Para 13.1.5 — CAM

13.1.5 This reconciliation is necessary for the following reasons:

(a) To bring out any mistake committed by the accounting authorities or by the banks in working out the cash balance;

(b) To ensure that the payments by the RBI and accredited Banks on account of Government of India, are authorized and correct;

(c) To ensure similarly that every item of receipt by the branches of the RBI and accredited Banks are duly accounted for and accurately credited by the bank with reference to the amount shown in the challans;