Para 10.12 — A permanent advance (imprest) is a cash advance gi

10.12 PERMANENT ADVANCES OR IMPREST 10.12.1 Permanent advance or imprest is normally granted to officers who have to meet day to day contingent and emergent expenditure, subject to the provisions under Rule 322 of GFR, 2017. Subject to observance of the following conditions, Departments of Central Government, Administrators and Heads of Departments are competent to decide in consultation with their Internal Financial Adviser the amount of Permanent Advance in respect of themselves and all organizations subordinate to them:-

a. The quantum of such advance for any organization should not as a rule exceed the monthly average of contingent expenditure for the preceding twelve months. The application for the advance by an office/organization should be accompanied by a statement showing monthwise contingent expenditure for the preceding twelve months. In case of a new organization, the amount of advance should be fixed on a conservative basis subject to review after six months.

b. The advance should be recouped at least twice a month so that the amount sanctioned does not exceed half the amount of the average monthly contingent expenditure calculated as in

(a) above.

c. As these advances involve the permanent retention of money outside the treasury, the amount of such an advance must not be larger than is absolutely necessary.

d. These advances should not be multiplied unnecessarily. NOTE. The amount of permanent advance should be adequate enough to meet the needs of every Branch of the Department, offices or organization so as to avoid the necessity of applying for separate advances for their subordinates.

e. The advance is primarily intended for meeting emergent contingent expenditure. However, the holder of the advance may, at this discretion, utilize it to meet any other bona fide expenditure on Government account except for grant of advance of pay to Groups 'A' and 'B' officers.

f. The accountability for the advance and its utilization on bona fide Government account in accordance with these rules and regulations shall rest wholly on the holder.

g. Copies of sanctions along with monthly statements of expenditure showing the amount of contingent bills cashed with classified details of items of expenditure should be furnished to the sanctioning authority in the following month.

h. In the event of transfer of charges and annually on the 15th April, each officer in whose favour the permanent advance is sanctioned shall send an acknowledgement of the amount due

from and accountable for by himself as on 31st March, preceding to the authority which sanctioned the permanent advance, viz., Departments of the Central Government, Administrators and Heads of Departments, as the case may be, and the said authority will maintain suitable record to watch receipt of such acknowledgements and endorse a copy of the same to his accredited PAO.

10.12.2 A note of each item of Permanent Advance or imprest given to various authorities shall be kept in the "Register of Permanent Advances" (Form CAM-61). If the amount of an advance is increased or reduced during the course of a year, the amount in the column for the current year should be altered in red ink as soon as payment of the increased advance is made or credit representing difference due to reduction is received from the officer concerned. The amount of the advance outstanding as on 31st of March each year should be entered in the money column for the subsequent year.

10.12.3 Sanctions for permanent advance are to be scrutinized to see-

(i) That the officer sanctioning the advance is a recognized Head of Department;

(ii) That the advance is intended for the subordinate and not for his own office; and

(iii)That the advance has been sanctioned in accordance with the provisions of Rule 322 of GFR, 2017.

10.12.4 Acknowledgement from the officers holding permanent advance shall be obtained as on 31st March, in the month of April. Further, from the Register of Permanent Advances, the aggregate outstanding amount should be worked out and tallied with the ledger balance.

What This Means

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Key Points

• 1Permanent advance is for day-to-day contingent and emergent expenditure under GFR Rule 322
• 2Amount should not exceed the monthly average of contingent expenditure for the preceding 12 months
• 3Must be recouped at least twice a month to keep the outstanding amount within limits
• 4Holder is fully accountable and must send monthly classified expenditure statements
• 5Annual acknowledgement of outstanding balance required by 15th April for the amount as on 31st March

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Cross References

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.