Central Government Account (Receipts and Payments) Rules 1983

1 These Rules came into On 01.06.1983

force
2 These Rules are not
applicable
3 Accredited bank means
4 Reserve Bank of India
Act, 1934
5 Central Treasury includes
6 Treasuries in UTs are
7 Cheque drawing DDO
means
8 CAG appointed under Art.
8a What is Govt. A/c
9 Consolidated Fund
10 Public A/c
11 Contingency Fund
12 Controller General of A/cs
means
13 Moneys credited to Govt.
A/c shall be held either
14 Deposited money In the
RBI is governed by
In case of payment of pensionary benefits. (These contain the rules regulating the custody of
Consolidated Fund of India, the Contingency Fund of India and the Public Account of India)
RBI or any bank which is appointed to transact business of the Govt.
the Central Govt. has entered into an agreement with the RBI, by virtue of which the general
banking business of the Govt. is carried on and transacted by the RBI in accordance with and
subject to the provisions of the agreement and of the RBI Act, 1934 and also in accordance with
and subject to such orders as may, from time to time be given to the RBI by the Central Govt..
Any treasury or sub-treasury not being a treasury or sub-treasury under control of a State Govt.
Central Treasuries
A DDO who is authorized to withdraw money for specified types of payments against an
assignment a/c opened in his favour in a specified branch of an accredited bank
148 of the Constitution
Govt. A/c means the a/c relating to the Consolidated Fund, the Contingency Fund and Public A/c
In Clause(1) of Art. 266 pf the Constitution
In Clause (2) of Art. 266
Established under the Contingency Fund of India Act, 1950 in pursuance of clause (1) of Art. 267
In the Ministry of Finance (Dept. of Exp.) who is responsible for establishing and maintaining a
technically sound payment-cum-accounting system in the departmentalized a/cs offices and for
prescribing the rules for regulating the custody, payment into and withdrawal of money from
the Govt. A/c.
i) In the RBI; ii) In a Central Treasury
The terms of the agreement specified in Appendix I to these Rules made with Banks under
section 21 the RBI Act 1934

15 Central Cash Balance of The balances in small coin depots, rupee coins, balance in mint and cash balances held in Post
the Govt. does not Offices or other departmental offices
include
16 What is responsible for Bank (that means any branch of the SBI acting as the agent of the RBI in accordance with the
the safe custody of Govt. provisions of the RBI Act, 1934).
moneys deposited in the
bank
17 The procedure for the By the provisions contained in Part IV (Rules 109 to 112 in particular) of the Treasury Rules of
safe custody of moneys in the Central Govt.
the hands of Govt.
officers is regulated
18 Govt. receipts/dues etc. Into the accredited bank, Pay-in-slip in Form GAR I
should be paid
19 Direct utilization of See under Rule 6(2)from (a) to (q) [e.g. cash receipts utilized by Post-masters and the other
departmental receipts for heads of offices of Post and Telegraphs Dept.; Moneys received on a/c of the service of
departmental exp. is summons, diet-money of witnesses, in civil, revenue and criminal cases and in case of diet-
authorized in the cases: money of witnesses deposited by the assesses with ITOs; Deposits received at a Civil Court and
utilized by the Court to meet claims for the refund of such deposits; In PWD, for temporary
utilization of cash receipts for current works exps.; In Forest Department-for meeting immediate
local exps.; In case of the National Library, Calcutta, or any other Govt. Library, to permit refund
of Security Deposits of members of Library and the replacement of books belonging to the
library which are not returned by borrowers out of their deposit money; ]
20 Govt. money may be In this case, conditions under which such deposits may be made and the manner in which the

Notes prepared by Probir Bhowmick, AAO

 deposited with a bank balances of such deposits shall be included in the Govt. A/c shall be decided by the Govt. after
other than the RBI or its consultation with the CAG.
agent
21 Withdrawal of money Moneys may not be withdrawn from the Govt. A/c other than against cheques issued by an
from Govt. A/cs Accounts Officer on an a/c opened in his favour, or by a cheque drawing DDO on an assignment
A/c opened in his favour, at a specified branch of the accredited bank.
22 Special permission of the Under the provision of Rule 11. In a bank account other than that with the accredited bank
Govt. is required for
withdrawing money from
the Govt. A/c
23 Controller General of A/cs The purposes of withdrawing money by a cheque drawing DDO
prescribes by general
order
24 The Govt. Officers who Should maintain a Cash Book in Form GAR 3;
receive Govt. dues and All monetary transactions should be entered in the cash book as soon as they occur and
handle cash or perform attested by the Head of the Office in token of checks.
the function of DDO
25 An A/c Payee Crossed Need not be entered in the cash book; ( Only those cheques drawn by him which are
Cheque or bank draft encashable in his capacity as Disbursing Officer for arranging payments in cash, need be entered
drawn in the personal in the cash book)
name of a recipient (Govt.
servant or third party by a
Pay and A/cs officer or a
by a Cheque drawing
DDO)
26 Cheques issued by To be entered in a ‘Register of Cheques Issued’ in Form GAR-4
cheque drawing DDO
26a Some important Forms GAR 5: Register of Valuables; GAR 9: Bill Register; GAR 10: Bill Transit Register; GAR 13: Pay Bill;
and their uses: GAR 17: Pay Bill Register; GAR 27: Register of Contingent Charges; GAR 30: Abstract Contingent
Bill; GAR 31: Detailed Counter-signed Contingency Bill; GAR 34: Grant-in-air Bill;
27 Receipts in the form of Need not be entered in the cash book; but should be entered in the register of Valuables (form
local cheques, or drafts in GAR-5)
favour of Pay and A/cs
Officer
28 In regard to any The instructions contained in Section V of Chapter 2 of the GAR,1963 should be followed.
discrepancy noticed in
cash book,
29 In case, the verification It may be done on the first working day of the next month before making any transaction on
of cash balance is not that day.
possible on the last
working day of a month
30 Adjustment of As per directions given by the CGA on the advice of CAG
transactions of the Govt.
with a State Govt.
31 The term ‘local branch’ A branch of a bank located at the station in which a) a departmental officer with cheque
means drawing powers or b) a Pay and A/cs Officer accredited to a departmental officer without a
cheque drawing powers, or c) the specified branch of the bank is situated.
32 ‘working day’ shall be A day on which the departmental office and the bank are both open for transacting their
deemed to be respective ordinary business.
33 Date of receipt of Govt. a) Where a cheque or draft is tendered to the bank, on the date on which it was cleared
revenues, dues etc. and entered in the receipt scroll; b) where a cheque or draft is tendered to a
departmental officer, on the third working day after its presentation; c) if it is sent by

Notes prepared by Probir Bhowmick, AAO


34 Forms and custody of
receipt books
35 Permanent Advances
(Rule 31)
36 Arrear Claims
37 Cheque books on the
accredited bank are
supplied by
38 Who is specially
authorized by the Govt.
to write cheques
39 Each cheque book must
be kept under lock and
key in the personal
custody
40 The lowest sum for which
a cheque may be issued
in the Postal Section of
the P &T departments
41 Period of validity of a
cheque
42 The provisions regarding
the period of validity of a
cheque is not applicable
43 Revalidation of a time-
barred cheque
44 Absentee Statement
45 Increment Certificate
46 Deduction from Pay bills
on account of Income Tax
is made in accordance
with the
47 Deduction as per
Attachment of debt (Rule
74) is kept
48 LPC in Form
49 Contingent charges or
contingencies mean (Rule
96)
50 5 Types of contingent
charges: (Rule 98)
51 Contract contingencies:
52 Scale-regulated:
post to make payment by post, on the date on which the cover containing it is put into
the post.
Receipt Books in form GAR 6 may be obtained from the Central Form Store, Calcutta
Govt. Officers hold such advances and make payments therefrom under orders of competent
authority issued in terms of rule 90 of the GFR, 1963 subject to recoupment on presentation of
bills
Claims against the Govt. which are not preferred within one year of their becoming due
(Provisions of rules 82 to 88 of General Financial Rules, 1963)
Accounts Officer to the Cheque drawing DDO concerned. ( Drawing Officers of the Defence,
Railways and P & T Departments shall obtain their supplies of cheque books under
departmental arrangements.)
Accounts Officer
Of the A/cs Officer
Rs. 100, (however, there is no bar on cheques being drawn for less than Rs. 10 in other cases)
From 01.04.2012, as per RBI instruction, the validity of a cheque is 3 months from the date of
issue of the instrument.
In case of a cheque drawn on local banks by the Indian Missions and Posts abroad. In this case,
the same is determined according to local regulations of the country concerned.
a) If it is not older than one year from its original date, may be revalidated under the
signature of the drawer by changing the date, otherwise a new cheque may be issued;
b) in the event of the non-return of the time barred cheque to the drawer, the drawer
should request the payee either to return the cheque or explain the causes for its non-
return and take further action.
In Form GAR 20
In Form GAR 21
Relevant provisions of the Income Tax Act 1964
In Form GAR 22 (Register of Court Attachment of Pay, etc.)
GAR 2
All incidental and other expenses (including on stores) which are incurred for the management
of an office as an office or for the working of technical establishment such as laboratory,
workshop, industrial installation, store, depot and the like but other than exp. which has been
specifically classified as falling under some other head of exp., e.g., ‘works’, ‘tools and plant’
1) Contract contingencies; 2) Scale-regulated; 3) Special; 4) Countersigned; 5) Fully
vouched
Those for which a lump sum is placed annually at the disposal of a disbursing officer for exp.
without further sanction of any kind.
The contingent charges which may be regulated by scales laid down by competent authority,
Notes prepared by Probir Bhowmick, AAO
 such as rewards for destruction of wild animals.
53 Special: Charges-Recurring or non-recurring, as cannot be incurred without the previous sanction of
superior authority
54 Countersigned: Charges as may require approval of some controlling authority before they can be admitted as legitimate
exp. against the Govt., such approval usually taking the form of counter-signature after payment on a
detailed bill submitted to the Pay and A/cs Officer
55 Fully Vouched Charges which require neither special sanction nor countersignature, but may be incurred by the Head of
Office on his own authority subject to the necessity of accounting for them. These may be passed on fully
vouched bills without counter signature.
56 Withdrawal of money Presentation of bill
requires
57 A bill is a statement of claims against the govt. containing a) specification of the nature of claim; b)
amount of claim; (Ref. to Rule 28)
58 A bill includes such a A simple receipt
statement presented in
the form of
59 A bill becomes a voucher It is receipted and stamped ‘PAID’.
when
60 Office copies of bills are Each Drawing Officer
retained by
61 Claims by a person (not in the Head of the Department or otherwise govt. officer under whose immediate order , the
govt. employment) service was done
submits claims through
62 The officer to whom such Shall be responsible for completing the formalities and for making the payment
a claim is submitted,
63 Payment to Pensioners The Treasury Rules of the Central Govt.
are governed by
64 Permanent Advances: Govt. Officers may make such payments as are authorized to be paid out of permanent
advances or imprests which they are permitted to hold under orders of competent authority
issued in terms of rule 90 of the General Financial Rules, 1963 subject to recoupment on
presentation of bills.
65 Arrear claims: claims Within one year of their becoming due would attract provisions of rules of GFR, 1963
against the Govt. which
are not preferred
66 Preparation of bills (p/11) Printed as prescribed; Regional language along with English language stating amount, the name
of payee and the nature of payment; filled & signed in ink, entries and signature with ball point
pens; bill amt. in whole rupee and in words & figures; corrections & alterations in the total of a
bill should be attested by the full signature with date; the full a/cs classification recorded, date
of payment be noted by the payee+ (Ref. to Rule 33)
67 The classification in the As a guide
budget is taken
68 The classification shows Nature of expenditure-voted or charged; the allocation of expenditure between departments or
bet. Central govt. and State govt.
68a Letter of Credit against The Accounts Officer concerned shall communicate to the relevant branch of the accredited
assignment a/cs etc. bank, the amount of quarterly assignment authorized in favour of cheque drawing DDOs
( Rule 50) rendering account to him. The Pay and Accounts Officers, while communicating the assignment
for the second and subsequent quarters should indicate not only the amount assigned for that
quarter, but also the progressive total of assignment up to the end of the quarter so that the
bank is able to ensure that the total cumulative drawals from the beginning of the year do not
exceed the total pregressive assignments. However, the assignment remaining unspent as at
the end of a financial year is not to be carried forward to the first quarter of the next financial
year.

Notes prepared by Probir Bhowmick, AAO

 The paying branch is responsible to ensure that at no time the amount assigned in the LOC is
exceeded by the payment of any cheque. The cheques actually issued during the last quarter
but presented for payment during the next quarter (within the period of validity) will be taken
by the bank against the assignment of the year in which they were drwn and not against the
assignment of the year in which they are paid.
69 Bill Register in Form GAR All Heads of Offices who are authorized to draw money on bills signed by them; should be
9 is maintained by reviewed monthly by Gazetted Officer
70 BTR in Form GAR 10 is All Heads of Offices who are authorized to draw money from the Accounts Officer/Cheque
maintained by Drawing DDO; reviewed bi-weekly by a Gazetted Officer.
71 Sources of cheque books Accounts Officer to Cheque drawing DDO
supplied by
72 AOs authorized by govt. Deputy Controller of Stamps, Central Stamp Stores, Nasik Road
to write cheques by
means of cheque-
perforating machines may
obtain their supply of
cheque forms by
requisition from the
73 A distinct format of These special cheque forms do not require to be crossed
cheques bearing the
superscription “Govt.
A/c” has been approved
by the Controller General
of A/cs; Cheques-not
negotiable and not
payable in cash but
creditable to govt. a/c
only
74 In case of salary cheques Cheques should be crossed (A/c payee only) whenever the amount exceeds Rs. 1000,
75 In case of non-salary The amount exceeds Rs. 250. However, if desired by the payee, such non-salary cheques not
cheques exceeding Rs. 1000 may be issued as open cheque, but only as order cheque.
76 What instruments constitute i) Market loans; ii) Treasury bills; iii) NSCs; iv) Post office Savings bank Deposits, Cumulative
public debt of the Time Deposits, Recurring Deposits and Time Deposits
government?
77 Making payment in respect By the provisions contained in the Govt. Securities Manual and Supplementary Instructions,
of principal of market loans if any, issued by the Govt. in this behalf.
and interest thereon when
they fall due shall be
governed
78 Payment of Cheques Negotiable Instruments Act 1881
including Public Debt Office
Warrants which are
goverened by
79 Treasury Bills can only be Maturity at the office of the bank from which they were issued
paid on
80 Sale and discharge of By the instructions issued by the Govt.
treasury bills are goverened
81 a) In respect of custody, may be laid down by the P&T departmental regulations
issue and discharge of NSCs,
b) In respect of Post office
Savings bank Deposits and
other deposits- procedure
to be followed by Post
Offices

Notes prepared by Probir Bhowmick, AAO

82 Deposits in the govt. a/c
are to be classified under
two broad categories:
83 Personal Deposit account:
84 A PDA may be authorized to
be opened only
85 Cases in which PDA are
authorized to be opened:
86 Balances of PDA opened for
what purposes do not lapse
to Govt.
87 Not lapse to Govt.
88 Not lapse to Govt. until the
provisions of the relevant
Act are in force
89 In case of item no. (d)
90 Lapsed Deposits
91 Lapsed deposit may be
refunded
92 Procedure for repayment of
lapsed deposit
93 The responsibility for
verifying the claimant’s title
to the refund shall devolve
AND ALSO THE OTHER TOPICS/ITEMS DISCUSSED IN TRAINING CLASSE ARE REQUIRED TO BE STUDIED FROM
Account (Receipts and Payments) Rules 1983
a) Deposits bearing interest and b) deposits not bearing interest: Under Sector
K-‘Deposits and Advances’ of the Public Account. (Rule 182)
Is a device intended to facilitate the Administrator, thereof to credit receipts into, and effect withdrawals
directly from, the account subject to an overall check being exercised by the bank in which the account is
authorized to be opened, to ensure that no withdrawal will result in a minus balance therein.
Under the special order or permission of the Ministry or department concerned in consultation with the
CGA.
a) In favour of an administrator appointed for the purpose of administering moneys tendered by or
on behalf of ward and attached estates and estates under govt. management; b) Civil and
Criminal Courts deposits in favour of the Chief judicial authority concerned; c) under certain
regulatory activities of the Govt., receipts are realized and credited to a Fund or account, to be
utilized towards exp. and no outgo from the Consolidated Fund is involved; d) created by law or
rules having the force of law and certain liabilities devolve on the Govt. out of the special
enactments; e)officers commanding units and others concerned in the administration of public
funds or regimental funds in the Defence Departments can be authorized to open PDA for such
funds.
(a) & (e) [Points above]; even if outstanding for more than 3 complete account years. However,
such PDAs not operated for a considerable period and there is the need for the deposit a/c to be
ceased, the same should be closed in consultation with the officer in whose favour the deposit
a/c has been opened.
Item no. (b) above
Item no. © above
The balance remaining at the credit of the a/c will be brought to ‘nil’ by affording minus debit to the
functional head under the Consolidated Fund of India, and the PDA may be revived in the subsequent year
again, if necessary, in the usual manner;
At the close of March, each year, a) deposits not exceeding 25 rupees unclaimed for one whole a/c year, or
residuary balances not exceeding the said amount out of deposits partly repaid during the year then
closing, and b) all deposits or balances in excess of the aforesaid amount, unclaimed for more than 3
complete a/c years, shall be credited to the Govt. a/c.
On receipt of an application-cum-bill in Form GAR 46 (along with original challan or departmental receipt
as the case may be) from the departmental officer.
1) Deposits, the detailed accounts of which are required to be kept by the departmental officer and
which are credited to government, can not be repaid without pre-check by the Accounts Officer.
On receipt of bill in GAR 46 along with the original departmental receipts issued to the
refundees) from the departmental officer concerned, the Accounts Officer will pass the bill after
checking that the item is covered by the credit reported by the departmental officer as lapsed
and carried to the credit of Govt. and that the claimant’s identity and title to the money are
certified by the departmental officer who signs the application for the refund. The amount of the
bill may, wherever necessary, be paid to the departmental officer on affixing his signature in
token of receipt in the space provided for “Claimants’ signature” in the bill after scoring these
words; 2) verifying application-cum-bill, that the item-wise really received, is traceable in the
records and was carried to the credit of the govt. as lapsed and was not paid previously and that
claimant’s identify and title to the money are certified by the officer countersigning the
application for the funds; 3) the repayment of lapsed deposit shall be recorded in the
appropriate deposit register of receipts so as to guard against a second payment.
On the authority who signs the application-cum-bill in GAR 46.
Central Government
Notes prepared by Probir Bhowmick, AAO
Notes prepared by Probir Bhowmick, AAO