub Treasury Officer may, at any time deposit surplus funds into the currency chest, and shall so deposit the surplus notes and rupees whenever the sub treasury balance is larger than is necessary. Whenever net receipts cause the sub treasury balance to exceed the maximum normal balance prescribed for it (See rule 309 above), the Sub Treasury Officer shall deposit the amount in excess of immediate requirements into the currency chest, unless he expects that heavy net disbursements will absorb it within the next two or three days. (ii) The Sub Treasury Officer shall, at once, send a report in Form T.R. 38 of each deposit into the currency chest to the Treasury Officer. On receipt, of the report the Treasury Officer shall make the corresponding transfers from the currency chest to the district treasury balance. (iii) When the Sub Treasury Officer requires funds to replenish the sub treasury balance, he shall apply to the Treasury Officer for sanction to a transfer from the currency chest in the sub treasury. If the Treasury Officer is satisfied that the transfer of funds is necessary he shall transfer the amount required from the treasury balance to the, currency chest at the district treasury and authorize the Sub Treasury Officer to make a corresponding transfer from the currency chest to the treasury balance at the sub treasury.

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RULES 319-321

Exception—The Currency Officer of the Reserve Bank of India may, on the recommendation of the Treasury Officer, permit a Sub Treasury Officer to transfer funds from the currency chest to the treasury balance without the sanction of the Treasury Officer subject to such conditions as he may impose regarding the amount of each transfer and the period during which the sanction will remain in force. The Sub Treasury Officer shall send a report in Form T.R. 38 of each withdrawal from the currency chest made under the Currency Officer’s general sanction to the Treasury Officer, who shall on receipt of the report, make the corresponding transfer from the treasury balance to the currency chest. (b) In a district where there is at least one treasury which transacts its cash business through the Bank 320. Transfers of funds from and to a currency chest in custody of the Bank.—The currency chest pertaining to a treasury which transacts its cash business through the Bank is kept in the sole custody of the Bank. All transfers from and to such a currency chest shall be effected by the Bank in accordance with the instructions issued by the Currency Officer, Madras. Such transfers do not affect the Government’s cash balance and do not pass through the Government account. Subject to any special directions contained in Chapters II and III in Part VIII all transfers from and to a currency chest shall be in whole rupees and/or notes (currency and bank notes). 321. Transfers of funds between the treasury balance and the currency chest at a treasury (i.e., a treasury which does not transact its cash business through the Bank).—At a district treasury the Treasury Officer shall follow the procedure prescribed in Rule 318. At sub treasury the following procedure shall be observed:— (i) In regard to deposits into the currency chest the Sub Treasury Officer shall follow the procedure prescribed in Rule 319 (i). (ii) The Sub Treasury Officer may transfer funds from the currency chest to the treasury balance, subject to the following limitations:— (1) that the withdrawal is necessary to meet the requirements of the sub treasury, and (2) that the maximum normal balance fixed for the sub treasury is not exceeded as a result of the withdrawal from the sub-chest.

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RULES 321-324

(iii) The Sub Treasury Officer shall report every transfer of funds from the treasury balance to the currency chest or vice versa at once to the Currency Officer by telegram, or by letter if a letter will reach Madras within 24 hours, and shall also send the necessary chest slip in Form T.R. 38 [See Rule 152 (v)]. B. REMITTANCES OF COIN AND NOTES

322. Transfers of funds from and to a sub treasury where there is no currency chest.—Funds shall be transferred from and to a sub treasury which has no currency chest by the actual remittance of coin and notes. The Treasury Officer is authorised to order such remittances within the district from and to such sub treasuries, if any, no such remittance within the district shall be made without his sanction. 323. General.—The provisions of Rules 324 to 369 shall apply primarily to remittances to and from treasuries which do not transact their cash business through the Bank. At places where the treasury transacts its cash business through the Bank, these rules shall be subject to the provisions of Rule 369 to 374 and such other instructions as may be issued by the Reserve Bank. Despatch of Remittances 324. (a) No remittance of coin or notes shall be made from any treasury to a treasury in another district or to the Issue Department of the Reserve Bank, except in accordance with special or general orders of the Currency Officer. When the Treasury Officer considers that any such remittance not covered by the existing orders is necessary, he shall report the particulars to the Currency Officer and obtain his orders. Uncurrent coin and notes unfit for issue shall be dealt with in accordance with the procedure prescribed in Rules 331 and 332 below. (b) The Treasury Officer shall be responsible for remittances within the district i.e., between the district treasury and a sub treasury subordinate to it or between two sub treasuries in the district. He shall order such remittances to be made when necessary, and need not obtain the sanction of any higher authority for them. He shall not however, order any remittance between two treasuries both of which transact their cash business through the Bank.

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RULES 325-326

325. (a) All remittances despatched by rail, river or road shall be escorted by a police guard, except remittances by a rail of nickel, bronze or copper coin at railway risk. (b) Immediately on receipt of a remittance order from the Currency Officer or as soon as the Treasury Officer decides to order a remittance within the districts the Police Department shall be informed of the kind and amount of the treasure to be remitted and asked for a sufficient escort. The Police Department shall supply the necessary escort according to the scale laid down by the Government. The officer despatching the remittance shall send an intimation to any office from which assistance will be required en route. (c) The officer dispatching the remittance shall inform the receiving office in advance in Form T.R. 90 of the remittance to be despatched in order that arrangements may be made for receiving it. A remittance shall not be sent at such a time that it will be in transit at the end of a month or will reach its destination on a Sunday or other authorised holiday. The attention of the government servant in charge of the escort shall be specially drawn to paragraph 3 of the instruction in Appendix 18. 326. (a) As soon as a remittance is despatched, it should be entered in the currency chest register if it is a currency remittance to a place within the same currency circle. If it is currency remittance to a place outside the circle, the amount should be shown as in transit in the currency chest register and charged off the account on receipt of advice of arrival at the receiving office. (b) The Treasury Officer should advise the Currency Officer of every despatch of a remittance to place outside the district on the same day on which it is despatched. If the treasury is so situated that an advice sent by post would not reach the Currency Officer within 24 hours, the Treasury Officer should send the advice by telegram. The advice should state whether the remittance is a treasury or a currency remittance and should give the name of the district treasury, sub treasury or branch of the Bank to which it has been despatched.

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RULE 327

Remittance of Coin 327. (a) Coin shall be packed for remittance in stout bags. A slip in Form T.R. 30 shall be placed in each bag, and it shall then be tied and sealed. The Treasury or Sub Treasury Officer shall satisfy himself generally as to the contents of the bags. When a remittance is to be sent without a Treasurer or Assistant Treasurer the dispatching officer shall examine a percentage of the contents himself and place a private mark upon the slips placed in the bags so examined, and shall also request the receiving officer to take special care to guard the interests of the remitting officer. For journeys by rail or boat, and also for journeys by road if convenient, the bags shall be packed in stout boxes capable of containing ` 4,000 to ` 6,000 each, nailed down and bound with iron, without gunny covering or ropes, and the hoops shall be riveted or nailed together where they cross. Every box shall bear the name of the despatching treasury cut into it, or painted on it, with a number. For journeys by road for which the above method of packing is not convenient, the bags may be packed in treasure tumbrels or in large chests placed in carts at the door of the treasury in the presence of the Treasury Officer. In the case of remittances within a district, coin may be packed in padlocked boxes in accordance with such detailed instructions as may be issued by the Currency Officer in consultation with the Government. (b) * When a coin is remitted to the Mint at Calcutta, or Bombay, it shall be packed in separate bags for each denomination of coin, and the contents of the bags shall be as shown below: Denomination 1 Rupee ½ Rupee ¼ Rupee 50 paise 25 paise 20 paise 10 paise 5 paise 3 paise 2 paise 1 paise

Value per bag ` 2,000 2,000 500 2,000 500 400 200 100 75 50 20

Tale per bag pieces ` 2,000 4,000 2,000 4,000 2,000 2,000 2,000 2,000 2,500 2,500 2,000

*Substitution [G.O.(P) 14/75/Fin., dated 6th January, 1975]

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RULES 328-331

328. A buoy made of a piece of unsplit bamboo or other floating materials shall be fastened to each box which is to be conveyed on a rivercraft or taken across an unfordable stream on a ferry. The rope of the buoy shall be at least ten yards long. The officer-in-charge of the escort shall see that the rope is never detached from the box and that it is not knotted or entangled in any way so long as the box is on board a boat. When the treasure is shipped on a sea going vessel, the despatching officer shall remove the buoys after the boxes are shipped and the receiving officer shall attach the buoys when landing the treasure. If the receiving officer is not the Treasury Officer, he shall obtain the buoys from the Treasury Officer. Exception—The above precautions need not be taken when the remittance is covered by insurance. 329. The remitting officer shall prepare an invoice in triplicate in Form T.R. 91 for every remittance (other than a remittance of uncurrent coin), taking great care to see that it is prepared correctly. He shall retain one copy of the invoice for record despatch another by post on the same day to the receiving officer, and hand over the third to the officer-in-charge of the escort. The weights of the boxes containing the remittances shall be ascertained by weighing them in the presence of the officer-in-charge of the escort, and the weights so ascertained shall be entered in the invoice separately for each box. The officer-in-charge of the escort shall sign a receipt on each copy of the invoice stating that he has received the boxes of the marks and weights detailed therein. NOTE—Separate invoices shall be prepared for treasury and currency remittances, the words “Treasury Remittance” or “Currency Remittances”, as the case may be, being written on the top. In the case of treasury remittances, the invoices shall show separately uncurrent (1) silver, (2) nickel and (3) copper or bronze coins, giving separate totals for each group of coins. 330. Remittances of coin from the Issue Department of the Reserve Bank of India are usually sent in patent remittance boxes. The receiving officer shall follow the special instructions regarding the method of dealing with such boxes given by the remitting officer. 331. Remittance of uncurrent coin.—Coin withdrawn from circulation shall be remitted to the Mint in accordance with the following rules:—

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RULES 331-333

(i) Broken and cut coin shall ordinarily not be remitted until a sum of at least ` 20 has accumulated. (ii) The remitting officer shall prepare an invoice for each remittance in Form T.R. 92 taking great care to see that it is prepared correctly. (iii) The Mint Master shall prepare a valuation statement of the remittance received and forward it to the remitting treasury or branch of the Bank. (iv) Any deficiency in tale found by the Mint Master shall be made good by the Treasurer of the remitting treasury or the Bank, as the case may be, and any excess in tale shall be returned to the remitting treasury or the Bank. Any excess in value found by the Mint Master shall be credited to the Central Government. (v) When the proportion of current weight rupees fit for circulation found in each a remittance, whether or not cut or broken, exceeds five per cent of the whole, the Mint Master shall make a special report to the Collector concerned or the Madras Local Head Office of the State Bank, according as the remittance is received from a treasury or a branch of the State Bank, for such disciplinary action as may be considered necessary to improve the quality of shroffing in the remitting office. Remittance of Notes 332. All notes unfit for issue which have accumulated at a treasury shall be sent to the Madras Office of the Issue Department of the Reserve Bank of India (or to a treasury, named by the Currency Officer) on each occasion on which a remittance of notes or coin is sent to or received from that office. The note should not be cut for remittance. The remitting officer shall send an advice of the remittance, giving details of the denominations and value of the notes to the Currency Officer by post. 333. New notes and notes fit for reissue should never be cut for remittance. When the value of the notes to be remitted does not exceed ` 2,000 and the notes cannot conveniently be sent along with a specific remittance, they should be sent by post insured for their full value. When the value exceeds ` 2,000 the notes should be sent in charge of a Treasurer or Assistant Treasurer and a police guard.

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RULES 334-335

334. Notes of each denomination shall be arranged in separate bundles stitched by one edge into books of 100 each, any part of 100 in excess of a multiple of 100 being made into a separate book. A slip in Form T.R. 31 shall be attached to each bundle of books, specifying the number of pieces it contains and bearing the full signature of the government servant who has counted them and made up the bundle before despatch. When the remittance is sent in the charge of a police guard the bundles shall be packed in parcels of ten bundles each and the parcel shall be placed in strong wooden boxes, which shall be securely fastened and sealed. The procedure prescribed in Rule 329 shall also be followed in regard to every remittance of notes sent in charge of a police guard. NOTE

1—A ‘private’ seal should not be used for sealing the wooden boxes containing the remittance to be sent in the charge of a police guard. Only the official seal should be used for the purpose.

NOTE

2—Fresh notes of the denominations of ` 5 and ` 10 are remitted from the Issue Department of the Reserve Bank of India to currency chests in the original bundles received from the Security Printing Press.

335. Duties of the Officer-in-charge of the escort for a remittance.— (a) The escort officer shall be present when the boxes of notes and coin are weighed. In the case of chests or tumbrels containing bags of coin the escort officer shall count the number of bags. He shall sign the receipt at the foot of each copy of the invoice. The blanks shall be filled up in words and, if the escort officer does not know English, he shall be required to write the numbers of the bags or boxes which he has received in an Indian language used in the district on the copy of the invoice to be retained by the remitting officer. (b) A copy of the memorandum of instructions contained in Appendix 18 shall be given to the escort officer, and he shall carefully carry out all the instructions given in it. (c) If the escort officer is relieved in the course of the journey, he shall obtain a receipt in the form prescribed in paragraph 8 of Appendix 18 for the tumbrels, boxes, etc., handed over to the relieving officer.

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RULES 336-337

Treasurers Accompanying Remittances 336. (a) Subject to any general or special instructions issued by the Currency Officer, Madras, in that behalf, the remitting officer may send a remittance of silver coin or notes in charge of a Treasurer or Treasurers in accordance with the following scale:(i) For coin remittances—One Treasurer upto `10 lakhs One Treasurer for every additional `10 lakhs or fraction of that amount, upto a maximum of 3 Treasurers in all. (ii) For note remittances—One Treasurer When only one Treasurer is admissible according to the above scale for a remittance of coin or notes, a second Treasurer may also be deputed with the sanction of the Currency Officer if the journey will occupy such a long time that one man cannot be expected to exercise the necessary supervision. (b) A Treasurer or Treasurers sent in charge of a remittance shall remain in charge whilst it is being examined at the receiving office. (c) When a remittance of coin or notes or both is especially heavy, the remitting officer may with the sanction of the Currency Officer, depute one or more clerks to accompany it in addition to the usual escort of Treasurers. (d) The remitting officer may, with the sanction of the Collector, engage any extra Treasurers required for accompanying remittance or to take the place of permanent Treasurers deputed to accompany remittances. When it is not possible to engage men within the district for service as temporary Treasurers, he may engage men from outside the district. NOTE— The term “Treasurer” occurring in this rule and in rules 337 to 375 includes an Assistant Treasurer also. 337. If any chest, tumbril or wagon containing a remittance or part of one is secured by double-locks, one key shall be held by the Treasurer and the other by the escort officer. If there is only one lock, the key shall be held by the Treasurer, but the escort officer shall be responsible for not allowing the chest or wagon to be opened before arrival at the destination, save in the case of a breakdown when the treasure shall be removed to another chest or wagon in his presence. When a remittance is sent in charge of a police guard but

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RULES 337-339

without a Treasurer, single locks shall be used and the keys shall be entrusted to the escort officer in a sealed cover, which he shall not open except when absolutely necessary, e.g., in the case of a breakdown en route. NOTE—A ‘Private’ seal should not be used for sealing the cover containing the keys to be entrusted to the escort officer. Only the official seal should be used for the purpose. 338. (i) A Treasurer shall on no account be sent either to accompany a remittance of nickel, bronze or copper coin or to watch the examination of such coin at the receiving office; (ii) Treasurers accompanying remittances of withdrawn silver coin and remittances for special examination to the Mints shall be released by the Mint authorities as soon as the numbers of sealed boxes in the remittances have been checked with the relative invoices and found satisfactory and correct; and on no account, shall they be detained to watch the examination of any remittance at the Mints. 339. Receipt of remittance.— (a) Immediately on receipt of a remittance from outside the district, the Treasury Officer should send an advice to the Currency Officer stating the name of the remitting office and whether it is currency or treasury remittance. If a postal advice will not reach the Currency Officer within twenty-four hours, a telegraphic advice should be sent. (b) On receipt of a remittance, each box contained in it shall be weighed in the presence of the escort officer and the Treasury Officer and the weight so ascertained shall be compared with that shown in the invoice. If the two weights tally for each box a receipt in the form prescribed in paragraph 7 of Appendix 18 shall be given to the escort officer and he shall be allowed to return at once. A copy of the receipt shall be sent by post on the same day to the despatching office. If the weight of each box is not stated separately in the invoice, the boxes shall be opened and the contents examined in the presence of the escort officer, and the breach of the rule requiring the weights of the boxes to be stated separately shall be brought to the notice of the remitting officer. If the weight of any box does not tally with that stated in the invoice or if any box shows signs of having been tampered with, it shall be opened in the presence of the escort officer and its contents examined before the escort officer is released. If any box is so opened, the facts shall be entered on the receipt together with particulars of the contents of the box as ascertained by counting.

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RULE 340

340. After the preliminary examination of the particulars given in the invoices has been completed, the boxes shall all be opened (if they have not already been opened) whether, the remittance is accompanied by a Treasurer or not. When a Treasurer has accompanied the remittance, the boxes shall be opened in his presence. If the detailed examination of the whole remittance is not to be proceeded with immediately, the bags of coin or parcels of notes shall be deposited in the strongroom under double locks care being taken, as far as practicable, to place them apart from other treasure. When a remittance is expected to remain unexamined in a strongroom for sometime and it cannot be separately secured in a chest, or chests steps shall be taken to guard against any abstraction of coin from the remittance. In such a case, if the amount of the remittance does not exceed ` 5 lakhs and the procedure will not cause practical inconvenience, the entire contents of each bag shall be weighed under the supervision of the Treasury Officer before the remittance is deposited in the strongroom. It may not be possible to weigh the contents of each bag when the amount of such a remittance exceed ` 5 lakhs. When a remittance remains unexamined for sometime and the contents of each bag not weighed the Treasury Officer shall satisfy himself that the remittance has not been tampered with by picking out a number of boxes and bags from time to time and having their contents weighed under his supervision. In such cases care shall also be taken to cover completely with tarpaulins all bags forming part of the remittance, and to secure any notes which have been unpacked in a chest or chests or replace them in the original boxes and fasten the lids securely. Exception—1

When coin or notes contained in remittance are to be despatched to another treasury within a few days of the receipt of the remittance, the boxes need not be opened but may be deposited in the strongroom as they are, provided that they are in good order and are in the charge of a Treasurer who will be available to accompany them to their final destination.

Exception—2

New nickel or bronze coin received either directly from the Mint or from any other treasury in the original Mint boxes may be accepted as correct without opening the boxes, provided that the boxes are numbered and the seals bear a distinct impression and that both boxes and seals are intact at the time of receipt.

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RULES 341-344

341. The detailed examination of the contents of the remittance shall be conducted in the presence of the treasurer who accompanied the remittance, and under the supervision of the Treasurer of the receiving treasury or some responsible person acting on his behalf. If, however, no Treasurer has accompanied the remittance from the remitting treasury, the detailed examination shall be conducted in the immediate presence and under the personal supervision of the Treasurer of the receiving treasury, who shall see that the interests of the remitting treasury are adequately safeguarded. 342. (a) Every facility shall be given to the Treasurer of the remitting office to watch the examination of the remittance. Any complaint which he makes shall be reported at once to the Treasury Officer. If any fraud is suspected, the treasurer or treasurers who are examining the remittance shall be searched in the presence of the Treasurer of the remitting office. (b) Only such portion of the remittance shall be taken out of the strongroom as can be examined during the course of the day. When a portion of the remittance remains unexamined, the Treasurer of the remitting treasury may, if he so desires, be allowed at the time of the closing of the strongroom to place a lock of his own on the chest containing the unexamined portion, or, if that is not possible, on the outside door of the strongroom. 343. The notes and coin contained in a remittance shall be counted and examined in detail, so as to ensure not only that they are all genuine but also that each bundle of notes or bag of coin contains the alleged number. In the case of remittances of fresh notes send from the Issue Department of the Reserve Bank of India in bundles of 1,000 pieces, the bundles shall be split up into packets of 100 notes each. Any light weight or other uncurrent or defective coin found in the course of the detailed examination of a remittance of current coin shall be separated and dealt with in accordance with the rules in Chapter II of Part VIII. Deficiencies, whether in numbers or due to counterfeit notes or coin, shall be dealt with according to the procedure laid down in Rule 347. 344. As the examination of each bundle or bag is completed, the slip in Form T.R. 30 or T.R. 31, as the case may be, contained in it shall be taken out and replaced by a fresh slip prepared by the receiving treasury. The slips from those bags and bundles the contents of which have been found correct shall be handed over to the Treasury Officer and immediately destroyed by him; the remaining slips shall be attached to the report to be sent to the remitting treasury (See Rule 349). When, however, a remittance of coin is received from

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RULES 344-347

the Issue Department of the Reserve Bank of India, the Treasury Officer shall return all the slips to the Currency Officer after the remittance has been examined. 345. The Treasury Officer shall supervise the examination of the remittance generally and see that adequate safeguards are taken by the Treasurer during the examination to prevent any malpractices by the Treasurer of the remitting office or the treasurers who examine the remittance. The Treasury Officer shall put away the notes and coin which have been examined under double-locks in the treasury or in the currency chest, as the case may be, following the procedure laid down in Rules 144 and 151. When the detailed examination of the remittance has been completed, the Treasury Officer shall send a formal report to the remitting officer showing the result of the examination. 346. The examination of a remittance shall be conducted as expeditiously as possible in order that the Treasurer who accompanied the remittance may be relieved as early as possible and unnecessary expenditure on his daily allowance avoided, and also in order that any deficiency may be recovered from the Treasurer of the remitting treasury. For the examination of heavy remittances of coin additional treasurers may be engaged with the special sanction of the Director. The minimum amount of coin or notes of any one denomination to be examined by a Treasurer in a day is specified in Appendix 19. 347. (a) If a deficiency discovered at a treasury on a detailed examination of a remittance received from another treasury is not immediately made good by the Treasurer of the remitting treasury, it shall be charged in the accounts as a distinct item with full particulars; these full particulars shall also be intimated to the Treasury Officer of the remitting treasury, and he shall recover the amount and credit it in his own treasury. (b) A deficiency discovered at the Bank (including the Issue Department of the Reserve Bank of India) in a remittance received from a treasury shall be made good from the cash balance of the receiving office and shown as expenditure on Government account under advice to the remitting treasury for recovery and credit in its accounts. Similarly a deficiency discovered at a treasury in a remittance from the Bank (including the Issue Department of the Reserve Bank of India) shall be made good from the treasury balance under advice to the remitting office, which shall credit the amount to Government account.

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RULES 347-351

(c) The remitting treasury shall be responsible for any shortage discovered at the Mint or at a small coin depot in a remittance from a treasury. (d) The Accountant General shall watch the recovery of all deficiencies discovered in remittances. 348. All excesses found in a remittance shall be returned to the remitting treasury through the attending treasurer, or, if this is not possible, by registered post or by money order, the cost being borne by the remitting treasury. 349. Every defect or deficiency discovered during the examination of a remittance shall be entered in the slip pertaining to the bag of coin (Rule 327) or bundle of notes (Rule 334) concerned and shall be specially reported to the remitting officer direct. The report shall be sent to the remitting officer together with the slip or slips concerned immediately on the close of the examination (or, if it is a prolonged, one, at the close of the day) so that the remitting officer may be able to fix the responsibility for the deficiency. If a Treasurer of the remitting office is present to witness the examination, he shall attest the entries on the slip as they are made, and shall be allowed, if he so desires, to make good any deficiency, if he makes good any deficiency, the fact shall be noted on the slip and in the report. If no Treasurer of the remitting office is present at the examination, the report shall state the name and rank of the officer who personally supervised the examination. When any bad coin or notes have to be returned to the remitting office, they shall be made over to the Treasurer of that office or, if that is not possible, sent by insured post at the cost of the remitting treasury. If any bag of coin or bundle of notes is received without a slip or is defective in any other way, a special report shall be sent immediately to the remitting officer. 350. When the number of rupee or half rupee coins which have lost more than 2 per cent in weight but not more than 6¼ per cent or 12½ per cent respectively (See Instructions in Chapter II of Part VIII) detected in any bag during examination of a remittance exceeds half a per cent of its contents, the number of such coins found in the bag shall be noted on the slip relating to it, and the slip shall be sent to the remitting office with a report in the manner laid down in Rule 349. 351. When new copper, nickel or bronze coin is received either directly from Mint or from another treasury in the original mint boxes, any excess or deficiency found on the examination of any box shall be immediately reported and the printed slip of contents shall be forwarded to the Mint Master

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RULES 351-356

concerned. The report shall state the number of the box in which the excess or deficiency was found and the condition of the box on delivery. 352. When the detailed examination of a remittance has been completed, the Treasurer who accompanied it should take back to the remitting office the locks, and if convenient, the bags also. If the police guard which escorted the treasure returns to the station from which the remittance was despatched, the tumbrels of chests should be sent back to the remitting treasury under its charge; otherwise the Treasurer of the remitting treasury should take these back too. 353. All charges incurred in connection with remittance of coin and notes to and from treasuries, whether as currency remittances or as treasury remittances, are borne by the Reserve Bank, subject to the conditions and exceptions mentioned in Rules 354 to 356. 354. Charges relating to remittances between two treasuries neither which has a currency chest should be borne by the Government. Charges relating to the remittance of uncurrent coin between such treasuries, when sent separately, should, however, be borne by the Reserve Bank. 355. The pay of permanent treasurers and of extra treasurers engaged on a temporary basis to deal with heavy receipts of remittances should be met by the receiving treasury and not debited to the Reserve Bank. All temporary treasurers should be paid at the rates fixed by the Government. The pay of temporary treasurers engaged under Rule 336 (d) to accompany remittances or to take the place of permanent treasurers, who are deputed to accompany remittances should be debited to the Reserve Bank. The traveling allowance of all treasurers, whether permanent or temporary, who accompany any remittance other than one between two treasuries where there is no currency chest should be debited to the Reserve Bank. 356. Travelling allowances of Treasurers, Clerks, etc., who accompany remittance.— (a) When treasurers or clerks are sent with treasure or currency remittances, the remitting Treasury Officer should furnish them with a certificate in Form T.R. 93 with columns (1) to (8) filled in. The officer receiving the remittance should estimate with reference to the amount and kind of the remittance received and the number of men available at his office for examining it, the period for which the treasurers or clerks accompanying it are likely to be

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RULES 356-357

detained at the receiving office, and intimate it to them in writing so as to enable them to make suitable arrangements for their stay in the station. After finishing the examination of the remittance, the receiving officer should complete the certificate in Form T.R. 93 and return it to the remitting treasury. If the halt has exceeded ten days, he should state in column (12) the daily allowance which he recommends for the period in excess of ten days and explain the reasons for his recommendation on the reverse of the certificate. A certificate in Form T.R. 93 should be attached to every bill for the traveling and other allowances of treasurers or clerks deputed to accompany a remittance. (b) When a halt exceeds ten days, the Officer of the Reserve Bank of India authorised for the purpose, or when the charges are debited to the Government, the Treasury Officer will decide whether full daily allowance should be granted for the period in excess of ten days or whether a reduced rate should be allowed. In the case of charges debitable to the Bank, the Currency Officer will deal with claims relating to a halt exceeding ten days but not exceeding one month, and the Chief Accountant of the Reserve Bank will deal with claims relating to a halt exceeding one month. On receipt of the certificate (Form T.R. 93) from the receiving officer, the Treasury Officer should forward it to the Currency Officer for necessary action if there has been a halt in excess of ten days and the charges are debitable to the Reserve Bank. The authority competent to deal with the claim should indicate in column 13 of the certificate the rate at which daily allowance may be drawn for the period in excess of ten days comprised in any one halt. (c) When a person from outside the district is engaged as a temporary treasurer under Rule 336 (d), traveling allowance should be paid at the ordinary rates for his journey from his residence to the place of appointment. 357. The Treasury Officer who despatches a remittance may grant to a Treasurer or other treasury official who is to accompany it an advance of travelling allowance upto the amount likely to be incurred for his journey. If, in any case the amount advanced proves insufficient, the receiving treasury may, on the application of the treasurer or other treasury official concerned, pay him such further advance as may be necessary. An advance made by the receiving treasury should not be met from the Treasury Officer’s permanent advance but should be drawn from the treasury and charged in the accounts and the particulars should be reported to the remitting treasury at once, so that the latter may recover the amount from the travelling allowance bill to which relates.

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RULES 357-362

A Treasury Officer is not authorised to make any advance of travelling allowance to a clerk or shroff of the Reserve Bank who accompanies a remittance. If a Currency Officer receiving a remittance from a treasury grants an advance of travelling allowance to a treasury official accompanying the remittance, the amount of the advance will be noted on the treasury official’s certificate with the Currency Officer’s signature. The remitting treasury should deduct this amount from the travelling allowance bill of the government servant concerned. Such advances will only be made by a Currency Officer in exceptional circumstances. 358. All contingent charges incurred at the station where a remittance is received, such as labour charges, cart or boat hire should be paid by the receiving officer and charged in his accounts. The remitting officer should not meet such charges. Additional Rules for Remittances by Railway 359. When a large remittance is to be despatched by railway, notice shall be given before hand to the railway authorities at the station of despatch, so that a wagon or wagons of convenient size may be made available at the right time. 360. When treasure is loaded for despatch by railway, the doors on one side of the wagon shall, if possible, be secured from inside and all doors that can be opened from outside shall be secured by good padlocks. The Treasury Officer shall supply the padlocks and take an acknowledgment from the escort officer for them. A sufficient stock of padlocks shall be maintained in each treasury from which remittances are sent by railway. 361. Small remittances need not be sent by wagon, but may be sent in the same compartment in which the escort in charge of the remittance travels. An escort traveling in charge of currency or Bank notes not sent by wagon shall have the box in the same carriage and shall sit in the end compartment of the carriage with the box under the seat against the outer planking. If the box is too large to go under the seat, the use of a whole compartment shall be reserved on the usual terms. 362. The Treasury Officer (or a responsible government servant deputed by him for the purpose) shall, jointly with the Police Officer deputed to travel in charge of the escort by railway, superintend the loading of the wagons. He shall also hand over to that officer a copy of the memorandum of instructions printed in Appendix 18 and as many blank receipts as there will be reliefs en route and shall take his receipt for these documents.

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RULES 363-365

363. The strength of the escort deputed to accompany a remittance to the railway station of despatch and to protect the loading shall be determined in accordance with the general or special orders of the Government regarding the escorting of such a sum by road. The receiving officer shall arrange for a fresh escort of a strength determined in the same way to meet the remittance at the railway station where it is to leave the railway. During the railway journey the treasure shall be protected by a guard of reduced strength fixed in accordance with the general or special orders of the government. The guard shall be accommodated in an adjoining brake van if the remittance is carried by goods train, and otherwise in the end compartment of the carriage next and adjoining the wagon containing the treasure. Neither door of the compartment occupied by the escort shall be locked. The general principle to be observed in fixing the strength of the guard for a railway journey is that ordinarily it shall never be less than a Petty Officer with two men and that, when the remittance is loaded in more than one wagon, two men shall be allowed to each wagon. When a wagon containing treasure is to be detached from the train for any reason, the Station Master or the Guard in charge of the train will warn the Police guard in charge of the treasure in order that the necessary arrangements may be made to guard it. 364. As the members of the Police guard in charge of a remittance have to be constantly on duty, the Police Department shall arrange to relieve them at convenient points on the journey, allotting to each party a stage of about twelve hours with due regard to any general or special instructions that have been issued as to the exact length of particular stages. When an escort officer starts a railway journey in charge of a remittance, he shall telegraph to his relieving officer the probable times of his arrival at the station where he is to be relieved. 365. (a) The receiving officer should make the necessary arrangements for the transport of the treasure at destination so as to avoid delay at the railway station and inconvenience to the Police Department. (b) The receiving officer should return the padlocks which were used on the doors of the railway wagons to the remitting treasury through the escort officer if he is returning to the station where the remitting treasury is situated. Otherwise, the receiving officer should give the escort officer a receipt for these padlocks and return them as soon as possible through the treasurer of the remitting treasury or, if no treasurer accompanied the remittance, by parcel post or railway parcel.

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RULES 366-368

366. (1) The railway fares and freight may be paid in cash or by warrent or credit note according to local practice. In the case of cash payment, the police or other officer may obtain from the treasury a sufficient amount as an advance to be accounted for afterwards. The remitting officer or the officer arranging the remittance will ascertain the nature and extent of accommodation required for the purpose without unnecessarily increasing the cost of remittance, and send the following requisition to the railway authorities. “To the Station Master……………….…..Conveyance by railway to……....………is required for treasure belonging to the Government/Reserve Bank of India to the value of ……………………lakhs of rupees loaded for ……………………………..and contained in ………………………wagons.” (2) The Station Master will give the officer commanding the guard a paper notifying that he is in charge of treasure loaded in so many wagons. NOTE

1—The requisition mentioned above must not be confounded with the notice to be sent beforehand to the railway authorities, in order that the necessary wagons may be provided.

NOTE

2—Treasure should always be booked through to the final station, and the officer who makes the requisition should inform the railway authorities that he has provided reliefs for the guard at specified stations.

367. Remittances of nickel, bronze or copper coin shall be booked at railway risk, provided they do not exceed the limits prescribed under the Indian Railway Coaching Tarrif Rules. Consignments exceeding the prescribed limits are required to be escorted-Vide Rule 359. 368. (a) A remittances of currency or Bank notes by sea shall be sent in the charge of an escort, if freight is paid at cargo rates; in that case, the value of the notes shall not be entered in the bill of lading but only the number of pieces. If it is cheaper to pay freight at the rate for specie and the steamer company will then accept responsibility for the face value of the notes, the freight shall be paid at the rate for specie and no escort need be sent. If, however, in any case the steamer company will not accept responsibility for the face value of the notes even if freight is paid at the rate for specie, the remittance shall be sent as ordinary cargo at cargo rates in charge of an escort, although this course may entail some additional expense.

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RULES 368-373

(b) Remittances of coin by sea shall ordinarily be sent insured or at the shipping company’s risk without an escort. (c) Remittances of notes or of silver coin of any description by inland steamer shall be sent uninsured under the protection of an adequate escort. (d) The consignee shall arrange to take delivery of the treasure on arrival at the station to which it is booked; otherwise it will be carried on to the next station at the consignee’s risk and the consignee will have to pay the demurrage charges. Remittances to and from Branches of the State Bank of India and its subsidiary the State Bank of Travancore 369. Rules 324 to 368 apply mutatis mutandis to remittances to and from a Branch of the State Bank of India including its subsidiary, the State Bank of Travancore, transacting the cash business of a treasury, subject to the modifications indicated in the following rules, (rules 370 to 374) and to any instructions issued by the Reserve Bank. 370. When the Agent of a branch of the State Bank wishes to remit surplus notes or coin from the currency chest or surplus small coin from his balance, or desires that a remittance of notes or coin be sent to his branch, he will report the particulars to the Madras Local Head Office of the State Bank. The Local Head Office will communicate with the Currency Officer and issue orders to the Agent regarding the remittance; if the remittance concerns the Treasury Officer, the Currency Officer will issue orders to him simultaneously. 371. The agent of a branch of the State Bank will supply the Treasury Officer of the district, on request, with any coin and notes required for remittance to a sub treasury in the district (whether as a treasury or a currency remittance), except when the Currency Officer has decided that it is more convenient to supply coin and notes direct to a sub treasury from the Issue Department of the Reserve Bank of India or from a treasury or a branch of the State Bank in another district. 372. All charges incurred in connection with remittances of coin and notes to and from branches of the State Bank are met by the Reserve Bank. 373. The procedure prescribed in Rules 324 to 334 for the packing and despatch of remittances should be observed by the branches of the Bank, but

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in the absence of special arrangements to the contrary made with the Agent, the Treasury Officer should arrange for the actual conveyance and, when necessary, for the escorting of the remittance. The State Bank should bear the cost of any treasures (shroffs) engaged to deal with heavy receipts, but may engage temporary shroffs to accompany remittances at the cost of the Reserve Bank in accordance with the provisions of Rule 336 (a) after obtaining the sanction of the Currency Officer when it is required under that rule. The power vested in the Collector by Rule 336 (d) to employ additional treasurers does not apply to treasuries which transact their cash business through the Bank. The provisions of Rule 356 regarding halts by treasurers of the treasury do not apply to shroffs, employed by the State Bank; their daily allowance is regulated by the Bank’s rules. NOTE

1—The charges for remittance of the following kinds shall be borne by the Government:— (i) remittances to/from currency chests from/to sub treasuries having no currency chest; (ii) remittances between sub treasuries without currency chests at both ends; (iii) when not sent separately, remittances of uncurrent coins between treasuries and sub treasuries without currency chests at both ends; and (iv) remittances of small coins between regular small coin depots and treasuries or sub treasuries with no currency chests.

NOTE

2—In the following cases, the charges for remittances of treasure (including cost of police escorts) shall be borne by the Reserve Bank. (i) remittances to/from currency chests from/to treasuries or sub treasuries having currency chests,: (ii) remittances of small coins between regular small coin depots and treasuries or sub treasuries having currency chests. (iii) remittances of uncurrent coins between treasuries and sub treasuries whether within or outside the district, when sent separately; and

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RULES 373-374

(iv) all remittances made under the orders of the Currency Officer provided such remittances are between treasuries and sub treasuries having currency chests or between small coin depots and such treasuries and sub treasuries. NOTE

3—The Officers-in-charge of the Bank conducting despatch of Government treasure are competent to place requisitions for police escorts directly to police authorities. *The charges for police escorts shall be paid directly by the bank to the police authorities.

374. The following rules should be observed in the examination of a remittance of coin or notes made to the Bank from a treasury. They should be fully explained to every treasurer who accompanies a remittance made to the Bank:— (a) All boxes should be weighed on receipt of a remittance. The result of the weighment should be entered on the receipt given to the officer or treasurer in charge of the remittance. (b) The remittance should be examined in a room separate from the general business of the Bank, or, if a separate room cannot be made available, at some distance away from the place where the ordinary banking transactions are taking place. (c) The contents of each bag of coin should be emptied into another and passed through the scales. The treasurer should see that the index of the scales is steady before the contents are thrown out. (d) The treasure should then be secured in separate chests and kept distinct from other treasure under the joint keys of the Manager or Agent of the Bank and of the treasurer of the remitting treasury until regularly examined and brought to account. (e) Nothing should intervene between the treasurer of the remitting treasury and the Bank’s examining shroffs, so that an uninterrupted view may be obtained by the former of the examination of the treasure. The treasurer of the remitting treasury should sit within the railed enclosures along with the Bank’s examining shroffs. (f) As soon as the detailed examination of the remittance is completed, light-weight coin should be weighed against full weight coin and a certificate of the result granted on the spot to the treasurer of the remitting treasury. *Addition [G.O. (P) 56/82/Fin., dated 4th February 1982]

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(g) The weighment and the detailed examination of a remittance should be conducted separately, not simultaneously; the weighment should be completed before the detailed examination is begun. (h) If the work of weighment or detailed examination be not finished within the day, the bags of coin or bundles of notes not finally taken over by the Bank should be placed in chests under double locks; the key of one of the locks should be retained by the treasurer of the remitting treasury and the key of the other by the Bank authorities. (i) The Bank’s shroffs who begin the weighment and examination of a remittance should continue at the same duty until they have completed the examination of the remittance, or such portion of it as has been taken over for examination, they should not be replaced by others except when that is unavoidable owing to sickness. (j) When the remittance is not accompanied by a treasurer, the Manager or Agent of the Bank should proceed with the examination only after asking the local Treasury Officer to depute a subordinate to be present at the examination and see that it is carried out by the Bank with sufficient precautions. The Treasury Officer should depute for the purpose a subordinate of some standing. The charges actually incurred in connection with the deputation of such a subordinate should be debited to the Reserve Bank. (k) The Treasurer or Treasurers accompanying the remittance should, before finally leaving the Bank, sign in a book kept for the purpose a memorandum of the uncurrent and spurious coins and of any deficiency found in the remittance. (l) If a Treasurer accompanying a remittance finds that any of the above rules is not complied with or that impediments of any kind are placed upon a free and open scrutiny of the proceedings during the examination by the Bank’s officers or shroffs, he should immediately report the facts to the Manager or Agent of the Bank.

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RULES 375-376

C. RESERVE BANK OF INDIA REMITTANCES

(i) Introductory 375. Rules 376 to 423 below are designed primarily for the guidance of Treasury Officers in dealing with the payments into and withdrawals from treasuries in connection with the facilities afforded by the Reserve Bank to Government Officers and others for the remittances of moneys from one place to another. These remittances are arranged for by the issue of Telegraphic Transfers, Drafts, etc., on the Reserve Bank Account. 376. Remittances between places where the Reserve Bank has its own offices or is represented by its State Bank of India agencies having full currency chest facilities, will not pass through the Government Account. At places where the Reserve Bank is not so represented, all treasuries and sub treasuries in India with currency chest facilities and such other treasuries or sub treasuries as may be nominated by the Reserve Bank in this behalf, will be regarded as ‘Treasury Agencies’ of the Reserve Bank for the issue and payment of Telegraphic Transfers and Drafts drawn by or upon them. The connected debits and credits in the treasury accounts which will be carried initially against the balance of the Government owning the treasury or the sub treasury, as the case may be, will be cleared by the Accountant General by daily adjustments advised to the Central Account Office of the Reserve Bank in accordance with such directions as may be given by the Comptroller and Auditor General with the approval of the President. NOTE

1—At places where the cash business of the treasury is conducted by sub offices of the State Bank of India having limited currency chest facilities (i.e., Treasury Pay Offices) Reserve Bank remittances will be drawn by or upon the treasury or sub treasury at such places acting as Treasury Agencies of the Reserve Bank and not the Treasury Pay Office of the State Bank, through the cash and clerical work in connection therewith will be transacted by the latter on the orders of the Treasury or the Sub Treasury Officer, as the case may be. The names of treasuries and sub treasuries which, for the purpose of this rule, are regarded as Treasury Agencies of the Reserve Bank, will be found in the separate publication ‘List of Treasuries and Sub Treasuries in India’ issued by the Government of India.

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NOTE

RULES 376-379

2—For the purpose of the rules in this section, the term ‘Draft’ includes also Reserve Bank dividend payment orders referred to in Rule 377 below. 377. The various types of remittances between one ‘Treasury Agency’ and another or between treasury agencies and places where the Reserve Bank is represented, will consist of— (1) For Government Department, Local Funds Scheduled Banks, approved Non-Scheduled Banks, Indigenous Bankers, Co-operative Banks and Societies and for the general public— (i) Telegraphic Transfers, (ii) Reserve Bank Drafts. (2) For the Reserve Bank’s domestic purposes-(i) Security Deposit Interest Drafts.(ii) Dividend Warrant Payment Orders. The rates at which and the conditions and limitations under which Telegraphic Transfers and Drafts on the several accounts can be issued by Treasury Agencies will be regulated by such general or special instructions as may be issued by the Reserve Bank with the approval of the President. NOTE— Drafts at par will be granted within prescribed limits to Government Officers and others at and on all offices and agencies (including Treasury Agencies) of the Reserve Bank for remittances on behalf of the Government and for other quasi-public purposes set forth in Appendix 20. These remittances at par will be granted only for transfers of funds within the State. Extra-State transfers will be subject to exchange charges at the rates prescribed by the Reserve Bank. 378. The procedure to be observed by Treasury Officers in respect of the issue and payment of Telegraphic Transfers and Drafts on the Reserve Bank account will be governed by the following rules, but the Treasury Officers shall comply with any general or special instructions that may be issued to them in this behalf by the Currency Officer. 379. Subject as hereinafter provided, the various forms to be used in connection with drawings on or by Treasury Agencies will be designed by the Reserve Bank. The form of initial accounts to be kept by Treasury Agencies in respect of remittances drawn and encashed by them and the methods by which accounts of such remittances are to be rendered by them to the Accountant General, will be governed by such directions as may be given by the Comptroller and Auditor General with the approval of the President. (See Articles 78 to 85 of the Kerala Account Code, Vol. II.)

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RULES 380-382

(ii) Telegraphic Transfers, Issues and Encashments 380. A person applying for a Telegraphic Transfer must pay the amount of such transfer together with the prescribed charges, including the cost of telegram, before the Telegraphic Transfer is issued. The application must be made in the form prescribed by the Reserve Bank, which may be obtained from the Treasury.The application form duly filled in will serve as a chalan for the money tendered. The Treasury Officer shall retain the application for transmission to the Accountant General along with the daily “Schedule of Reserve Bank of India Remittances Drawn” (Rule 407 below) and grant the remitter a receipt in the form prescribed by the Reserve Bank for the purpose. 381. In issuing a Telegraphic Transfer, the following rules shall be observed by the Treasury Officer:— (i) The telegram to the office making payment of the transfer should be sent in Reserve Bank Cypher Code authenticated by the Reserve Bank of India Treasury Agencies Private Check Signal. (ii) A post copy of the telegram and an advice in Form R.B.R. 6-C should be despatched to the paying office at the same time as the telegram is issued. 382. In paying a Telegraphic Transfer, the following precautions shall be observed:— (i) The person claiming payment should be required to produce the telegraphic advice from the place where the transfer has been issued. (ii) If the person to whom the transfer is payable is not known to him, the Treasury Officer should require identification by a well known and responsible person who should certify that the payee is known to him. (iii) The payment of the transfer should be reported at once by a letter to the issuing officer. (iv) If the Treasury Officer has any reason, to doubt whether any person claiming payment is entitled to it, he should telegraph to the issuing office for confirmation. (v) If the post copy of the telegram authorizing payment is not received within three days of the date on which it should arrive, the Treasury Officer should communicate with the issuing officer and ask for his confirmation of the telegram.

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RULES 382-386

NOTE—A schedule bank applying for payment of the amount of a Telegraphic Transfer may not produce the telegram received from the remitter, but, instead, a mere letter from the Agent/Manager of the branch concerned advising receipt of intimation of the Telegraphic Transfer and demanding payment should be considered adequate for the purpose of clause (i) of this rule. 383. Remittances will be payable in legal tender currency, i.e., notes or coins, at the convenience of the officer making payment. In other words, the payee will have no right to demand payment in any particular form of currency though in practice, his requirements will be met as far as possible. 384. The provisions of Rule 404 below apply mutatis mutandis to payments of Telegraphic Transfers as they apply to payments of Drafts. (iii) Drafts, Drawings and Encashments 385. Explanations.—The person or office that draws (i.e., issues or grants) a Draft is called the drawer, the person or office on which it is drawn and by which it is payable is caller the drawee, the person or party to whom a draft is granted is called the remitter and the person or party to whom it is payable is the payee. 386. All Drafts, unless the contrary intention appears from the form itself are transferable, the original payee being entitled to transfer his right by endorsement. This he may do by simply signing his name on the back, in which case it becomes payable to bearer, or he may write above his signature, “Pay to C.D.” or “Pay to C.D. or order” in which case C.D. stands in the same position as the original payee did originally and has the same power of transfer. The writing by which such a right is transferred is called an endorsement, the endorsement to “C.D. or order” is a Special endorsement, and the persons to whom a Draft is successively transferred are endorsees, and the person in rightful possession of a draft is the holder. In obtaining drafts for remittance of moneys on Government account, the following instructions should be observed by all officers of the Government:(a) Payments on accounts of inter-departmental or intergovernmental dues:—All such drafts should be crossed if drawn on an office of the Reserve Bank or any of its agencies other than a treasury agency, with

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RULES 386-388

the words “account payee” between the crossing and, if drawn on a treasury agency, the drafts should be superscribed with the words “account Government-not payable in cash” without any crossing. (b) When the amounts of the drafts are required by officers of the Government to enable them to make disbursements in cash, on behalf of Government, e.g., pay and allowances of non-gazetted staff, contingent expenditure, permanent advance, etc.—Drafts, the amounts of which are payable to officers of the Government to enable them to make disbursement of pay and allowances of non-gazetted staff, contingent expenditure, etc., on behalf of Government, shall not be crossed but shall bear the superscription “not transferable” and shall be issued in favour of the Government officer concerned, by designation, the word “only” being added after the designation of the payee officer on the draft. For this purpose, every Government Officer, when applying for a Draft, must add the word “only” after the name of the payee in the application for the draft, so that the Issuing Officer may prepare the draft accordingly. It shall not, however, be permissible for any Government Officer himself to add the word “only” after the name of the payee of the Draft in any case in which the Issuing Officer, for any reason, fails to add the word “themselves”. (c) Payments of personal claims of an individual (whether a Government servant or not), a firm or a company, a statutory body, etc.— All drafts in payment of such claims shall be issued invariably with the addition of the words “or order” after the name of the payee on the Draft. Such drafts, if drawn on an office of the Reserve Bank of India or any of its agencies other than a treasury agency, shall be crossed with the words “……………………………..& Co.” between the crossing unless the payee specifically asks for an open Draft in which case it need not be crossed. Form of Drafts 387. Drafts shall be issued in special forms to be obtained from the Currency Officer under Rule 420 below. 388. Immediately on receipt of a parcel of forms of Drafts, they shall be carefully examined by the Treasury Officer and a proper acknowledgment sent to the Currency Officer. The acknowledgment shall certify that the forms have been counted and found correct.

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RULES 389-390

389. The forms of Drafts and of advices (Rule 393 below) shall be placed in store under the key of the Treasury Officer who should each morning issue for book or books containing Draft Forms and the Advice Forms, for the day’s use. He must be careful not to issue a book of a later serial number before an earlier, and therefore should see that the store is so arranged as to prevent mistakes. Every evening the unused forms will be returned to him, and he should see that this series is unbroken, that no form is kept back unissued unless it be spoilt and that the number of Draft Forms expended in the day agrees with the total number listed in the “Schedule of the Reserve Bank of India Remittance Drawn” for the day. (Rule 407 below) Officers signing drafts shall destroy spoilt Draft Forms after noting in the remarks column of the Issue-cum—Drawing Schedule Register (Form T.A. 18 or 18A in the Kerala Account Code, Vol. II) under their full signature the printed numbers of the forms destroyed and certifying that the forms have been cancelled and destroyed. Issue of Drafts 390. A person requiring a Draft shall tender with the money a formal application in prescribed form, which may be obtained from the treasury. The application form duly filled in will serve as a chalan for the money tendered. The application shall be retained by the Treasury Officer for transmission to the Accountant General along with the daily “Schedule of Reserve Bank of India Remittances Drawn”. (Rule 407 below) NOTE 1—A person applying for a Draft on behalf of the Government or a Local Fund should certify on the application that the Draft is wanted for bona fide public purposes and describe the object of the remittance. If the Treasury Officer doubts whether the object is really public, he should state his doubt to the applicant or take the orders of the Collector. Questionable grants should be reported to the Currency Officer with a view to the issue of instructions for future guidance. NOTE

2—When the purchaser of the Draft demands a receipt for the amount of the Draft and the exchange charges thereon, the Treasury Officer may grant the purchaser a receipt in the form prescribed by the Reserve Bank for the purpose.

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RULES 391-393

391. Drafts shall be prepared and signed from time to time as they are applied for, immediately on the receipt of cash or its equivalent; the business of signing them must not be postponed till the close of office, and on no account may the office be closed till all Drafts applied for have been issued. Each must be signed legibly with the full signature of the Treasury Officer. 392. At the time of signature of a Draft, the Register (Form T.A. 18A in the Kerala Account Code, Volume II), together with the application for the Draft, the advice (Rule 393 below) and the book of forms shall be laid together before the Treasury Officer. The Treasury Officer shall initial each entry in the Advice and the corresponding entry in the register at the same time as he signs the Drafts after he has satisfied himself that(i) the several documents agree, (ii) the authority for issue is sufficient, (iii) the date and office of issue and the name of the payee are legibly and distinctly entered in the body of the Draft, (iv) in addition to the amount being entered in figures, the amount of whole rupees is entered as second time in words and fractions of a rupee in words or figures, that words are written continuously without lifting the pen and that when the amount consists of rupees only and does not contain fractions of a rupee, the words end with the word “only”, and (v) a sum a little in excess of that for which the draft is granted is entered in words across the Draft at right angles to the type. NOTE

1—“Under thirty rupees” will mean that the Draft is for a sum not less than `. 20 but less than ` 30, and similarly, “under eight hundred rupees” will mean that it is for less than ` 800, but not less than `. 700.

NOTE

2—The cross entry is not necessary if the amount in words is typed perforated by a special cheque writing machine. Advice of Remittances drawn

393. An advice of all drawings effected on a particular treasury or the Bank on any particular date shall be sent to the treasury or the office drawn upon in the special form prescribed by the Reserve Bank. The Advices shall be completed, signed and despatched by the Treasury Officer before the treasury closes on the day of issue. Advices of drafts drawn on the Bank shall be sent direct to the Manager or Agent as the case may be, of the Bank.

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RULES 393-396

NOTE—Whenever two or more sheets are used for advising the issue of Drafts, each such sheet should be signed by the Treasury Officer. 394. If alterations be made in a Draft prior to issue, the corrections shall be noted in the Advice and each alteration, both in Draft and Advice, shall be authenticated by the drawer’s full signature in order to prevent hesitation, on the part of the drawee. If the drawer should enter the amount so carelessly as to enable a stranger to alter it and fraudulently to obtain payment of a larger amount, the drawer, and not the drawee, must bear the loss. But the Treasury Officer drawn on must remember and apply the numerous defensive checks provided for him by these rules. Regularity of Signature 395. Variation in the signature of the drawer often entails much trouble on the paying office, and the drawer will be held responsible for inconvenience or delay which may be caused to individuals in consequence of change in, or illegibility of, his signature, or other serious irregularity on the face of the draft, as the drawee would be justified in suspending payment in cases of doubt arising from such cases. An officer in charge of a treasury shall sign his name in English, or have it written in English characters below the signature in any Indian script. 396. When any change of Treasury Officer occurs, a specimen of the signature of the relieving officer shall be forwarded by the outgoing officer to all officers usually drawn on. The following form will be convenient “ The undersigned writes to notify to ……………………………… that he has on this day been relieved of the executive charge of the treasury at ………………………. by …………………………… a specimen of whose signature is annexed. …………...…… ..................................... Relieved Officer ..................................... The…………..20…..

Relieving Officer.”

NOTE 1—If it should be necessary for a Treasury Officer to draw on a treasury or an office not usually drawn upon, to which a specimen of his signature has not been sent under the provisions of this rule, he

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RULES 396-398

should, at the time of issue of a draft, also forward a specimen of his signature under a special forwarding letter duly stamped with the seal of the treasury, which should be posted on the same day in a separate cover and not in the cover containing the Advice. NOTE 2—In the case of an officer who signs in any Indian script, his name should also be written in English characters in the notice, as well as after his signature. NOTE 3—When an officer who was formerly in charge of a treasury resumes charge of it after a lapse of time, his signature need not again be circulated among treasury and other offices. Encashment of Drafts 397. The Advices received from the issuing treasuries of the Bank shall be opened in the presence of the Treasury Officer, and each dated and initialled by him after he has satisfied himself of its genuineness by examining the signature of the drawer and, if necessary, the post mark. They shall then be sorted and arranged accordingly to the offices from which they are received and pasted chronologically in guard files in such a way that advices received from each drawing office may be kept together. These files shall be kept under lock and key. NOTE

1—The Treasury Officers should particularly guard against the possibility of the fraud of altering after signature the amount shown in the Advice, by a comparison of the total amount reported in words in the heading with the real total of the figured amounts of an Advice. Any alteration of any entry, whether of names of figures, in an Advice requires the drawer’s full signature, so that it is scarcely possible that any fraud should be attempted by altering the Advice before he has signed it, since at the time of signing he would notice any uncertified correction.

NOTE

2—All covers containing “Advices of remittances sold” received from the issuing treasuries or the Bank shall be superscribed with the words “Remittance Advice”.

398. The Advices arranged in the manner prescribed in the last preceding rule will facilitate the examination and identification of Drafts, etc.,

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RULES 398-399

presented for payment. The entries made in an Advice should be such as to place sufficient obstacle to the encashment of Drafts forged or fraudulently altered, and their sequence should effectually bar the use, a second time, of a particular serial number, and suggest suspicion even of the Advice where a high number follows a low one. Necessary notes of references touching irregularities of cancellation, issue of certificates of non-payment, Advices of seconds or thirds, and of any other points of importance shall be made on the Advice. 399. (a) On a Draft being presented for encashment, the Treasury Officer shall compare it with the Advice, and satisfy himself carefully that it is in order and that it is receipted on the back by a person able to give a legal quittance. It must be borne in mind that in the case of a Draft on Government account the liability to the payee named in the Draft can only be discharged by payment to— (1) the payee or his lawful agent on identification, or (2) The payee’s banker who should certify that the amount has been placed to the payee’s credit, or (3) a person holding a letter of authority from the payee, whose signature must be known to the Treasury Officer and if the letter directs to the Treasury Officer to pay the money to a certain named person, that person must be identified to the Treasury Officer before payment can be made. The only endorsement on such a Draft should be payee’s receipt or that of his lawful agent. (b) In all other cases where payment is not made on an endorsement in favour of a recognized bank, the Treasury Officer shall not only satisfy himself of the genuineness of the claimant’s signature to the receipt on the back of a Draft but, if the claimant himself is not in attendance, he must assure himself that the presenter of the Draft is the agent or messenger of the legal holder, duly authorized to receive the payment. If the presenter is unknown to the treasury officials, or, if known, should there be reasonable grounds for questioning his being in lawful possession of the Draft, the Treasury Officer shall demand a letter from the legal holder, authorizing the presenter to receive payment on his behalf. Similarly, in cases where payment is made on an endorsement to a recognized bank, the Treasury Officer must assure himself that the presenter of the Draft is the authorized agent or messenger of the Bank.

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RULES 399-403

NOTE

1— The term “recognized bank” referred to in this Rule includes a scheduled bank under the Reserve Bank of India Act, 1934, or a bank or firm mentioned in Appendix 9.

NOTE

2— The letter of authority for receiving payment at the treasury referred to in this rule in not liable to stamp duty.

400. Drafts payable at the District Treasury cannot be endorsed for payment at a Sub Treasury. But if the money payable on a Draft is required at a Sub Treasury and the remittance cannot be effected in accordance with the procedure laid down in Rule 416 below, a cash order may be issued to the payee for presentation at the Sub Treasury. In such a case the payee must receipt the Draft as “Received payment by a cash order on ………………… Sub Treasury”, and the Treasury Officer at the District Treasury shall finally deal with the Draft and take the same precautions regarding the delivery of the cash order as are prescribed in Rule 401 below for payment in cash. 401. Before issuing pay orders on a Draft the Treasury Officer shall satisfy himself that the Draft has been advised; that it corresponds in all particulars with the Advice; that it bears the genuine signature of the drawer; that it has not been tampered with; and that it is not a cancelled or lapsed Draft or one of which a duplicate has been paid. A Draft may be paid— (i) without Advice, if there is no reason whatsoever to doubt its genuineness, and if sufficient security is offered. In the case of well known and reliable holders, this security may be dispensed with at the discretion of the Treasury Officer. The Treasury Officer shall in all such cases apply for the necessary Advice without delay. (ii) even though differing from the Advice, at the discretion of the Treasury Officer, provided there is no suspicion of fraudulent alteration, nor any possible doubt of the genuineness of the Draft. Special caution shall be exercised before paying on a Draft an amount larger than that named in the Advice. 402. As each Draft or Telegraphic Transfer drawn by the Treasury is paid, it must be stamped “paid”, the date of payment being at the same time noted in the Advice under the initials of the Treasury Officer. 403. Doubtful drawings.—In case of erasure, alteration or other serious cause for suspicion, the Treasury Officer shall, before payment, refer to the drawer, the post office, or the Currency Officer, as the case may require. Any

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RULES 403-404

material alteration of a Draft, after it has been drawn or endorsed effecting the date, sum, or time or place of payment, will invalidate it; but the mere correction of a mistake, such as by inserting the words “or order” in the endorsement of a Draft will have no such effect. 404. Form of receipt.—For the sufficiency of the receipt, it is necessary to see that it is not for a part only of the Draft, and that it is given by the legal holder. On no account may a Draft be paid by instalment; receipt for the full amount must be given on the reverse, and the full amount must be paid— (a) if the legal holder be dead, payment can be made only to his legal representative; a Draft for less than ` 100 may, however, be paid without a certificate of administration. (b) if the receipt be signed by an agent or attorney, note of the existence, and of the record in the treasury, of the power of attorney, should be made on the Draft. (c) if more than one person be named in a Draft, all must join in order to give a valid endorsement or receipt. (d) Draft payable to A.B. cannot be cashed on the receipt of his partner C.D. without production of a formal power of attorney; a bill payable to A.B. and Co. can be paid on the receipt as A.B. and Co. of any member of the firm. (e) Drafts payable to an incorporated company of any other corporate body may be paid on the receipt of the official authorized, generally or specially, by it regulations or by power of attorney to receive moneys payable to such company or body. In the case of Draft payable to an unincorporated body, payment may be made to a person holding authority to receive moneys payable to such body, but the Treasury Officer shall first satisfy himself that the authority has been duly conferred. (f) A government officer when he sends a Draft to a treasury not for cash payment, but for credit of its amount in the treasury accounts, must, before he signs the receipt, add to the words “Received payment” the further words “by transfer credit to……….”. Omission to do this facilitates fraudulent appropriation of the money.

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KERALA TREASURY CODE

RULES 405-409

(iv) Record of Drawings and Encashments 405. A record of Telegraphic Transfers and Drafts drawn by the treasury will be kept in a register (Form T.A. 18 or 18A) in accordance with the directions contained in this behalf in the Kerala Account Code, Volume II. 406. As each Draft or Telegraphic Transfer is paid, entry must be made in the Register of Reserve Bank of India Remittances Encashed (Form T.A. 19 in the Kerala Account Code, Volume II). 407. At the close of each day, separate schedules for drawings and encashments during the day will be prepared in special forms prescribed by the Reserve Bank for submission to the Accountant General in accordance with the directions contained in the Kerala Account Code, Volume II. The application forms for remittances drawn and also the receipted Drafts and the payees’ receipts in respect of Telegraphic transfers encashed shall accompany the schedules mentioned above. 408. The following are the cross-checks which the Treasury Officer shall, each evening, apply to the several documents connected with remittances drawn and encashed. The registers of remittances drawn and encashed and the connected schedules check one another directly; the total of each schedule must agree with total receipts or total payments for the day as booked under the head “Reserve Bank of India Remittances” in the cash book, after allowing for receipts and payments, if any Sub Treasuries which will be entered under a separate sub head. The total of the several Advices for the day must also agree with the total in the column “Amount” in the schedule of drawings, and this agreement shall be, at times, checked by the Treasury Officer himself. 409. Where the name of the payee and/or endorsee appears on the instrument in English and the signature is made in English, the Treasury Officer should, in addition to the precautions prescribed in the Rules for making payment to the proper person on identification, see that the signature tallies letter for letter with the name as spelt on the instrument. Where the name of the payee or endorsee is spelt incorrectly, the spelling of the endorsement must correspond with that of the mis-spelt name, but if the payee wishes, he may add his correct name in brackets.

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RULES 410-411

(v) Other Rules 410. Issue of duplicates.—When satisfactory evidence has been given that a draft has been either lost or destroyed, and application is made within a reasonable period after issue but before it has lapsed (Rule 419 below) a duplicate may, without reference to the Currency Officer, be granted to the party who obtained the original, or to the payee, or to the legal representative of either but to no other person. If the draft could not have been presented for payment within three months, it will be necessary for the applicant to produce a certificate of non-payment from the drawee; but the issue of this certificate will be no bar to the payment of the lost Draft, if presented before duplicate is paid. In the event of the loss of both original and duplicate, a triplicate may be issued on the same terms as the duplicate, the nonpayment of the others being certified. Neither duplicate nor triplicate can be issued without reference to the Currency Officer, if the Draft has lapsed (Rule 419 below). Issue of duplicate or triplicate shall be promptly advised to the drawee, in order that proper note may be made on the advice originally received. 411. The duplicate and triplicate shall be drawn in exactly the same terms as the original instrument with the same date, the same number, the same amount, and the name of the same payee, so that, if a lost Draft has been endorsed, the endorsee must apply for a duplicate through the original payee. It will be issued under the signature of the officer in charge of the treasury at the time, although he be not the person who signed the original Draft. NOTE 1—Where the remitter is a department of the Government or a Local Fund, the issue of a duplicate against an unstamped Letter of Undertaking as given below, will be permissible.

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KERALA TREASURY CODE

RULES 411-413

LETTER OF UNDERTAKING Place……………….………… Dated…………………………. To ……………….......…….. …………………….......... Dear Sir, In co.nsideration of your agreeing to issue a duplicate of Reserve Bank of India draft bearing No………….and dated ……………….for `…………… (Rupees …………………..) which has been lost, I hereby undertake that, in the event of payment being obtained from the Reserve Bank on the original draft or of the Bank incurring any expense and/or loss by reason of the issue of the duplicate, I shall reimburse the Reserve Bank to the extent of the amount paid on the original draft and any expense and/or loss incurred as aforesaid. Yours faithfully, (……………..……….) Signature (…………………..…………) Office Seal

Name and designation of the Officer executing the letter.

NOTE

2—When it is necessary to issue duplicates, the word “duplicate” should be prominently written in red ink on the face of ordinary draft forms and the relative advice forms. The duplicate should be issued only after the issuing officer has satisfied himself that the original has not been paid.

412. No duplicate or triplicate older than six months shall be paid without previous reference to the Currency Officer. 413. Cancellation and Refund.—No Draft can be cancelled without surrender of the whole set. Thus, if a duplicate or a triplicate has been issued the Draft can be cancelled only if the original together with the duplicate (and the triplicate if issued) be surrendered. Consequently, no refund can be made on a lost Draft; a duplicate must be obtained and payment taken at the treasury or office drawn on.

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KERALA TREASURY CODE

RULES 414-417

414. All parts being surrendered, a Draft may be cancelled and its amount refunded at the discretion of the Treasury Officer, on the application and receipt of the remitter in the case of a Draft on Government account and of the payee in the case of other Drafts. If, in the latter case, the receipt of the payee cannot be obtained, the remitter’s application for cancellation, with explanation of the reasons for his request, and of the difficulty in the way of obtaining the payee’s signature, shall be submitted for orders of the Currency Officer. Although no difficulty should be made about cancellation of Drafts on Government account, it must be clearly understood that other classes of Drafts can be cancelled only as an indulgence, and for sufficient cause shown. No exchange which has been levied can be refunded. NOTE— If alteration of the name only of the payee is required by remitter, it will suffice for the drawer to alter the name in the Draft under his full signature and send advice to the drawee. 415. When a Draft is cancelled, the fact of cancellation shall be conspicuously noted across the face of the Draft; at the same time an intimation shall be sent to the office drawn on, in order that the fact may be recorded in the advice originally received and necessary precautions taken against the payment of the cancelled Draft. The cancelled Drafts shall be duly receipted by the remitter or the payee, as the case may be. NOTE— The amount refunded will be entered in the “Register of Reserve Bank of India Remittances Encashed” and also in the proper columns of the schedule of such encashments for the day on which the cancellation takes place, in accordance with the directions contained in this behalf in the Kerala Account Code, Volume II. 416. A Treasury Officer may issue a Draft in exchange for one drawn on him only if the holder has been removed to the neighbourhood of another treasury or of an office or agency of the Bank. NOTE— A Draft is said to be exchanged when the holder being unable to appear and take payment in cash, applies for a new one endorsing the original “Received payment by Draft on …………….”. If he can appear and take payment in cash, his obtaining a new Draft with the cash paid on the old one is a matter to be disposed of under ordinary rules. 417. When a Draft is exchanged for another, the original Draft will be treated and entered as a Draft presented for encashment and the amount again credited as received for the issue of a new Draft.

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KERALA TREASURY CODE

RULES 418-423

418. Unpaid Drafts.—Drafts which are outstanding for more than six months can be paid only after obtaining the necessary confirmation from the drawing office. 419. Lapse of Drafts.—Drafts which are not paid before the end of the third account year after that in which they are issued, shall be treated as lapsed and shall be so marked in the Advice. Should any one apply for payment of a lapsed Draft, he should be directed to address the Currency Officer for orders. 420. Supply of forms.—Forms of Drafts and all other forms prescribed by the Reserve Bank for use in connection with the remittances dealt with in this section will be supplied to the Treasury Officer by the Currency Officer under whose jurisdiction the treasury is situated. Indents for such supplies will be in Form T.R. 94 or in such other forms as the Reserve Bank may prescribe and will ordinarily be for twelve months’ supply. 421. Special Rules for remittances of policemen.—In the case of policemen’s remittances, the Superintendent of Police concerned shall forward the Drafts to the payees direct. There is no objection, if such a course is preferred, or is required by departmental regulations, to his sending the Draft to the Superintendent of Police of the district in which the payee resides, who will deliver it to the payee after satisfying himself as to his identity. Descriptive rolls of the payees duly filled in and signed shall, at the same time, be sent to the Treasury Officers concerned. 422. The Drafts are payable to the parties described in the roll. In cases of doubtful identity, payment may be made on security at the discretion of the Treasury Officer. 423. These drafts, if not, presented for payment at the expiration of six months from the date of issue, shall be considered as cancelled and if they are presented after that period, payments shall be refused. A draft which has become uncurrent may be returned by the payee to the drawer for the issue of a fresh draft or for the refund of the amount, as may be required. Should such a draft, whether original or duplicate, be lost in transit, the Superintendent of Police will report the loss to the Currency Officer, who will decide the case specially on its merits, sanctioning refund to the person indicated if it appears right. When the draft is six months old and therefore void, there need be no hesitation in permitting refund on production of a nonpayment certificate from the treasury or office on which it was drawn. NOTE— These drafts may also be cancelled as provided for in Rule 414 above.

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PART VII

KERALA TREASURY CODE

RULES 424-425

PART VII RESPONSIBILITY FOR MONEYS WITHDRAWN SECTION I Responsibility of Treasury Officer in recovering amounts disallowed by the Accountant-General 424. When the Accountant General disallows a payment as unauthorized, the Treasury Officer should promptly recover the amount disallowed, without regard to any representation or protest and if the item is a recurring one, should also refuse to make similar payments in future until the Accountant General authorize him to do so. The Treasury Officer should not enter into any correspondence regarding any such recovery. If a Treasury Officer receives an order to make a recovery from a government servant who has been transferred to another district, he should immediately forward it to the Treasury Officer of that other district. NOTE— A recovery should, when necessary, be made in instalments as prescribed in Article 71 of the Kerala Financial Code. 425. (a) The Treasury Officer should invariably recover from the next contingent bill of the office concerned any amount which the Accountant General orders him to recover on account of contingencies. (b) The Treasury Officer should ordinarily recover from the next pay bill of the government servant concerned any amount which the Accountant General orders him to recover on account of pay and similarly from the next travelling allowance bill any recovery ordered on account of travelling allowance. When, however, a recovery has to be made on account of travelling allowance and the government servant concerned does not present a travelling allowance bill within a month he should be requested to refund the amount at once in cash and if he fails to do so, it should be recovered from his next pay bill. (c) If a recovery has to be made but no bill from which it can be made is likely to be submitted in the near future and the government servant who has to make good the amount does not refund it promptly in cash when requested to do so, the Treasury Officer should report the circumstances to Accountant General and ask for his orders.

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KERALA TREASURY CODE

RULES 425-427

(d) A recovery should be shown distinctly at the foot of the bill (not on a sub-voucher) and the number and the date of the objection statement or other authority should be distinctly quoted. 426. Objections and orders which arise out of the examination by the Accountant General of the treasury accounts are communicated to the Treasury Officer by letters, audit memoranda, or periodical objection statements. To these, the earliest attention should be given and it is most important that these objection statements should be returned punctually within a fortnight of receipt and also that the replies in them should be such as will enable the Accountant General to adjust the items under objection without further correspondence. When it is necessary to communicate objections to other officers as in the case of officers subordinate to the Collector, it should be done immediately on receipt of the objection statements and early replies should be asked for. If these are not received in time for the return of the objection statement to the Accountant General, the fact should be noted in the reply column of the statement and the receipt of the reply and its transmission to the Accountant General should be carefully watched. A copy of the objection statement should be kept in the treasury. 427. Register of Recoveries.—Every treasury should maintain a register of recoveries, in which separate pages should be set apart, as may be convenient, for each government servant or department entitled to draw bills, etc., on the treasury. As soon as any order to make a recovery is received, whether through an objection statement or a separate slip, an entry should be made in the register. Before any bill is passed for payment, the register should be consulted to see whether any recovery has to be made. When any amount is recovered, it should be duly noted in the register along with the number and date of the voucher.

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KERALA TREASURY CODE

RULES 428-430

SECTION II General rules applicable to all Drawing Officers (a)

RESPONSIBILITY IN CLEARING AUDIT OBJECTIONS

428. Every government servant must attend promptly to all objections and orders communicated to him by the Accountant General in the manner prescribed in Article 69 to 74 of the Kerala Financial Code. (b) GENERAL RULES REGARDING THE FORM OF VOUCHERS FOR DISBURSEMENTS MADE, ETC.

429. A government servant is responsible for the safe custody of moneys received by him from the treasury for expenditure on behalf of the Government and shall maintain the prescribed accounts for watching the correct disposal of the money (e.g., by disbursement of pay, allowances, etc., among the staff) and for checking the cash balance in the office. 430. (a) Subject to the provisions of clause (b) below a government servant shall obtain, for every disbursement which he makes on behalf of the Government including every repayment of moneys which have been deposited with the Government, a voucher setting forth full and clear particulars of the claim, using as far as possible the particular form, if any, prescribed for the purpose and shall obtain at the time of making payment, either on the voucher or on a separate paper to be attached to it, an acknowledgment of the payment signed by the payee by hand and in ink. In doing so, he shall observe carefully the directions in Rule 163 in regard to the preparation of vouchers and the stamping of receipts. When possible, he shall require the payee to note the actual date of payment in his acknowledgment. When it is not possible for the payee to note the actual date of payment either because he is illiterate or because he is required to present a signed receipt before payment is made, the disbursing officer shall enter the actual date of payment on the relevant voucher with his initials either separately for each payment or for groups of payments as may be found convenient. NOTE— As adjustment bills for ‘Nil’ amounts involve no payment, it is not necessary to insist upon any acknowledgment of payment in respect of such bills.

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KERALA TREASURY CODE

RULE 430

If a payee is not able to write, his signature on the acknowledgment shall be taken in the form of his mark or preferably his thumb impression, attested invariably by some known person [See Rule 163 (g) of Part V]. If a payee signs his acknowledgment in a language other than English, he shall be required to write also the amount acknowledged in words in that language in his own handwriting. His acknowledgment, including the amount acknowledged and any remark made by him, shall be translated into English and his signature shall be transliterated in Roman characters. If a payee cannot sign his name in script known to the disbursing officer or a member of his staff or if he can sign in a script known to one of them but cannot write the amount acknowledged in words in it, the procedure applicable when a payee is not able to write shall be followed. A cash memorandum shall not be treated as a proper voucher (or a valid receipt), unless it contains a specific signed acknowledgment of the receipt of the moneys by the signatory from the government servant concerned, and is duly stamped* with a revenue stamp as required by section 3 of the Indian Stamp Act, 1899 (Central Act 2 of 1899) read with article 53 of schedule I thereof if the amount paid exceeds ` 20. Exception 1—A special procedure is prescribed for obtaining the payee’s acknowledgments of payments on account of the pay and allowances of government servants (See Rule 432 below). Exception 2—The facsimile signature of the executive authority or a municipality may be accepted as the payee’s signature on an acknowledgment of the payment of a municipal tax on a government building. (b) If, in very exceptional circumstances, it is quite impossible to furnish a proper voucher with the payee’s acknowledgment in support of a payment, a certificate of payment showing the particulars of the claim signed by the disbursing officer and endorsed by his immediate superiors shall be placed on record. (c) If a disbursing officer anticipates any difficulty in obtaining an acknowledgment in the proper form from a person to whom any moneys are * Substitution [G.O.(P) 434/81/Fin., dated 7th July, 1981]

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KERALA TREASURY CODE

RULES 430-431

due, he shall decline to deliver the cheque or cash to him or to make a remittance to him, as the case may be, until he receives a proper acknowledgment of the payment with all the necessary particulars. Whenever a payment is made by remittance, a note of the date and mode of remittance shall be made on the bill or voucher at the time of remittance. When a remittance is made by postal money order, its purpose shall be briefly stated in the acknowledgment portion of the money order form in continuation of the entry “Received the sum specified above on ………………”, and sufficient space shall be left below the manuscript addition for the signature or thumb impression of the payee. Whenever a disbursing officer of the Public Works or Forest Department tenders money orders to the Post Office for issue with a cheque in lieu of cash, he shall demand an individual receipt for each such money order. (d) When an article is obtained by value payable post, the value payable cover, together with the invoice or bill showing full details of the items paid for, shall be treated as a voucher, and the disbursing officer shall note on the cover that the payment was made through the Post Office and includes the postal commission. (e) A disbursing officer may retain a certified copy marked ‘Duplicate’ of a receipted voucher, when this is necessary in order to complete the record in his office, but the payee shall not be required to sign any such copy or to give a duplicate acknowledgment of the payment. NOTE— Whenever copies of invoice are required to be furnished by the suppliers such number should be restricted to the minimum and the number required should be indicated in the supply order. The copy should be distinctly marked as ‘Duplicate’; ‘Triplicate’ etc. (See also Note 6 of the Form of the Supply Order in Appendix XIII of the Stores Purchase Manual specifying the number as triplicate). 431. No voucher shall be treated as a valid voucher unless it bears a distinct pay order, specifying the amount payable both in words and in figures separately and signed and dated by hand and in ink by the responsible disbursing officer. Cashiers and other government servants who are authorized to make payments on passed voucher shall not make any payment on a voucher unless it bears pay order satisfying the requirements. The fact of payment with date, the manner in which payment is made (whether by cash or cheque) and the details of the bill in which the amount was drawn should also be recorded on the voucher and attested by the dated signature of the disbursing officer.

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PART VII

RULE 431

KERALA TREASURY CODE

NOTE 1—The pay order on the voucher shall be in the following form, viz., “Pay `....................(Rupees……………..) to (name of payee)………………………………by cash/cheque…………….. Signature, Station…………......……… Date…………………….

Name and Designation of the Disbursing Officer.”

The facts of payment should be recorded on the voucher in the following form viz., “Paid by cash/cheque No……………….. date…………….on ……………… No…………. Date ………………….and amount of bill………………… Entered as item No………………… in the ………………………………… (contingent or other register.) Head of debit ……… Station…………......……… Date……………………

Signature, Name and Designation of the Disbursing Officer.”

The pay order and the details of payment may be recorded on the reverse of the payee’s receipt, preferably by means of rubber stamps. But the signature and dates should invariably be by hand and in ink. NOTE

2— The pay order should always be on the invoice marked ‘original’. When the ‘original’ is lost the pass order should not be recorded in the copies marked ‘duplicate’ etc., instead an authenticated true copy should be obtained and passed. In the ‘duplicate’ or ‘triplicate’ copies of the invoices a certificate of the payment should, however, be recorded as below:—

“Certified that the original of the invoice/bill has been passed and paid-Vide item No…………in……………………(contingent or other register).”

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PART VII

(c)

RULE 432

DISBURSEMENT OF PAY AND ALLOWANCES OF GOVERNMENT SERVANTS

432. (a) The head of an office is personally responsible for all moneys drawn as pay, leave salary, allowances, etc., on an establishment bill signed by him or on his behalf until he has paid them to the persons who are entitled to receive them and has obtained their dated acknowledgments, duly stamped when necessary. These acknowledgments shall be taken as a rule on the office copy of the bill. When the head of the office concerned considers that an establishment is so large or scattered that the payee’s acknowledgments cannot, without undue inconvenience, be obtained on the office copy of the bill, he shall maintain a separate acquittance roll in Form T.R. 95 and obtain the payees’ acknowledgments in it. The leave salary of a non-gazetted government servant who is on leave in India shall be drawn in the district in which he was last on duty and he must make his own arrangements for having it remitted to him, when necessary. As an exception to the procedure prescribed in the preceding paragraph, when a government servant is on casual leave or other leave, any moneys due to him may be remitted by postal money order at his expense, if he has made a written request for this to be done, in that case, the receipt given by the Post Office and the payees’ receipt shall be attached to the office copy of the bill or to the acquittance roll, as the case may be. Alternatively, a government servant who is on casual or other leave may make a written request that any money due to him be paid to a specified government servant belonging to the same office; payment shall then be made accordingly, provided that the Government servant nominated produces an acknowledgment signed by the absentee (and stamped when the amount exceeds ` 20) and that the disbursing officer is satisfied that the absentee’s written request and acknowledgment of the payment may be accepted. *The government servant who receives the moneys shall sign on the back of the absentee’s acknowledgment in token of his having received the moneys on the absentee’s behalf. The acknowledgment shall be attached to the office copy of the bill or to the acquittance roll, as the case may be, and the remark “Separate receipt attached” shall be entered in the appropriate place in the office copy of the bill or in the receipt column of the roll. Any such payment is made entirely at the risk of the government servant to whom the amount is due, and no claim shall lie against the Government under any circumstances on account of any loss which he may suffer in connection with it. *Omitted [G.O.(P) 380/81/Fin., dated 10th June, 1981]

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RULE 432

**For the disbursement of the pay and allowances etc. due to nongazetted Government Servants on tour or on camp or working at out of the way places other than the headquarters of the drawing officer, any one of the following methods may be adopted at the written request of such Government Servants, namely:(i) remittance to the camp by postal money order at the cost of the Government; (ii) remittance to the camp by a Reserve Bank of India draft (to be sent by registered post) provided the Government Servant gives an acknowledgment signed by him (and duly stamped when necessary) along with the request to make such remittance to camp; and (iii) payment to another employee of the same office as specified in the request provided that the employee produces an acknowledgment signed by the absentee (and stamped when necessary). NOTE—In case of remittances made by draft under the method (ii) above an acknowledgment of the draft should be obtained from the payee and filed in serial order. If a government servant who is entitled to receive any moneys drawn from the treasury on his behalf fails to claim payment in person or in accordance with preceding paragraph before the end of the month in which they are so drawn the moneys drawn for him shall ordinarily be refunded by short drawal in the next bill, and drawn afresh when he claims them, if the rules regarding arrear claims permit it. When the drawing officer considers that the earlier refunding of any such moneys would cause undue inconvenience, he may retain them for any period not exceeding three months, but he will continue to be held personally responsible for them and must make satisfactory arrangements for keeping them safely. Undisbursed pay, allowances and leave salary shall not, under any circumstances, be placed in deposit. NOTE—Notwithstanding anything contained in this rule, Government may, in special circumstances authorize payment of such part of the claim of a government servant, who does not draw his own bills, to be made to a person and to the extend, as may specifically be so asked for, in writing, in this behalf by the government servant concerned. In such a case, the receipt given by the person so authorized to receive the sum specified, shall constitute a valid acquittance for the amount paid to him and the receipt for the balance only, if any, when paid shall be obtained from the government servant concerned.

**Addition [G.O.(P) 380/81/Fin., dated 10th June, 1981]

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KERALA TREASURY CODE

RULES 432-433

(b) As far as possible, a clerk who has helped to prepare a bill for establishment pay, etc., shall not be allowed to have anything to do with the disbursement of the pay, etc. (c) A large office in which it would be inconvenient to watch the disposal of undisbursed pay and allowances through the office copies of bills or the acquittance roll shall maintain a register in Form T.R. 22 for the purpose. The same register shall also be used, when necessary, for watching the disposal of the undisbursed balances, if any, of amounts drawn on contingent bills in excess of the permanent advance. (d) The drawing officer shall either check each acquittance roll himself by adding up the items, comparing the total of the corresponding establishment bill and the money received from the treasury, and seeing that any difference between the totals is properly accounted for, or have it so checked by a responsible government servant. The government servant who checks an acquittance roll shall sign a statement at the foot of it as follows:— “Checked in accordance with Rule 432 (d) of the Kerala Treasury Code.” (e) A disbursing officer shall not make the last payment of pay, allowances, etc., to a government servant who is finally leaving the service of the government on retirement, resignation or dismissal or is placed under suspension, until he has satisfied himself that no amount is due to the Government from the government servant. In regard to the recovery of overpayments, etc., from any such government servant, he shall follow the detailed procedure laid down in Rule 212. A disbursing officer shall also not pay, any pay, allowances, etc., due to a deceased government servant to the heirs of the government servant after his death until he has satisfied himself that no amount is due to the government from the government servant. NOTE—For amounts recovered at the time of disbursement of salary from officials in cash such as recoveries on account of attachment order issued from a co-operative society, a receipt should be given as required in Rule 90 (a). (d)

DISBURSEMENTS OUT OF THE PERMANENT ADVANCE

433. Every government servant who has been granted a permanent advance shall regularly check the correctness of the balance with the help of his contingent registers or, if the advance is used for other purposes besides meeting contingent expenditure, with the help of a register in Form T.R. 96 which he shall maintain for the purpose.

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PART VII

(e)

RULES 434-436

CUSTODY OF VOUCHERS AND ACQUITTANCES

434. All vouchers and acquittances are important documents and should be filed and preserved carefully in the office concerned, when they are not sent elsewhere for audit in accordance with the rules. (f)

CANCELLATION AND DESTRUCTION OF SUB-VOUCHERS

435. (a) Sub-vouchers to contingent bills should be ‘cancelled’ in such a manner that they cannot subsequently be used fraudulently to claim or support a further payment. (b) *Whenever a drawing officer signs a fully vouched contingent bill for presentation at the Treasury for payment or a detailed contingent bill for submission to the controlling authority, he should at the same time cancel all the sub-vouchers which relate to the bill. He should endorse the word “cancelled” across each sub-voucher in red ink or by a rubber stamp, and initial it with date. He should certify on the bill that all the sub-vouchers relating to it have been so cancelled that they cannot be used again. When the amount of a sub-voucher exceeds the permanent advance it should be cancelled as soon as the payment has been made and entered in the contingent Register. (c) [Omitted] [G.O.(P) 653/81/Fin., dated 15th October, 1981] (d) No sub-voucher should be destroyed until three years have elapsed from the date of the payment—See Article 358 of the Kerala Financial Code. SECTION III Special rules for drawing officers of certain departments (A) SPECIAL TO PUBLIC WORKS DEPARTMENT

436. In the case of the Public Works Department, every voucher should be enfaced with the word “checked” over the dated initials of the Divisional Accountant, as well as of any clerk who may have applied a preliminary check. Vouchers not submitted to audit (See Article 232 of the Kerala Account Code, Volume III) should be cancelled by means of perforating or endorsing stamp and kept carefully, to be made available for test audit whenever demanded by the Accountant General *Substitution [G.O.(P) 653/81/Fin., dated 15th October, 1981]

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KERALA TREASURY CODE

RULES 436-439

Stamps affixed to vouchers should be so cancelled that they cannot be used again, and, if with this object they are punched through, care should be taken that the acknowledgment of the payee is not destroyed thereby. Vouchers relating to new supplies of tools and plant should be completed by noting on them the name of the month in the accounts of which the articles acquired were brought on the Tools and Plant Received Sheet, Form 12 of Book of Forms (Public Works Accounts). 437. Government servants should encourage contractors, suppliers of stores and other persons making claims against the Government to submit their bills and claims on the proper departmental forms. A disbursing officer should not, however, reject a bill prepared in another form if it contains all the necessary details of the claim, but should add any additional particulars that are required. 438. When a contractor or supplier endorses in favour of a bank a bill payable by the Government, payment should be made to the bank only if he has also receipted the bill and after verifying the genuineness of the signature in both the receipt and the request to pay the amount to the bank. For this purpose the disbursing officer should require the contractor or supplier to furnish a specimen signature in his presence. If the contractor or supplier has authorized an agent to draw bills or receive payment on his behalf, the disbursing officer should require the agent to furnish a specimen signature in his presence and the contractor or supplier to attest it in his presence. Before paying the amount to the bank, the disbursing officer should compare the signature on the receipt and the request to pay the amount to the bank with the specimen signature furnished separately in his presence and satisfy himself that they are genuine. The disbursing officer should keep a file of the specimen signature of contractors or suppliers and their agents for reference. 439. The disbursing officer should see that in every voucher relating to charge for works, the following particulars are prominently specified:— (1) the full name of the work as given in the estimate, (2) the name of the component part (or sub-head) of it, if separate accounts are kept for the several component parts, (3) the charges, if any, which are of the nature of recoverable payments and the name, of the contractors or others from whom they are recoverable, and (4) the head of account to which the charges are to be debited and that to which any deduction made in the voucher is to be credited.

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KERALA TREASURY CODE

RULES 440-442

440. When a voucher or account exhibits any expenditure from which revenue may prima facie be expected to accrue, e.g., when a bill includes a charge for removing material from a building or other work which is being dismantled or is undergoing repairs or for clearing jungle or cutting trees in the compound of a building or on the bank of the canal, the account or voucher should show how the old materials removed or the trees cut have been disposed of, and, if they have been sold, the approximate date when the sale proceeds will be credited in the accounts. The Divisional Officer should make a note on each voucher which includes a charge of this kind as to whether the timber, etc., has any sale value and if so, by what approximate date the value realized by sale in auction or otherwise will be credited in the accounts. 441. The disbursing officer should deal with bills received from firms for the supply of stores in original and submit them to the Accountant General as vouchers. He should not keep a copy of any such bill in his office, except as provided for under Rule 430 (e). *#(B) SPECIAL TO CHEQUE DRAWING DEPARTMENTS MENTIONED IN SUB-RULE (D) OF RULE 162

442. When any moneys due by the Government to any person** any payable by means of a departmental cheque are attached by a prohibitory order of a court of law, the disbursing officer should give effect to the court’s order unless he has reason to think that the amount payable is exempt from attachments, in which case he should report the matter to the Government for orders before making the payment. In giving effect to the court’s order, he should deduct the attached amount from the bill and pass it for the net amount only; if the prohibitory order was issued by a court not situated at his headquarters, he should also deduct from the bill the money order commission required for remitting the amount to the court. If the court which issued the prohibitory order is situated at his headquarters, he should remit the attached amount deducted from the bill to the court by drawing a cheque in its favour on the treasury and sending it to the court if the court is not situated at his headquarters, he should draw the amount from the treasury on a cheque and send it (less the money order commission) to the court by money order. He should invariably obtain a receipt for the attached amount from the court either before or after remitting the amount to the court. The receipt should show that the payment is on account of an attached debt and should set forth inter alia the name and capacity of the actual creditor to whom * Substitution [G.O.(P) 386/80/Fin., dated 18th June, 1980] ** Omitted [G.O.(P) 386/80/Fin., dated 18th June, 1980]

# Substituion [G..O (P) No. 175/84/Fin., dated 26-03-1984]

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RULES 442-444

amount is due from the Government and on what account it is due and the number and date of the court’s attachment order in accordance with which the amount is paid to the court. If the attached amount relates to a disbursement in respect of which the rules require that sub-vouchers for amounts in excess of $ ` 1000 should be sent to the Accountant General, the court’s receipt should, if it is for an amount of $ ` 1000 or more, be attached to the relevant bill in which the particulars of the creditor’s claim are recorded (or sent to the Accountant General later on to be attached to that bill), and a reference to that bill should be enfaced on it in red ink. A reference to the court’s receipt should be similarly enfaced on the bill, if possible. When the attachment relates to an amount for which a bill has to be drawn on the treasury, the procedure laid down in Rule 211 should be followed. (See also Articles 102 and 103 of the Kerala Financial Code). 443. Payments due to contractor may be made direct to a financing bank provided that the department concerned has obtained (1) a legally valid document, such as a power of attorney or transfer deed signed by the contractor and authorizing the bank to receive the payments due to him by the Government, and (2) the contractor’s written acceptance of the correctness of the account prepared to show what is due to him by the Government or his signature on the bill or other claim preferred against the Government on his behalf, before settlement of the account or claim by payment to the bank. A receipt given by a bank in favour of which a contractor has executed a power of attorney or transfer deed authorizing it to receive payments due to him by the Government constitutes a valid discharge for the payment due to him, but contractors should, as far as possible, be induced to present their bills duly receipted and discharged through their bankers. (C) BUDGETARY CONTROL

444. *Appropriation control by the Treasuries- (1)The system of appropriation control by the treasuries laid down hereinafter in this rule shall be applicable to the following departments, namely: (i) (ii) (iii) (iv)

Health Services. General Education. Collegiate Education. Technical Education.

$ Substitution [G.O.(P) 5/84/Fin., dated 3rd January, 1984.] * Insertion [G.O.(P) 39/77/Fin., dated 31st January, 1977]

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(v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv) (xvi)

RULE 444

Industries and Commerce. Agriculture. Medical Colleges. Indigenous Medicines. Community Development. Animal Husbandry. Dairy. Co-operation. Harijan Welfare. Land Revenue. Police. Any other department which may be specified by the Government for the purpose. (2) (a) The heads of the departments and other chief controlling authorities shall, within the time limits prescribed in the Budget Manual distribute the provision to the extent necessary under each unit of appropriation mentioned below among their subordinate officers each of whom shall further distribute the same among the disbursing officers subordinate to him. (i) Travel expenses. (ii) Office expenses. (iii) Payments for professional and special services. (iv) Rent, rates and taxes/royalty. (v) Publications. (vi) Advertising, sales and publicity expenses. (vii) Grant-in-aid/contribution/subsidies. (viii) Scholarships and stipends. (ix) Hospitality expenses/Sumptuary allowances etc. (x) Machinery and equipments / tools and plants. (xi) Motor Vehicles. (xii) Maintenance. (xiii) Investments/loans. (xiv) Materials and supplies. (xv) Other charges.

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RULE 444

*Explanation 1— For the purposes of this sub rule— (a) Travel expenses shall cover all expenses on account of travel on duty including conveyance and fixed travelling allowances but excluding leave travel concessions if any. * This amendment shall be deemed to have come into force on 23rd day of September, 1985. **Explanation 2—Wherever no sub head/detailed head is provided in the Budget estimates under a particular minor head/ sub head, such minor head/sub head should be treated as the unit of appropriation. The Controlling Officers concerned should in such cases distribute the provision under the minor head/sub head among the subordinate controlling officers/drawing and disbursing officers. The appropriation control by Treasuries should be exercised with reference to such minor heads/sub heads concerned. **This amendment shall be deemed to have come into force on 23rd day of September, 1985. (b) Office expenses shall include all contingent expenditure for running an office, such as furniture, postage, purchase and maintenance of office machines and equipments, liveries, hot and cold weather charge (excluding wages of staff paid from contingencies) telephones, electricity and water charges, stationery, printing of forms, purchase and maintenance of staff cars and other vehicles for office use as distinct from vehicles for functional purposes like ambulance vans etc. (c) Payment for professional and special services shall include charges for legal services, consultancy fees, remuneration to examiners, invigilators, etc., for conducting examination remuneration to casual artists by the All India Radio and other types of remuneration for professional services. It will also include payment for services rendered, supplies made by other departments such as Railway, Police, etc., a distinction being made in respect of supplies made of services rendered for the running of an office in which case the expenditure will be recorded under “Office Expenses”. * Explanation renumbered vide G.O.(P) 81/88 dated 3rd February, 1988. ** Insertion vide G.O.(P) 81/88 dated 3rd February, 1988.

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RULE 444

(d) Rent, rates and taxes/royalty shall include payment of rent for hired building, municipal rates and taxes, etc and lease charge for land. (e) Publications shall include expenditure on printing of Office Codes and Manuals and other documents, whether priced or non-priced and discount to agents on sales but will not include expenditure on printing of publicity materials. (f) Advertising, sales and publicity expenses shall include commission to agents and printing of publicity materials. (g) Hospitality expenses, sumptuary allowances, etc., shall include entertainment allowance of high dignitaries, etc. Expenditure on refreshments served in inter departmental meetings, conference etc., will however, be recorded under “Office Expenses”. (h) Machinery and equipments/tools and plants shall include machinery, equipment, apparatus, etc., other than those required for the running of an office and special tools and plant acquired for specific works. (i) Motor vehicles shall include purchase and maintenance of transport vehicles used for functional activities as distinct from those used for running an office, e.g. ambulance vans. (j) Maintenance shall cover expenditure on maintenance of works, machinery and equipment and repairs incidental to maintenance. (k) Other charges shall constitute residuary head and shall include rewards and prizes; (3) The controlling officer immediately superior to each disbursing officer shall communicate direct to the treasury with which the respective disbursing officer has got transactions, the allotments under each unit of appropriation placed at the disposal of that disbursing officer, in Form T.R. 109. If one disbursing officer has got transactions with more than one treasury, separate allotments for operation at each treasury shall be made by the concerned superior officers under intimation to the treasuries. (4) The budget allotments at the disposal of the Head of the Department or the Chief Controlling Officer and operated directly by him shall also be intimated by him separately to the concerned Treasury for the purpose of verification by the Treasuries and admitting the bills drawn by him.

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RULE 444

(5) Appropriation Control Registers in Form T.R. 110 shall be maintained in all Treasuries separately for each financial year. The Registers shall be maintained disbursing officer-wise, allotting sufficient number of pages consecutively for each disbursing officer. Separate volumes of the register shall be maintained for each major or sub-major head of account or groups of major heads according to the number of disbursing officers. (6) Each Treasury shall maintain a Register of disbursing officers with the names of their controlling officers in Form T.R. 111. To enable the Treasuries to maintain the Appropriation Control Register correctly the Chief Controlling Officer shall furnish a list of sub controlling officers to the respective District/Sub Treasuries at which the latters are authorized to draw bills. The Sub Controlling Officers shall similarly furnish a list of drawing officers under their control to the Treasury Officer concerned. Any change in the lists once given shall be promptly intimated. (7) As and when the allotment order is received in the treasury necessary entries shall be made in the appropriation control register under the attestation of a responsible supervisory officer. When a bill is presented for payment at the treasury, the availability of budget provision to cover the payment shall be checked with reference to the entries in the above register. The progressive total of the expenditure shall be struck after each transaction. In case the balance provision according to the Register is not adequate to cover the payment the bill shall be returned nothing the facts. (8) Since the distribution of budget provision among the various drawing officers in the departments down to the lowest level will be completed only by the 20th April, the treasuries are authorized to make payments during the month of April pending receipt of allotment orders. *Such payments shall not however exceed 1/12 of the previous year’s allotment for the purpose and shall be so certified by the drawing officer on the bill. The amounts so paid shall be promptly entered in the relevant columns in the Appropriation Control Register: Provided that no payment shall be made in respect of items that are covered by this scheme to any disbursing officer after the first May unless the allotment order from his superior officer is received in the treasury. *This amendment shall be deemed to have come into force on the 25th day of August, 1986. * Insertion [G.O.(P) 85/89/Fin. dated 18th February, 1989]

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RULE 444

(9) If for any reason the allotment letter is lost or destroyed, a duplicate may be issued indicating boldly in red ink “Duplicate”. In such cases, the Treasury Officers will take special precaution to avoid duplicate entries in the Appropriation Control Register. (10) Disbursements relating to salaries, wages and pensions shall be exempted from the purview of the above rules. For the purpose of this rule salary includes all emoluments paid to government employees other than traveling allowance and permanent conveyance allowance and wages includes pay of menials and other contingent staff. (11) The expenditure on permanent travelling allowance and permanent conveyance allowance shall be debited to the detailed head “Travel expenses”. The disbursing officers shall ensure the correct debit of expenditure relating to permanent travelling allowance and permanent conveyance allowance under ‘Travel Expenses’ separately by attaching abstract to each bill in which the above two items are also claimed. The authorities who distribute the budget appropriation shall indicate separately against the provision for ‘Travel Expenses’ the amount required for payment of permanent travelling allowance and permanent conveyance allowance for the entire period. The treasuries shall note in the Register maintained by them the provision for each item and drawals regulated accordingly. (12) The Disbursing Officer shall prefer the claims relating to each unit of appropriation mentioned in sub-rule (1) above separately show that the treasuries shall check up the availability of provision before making payments. (13) If a disbursing officer has to separate funds provided under different major heads and or controlled by different controlling officers, separate allotment orders relating to the provisions under each major head shall be issued by the respective controlling authorities (14) *The following items of expenditure in respect of the Collegiate Education Department shall be exempted from the purview of the above Rule * Insertion vide G.O.(P) 215/83/Fin. Dated 27th April 1983

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RULE 444

1. Unified concessions 2. Harness fee concessions. 3. Concession to the children of disabled persons. 4. Concession to the children/grand children of political sufferers. 5. Concession to the dependants of defence personnel who are killed in action on front. 6. State Scholarships. 7. Sports Scholarships. 8. Sanskrit scholarships 9. Cultural Scholarship awarded to the winners of the University Youth Festivals and State Youth Festivals. 10. Scholarships sponsored by Government of India (a) National loan scholarships (b) National Merit Scholarships (c) Merit Scholarships to the children of School teachers sponsored by the Government of India (d) Grant-in-aid scheme of scholarship to the student from nonHindi speaking states for post-metric studies in Hindi. 11. Scholarships newly Sanctioned by State Government. (a) District- wise merit scholarships. (b) State Scholarships to Muslim and Nadar girl students.

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PART VIII MISCELLANEOUS STATUTORY RULES AND EXECUTIVE INSTRUCTIONS

CHAPTER I *THE INDIAN COINAGE RULES

(Deleted)

CHAPTER II COIN

A Statement of denomination-wise coins under circulation with desccription of size, weight, composition, etc., is given below:

*Under revision by the Union Government

324

325

..

6.00 gms

Ten Rupees

Five Rupees

Five Rupees (Old) 9.00 gms

..

(2)

Gross weight

Seventy Five Rupees

(1)

Denomination

Cupro-Nickel

Ferratic Stailess Steel

Outer Ring Copper -92% Aluminium- 6% Nickel -2% Centre Piece (Cupro Nickel) Copper - 75% Nickel - 25%

Quarternary Alloy Silver -50% Copper - 40% Nickel - 5%

(3)

Composition (proportion of metals)

23 mm

23mm

27 millimeter

44 millimeters

(4)

Diameter

..

..

..

..

(5)

Edge

Circular

Circular

Circular

Circular

(6)

Shape

Denomination-wise coins under circulation with description of size, weight, composition, etc.. PART VIII KERALA TREASURY CODE

1.1`` 0.95``

Ferratic Stainless Steel

Ferratic Stainless Steel Ferratic Stainless Steel

6.00 gms.

4.85 gms

3.79 gms

180 gms

90 ,,

45 ,,

Fifty Paise

Twenty Five Paise 2.83 gms

2.00 gms

One Rupees(Old)

Ten Paise

Nickel Coins Rupee*

326

Half Rupees

Quarter Rupee*

* The issue of these coins has been discontinued

,,

,,

0.75``

16 mm

19 mm

22 mm

25 mm

27 mm

,,

Milled

Milled and security edged

..

..

..

..

..

..

(5)

326

Nickel 100 per cent

Ferratic Stainless Steel

Cupro-Nickel

27mm

Two Rupees(Old)

Ferratic Stainless Steel

5.62gms.

(4)

Two Rupees (New)

(3)

(2)

(1)

,,

,,

Round coin

Circular

Circular

Circular

Circular

Eleven Sided

Circular

(6) PART VIII KERALA TREASURY CODE

327

Mahatma Gandhi Centenary One Rupee

10.00 ,,

15.00 ,,

World Food and

NICKEL COINS

15.00 grams

(2)

Mahatma Gandhi Centenary Ten Rupee

SIVER COIN (1)

Nickel 100 per cent

,,

80 percent Silver and 20 per cent Copper

(3)

(4)

28 Millimeter

,,

34 Millimeter

Decimal Coins

Milled and security serrations numbering 200

,,

Milled with serrations numbering 155

(5)

,,

,,

Round coin

(6)

PART VIII KERALA TREASURY CODE

(3)

(4)

328 ,,

,,

5.00 ,,

5.00 ,,

Fifty Paise/Naye Paise

Jawaharlal Nehru Commemorative Fifty Paise

Twenty-fve 2.50 ,, Paise/Naye Paise

,,

,,

5.00 ,,

Mahatma Gandhi Centenary Fifty Paise

19 Millimetres

,,

,,

24 millimetres

,,

Nickel 100 per cent 28 Millimetres

,,

10.00 grams

(2)

Jawaharlal Nehru 10.00 ,, Commemorative Decimal Rupee

Decimal Rupee

(1)

Milled with serrations numering 150 Milled

Milled

Milled and Security edged Milled with a serated or upright milling the serrations numbering 200 Milled with serrations numbering 150

(5)

,,

,,

,,

,,

,,

Round Coins

(6)

PART VIII KERALA TREASURY CODE

329

4.50

4.25

Ten Paise

4.50 ,,

World Food and Agricultural Organisation Commemorative Twenty Paise

Twenty Paise

4.50 ,,

(2)

Mahatma Gandhi Centenary Twenty Paise

(1)

ALUMINIUM BRONZE COINS (4)

,,

,,

,,

23 Millimetres across scallops

,,

,,

92 per cent Copper, 6 per 22 Millimetres cent Aluminium and 2 per cent Nickel

(3)

Plain

Milled with serration numbering 212

,,

Milled with serration numbering 212

(5)

Scalloped Coin

,,

,,

(6)

PART VIII KERALA TREASURY CODE

330 ,,

,,

,,

75 per cent Copper and 25 per cent Nickel

(3)

Two Paise/Naye Paise*

3.00 gram

75 per cent Copper and 5 per cent Nickel

* Issue and reissue of these coins have been discontinued. † The issue of these coins has been discontinued.

4.00 ,,

Five Paise/Naye Pase†

2.50 ,,

Twenty-five Paise

5.00 ,,

5.00 ,,

Fifty Paise

Ten Paise/Naye Paise*

(2)

(1)

COPPER-NICKEL COINS

18 Millimetres (Outer)

22 Millimetres across corners, 19 Millimetres across flats

23 Millimetres

19 Millilmetres

24 Millimetres

(4)

Plai

,,

Plain

Milled with serrations numbering 100

Milled with serrations numbering 150

(5)

Scalloped coin

Suare coin with rounded corners

Scalloped coin

,,

Round coin

(6)

PART VIII KERALA TREASURY CODE

2.30 ,,

1.50 ,,

1.25

0.75

Five Paise

Three Paise

Two Paise

(2)

Ten Paise

(1)

(3)

331 Aluminium with 3.5 to 4 per cent Magnesium

,,

Aluminium with 3.5 to 4 per cent Magnesium

96.5 per cent Aluminum and 3.5 per cent Magnesium

ALUMINIUM M AGNESIUM COINS

20 Millimetres

19.55 Millimetres across flats 22 Millimetres across corners

22Millimetres across corners 19 Millimetres across flats

26 Millimetres

(4)

,,

Plain

Unlimited rim

12 Scapped with unlimitted rim

(5)

Scalloped

Hexagonal shape with rounded corners

Suare coin with rounded corners

,,

(6)

PART VIII KERALA TREASURY CODE

332

1.50 ,,

1.50 ,,

78 to 83 per cent Copper, 17 to 20 per cent Zinc and 9/10th to 14/10th per cent Nickel

97 per cent Copper, 2 1/2 per cent Zinc and 1/2 per cent Tin

,,

(3)

*The issue of these coins has been discontinued.

One Paisa/Naya Paisa

NICKEL- BRASS COIN

One Naya Paisa

(2)

1.00 ,,

BRONZE COINS

One Paisa

(1)

,,

16 Millimetres

17 Millimetres between opposite corners, 14.70 Millimetres across flats

(4)

,,

,,

,,

(5)

,,

Round coin

Suare coin with rounded corners

(6)

PART VIII KERALA TREASURY CODE

PART VIII

KERALA TREASURY CODE

Instructions 1-4

CHAPTER III CURRENCY AND BANK NOTES

Instructions issued by the Reserve Bank of India 1. Denominations of Notes.—Under the provisions of the Reserve Bank of India Act (India Act II of 1934) the sole right to issue bank notes in India has been vested in the Reserve Bank with effect from the 1st April 1935 and the Government of India have ceased to issue, currency notes. The Reserve Bank has taken over the liability for the currency notes issued by the Government of India. 2. Currency notes of the denominational values of one rupee, five rupees, ten rupees, twenty rupees, fifty rupees, one hundred rupees, five hundred rupees, one thousand rupees and ten thousand rupees have been issued by the Government. Under the provisions of the Reserve Bank of India Act, these notes are now legal tender throughout India. The issue of currency notes of the denominational value of one rupee, and twenty rupees has been discontinued and currency notes of the other denominational values supplied by the Government have been issued by the Reserve Bank in addition to its own notes. 3. Bank notes issued by the Reserve Bank will be of the denominational values of two rupees, five rupees, ten rupees, one hundred rupees, one thousand rupees, five thousand rupees and ten thousand rupees unless otherwise directed by the Government on the recommendations of the Central Board of the Bank. Bank notes and currency notes issued by the Bank are legal tender throughout India. NOTE— Bank notes and currency notes of the denominational values of five hundred rupees, one thousand rupees, and ten thousand rupees prior to 13th January 1946 were demonetized with effect from that date and are no longer legal tender. Bank notes of the denominational values of one thousand rupees, five thousand rupees and ten thousand rupees in the Asoka Pillar design have been issued with effect from 1st April 1954 and are legal tender. RECEIPT AND ISSUE OF NOTES

4. One rupee notes issued by the Central Government are unlimited legal tender, and although these notes are treated as rupee coin for all purposes of the Reserve Bank of India Act, the instructions contained in the following

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Instructions 5-10

paragraphs will, save where the contrary intention appears, apply to these notes as they apply to currency and bank notes. 5. No restrictions are imposed on the issue of notes at treasuries in exchange for coin or for notes of other denominations. 6. Although no person has a legal claim to obtain coin for notes presented at treasury, this accommodation should be given whenever possible, and all applications for exchange should be granted, provided that the coins or notes applied for are available, subject to any general or special limitations which the Reserve Bank or the Government of India may find it necessary to impose from time to time. 7. Subject to any limitations which may be imposed in particular cases the Treasury Officer should, whenever he is satisfied that no inconvenience will be caused to the treasury, exhibit in some conspicuous place a placard in English and the Indian language in local use notifying that he is prepared to give coin for notes. NOTE 1—Notes to limited extent may be cashed for the convenience to travellers when the treasury is unable to cash them for the general public. NOTE 2—Facilities should be given as far as possible for encashment of notes at sub treasuries. 8. Whenever there are reasons to believe that notes are selling in the local market at a discount or a premium in large amounts, the Treasury Officer should at once bring the fact to the notice of the Currency Officer. 9. The ordinary exchange with the public mentioned in Instructions 5 to 7 should be made from the treasury balance. When, however, the amount of rupees or notes of any denomination in the treasury balance is insufficient to meet the demand for exchanges, rupees or notes of the required denominations may be obtained from the currency chest in accordance with Rule 152 (iv) of the Kerala Treasury Code. 10. It is desirable from the point of view of the popularity of the note issue that clean notes only should be put into circulation. This has, at the same time, the advantage of making it more difficult for forged notes to escape detection, as these are frequently intentionally soiled or smudged in order to conceal their defects. In the case of district treasuries, however it is not feasible entirely to discontinue reissue, but Currency Officer will arrange to keep the

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Instructions 10-14

treasuries in their jurisdiction supplied with sufficient stocks of clean notes in order to meet all probable demands. Notes much soiled, defaced or torn should not in any case be reissued to the public and cut notes should not ordinarily be reissued. Notes unfit for reissue should be sent to the Issue Department of the Reserve Bank (or the treasury named by the Currency Officer for the purpose) in the first remittance sent thither in accordance with rule 332 of the Kerala Treasury Code. 11. Subject to the remarks in the preceding instruction, all notes, if fit for issue may be issued to the public irrespective of the circle from which they were issued, or deposited in the currency chests under the relevant orders. Currency notes of the denominational values of one rupee, and twenty rupees should not be issued to the public, but should be remitted to the Currency Officer (or the treasury named by the Currency Officer for the purpose)—See rule 332 of the Kerala Treasury Code. 12. In order to prevent the older issues of notes being stored for an indefinite period in a treasury, notes fit for reissue should be arranged in the double lock treasury balances and the currency chest balances in the order of receipt and should be reissued from these balances in the same order. Notes received across the counter in the course of daily transactions may be reissued at once provided that they are in good condition. 13. Notes unfit for issue should be kept separately in the currency chest balance pending remittance to an Issue Department of the Reserve Bank in accordance with rule 332 of the Kerala Treasury Code. FORGED, DEFECTIVE AND LOST NOTES

14. (a) In the event of a forged note being presented, the note and the presenter should be made over to the Police, if the Treasury Officer considers it advisable to do so. If, however, the Treasury Officer is convinced that the presenter has presented the forged note in good faith, believing that it was genuine he should impound the note and take the name and address of the presenter and his statement regarding the person from whom he received the note. The forged note and presenter’s statement should be sent to the Police for further enquiry. After the enquiry has been completed, the Police will forward the forged note to the Issue Department of the Reserve Bank along with a report. NOTE— When a forged note is impounded, it should be stamped with the word ‘Forged’ or the word “Forged” should be written on it in red in large letters before it is sent to the Police for enquiry.

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Instructions 14-16

(b) Notes disfigured by oil or other substances should be scrutinized with special care, as forged notes are sometimes intentionally thus disfigured to render detection difficult. (c) The managers of certain joint stock banks and exchange banks have instructions to send forged notes presented to them to the nearest treasury for impounding. When a Treasury Officer receives a forged note from a bank he should take action in accordance with clause (a) above. (d) The Reserve Bank has authorized the Head Offices and other offices, branches, sub-branches and Treasury Pay Offices of the State Bank of India and the branches of its subsidiary banks conducting Government business to impound forged notes. (e) At places where there is neither an Issue Department of the Reserve Bank nor a branch, sub-branch or Treasury Pay Office of the agency bank, treasury and sub treasury officers are authorized to accept, for disposal in the usual manner, suspected currency or bank notes tendered by Post and Telegraph Office. When suspected notes sent to treasuries by Post Offices or managers of joint stock banks for adjudication are adjudged by Treasury Officers as genuine their value will be accounted for under the head “Civil Deposits— Revenue Deposits”, pending repayment of the amount to the parties concerned. If these deposits remain unclaimed for one whole account year, they lapse to the credit of the Central Government. NOTE— These instructions apply mutatis mutandis to coins send by Post Offices to Treasury Officers. 15. No person is of right entitled to recover the value of any lost, stolen, mutilated or imperfect currency or bank notes, but rules have been framed under the Reserve Bank of India Act prescribing the circumstances, conditions and limitations under which the value of such notes may be refunded as of grace. The rules are contained in Appendix 24. 16. Half mutilated, mismatched or altered notes and notes disfigured by oil or other substances in such manner as to render their identification doubtful, should never be received in payment of Government dues or cashed. The holder should be advised to apply to the Currency Officer competent to deal with the matter in accordance with the rules in Appendix 24 for instructions regarding the procedure under which the value of such notes can in some cases be recovered.

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Instructions 16-20

NOTE 1—Notes with only a slight mutilation which does not interfere with identification or suggest fraud may be received at the treasury and dealt with under Rule 332. The features necessary for the identification of a note are, besides the number, which must, including the serial letters be all intact, the denomination, the place of issue where indicated, the signature and the watermark. NOTE

2—Defective notes should be stamped with “Half note-Payment refused”, “Mutilated-Payment refused”, “Mismatched-Payment refused”, or “Altered-Payment refused” as the case may be, or such words should be written in red ink in large letters before they are returned to the presenter.

17. The value of lost, stolen or wholly destroyed notes of the denomination of ` 100 and below will not be refunded. Persons applying to a Treasury Officer for a refund of the value of lost, stolen or wholly destroyed notes of the denomination above ` 100 should be referred to the Currency Officer of any office of issue. 18. Procedure in treasuries the cash business of which is conducted by the Bank.—The provisions in Instructions 1-17 apply mutatis mutandis to treasuries the cash business of which is conducted by the Bank. INDENTS FOR NOTES

19. The Treasury Officer is responsible for keeping the currency chest and treasury balances sufficiently stocked with all denominations of notes to provide for issue to the public in payments on behalf of the Government and in exchange for coins. He should, as far as possible, submit to the Currency Officer his requisitions for the supply of notes with the Cash Balance Report. Ordinarily, remittances of notes will be sent to the district treasury and distributed to sub treasuries by the Treasury Officer, but in certain cases, e.g., when a sub treasury is on a Railway, it may be more economical to send remittances to a sub treasury for distribution. 20. At places where the cash business of the treasury is conducted by the Bank, the Manager or Agent of the Bank is responsible for keeping in the currency chest a sufficient stock of notes to meet all demands from the public at the district treasury and also demands from the Treasury Officer for supply to sub treasuries. When the Treasury Officer wishes to replenish the stock of notes in a sub treasury, he will obtain the necessary supply of notes

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Instructions 1-3

from the bank unless the sub treasury requirements are large and it is more economical and convenient to obtain a direct remittance from an Issue Department of the Reserve Bank. In the case of treasuries the cash business of which is conducted by the branches of the agency Bank, the Agent of the Bank will submit his indents for supply of notes to his Local Head Office or Link Branch which will arrange with the Currency Officer for the necessary remittance. CHAPTER IV RESERVE BANK OF INDIA

Cypher Code and Treasury Agencies Private Check Signal Book 1. The Currency Officer of the Reserve Bank of India, Delhi, supplies Cypher Code and Treasury agencies Private Check Signal Book of the Reserve Bank of India to each Treasury Officer and to the Sub Treasury Officer of each sub treasury which has a currency chest. The Cypher Code contains a list of phrases and expressions ordinarily required in telegraphic communications on matters concerning resource, currency and transactions under the Reserve Bank of India’s scheme of remittance facilities and as such it should be used for telegrams relating to such matters. The Check Signal Book should be used for authenticating all telegrams relating to telegraphic transfers. 2. Safe custody of Code and Check Signal Books.—The Code and Check Signal Books are confidential and shall be kept locked up carefully overnight, and during the day when they are not in actual use, in a safe or in the strong room. The keys of the safe or the receptacle in which the books are kept shall remain in the personal custody of the Officer-in-charge of the Treasury or sub treasury or of any other government servant duly authorized in this behalf. If the books are kept in box or other receptacle as provided above, the latter must be kept in a safe or in the strong room overnight. When the books are taken out for use during day, they must invariably remain in the personal custody of the government servants mentioned above, and must, on no account, be allowed out of their possession. All spare copies of the Code and Check Signal Book must invariably remain in a safe or in the strong room. Negligence in the observance of these instructions may involve Government and Reserve Bank in considerable loss before protective measures could be adopted. Holders shall, therefore, exercise extreme care in regard to the custody and handling of these books.

338

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Instructions 3-5

3. Procedure to be followed in connection with the distribution and acknowledgement of amendment slips.—Amendments to the Code and Check Signal Book will be distributed by the Currency Officer, Delhi, in the form of confidential circular letters with acknowledgement forms appended to them. The covers will be despatched by Registered Post Acknowledgement due, direct to all holders. Immediately on receipt of the confidential circular the acknowledgement form appended to it shall be duly completed by the holders, and returned by Ordinary Post to the Currency Officer. 4. Procedure to be followed in dealing with amendment slips.— Immediately on receipt of an amendment slip, the reference number and date appearing thereon shall be serially recorded on the fly leaf at the beginning of the Cypher Code or Check Signal Book, as the case may be, under the signature of the Officer-in-charge. No correction shall , however, be made at the appropriate place in the books until the date from which the amendment takes effect. For this purpose, a careful diary note shall be taken of the date from which the amendment comes into force which will be stated in the covering letter and/or each slip and thereafter the amendment slip shall be carefully filed along with the covering letter, if any, on a special file expressly opened for the purpose. On the day the amendment becomes effective the relative slip shall be removed from the special file, cut out and pasted at the appropriate place in the books, a suitable note of the amendment being made in the proper place. Should it be found more convenient to carry out the amendments in manuscript in the body of the books instead of pasting the relative slips therein, there is no objection to that course being adopted, but in that event it is imperative that the amendment slips shall be carefully retained on the separate file referred to above. On the date on which each amendment becomes effective the fact that the amendment has been carried out shall be noted in a separate column, under the signature of the Officer-in-charge against the entry already made on the flyleaf when the amendment slip was received. Where files are used for recording amendment slip or the covering letters of both, the above instructions for the safe custody of the Code Books shall apply mutatis mutandis to such files. All spare copies of amendment slips must also be kept in a safe or in the strong room. 5. Procedure to be followed in the event of the Cypher Code, Check Signal or amendment thereto being lost or falling into unauthorized hands.— Should the Cypher or the Check Signal Book get lost or fall into unauthorized hands at any time the fact shall immediately be reported by telegrams to the Chief Accountant of the Reserve Bank of India at Bombay (telegraphic address

339

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Instructions 5-7

“Reserve Bank” Bombay) for necessary action. The telegraphic message shall also be repeated to the Currency Officer for his information. A detailed report regarding the circumstances attending the incident, the steps taken to trace the Code or the Check Signal Book in the case of a loss, and the precautions taken to prevent a recurrence, shall be submitted to the Currency Officer as soon as possible thereafter. In the event of amendment slips being lost or falling into unauthorized hands, an immediate report by letter, and not by telegram, shall be made to the Currency Officer. This report shall be followed by a detailed report similar to that prescribed above for the Cypher Code, and the Check Signal Book. 6. Procedure to be followed in the event of transfer of charge.- When a government servant who holds copies of the Code and Signal Book is relieved of his charge he shall hand over the copies in his custody to the relieving government servant and the latter shall certify as follows in the certificate of transfer of charge:“I hereby certify that I have received and hold in my personal custody …………………… copy/copies of the Cypher Code of the Reserve Bank of India which has/have been corrected up-to-date. The last amendment slip received is No……………..,dated the ……………………………., for the Code. “I also certify that I have received and held in my personal custody …………………… copy/copies of the ‘Treasury Agencies Private Check Signal Book’ of the Reserve Bank of India which has/have been corrected up-todate. The last amendment slip received is No………………………..,dated the …………………………. for the Check Signal Book.” “I further certify that I have received and held in my personal custody …………………… copy/copies of the ‘Secret Memorandum on differences likely to be found between forged and genuine notes’ of the Reserve Bank of India which has/have been corrected up-to-date. The last amendment slip received is No……………., dated ………………… for the Secret Memorandum”. 7. Annual Possession Certificate.—On the 1st day of April each year all holders of the Code and Check Signal Book shall send direct to the Currency Officer a certificate in the following form— “I hereby certify that I hold in my personal custody ………………………… copy/copies of the Cypher Code of the Reserve Bank of India which has/have been corrected up-to-date. The last amendment slip received is No………………., dated the ………………………. for the Code.”

340

Instruction 7

KERALA TREASURY CODE

PART VIII

“I also certify that I hold in my personal custody copy/copies of ‘Treasury Agencies Private Check Signal Book’ of the Reserve Bank of India which has/ have been corrected up-to-date. The last amendment slip received is No………….., dated the …………………… for the Check Signal Book.” “I further certify that I hold in my personal custody copy/copies of the ‘Secret Memorandum on differences likely to be found between forged and genuine notes’ of the Reserve Bank of India which has/have been corrected up-to-date. The last amendment slip received is No………………., dated the …………………….. for the Secret Memorandum”. Signature: Designation: Date………20….

Place:

Sub Treasury Officers shall also send a copy of the certificate to their respective District Treasury Officers. In order to obviate unnecessary reminders, a careful diary note of this shall be maintained by all holders. C HAPTER V INSTRUCTIONS ON MISCELLANEOUS SUBJECTS

A. Local Funds I. The expression ‘local funds’ covers*— (1) The moneys received and administered by a body which though not part of the Government’s departmental organization, has been placed under the control of the Government by a law or a rule having the force of law, whether in regard to its proceedings generally or to specific matters, e.g., its budget, creation of particular posts in its service and appointments to such posts, and the leave, pension and other rules applicable to its servant; (2) the moneys received and administered by any other specified body when the Government have published a special notification to the effect that they constitute a local fund; and (3) the moneys recovered from District Boards for any specific purpose and constituted into a separate fund under any law or rule having the force of law, provided that the fund is specially notified by the Government as a ‘local fund’. *See Article 7, Kerala Financial Code.

341

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Instructions I-IV

*The transactions of local funds are not included as such in the Government Account except in so far as their cash balances are deposited with the Government under the rules and accounted for under the deposit head “Deposits of local funds” within the Public Account. The Government’s function in regard to such deposits is that of a banker. II. Some of the important classes of local funds are:— (1) District funds. (2) Municipal Funds (i.e., the moneys of Municipal Councils and City Corporations governed by the District ‘Municipalities Acts and City Municipal acts’ respectively). (3) Panchayat Funds, i.e., the moneys of Panchayats governed by the Kerala Panchayat Act, 1960 (Act 32 of 1960). (4) The Kerala State Road Transport Corporation Working Fund. (5) The Kerala State Electricity Board Working Fund. (6) Market Committee Funds. (7) Library Funds. III. The administrators of the local funds should generally follow the principles and procedure prescribed in the Acts Constituting the funds or the rules and orders issued under those Acts, in the matter of receipts, custody, withdrawal, payment and investment of their moneys. But when according to those rules any money is to be paid into or withdrawn from their banking accounts with the Treasury, the procedure for such remittance and withdrawal prescribed in this code should be followed. Any money payable by the Government to a local fund which has a banking account with a treasury, shall ordinarily be paid by adjustment to the credit of that account and not in cash. IV. The balance at a credit of each local fund should be verified by the Treasury Officer in consultation with the Accountant General and the authority administering the fund. The Treasury Officer should obtain from the latter authority a certificate of balance as worked out in the administrative accounts and forward it to the Accountant General so as to reach him not later than the 10th July, explaining the differences, if any, between that balance and the balance appearing in the treasury accounts as corrected by adjustments in the accounts for March Final. The balance as shown in the books of the Accountant General should be followed by the Treasury Officer and not that shown in the administrative accounts. *See Article 324 and 325 of the Kerala Financial Code.

342

KERALA TREASURY CODE

PART VIII

Instructions V-IX

B. Public debt 1.

PERMANENT AND TEMPORARY LOANS

V. When, under the terms of a Loan Notification by the Government, subscriptions to any new loan under the terms of the notification are receivable at the treasury the procedure to be observed by Treasury and Sub Treasury Office in receiving such subscriptions and crediting them into the Government account will be regulated by the provisions of Chapter VII of the Government Securities Manual and by such supplementary instructions, if any, as may be issued by the Government in this behalf. VI. The procedure to be followed by the Treasury and Sub Treasury Officers and the Public Debt Offices in making payments in respect of the principal of any loan when it falls due, will be governed by the rules contained in Chapter VIII of the Government Securities Manual and supplementary instructions, if any, issued by the Government in this behalf. 2. FLOATING DEBT

(a) Treasury Bills VII. Unless the Government direct otherwise, Treasury Bills will be issued from and repaid at the offices of the Reserve Bank at Madras, Bombay and Calcutta. Subject as hereinafter provided, the procedure to be observed by the Bank in connection with the sale and discharge of such bills will be governed by such instructions as may be issued by the Government to the Bank. VIII. Treasury bills can be paid on maturity only at the office or branch of the Reserve Bank from which they were issued. After payment, the discharged bill should be transmitted to the Accountant General in the same way as other paid vouchers. (b) Ways and Means Advances IX. When Ways and Means Advances are taken by the Government from the Bank, the request to the Bank will be accompanied by a demand promissory note for the amount on behalf of the Governor. At the same time,

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Instructions IX-XIV

the particulars of the advance, that is, the amount and the interest payable thereon, should be communicated by the Government to the Accountant General. X.

When notifying a repayment, a copy of the instructions to the

Bank should be endorsed to the Accountant General concerned. The Bank will cancel the promissory note for the advance repaid and make a note on the promissory note if it is a part payment. The note on final cancellation will be returned to the Government. XI.

Interest on a Ways and Means Advance will be debited against

the Government account by the Bank at the time of repayment. C. Transactions relating to Government of other countries XII.

Unless the Government by any general or specific order direct

otherwise, a Treasury Officer may not receive or authorize the Bank to receive moneys tendered on behalf of Government of other countries, nor make or authorize payment of any claims against such Governments that may be presented to him, except under the authority of the Accountant General. XIII. In receiving or authorizing the Bank to receive such moneys and in making or authorizing such payments as aforesaid, the Treasury Officer be guided generally by the provisions of the relevant rules in Parts III and V of the Kerala Treasury Code except in so far as they may be supplemented or modified by any general or special instructions issued by the Accountant General. In all cases of doubt, the Treasury Officer should take the orders of the Accountant General. XIV. Moneys received into or paid out of the State Government account in respect of transactions with the Governments of other countries, will be adjusted by payment to, or recovery from the Governments concerned, by the Accountant General.

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Instructions XV-XVI

D. Destruction of Accounts Records XV. The general rules regarding the destruction of records appertaining to the accounts audited by the Indian Audit Department are contained in Article 358 of the Kerala Financial Code. The preservation and destruction of treasury records are regulated by those rules and such other rules as may be prescribed by the Director of Treasuries in consultation with the Accountant General. (See Appendix 25, Kerala Treasury Code, Volume II). E. Rounding off of paise in Government Accounts XVI. (1) The following transactions of Government involving fractions of a rupee shall be brought to account in multiples of 5 paise, portion not below 2½ paise being rounded off to 5 paise and those below that amount being ignored. (i) Personal claims of government servants and pensioners, provided that—(a) in the case of bills for pay, including leave salary, and pension, the amount in respect of pay or leave salary or pension, and no other item of payment or recovery, shall be so increased or reduced by the addition of an amount not exceeding 2½ paise or subtraction of an amount below 2½ paise as the case may be, as will make the net amount payable to an individual on any bill a multiple of 5 paise.

Example—1 Claim Rs.

Bill to be made Rs.

Pay D.A. C.C.A. Gross Total

..

300.00

300.02

..

40.00

40.00

..

24.00

24.00

..

364.00

364.02

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KERALA TREASURY CODE

Instruction XVI

Deductions P.F.

..

30.00

30.00

H.R.

..

19.12

19.12

I.T.

..

2.06

2.06

P.L.I.

..

8.19

8.19

C.H.S.

..

2.50

2.50

Total deductions

..

61.87

61.87

Net amount

..

302.13

302.15

Claim Rs.

*Example— II

Pay

..

300.00

Bill to be made Rs. 299.99

D.A.

..

60.00

60.00

H.R.A

..

40.00

40.00

400.00

399.99

Deductions P.F.

..

40.00

40.00

H.R.A.

..

19.12

19.12

P.L.I.

..

8.19

8.19

Total deduction

..

67.31

67.31

Net amount

..

332.69

332.68

Less L.I.C.

..

10.03

10.03

322.66

322.65

*Insertion [G.O.(P) 747/82/Fin., dated 8th December, 1982]

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NOTE

KERALA TREASURY CODE

Instructions XVI

1—In the case of bills exclusively for allowances, other than traveling allowance, involving fractions of a rupee, any one part of the claim of an individual may be rounded off by addition of an amount not exceeding 2½ paise, or by subtraction of an amount below 2½ paise, as the case may be, as will make the net amount payable to the individual on a bill a multiple of 5 paise.

NOTE 2—**In respect of personal claims of Government servants involving deduction towards Life Insurance Corporation premium, the rounding shall be made with reference to the net cash payable from the Treasury/Bank as per the endorsement; (b) in the case of Travelling Allowance bills, the rounding shall be done only at the last stage and not in respect of each item, e.g., railway fare, mileage, daily allowance, etc., comprising the claim of an individual; (c) transactions which do not involve cash payment shall not be rounded off; and (d) in the case of emoluments fixed by law, amounts which are not an exact multiple of 5 paise shall always be rounded off to the next higher multiple of 5 paise. (ii) Transactions between one Government and another of between two departments of the same Government, unless it is possible to eliminate from the original transactions, fraction of a rupee which is not an exact multiple of 5 paise. (iii) Amounts converted into Indian currency from Sterling or other foreign currencies. (iv) *In the case of payments for claims in respect of contingent and other charges, the rounding off of the fraction of a rupee to a multiple of 5 paise shall be done only in respect of the net amount payable on a bill and not in respect of the individual items of claims or adjustments in the bill. (v) Reserve Bank remittances, other than those of sum representing dues fixed by or under any law or under any contractual obligation of the Government. **Insertion [G.O.(P) 747/82/Fin., dated 8th December, 1982] *Substitution [G.O.(P) 747/82/Fin., dated 8th December, 1982]

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Instructions. XVI-XVII

(vi) Deposits and receipts other than those which are fixed by or under any law or are specially exempted by the Government from the operation of this rule. (2) In the case of payments of water charges in the Public Health Engineering Department, the rounding off shall be done as follows:-In the case of all payments up to a bill amount of ` 10 the odd paise will be eliminated and the bills rounded off to the higher even paise. But where the bill amount exceeds ` 10 the bill should be rounded off to the multiple of 5 paise. F. Remittance of moneys due by Government to payees concerned at their cost PAYMENT BY POSTAGE STAMPS

XVII. (1) In cases where moneys due by Government to a payee are to be remitted to him by Money Order at his cost and the exact amount cannot be paid by Money Order after deducting Money Order Commission, postage stamps of equal value may be sent to him by ordinary post, for the amount less than one rupee left over after remitting the maximum amount by Money Order. The acknowledgement of the payee on the money order receipt shall, as usual, be watched by the disbursing officer, but it is not necessary to call for a formal receipt from the payee concerned on the value of the postage stamps and it would suffice if only a certificate to this effect is recorded by the disbursing officer against the entry recording the payment.**

**Omitted [G.O.(P) 347/81/Fin., dated 28th May, 1981]

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KERALA TREASURY CODE

GOVERNMENT OF KERALA Abstract DISBURSEMENT OF PERSONAL ENTITLEMENTS OF EMPLOYEES INCLUDING SELF DRAWING OFFICERS OF ALL GOVERNMENT DEPARTMENTS THROUGH BANKSSANCTIONED—ORDERS ISSUED FINANCE (STREAMLINING) DEPARTMENT G. O. (P) No. 402/11/Fin.

Dated, Thiruvananthapuram, 23-9-2011

Read:— 1. G. O. (P) No. 439/09/Fin dated 12-10-2009. 2. G. O. (P) No. 476/09/Fin dated 2-11-2009. 3. Circular No. 14/2011/Fin dated 17-2-2011 4. G. O. (P) No. 658/10/Fin dated 3-12-2010. ORDER As per Government Order 1st read above, sanction was accorded to operationalise the system of disbursement of salaries and personal entitlements except retirement benefits of Non-Gazetted employees of all Government Departments, through nationalised banks on optional basis. This order was cancelled vide reference 2nd cited in the wake of proposal to introduce ATM in Treasuries. Accordingly, instructions were issued to follow the procedure prescribed in the Kerala Treasury Code for salary disbursement vide circular read 3rd above. As per G.O read 4th above, Government have ordered that disbursement of salaries and entitlement of all Self Drawing Officers in the State should be made through their Treasury Savings Banks accounts with effect from 1.1.2011. 2. The full computerization of treasuries to facilitate introduction of ATM in Treasuries has not materialised so far. Now, major Head of Departments like State Police Chief, Transport Commissioner, etc. have pointed out difficulties in handling huge amount of physical cash, especially in respect of those

349

KERALA TREASURY CODE

employees who are deployed for field duty and requested for sanction by the Government for disbursement of pay and allowance of their employees through their bank accounts. Those Departments, which had earlier switched over to the system of salary payments through banks, also expressed their difficulties in moving away from that system. Reserve Bank of India has also suggested the State Government to consider switching over to e-mode of transactions by using Electronic Clearance Service (ECS), National Electronic Fund Transfer (NEFT), etc. Further, Government also consider that fruits of advanced technology in banking system like ATM, mobile banking, etc. should not be denied to its employees. 3. In the above backdrop, Government have reviewed the position in its entirety and are pleased to reintroduce the system of disbursement of personal entitlements except retirement benefits of all government employees including Self Drawing Officers in the State through Public Sector Bank account of the employee concerned on an optional basis in supersession of all orders issued in this regard. The heads of offices should obtain willingness of their employees before switching over to the new system of payment. 4. In order to implement the system of disbursement of entitlements except retirement benefits of non-Gazetted employees through an authorised bank, the following procedures shall be followed. (i) The Drawing and Disbursing Officer concerned shall present the bills relating to the personal claims of Non-Gazetted employees through the bill book to the Treasury Officer for passing the bills after exercising the prescribed checks, together with the authorisation in favour of the Bank Manager to encash and credit the proceeds of the bill in accordance with the statement attached. Together with the bill, the Drawing and Disbursing Officer will present a statement containing the details relating to each employee such as full name with initials, designation, Savings Bank account number, Net amount due to the individual as per the bill, details of amount to be deducted from the net amount (such as Co-operative recoveries, Profession tax, etc.), the name and address of those to whom these amounts are payable and the mode of payment (DD/account transfer, etc.) and the final amount to be credited to the savings bank account of the persons concerned. If required by the bank, these details shall be made available in a floppy disk/CD also. (ii) Self Drawing Officers shall present their bills to the treasury

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KERALA TREASURY CODE

with a request to credit the proceeds of the bill to the bank account of their choice along with the details mentioned above. The Treasury officer after exercising proper checks, shall pass the bill and send credit advice to the bank concerned, showing the net amount to be credited to the bank account of the officer concerned and the amount to be transfer-credited such as cooperative dues, profession tax, etc. with the required details. (iii) The Drawing and Disbursing Officers shall ensure that the net amount, after co-operative recoveries and other recoveries, due to the employees is credited to the individual account concerned and also that recoveries effected from the net amount of the bill are remitted by the bank to the societies or other agencies concerned under proper acknowledgement. (iv) The procedure now followed by Treasury will continue and will issue Pay Order Cheque to the Bank. In the Pay Order Cheque “Pay ` …………… in cash” shall be replaced by “Pay `. ……………..by crediting to SB account and `…………………..by DD/account transfer.” (v) After effecting the deductions from the net amount towards dues to the Societies or other agencies in accordance with the statement furnished by the Drawing and Disbursing Officer, the bank will credit the amount to the Savings Bank account of the employees concerned in any bank/branch where the employee has a live bank account. The Bank will ensure, in the case of pay and allowances that credit is allowed only on the date due for disbursement of salary. The bank shall also intimate the employee concerned about the amount credited to the account through SMS alerts. (vi) The bank will furnish to the Drawing and Disbursing Officer, a certified statement containing the details of credit particulars and remittances of deductions made as per the statement in respect of each employee after remitting the deductions made from the ‘net amount’ to the institutions concerned, in the format in which the details were furnished by the Drawing and Disbursing Officer. (vii) The services rendered by the banks will be free of service charges. (viii) The Drawing and Disbursing Officer and the authorised signatory of the bank will enter into a comprehensive agreement incorporating the above conditions before introducing the system. 5.

The following modifications to the provisions in the Kerala Treasury

351

KERALA TREASURY CODE

Code are ordered to facilitate the new dispensation. (i) The existing Rule 163 (k) Kerala Treasury Code Volume I shall be modified as follows: “Recoveries from the salary of government servants on account of dues to co-operative societies registered under the various Co-operative Societies Acts where such Acts impose a statutory obligation on the Government to make such deductions shall be made by the drawing and disbursing officers or the authorized banks in the case of Non-Gazetted Government servants who do not draw their own bills, and in other cases by the Treasury Officers or the authorized banks/other disbursing officers concerned, as the case may be, in accordance with such procedure as may be laid down by Government from time to time”. (ii) First paragraph of Rule 432(a) Kerala Treasury Code Volume I shall be modified as follows: “The head of an office is personally responsible for all moneys drawn as pay, leave salary, allowances, etc. on an establishment bill signed by him or on his behalf until he has paid them to the persons who are entitled to receive them or credited them to the bank account of the persons who are entitled to receive them and has obtained their acknowledgement, duly stamped when necessary. If disbursement of the amount drawn in the bill is through the authorised bank by crediting the amount to the savings bank account of the persons who are entitled to receive them, the Drawing and Disbursing Officer shall be personally responsible for obtaining the details of amount credited to the savings bank account of the employees concerned. These acknowledgements shall be taken as a rule on the office copy of the bill. When the head of the office concerned considers than an establishment is so large, or scattered that the payees acknowledgements cannot, without undue inconvenience, be obtained on the office copy of the bill, he shall maintain a separate aquittance roll in Form TR 95 and obtain the payees’ acknowledgements therein. In offices where the entitlements are disbursed through banks, acknowledgements shall be obtained on the office copy of the bill or on the aquittance roll in Form TR 95 after getting the credit details from the Bank”.

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KERALA TREASURY CODE

6. The orders issued in Government order 2nd & 3rd read above stand modified to the above extent. 7. Suitable amendments to the relevant rules in Kerala Treasury Code will be issued separately.

BY ORDER OF THE GOVERNOR, Dr. A. K. DUBEY, PRINCIPAL SECRETARY (FINANCE).

353

INDEX

INDEX (N.B.—This index deals only with the rules in the several chapters of this Volume and does not cover the appendices or the forms. It has been compiled solely for the purpose of assisting references and no expression used in it should be considered as in any way interpreting the rules.) Rules Absentee statementsConsolidated

..

173

No leave certificate to be furnished in lieu of -, if there are no absentees

..

173

Should accompany establishment pay bill

..

173

AccountSee “Government Account” AccountantSee “Head Accountant” Account’s Department

..

53

Definition of

..

2(a)

Audit objections of-should be promptly replied to

..

425

To furnish Treasury Officers with specimen signatures of audit officers authorizing payment

..

210(2)(b)

Accountant General-

Powers of - in respect of withdrawal

..

354

12

Accounts Destruction of - records

..

Part VIII Chapter V, Instrn.XV

Closing for the day

..

75

..

432(a)

Bills for

..

201

Survey

..

202

Ways and means

..

Part VIII Chapter V, Instrn.XI

..

393

..

381

For drawing pay, allowance and leave salaries

..

167

For drawing pensions

..

278

In bills and other vouchers

..

163(d) and 210(2)(c)

In cheques

..

241

..

165(d)

Acquittance rollAcquittance may be taken on bill itself, if convenient Advances-

Advice listsOf drafts Of Telegraphic transfer Agents-

Alterations-

In rates of pay, allowances, leave salary, etc. of Gazetted Officers

355

AnamathsAnamath receipts

..

114

Balance register

..

114,118 and 127

Money not included in the general treasury balance

..

114

Money sent by Government servants from a distance or by postal money order received in the treasury when it is not open for transactions

..

114(c) and 117

Money in cash chests, etc., deposited for safe custody in the treasury

..

114(d)

Undisbursed balances of pay, permanent advance, etc.

..

114(e) and 119

Unshroffed village remittances

..

114(a),115 and 128

..

210(2)(f)

..

163(j) and 211(a)

Arrear claimsProcedure for dealing-at the treasury AttachmentsRecoveries of-pay, etc., of Gazetted Officers made by the Accountant General Responsibility of treasury and drawing officers for recovery

..

163(j) and 211(a)

Audit objectionsOf Accountant General to be replied to punctually ..

426

Responsibility in clearing of

428

..

Of Treasury OfficerSee “Pre-audit at treasury”

356

B BanderolsReceipts, custody and issue of

..

155

Agreement between the - and the Government

..

3

List of offices of the Reserve Bank and Local Head Offices and branches of the State Bank of India

..

3

List of branches of-In the State of Kerala

..

3, Note

Payment of money by the -Payment of bills

..

230 and 231

Payment of interest on public debt

..

233

Payment of cheques drawn by the Forest and Public Works Departments

..

268 and 269

Repayment of deposits

..

237

Moneys received from government servants

..

126

Moneys received from private persons

..

124

The-, to be kept open for treasury business on gazetted holidays, if so required by the District Treasury Officer of the District

..

67

Village remittances

..

128

Advice of-drawn and encashed

..

393 and 402

Cancellation and refund of

..

413 to 415

Duplicates of

..

410-412

Bank Definition of

Receipt of money by the

Bank drafts

357

Encashment of

..

397-401

Exchange of

..

416 and 417

Form of

..

387-389

Issue of

..

390-392

Lapse of

..

419

Supply of forms of

..

420

Unpaid

..

41

Abstract-for contingencies

..

187(d)

Amount payable in cash and amount payable by transfer should be separately entered in payment order

..

221(d)

Arithmetical computation should be checked by the Treasury Officer

..

22 and 210(2)(d)

Arrear-Procedure for dealing with

..

210(2)(f)

Coloured-”not payable at the treasury” should be forwarded to departmental officers with certificates of payment

..

222

Copies of orders regarding promotions, etc. should not be attached to-sent to the

..

163(m)

Detailed-for contingencies

..

187(d)

Doubtful

..

16

Duplicates of

..

163(r)

Endorsement of

..

163(q) and 210(2)(g)

Form and preparation of-for-Advances for replacing missing boundary marks

..

203

Bills

Accountant General

358

Advance to cultivators

..

201

Claims of Government servants who may draw-

..

164-170

Contingencies countersigned before payment

..

187(c)

Contingencies countersigned after payment

..

187(d)

Miscellaneous expenditure

..

163(f)

Payments to contractors for demarcation and for other charges recoverable from ryots

..

202

Refunds of revenue

..

200

Repayment of deposits

..

204

Works assigned to Civil Departments

..

190

Of department to be included in the Treasury Bill Book

..

223,235

Payable at Sub Treasuries not to be paid at the District Treasury also

..

228

Payment of-at Sub Treasuries

..

227 and 228

Payment of-at Sub Treasury without pre-audit at the District Treasury not permissible

..

227

Payment of-partly at the District Treasury and partly at Sub Treasuries

..

221(e)

Payment of - Wholly or partly in drafts

..

232

Payment of-at the Bank, the Bank’s responsibility

..

231(c) and (d)

Payment of-passed, should be made the same day

..

210(1)

Procedure for Payment of-presented by persons not in Government service

..

214

Procedure for payment of-sent by post

..

163 (p) and 217

359

Procedure for payment of -in the Public Works Department

..

162 and 194

Procedure for payment of-of Survey Officers or other officers at a distance from the Treasury

..

224

Recoveries adjusted to be shown clearly at foot, quoting the number and date of objection statement, etc.,

..

425(d)

Register of-received for pre-audit

..

225

Rules regarding-completion of

..

210(2)(a)

Stamping of-”Paid” by Treasurer

..

210(1)

Treasury objection to be separately communicated and not written on

..

210(2)(e)

Allocation of charges in-relating to service in more than one post

..

183

..

167

Bond Agents who have executed indemnity-for drawing leave salary, etc. Security of treasury officials

..

80-81

C Cash (Departmental)Custody of

..

130

General

..

46,131

By Forest Officers

..

133

By Public Works Officers

..

134

Verification of-balance-

360

Cash (Treasury) Bag of coin or bundle of notes to contain slip

..

139(h)

Methods of storage of-in strong-room

..

138

Normal-balance

..

309

Verification of-balance by Collector or other Government servant-Procedure

..

144

Verification of -balance in the Sub TreasuryProcedure

..

144 and 148

Monthly-Form and preparation

..

311

To be submitted to the Accountant General on change of Treasury Officer

..

4(4) and 147

Daily-Form and preparation

..

310

Departmental

..

92

Treasurer’s

..

69,106 and 107

Custody and use of forms

..

213(a)(iii) and (iv)

Duplicates, issue of

..

213(a)(viii)

General procedure

..

213

Lapse of

..

213(a)(vii)

Not to be issued for remittance of moneys of private parties

..

213(a)(ii)

Not to be issued by Sub Treasuries

..

213(b)

Payment of lapsed-procedure

..

213(a)(vii)

..

103(2)

Cash Balance Report-

Cash Book-

Cash orders-

ChalansForest revenue remitted by Forest Officers into the treasury, signing of-by Head Clerk for Officers absent from head quarters Form and preparation of361

For payments made into the Treasury

…

102

By Government servants

..

126

By private persons

..

124

Not required for forest revenue remitted to the Treasury by money order

..

103(1)

Numbering of

..

112

Office copy to be initialled only

..

120(h) Note 1

Presentation in duplicate

..

102(e)

Presentation in triplicate

..

102(e) and (g)

Procedure for the checking of-in-District

..

106

Sub Treasuries

..

107

Public Works Deposits, particulars to be shown in

..

104

Register of-Issued to the Bank

..

124 para 3, Note 2

Repayment of loans and advances, particulars to be shown in

..

102(h), Note 3

Payments into the treasury

..

113 and 115

Payments into the Bank

..

128

..

93(d) Note

For payments made into the Bank-

Treasuries

Village Remittances-

Charitable EndowmentsInterest, etc.- Payment into and withdrawal from the Government Account ChequesAcceptance of-in payment of Government dues ..

95

Acceptance of on private banks, conditions for

..

89 and 99

Cancelled

..

251

Crossed

..

240 and 242

362

Drawal on Sub Treasuries

..

239

Lost

..

250

Minimum amount for which-may be issued

..

245

Payments to unknown persons, precautions to be taken Intimation by drawing officer of Cheque Book No. Procedure for payment ofForest Department Public Works Department

..

240

..

264

.. .. ..

Quarterly statement of -supplied Register of-received

.. ..

258,259,267 Note and 268 260-262,267 Note and 269 265 106(b) and 124

Supply of-to drawing officers

..

252

Time-expired

..

249

Chief Treasurer-Responsibilities of

..

51

Remittance of-in adjustment of departmental receipts appropriated for departmental payments

..

100

.. ..

2(d) 137(g)

..

42

.. ..

305(b) 305(a)

..

187(b)

CollectorDefinition of Examination of all locks and keys in the treasury and certifying in the register on taking charge Verification of monthly cash balance and signing of monthly accounts to be made by when at headquarters CommutationOf Revenue pensions Of Service pensions ContingenciesAbstract bills for363

Bills for-Instructions for the preparation of Bills for-paid by post, rules of procedure Cancellation of sub-vouchers for Certificates to be furnished in certain specific cases or classes of cases of Countersigned before and after payment Detailed bill for Non-countersigned-form of bills and record of expenditure Pay and allowances not to be drawn on contingent bill except in specified cases Permanent advance Petty bills for-not to be cashed by Treasury Officers except in certain cases Recovery of-overdrawn to be made from the next contingent bill Currency Chest(s) At branches of the State Bank of India At treasuries Custody of

.. .. .. .. .. .. ..

187-188 163(p) and 217 435 188(iv) and (x) and 191 187(c) and (d) 187(d) and (e) 187(d) and (e)

..

188(vi)

.. ..

188(vii) 210(2)(j)

..

425(a)

.. .. ..

.. ..

149 Note 1 150 135(b), Note 1, 141 and 150 313,314 and 318321 135(b), Note1 and 314 318-321 135(b),Notes 1 and 2 and 149Note 1 and 150 318-321 153

..

321

Exchange between treasury balance and

..

Notes held in-not in circulation

..

Report of-transactions of Safe custody of balances in

.. ..

Transfer of funds through Verification of-balance Currency chest balanceNature of 364

Currency remittancesNature of Proving of-Currency Chest Book CustodyOf currency chest balance-

.. 317 .. 152

Of cash chest, valuables, etc.

.. 135(b) Note1,149 Note 1 and 150 .. 157-160

Of duplicate keys of strong-room, chests, etc.

.. 137(f)

Of banderols at treasuries

.. 155

Of opium at District Treasury and Sub Treasury .. 156 Of stamps at District Treasury and Sub Treasury .. 154 Of treasure in District Treasury and Sub

..

130-149

Treasury D Death CertificateTo accompany claim for arrears due to deceased pensioners

..

300(b)

Permanent and temporary loans

..

Part VIII, Chapter IV B, Instructions V-VI

Floating-Treasury Bills and ways and means advances

..

Part VIII, Chapter IV B, Instructions VII-XI

Cheque

..

2(c)

Collector

..

2(d)

Government Account

..

2(g)

Debt

Definition(s)-

365

Government servant

..

2(i)

Indian Audit Department

..

2(j)

The Accountant General

..

2(a)

The Bank

..

2(b)

The Constitution

..

2(e)

The Government

..

2(h)

The Governor

..

2(h)

The State

..

2(h)

Treasury

..

2(k)

..

162,258-262, 268 and 269

Repayment of-At a non-Banking Treasury

..

206(a), 219

Repayment of-At a banking treasury

..

205(b) and 237

Repayment order to be presented at the treasury within three months of issue or before close of financial year

..

207

Withdrawal by administrators to be made only on cheques

..

208

Opening of-Account

..

93(b)

..

204

Departmental paymentsAt the Bank Deposits (Civil and Criminal)

Deposits (Personal)-

Deposits (Revenue)Form of voucher for repayment

366

Payment by transfer

..

205(c)

Refund of lapsed

..

204 and 210(2)(q)

Repayment at a treasury

..

204-205

Repayment at the Bank

..

237(3)

Repayment to be made only on the order of the authority who originally ordered the acceptance of the deposit

..

210(2)(p)

Responsibilities of

..

30,39(a)

Not relieved of because of inspection by Indian Audit Department

..

4(5)

..

424

..

162(d)

..

193

..

16 and 306(b)

Government servants who are

..

164 and 169

Instructions to -In using cheques

..

24,239-266

Specimen signatures of

..

25

Drafts

..

385-400

Director-

DisallowancesRecovery of DisbursersProcedure for obtaining funds required by Forest and Public Works DiscountOn stamps Disputable claimsNot to be honoured by Treasury Officer Drawing Officers-

367

DuplicatesOf Bank Drafts

..

410-412

Of cash orders

..

213(a)(viii)

Of receipts granted or bills and other

..

94,Note1 to

documents paid for, issue of-Prohibited

120(h), and 163(r)

E EndorsementPay order or other endorsement not to be made on coloured bill “Not payable at treasury”

..

222

..

72,163(d) and 210(2)(c)

ErasuresBills, documents, registers, etc.-prohibited EscortEscort accompanying remittances by railway ..

363-364

Escort officers accompanying remittancesDuties of

..

335-338

Absentee statement

..

173

Arrear bills of-Claims

..

176

Distribution of pay of

..

432

Pay bill for-Form and preparation of

..

169-177

Pay bill to be accompanied by increment certificate, if increment is drawn

..

175

Payment of pay and allowances to nonpensionable contingent employees

..

188 (vi)

Travelling allowance bills of

..

178

Travelling allowance bills of Public Works

..

180

Undisbursed pay, etc., of

..

432

Establishment-

368

Examination (Government)Fees for-Procedure for issue of receipts

..

120(d)

Fees for procedure for refund

..

200, Note 6

Payment of overtime

..

181

Refund of college examination, etc.

..

200, Note 6

Refund of poundage and process service

..

200, Note 3

Payment of compensation

..

199

Payment of grants in lieu of

..

196

By Forest Officer or a government servant .. of some other department acting as a Forest disburser

258

Procedure for obtaining funds for

..

162

At outlaying stations may be remitted to treasury by money order

..

103(1)

Chalans for-Remitted to treasury, signing by Head Clerks of Divisional Forest certain cases

..

103(2)

Consolidated receipts for-To be sent monthly by the treasury

..

122

Sums credited as revenue deposits to be assigned numbers in the consolidated receipts

..

122

F Fees

Fines

Forest payments

Forest receipts-

369

Fund deductionsResponsibility of Treasury Officer to check the correctness of

..

210(2)(d)

Alterations in pay of

..

165(d)

Pay of-Absent from India

..

168(b)

Claims of-To be paid only under the authority of the Accountant General as to the rate at which payment is to be made

..

18

Form of pay bill for

..

164(a)

Form of travelling allowance bill

..

164(c)

Pay of-To be disbursed on personal receipts ..

165(a)

Payment of leave salaries, etc. of-Through banks or other authorised agents

..

167

Place of payment of pay bill of

..

17 and 168

Definition of

..

2(g)

Inclusion in-Of quasi-public moneys handled by Government servants in official capacity

..

93

Location of moneys standing in

..

3

Payment of revenues of the State into the

..

8

Transfer of moneys in

..

26

Withdrawal of moneys from

..

14

G Gazetted Officers-

Government Account-

370

Grants-in-aidAdjustment of-Towards dues to Government by a local body

..

198

Educational-To private institutions, procedure for drawal

..

197(a)

To local bodies, private institutions, etc. .. to be disbursed on bills countersigned by Departmental Officers/copies of Government sanction

306(a)(2)

GratuitiesPayable only on order communicated by the Accountant General

..

303(a)

Payable only to gratuitant or other legal recipient

..

303(b)

Payment order to be returned to the Accountant General if undrawn for

..

303(c)

..

164(b) and 174

..

175

more than three months

H Health CertificatesTo be attached to first pay bills on permanent appointment or appointment on probation, etc.

I Increment CertificatesRules regarding submission with pay bills Indemnity bondSee “Bond” Inspections371

By the Inspection Wing of the Finance Department Of District TreasuriesBy the Director By an Officer of the Indian Audit Department

..

132

.. ..

39(a) 39(b)

Of Sub TreasuriesBy a Deputy Director once in 2 years .. By Treasury Officer once in a year .. By an Officer of the Indian Audit Department ..

63 64 65

InterestOn public debt, procedure for drawal of

..

223

Procedure of accounting-Under directions of Comproller and Auditor General

..

29(i)

Adjustment by the Accountant General

..

31

Receipts and disbursements on behalf of Union Government

..

30

Receipts and disbursements in the

..

33

Inter-Government Transactions-

United Kingdom

L LapseOf deposits, cash orders, cheques, drafts, etc.-See the relevant separate headings Last Pay CertificateForm and preparation of

..

372

19 and 182

To be presented with pay bill when pay is drawn for the first time, from a treasury

..

19

Letters of credit

..

210(2)(u), 257A, 267A

..

201

Life CertificateOf pensioner-See “Pensioner” Loans and advancesBills for- Should quote the sanction Advances, etc., requiring the sanction of the Government to be disbursed only after the bill is countersigned by the authority specified in the sanction and attaching a copy of sanction

..

210 (2)(m)

Repayment chalan to show particulars to enable identification

..

102, Note (3)

..

Part VIII, Chapter V, Instructions 1 and 2

Local FundsDefinition of

Adjustments in the banking accounts ofCommunication by the treasury to the bank ..

238

Investment of moneys

..

Part VIII, Chapter V, Instructions 3

Payment into the treasury of deposits of

..

102(h), Note (4)

Withdrawal on cheques

..

248, Notes 1-3

Monthly Accounts and Returns

..

78,79

Closing of

..

76,77

373

M MoneysAll-Received on Government Account to be paid in full without undue delay into a t reasury or the bank

..

6(1)

Custody of-In the treasury

..

9(1)

Custody of-In the bank

..

9(2)

Held in Anamath, rules of procedure

..

114 and 127

Investment of-Withdrawn from the Government Account

..

7

Location of-Standing in the Government Account

..

3

Procedure for payment of-Into the treasury

..

8

Procedure for payment of-Into the bank

..

8

Quasi-public-Inclusion in Government Account

..

93

Receipt of-Into and issue of-From double locks

..

139

Received after the treasury has closed for transactions, to be entered in the register of valuables

..

117

Responsibility for-Withdrawn from the Government Account

..

27-28

Special rules regarding receipt of-By officers of the Judicial and Public Works Departments

..

96-97

374

Transfer of-Standing in the Government Account

..

Tendered not to pass through the Departmental Officer not authorised to collect

..

26,308

88

N Normal balancesFixation of-At treasuries and sub treasuries ..

309

NotesAltered-Treatment of

..

Part VIII, Chapter III, Instruction 16

Denominations of

..

Part VIII, Chapter III, Instructions 1 3

Discount on, report regarding

..

,, Instruction 8

Exchange of, for coin and vice versa

..

,, Instructions 5-7

Precautions regarding

..

,, Instruction 14(b)

Received from bank

..

,, Instruction 14(c)

Treasury -Procedure on presentation of

..

,, Instruction 14(a)

Half-notes-Treatment of

..

,, Instruction 16

Issue of-From double locks

..

,, Instructions 12 and 139

Forged-

375

Lost or destroyed-Procedure for recovery of value of

..

,, Instruction 17

Mismatched-Treatment of

..

,, Instruction 16

Mutilated-Treatment of

..

,, Instruction 16

Receipt of-Into double locks

..

139

..

138

..

Part VIII, Chapter III, Instruction 20

To treasuries

..

,, Instruction 19

Withdrawal of soiled or worn

..

,, Instruction 10

..

50,58 and 120(g)

..

106 (a)

..

424-426

Remittance of-See “Remittance” Storage of-In strong-room Supply ofTo branches of the bank Conducting treasury business-

NoticesExhibition in Treasury of-Regarding hour of closing, officers competent to sign receipts, etc.

Number bookForm and use of

O ObjectionsOf the Accountant General-Duties of Treasury Officer with regard to

376

Of Treasury and Sub Treasury

..

210(2)(e)

..

426

..

424-426

..

156

Objection statementAccountant General’s-Copy to be kept in Treasury Procedure in Treasury on receipt of-From the Accountant General OpiumReceipt, custody and issue of, at Distrit Treasury and Sub Treasury

P Pass BookOf departmental officers to be written up by Treasury and returned the same day

..

255

Of Public Works Department Officers

..

286

Bill for-Of Gazetted Officers

..

164-167

Bill for-Of Non-Gazetted Officers

..

169-178

Bill for-Public Works establishments, special rules

..

180

Bill for-Over-time fees

..

181

Bill for - To be accompanied by increment certificates

..

175

Bill for-To be accompanied by absentee statement

..

173

Classes of Government servants whose

..

171

Pay, allowances, etc.-

names may be omitted from bill for 377

Deductions from bills on account of attachments by courts

..

163(j) and 211

Distribution of-Of establishments

..

432

Efficiency bar, declaration of crossing to be attached to bills for

..

175

Fund deductions from bills for

..

210(2)(d)

First payment of

..

19,164(b) and 174

Last payment of-To Government servants .. to be made after obtaining certificates f rom the Head of Department or satisfying

212 and 432(e)

that no amount is due to the Government Of deceased Government servants

..

212A

Not to be paid to an officer to whom last pay certificate has been granted

..

182

Of officers to be passed after reference to register of recoveries

..

427

Place of payment of bills for

..

17,18 and 168

Record and check of undisbursed

..

432(c)

Recoveries of overdrawn

..

425

To officers out of India

..

168(b)

Undisbursed of establishments

..

432(c)

Arithmetical errors, etc., in bills for

..

22

At Treasury, not to be made except under orders of Treasury Officer

..

210

At Sub Treasury without pre-audit at District Treasury

..

227

Payments-

378

At the Bank

..

230-234

Authority of Treasury Officer to make

..

13 and 15

By transfer bill to be stamped “paid by transfer” by the Accountant

..

221(a)

By transfer-Form of pay order

..

221(b) and (d)

By postal money order

..

216(b), 217

Certificate of-Of original bill to be given on duplicate coloured bill “Not payable at Treasury”

..

222

Doubtful claims for

..

306(b)

Emergency

..

23

Final-To officers quitting service

..

212 and 432(e)

First-Of Pay, allowances, etc., to Government servants

..

19

For works

..

190

General procedure at Treasuries

..

210-214

General procedure at Sub Treasuries

..

227 and 228

Nature of-To be recorded formally in every voucher

..

163(a) 1 and 210(2)(a)

Of arrear claims

..

210(2)(f)

Of cheques

..

239-251,258262,267 and 269(a)

Of grants-in-aid, contributions, etc., to be made on bills countersigned by the departmental officer with copies of sanction of Government

..

306(a)(2)

Deposit repayments-See “Deposits”

Of pensions-See ‘Pension Payment’ 379

Of pay and allowances to nonpensionable contingent employees

..

188 (vi)

On account of the Forest Department

..

258-259

On account of Local Funds

..

248

On account of Public Works Department

..

260-266

To non-officials-Intimation to income tax authorities

..

226

Preparation and presentation of claims for

..

163-209

Rules for-At the Bank

..

230-231

Rules for-To persons not in Government service

..

214

Form of-On bill payable partly at District Treasury an partly at Sub Treasury

..

221(e)

For interest on public debt

..

233

On bills, to be given by Treasury Officer

..

210(1)

On bills, not to be endorsed on duplicate coloured bills “Not payable at the Treasury”

..

222

On cheques and bills, to be paid by transfer ..

221

Period of currency-For payment at the Bank ..

231(d)

Register of-On the Bank

231(a)

Place of-Of Government servant’s claims-

Pay office-See Treasury Pay Office Pay order-

..

380

To show amount payable in cash and amount payable by transfer separately

..

221(d)

Can be drawn for day of death Commutation, both halves of Pension Payment Order should be returned to

..

215,270,298

Audit Office after payment

..

272(d)

Some special rules

..

305(b) and (c)

Lapse of

..

294-297

Payable by money order-Procedure

..

286,286A

Payable in India may be paid in any

..

289

Payment of arrears of - Due to deceased pensioner

..

299-300

Transfers in India

..

290

Undrawn for more than one year ceases to be payable

..

294

Death of-To be promptly reported to the Accountant General

..

301

Deceased-Procedure for drawal of arrears

..

298-300

Pension-

Commutation of Revenue or Political-

Treasury in India

Pensioners-

Drawing first pension, to produce copy of .. order sanctioning pension

274(a)

Exempted from personal appearance to give .. proof to Treasury Officer annually of their continued existence

280(a)

381

Exemption from personal appearance to be .. noted on the Pension Payment Order

280(c)

IdentificationGeneral Rules

..

274 and 287

European ladies

..

287(a)

Ex-Gazetted Officer

..

287(a)

Illiterate persons

..

297(b)

Indian Princes

..

287(a)

Title-holders

..

287(a)

Special Rules

Women not accustomed to appear in public ..

275,287(b)

Life certificate of-Exempted from personal appearance

276

..

Political-Transfer of place of payment may .. be arranged for by Collectors

290(b)

Pension PaymentAt Sub Treasuries, both halves to be sent to Sub Treasury Officer

..

273(c)

Bills and receipts, procedure rules

..

281 and 282

By postal money order

..

286, 286A

Certificates and declaration of pensioner

..

283 and 284

Lapsed orders

..

294-297

Made only on Pension Payment Orders issued by the Accountant General

..

272(a) and (c)

..

277 and 280

Manner ofOn life certificate, precautions 382

On life certificate, to be made for months completed on or before date of certificate

..

274

On non-employment certificate

..

283

On certificate of events not taken place

..

284

Place of-In India and transfer

..

289-292

To agents, procedure

..

278 and 288(b)

To an insane person

..

186A, 285

To leper pensioners

..

279

To women who do not appear in public precautions to obviate risk of fraud

..

280(d)

Transfers within district may be arranged by Treasury Officer

..

292

Both halves should be returned to Audit Office on payment of commutation

..

272(d)

Entry of payments in

..

281(b)

Must be produced for every payment of pension

..

272(c)

Pensions paid only on-Issued by

..

272

Registers of

..

272

Renewal of

..

293

For first time on production of Last Pay Certificate

..

186

Treasury Officer’s halves should be pasted in files in his personal custody

..

272(f)

Pension Payment Orders-

Accountant General

383

Pensioners halves to be surrendered to the Treasury Officer in cases of payments by postal money order

..

286A

Change of place of payment of

..

290(b)

Commutation of, some special rules

..

305(c)

..

192 and 221

Amount disallowed to be intimated to drawing officer

..

210(2)(d)

Arithmetical computations in bills to be checked

..

22 and 210(2)(d)

Personal deposits-See “Deposits” Political pensions-

Postage stampsProcedure for obtaining service Pre-audit at Treasury-

Objections to be recorded in the .. prescribed book and then communicated to drawing officer

210(2)(e)

Objections not to be written on bills

..

210(2)(e)

Of Gazetted Officer’s claim

..

210(2)(d)

..

233

Bills for pay and allowances, encashment of ..

258

Bills for contingencies, encashment of

..

258

Drawn on Treasuries specified by the Accountant General

..

260

Letters of credit not necessary

..

265

Public DebtInterest on-Payment order Public Works Department-

Cheques-

384

Cheque Books Returns of books supplied

..

260

Pass Books-Form and upkeep

..

255 and 266

At Sub Treasuries

..

260(b)

By cheques

..

260

Methods of drawing money from treasury

..

162

On bills

..

162

General procedure

..

97,104 and 105

Monthly verification

..

123

Funds not to be supplied by Drafts

..

261(d)

Limitation on the drawing of

..

261(b) and (c)

May be empowered to draw against

..

261

Transactions with the Bank

..

269

Anamath

..

114

Payments-

Receipts

Subordinate Officers-

Divisional Officer’s Account

R Receipt(s) To be given Departmental-Not to be appropriated for departmental expenditure Departmental-Authorised for departmental expenditure Deposit-See “Deposits” Receipt(s)-(concld.) Duplicate-Issue of

385

.. ..

90(a) 6(2)

..

6(3)

..

94 and 120(h) Note 1

For moneys by Civil Courts For moneys by Criminal Courts For moneys paid into the Treasury For payments for service postage stamps For sums paid by transfer Grant of temporary and final Of cash chests and valuables in the Treasury Special procedure forOf the Forest Department Local Funds Public Works and Commercial Services

.. .. .. .. .. .. ..

96(a) 96(b) 120 120(h) Note (3) do. Note (2) 92(b) and 97 157-160

.. .. ..

103 and 122 102(h) Note (4) 97,104-105 and 123

Stamping of-For sums exceeding `20 RecordsDestruction of accounts

163(s) ..

Part VIII, Chapter V, Instruction 15

..

425(a)

Of amounts attached by Courts Of pay and travelling allowance, procedure to obviate delays

.. ..

195 424 and 425(b) and (c)

Ordered by the Accountant General, Treasury Officer’s duty

..

424-426

Procedure for-Of overdrawals or other sums under objection

..

do.

RecoveriesOf contingent charges overdrawn to be made from next contingent bill

Rate of-From Government servants Register of RefundsBills for

386

.. ..

424 Note 427

..

200

By money order Refunds-(concld.) Of college fees Of deposit-See “Deposit” Of examination fees Of excess receipts on account of advertisement in the Gazette and other official publication Of fines Of land revenue Of poundage and process-service fees Of registration fee On account of stamps Preparation of bills for-of revenue RegisterOf anamath balances Of bills received for pre-audit Of chalans issued for payment of money into the Bank Of cheques presented at Treasuries Of late Treasury or currency remittances Of locks and duplicate keys of Treasury strong room, chests, etc.

..

218

..

200 Note (6)

.. ..

200 Note (6) 200 Note (5)

.. .. .. .. .. ..

200 Note (7) 200 Note (1) 200 Note (3) 200 Note (4) 200 Note (2) 200

.. .. ..

114 225 124 para 3, Note (2)

.. .. ..

106(b) and 124 114(b) and 116 137

Of objections on bills presented at treasury .. Of orders for payment issued on the Bank .. Of pensions payable by money order .. Of powers of attorney .. Of recoveries ordered by Accountant .. General Of undisbursed pay, etc. .. Of unshroffed remittances .. Of Reserve Bank of India drafts encashed .. 387

210(2)(e) 231(a) 286,286A 167(a) 427 119 116 406

Of village remittance See also “Deposits, Pensions, etc.” Remittance (s) CashGeneral Coin - packing of withdrawn from circulation Currency Escort officer accompanying-duties of Invoices of-of coin Invoices of- of notes NotesNew and fit for issue Packing of Unfit for issue Police escort Receipt ofProcedure at a Treasury Procedure at a branch of the State Bank of India Rules forBy RailwayEscort Loading Payment of freight charges Previous notice to Railway authorities Special rules By steamer Treasury Officer’s powers regarding Remittance(s)-Reserve Bank of IndiaDraftsGeneral

388

..

115 and 128

.. .. .. .. .. .. ..

323 327-331 331 317 335-338 329 334

.. .. .. ..

333 334 332 335

.. ..

339-352 374

.. .. .. .. .. .. ..

363-364 360-361 366 359 359-367 368 324(b)

..

376-426

Advice of-drawn Cancellation and refund of Drawings and encashments Doubtful drawings Duplicates of Encashment of Exchange of Form of Form of receipt for payment of Issue of Lapse of Of policemen-Rules of procedure Record of drawings and encashments of Regularity of signature of drawer of Schedule of drawings and encashments Supply of forms of telegraphic transfers, drafts, etc.

.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..

393-394 413-415 385-388 403 410-412 397-402 416-471 387-389 404 390-392 419 421-423 405-409 395-396 407-409 420

Telegraphic transfers-Issues and encashments

..

380-384

.. ..

418 Part, VIII.F.XVII(1)

..

98 and 105

..

309

.. .. .. ..

316 315 314-315 and 318-322 318,319,320-391

..

316

Unpaid Remittances by postage stampsRemittance bookUse of-In the Public Works Department ResourceNormal balance Provision of funds atBranches of the Bank Treasuries and Sub Treasuries Surplus-Transfer of Transfer of funds through currency chest Treasury Officer’s general responsibility forAt banking treasuries 389

At non-banking treasuries RetrenchmentsRepresentations and protests againstOrdered by the Accountant General, procedure To be made without reference to the officer concerned See also “Recoveries” ReportHalf-yearly-Of non-drawal of pensions RevenueDeposit-See “Deposits” Refunds of-See “Refunds of Revenue” Revenue depositsPayment by transfer Revenue pensionsCommutation of, some special rules

..

315

..

424

..

424

..

295(c) and 297

..

205(c)

..

305

S Scholarships, stipends, etc.Bills for-, to be accompanied by duplicate .. coloured “Not payable” bills for transmission to departmental controlling office through the treasury

197

SecuritiesInterest on Government-See “Public debt” To be furnished by treasury officials, rules relating to

390

..

80

Section HeadsResponsibilities of-In the Accounts Department

..

53-55

..

81-82

Cash not to be received from Government servants for supply of

..

109

Cheques paid in for value of -to be entered in Treasurer’s Cash Book on both sides

..

221(a)

Drawal on contingent bill

..

192

Payments for

..

109 and 124 para 3, Note (3)

officials for obtaining

..

192

Will be issued direct from Sub Treasuries

..

228(c) Note

Cheques for service, should be entered on both sides of Treasurer’s Cash Book

..

221(a)

Custody, supply and issue

..

154

Discount on sale of-procedure for payment

..

193

On bill, to be punched by Treasurer

..

210(1), 220

Should not be unnecessarily stocked in Treasuries

..

43(b) Note and 65

Security bondsOf treasury official Service postage stamps-

Procedure to be adopted by Government

Stamps

391

Strong roomsDouble locks and double keys

..

135

Duplicate keys of-at treasuries, rules regarding

..

137

Iron safes in-how to be kept

..

136(b)

Security of-rules regarding

..

136

Storage of coin in

..

138(a)

Storage of notes in

..

138(b)

Storage of treasure in-of Sub Treasuries

..

138 and 140

Custody of money at-procedure

..

140

Inspection of-by Deputy Director of Treasuries, Treasury Officer and by officers of the Indian Audit Department

..

63,64 and 65

List of treasuries

..

66 Note

Note to issue cash orders

..

213(b)

Payment of moneys at-procedure

..

227 and 228

Receipt of moneys at-procedure

..

107

Rules relating to receipt, custody and issue of opium and gunja

..

156

Rules relating to receipt, custody and issue of stamps

..

154

Strong room and storage of treasury

..

138

Technical examination of-By Treasury Officers 392

..

64

Sub Treasuries-

Verification of cash balance and submission .. of monthly account

60,61 and 62

Sub Treasury OfficerDefinition of

..

57

Division of duties between-And his Head Accountant

..

58 and 59

Sub VouchersCertificates of cancellation and defacementof ..

435

Defacement of

435

..

See also “Vouchers” Survey OfficersAt a distance from the Treasury-Bills

..

224

of special instructions

T TelegramTelegraphic transfer

..

380-384

Government moneys

..

308

Of funds between Treasury Balance and Currency Chest

..

319,320

..

180

Transfer of-

Travelling allowanceBills for certain Public Works Establishments

393

Bill for establishments

..

178

Bill for Gazetted Officers

..

164(c)

Payment of bus fares to Police Constables

..

179

Amount held in sole custody of

..

135(b)

Cash book of-Cheques in payment of service stamps should be entered on both sides

..

221(a)

Cash book of-Note to contain any entry of bills paid by transfer

..

221(a)

Duties with regard to receipt with and payments

..

106 and 210

Handling over his keys to Treasurer or Accountant during casual leave

..

138(b) Note

Responsibility of -And his security

..

51,80,81 and 85

Security bond of - Form, preparation and other rules

..

81-82

Definition of

..

2(k)

General system of control over

..

4

Inspection of-By the Director

..

43(a)

By an officer of the Indian Audit Department ..

43(b)

Irregularity reported by Accountant General .. to be investigated by the Director personally

44,48

List of Treasuries and Sub Treasuries

66 Note

Treasurer-

See also ‘Cash Book’

Treasury-

394

..

Notice regarding hours of work in the, etc

..

50

Amount held in Treasurer’s sole custody

..

135(b)

Verification of

..

47-52

Monthly

..

311

Weekly

..

310

Pre audit at - See ‘Pre audit at Treasury’ Treasury balance-

Cash balance report-

Distinguished from currency chest balance ..

135(b) Note

Double lock balanceIssue of coin from

..

139(d)

Issue of notes from

..

139(c)

Receipt of coin into

..

139(a)

Receipt of notes into

..

139(b)

Register of double lock transactions

..

139(g) and 140

To be telegraphed to the Currency Officer on the first of each month

..

312

Nature of

..

135(b) Note

Verification of-Rules regarding

..

144

Daily report on amount of

..

310

..

424,425

See also “cash”, “cash balance” Treasury Officer Duties in regard to recoveries ordered by the Accountant General

395

Duties of - With regard to objections and recoveries

..

Memorandum to be furnished when cashing bills of Survey Officers and others at a distance from the Treasury ..

424,426

224

Precaution to be observed in payment of cheques when payee is unknown

..

240

Responsibilities and duties of-In paying claims

..

16,21

Responsibility of-Regarding fund deductions

..

210(2)(d)

Responsibility of-To get sufficient information regarding nature of every payment he makes and to record it on the voucher

..

To affix his private seal to both locks of strong room in addition to official seal

..

135(a)

To verify the signature of authorising Audit Officer, if any, before passing

..

210(2)(b)

To check arithmetical computations in bills

..

22 and 210(2)(d)

To check gazetted officer’s claims with reference to latest orders

..

210(2)(d)

To check the receipt, issue and balance of cheque forms and see that issues to officers are promptly acknowledged

..

252

To intimate to drawing officers amounts disallowed

..

210

To keep disburser’s halves of pension payment orders in personal custody

..

272(f)

21 and 210(2)(a)

bill for payment

396

To make recoveries ordered by the .. Accountant General without entering into correspondence with the officers concerned

27

To observe the rules regarding completion of vouchers

..

210(2)(a)

To obtain orders of Accountant General, if

..

425(c)

To obtain annually the Public Works .. Officer’s Certificate of safety of strong room

136(c)

To examine all locks and keys of treasury and certify in the register on taking charge

..

137(g)

To see personally that notices regarding currency conveniences to the public are hung up conspicuously

..

50

recoveries are delayed or appear likely to be delayed

To record on Pension Payment Orderof pensioner’s continued existence, in the case of pensioners exempted from personal apperance

..

280(e)

To report defalcation or loss of money, stamps, etc., to the Accountant General and the Director of Treasuries

..

45

To see that moneys (including stamps, opium and gunja) in sole charge of Treasurer at any time does not exceed his security

..

135(b)

397

Transfer ofRelieving Officer’s specimen signature to be sent to other treasuries by outgoing officer for the purpose of Reserve Bank Drafts

..

396

In the absence of the agent

..

68

Advices and certificates to departmental officers

..

234

Register of chalans issued

..

124 para 3 Note (2)

Register of orders for payment

..

231(a)

See also “custody, payment, receipts, treasury procedure, etc.” Treasury procedureAt places where treasury business is conducted by the Bank-

U Uncurrent coinWithdrawal from circulation-See “coin” Undisbursed pay, etc.Of establishments. How treated and accounted for

..

432

V Village remittancesAccounts procedure at sub treasury and at .. the Bank Advices by the Bank and sub treasury to the Currency Officer

398

..

128 128

Entries in Treasurer’s cash book and examination by Sub Treasury Officer

..

128

Procedure for receipt of-in non banking sub treasuries

..

113 and 115

Unshroffed

..

115

Cancelling of

..

435

Cancellation of sub-relating to contingencies

..

435

Certificate of cancellation and defacement of

..

435

Completion of

..

163 and 210(2)(a)

Delegation by head of office to sign

..

163(g)

Filing of-Not submitted to audit

..

434

For repayment of deposits

..

204

Payment certificate to be recorded in absence of

..

430(b)

Punching the stamp and stamping ‘Pad’

..

210-220

Rules for the preparation of

..

163,210 and 430

To be in prescribed forms

..

429,430,431

Special rules for drawing officers of Forest,P.W.D. etc.

..

436-440

Vouchers-

See also “Bills”

W Wages To staff borne on contingency establishments Drawal of

.. 399

188(vi)

Withdrawal of moneys From Government Account-See “Moneys” Works Preparation and payment of bill for

400

..

190

Notes

401

Notes

402

Notes

403

Notes

404