Para 10.3.2 — CAM
Original Rule Text
10.4.2 The procedure indicated below shall be followed by the borrowers for the repayment of principal as well as interest payment on the loans and advances referred to in para 10.3.2. Such borrowers include Public Sector Undertakings, Statutory bodies, Institutions, Societies, Private Sector concerns and other individuals etc.
(a) The payment of interest and principal on the loans shall be made on or before the due date to ensure that Government gets credit by the due date. The payment shall be made through www.bharatkosh.gov.in by duly following the procedure laid out in the bharatkosh portal. In case the payment is through cheque/draft, the same should be deposited sufficiently in advance with the bank to enable its clearance on or before the due date.
(b) The payment will be accompanied by a memorandum or challan in duplicate, giving the following details:
i. Name of the loan sanctioning Ministry/Department or its successor as the case may be; ii. Number and date of sanction letter with the loan amount sanctioned; iii. Amount due for payment, separately for interest and principal and the head
(s) of account to which the dues are to be credited in the Government account. Separate cheques/drafts and challans should be submitted for payment of principal and interest; and iv. Due date of payment.
(c) The accredited bank branch will initially acknowledge the receipt of cheque/draft tendered in payment of dues through a paper token. After the realisation of cheque or draft, duplicate copy of the challan will be given to the depositor.
(d) The accredited bank collecting the dues will arrange for its prompt credit to Central Government account and send details to the Pay and Accounts Officer of the Ministry/Department, in accordance with the general instructions for handling receipts and payments of the Ministry/Department.
10.4.3 The repayment of loan shall be watched in accordance with the terms of the sanction read with Rule 252 of GFRs 2017. Normally, the repayment of a loan shall begin on the day of completion of one year from the date it is drawn, and will be paid through specified number of
equal annual instalments of principal. While the Government may sanction/allow suitable moratorium period for repayment of principal, no such moratorium period shall be allowed for payment of interest.
10.4.4 Interest shall be recovered from the loanees at the rates prescribed by Government from time to time and calculated in accordance with the principle laid down in Rules 251 and 252 of GFRs 2017. Instructions issued by the Ministry of Finance (Budget Division) from time to time prescribing the rates of interest to be charged from statutory bodies, corporations etc. may also be referred to for this purpose, in case of any doubt.
What This Means
This section prescribes the procedure for borrowers (PSUs, statutory bodies, institutions, private concerns, etc.) to repay their government loans and interest. Payments must be made on or before the due date through the Bharatkosh portal or by cheque/draft deposited early enough for clearance by the due date. Separate challans are required for principal and interest payments. Repayment begins one year after the loan is drawn, and no moratorium is allowed on interest payments.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Loan repayment must be made on or before the due date through Bharatkosh portal or cheque/draft
- 2Separate cheques/drafts and challans required for principal and interest payments
- 3Challan must include Ministry name, sanction number, amounts, and heads of account
- 4Repayment begins one year after loan drawing date unless moratorium is granted for principal
- 5If due date falls on a holiday, payment may be made on next working day (except 31st March — pay on preceding working day)
Practical Example
A statutory body that received a Rs 10 crore loan from the Ministry of Commerce needs to repay its first annual installment. The accounts officer logs into Bharatkosh, makes two separate payments — one for principal and one for interest — each with a challan citing the sanction number and correct heads of account. Since the due date falls on a Sunday, they make the payment on the following Monday without any extra interest charge.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can principal and interest be paid together in one challan?▼
What if the loan repayment due date is 31st March and it falls on a holiday?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.