Para 19.2 — Under the departmentalized accounting system, the

19.2 PROCEDURE FOR RECEIPT, REPAYMENT AND ACCOUNTING OF DEPOSITS UNDER THE DEPARTMENTALIZED ACCOUNTING SYSTEM

19.2.1 Under the departmentalized accounting system, the responsibility for keeping the detailed accounts of deposit transactions will be that of the Pay and Accounts Officer except for deposits where the departmental officers have been made responsible for maintaining detailed accounts (e.g. court deposits, deposits with Public Works or Forest Divisions etc.). In cases where the PAO is responsible for keeping detailed accounts, following instructions shall be applicable for the accounting and repayment of deposits.

19.2.2 The detailed accounts of such deposits should be kept in separate ‘Registers of Deposits’ in Form CAM- 63, with separate folios allotted for each departmental officer under whose authority or on whose behalf the deposit has been received. Entries will be made from the challans accompanying the receipt scrolls received from the receiving branches of the bank. In cases where amounts are remitted by the departmental officer receiving the deposit to the bank in lump-sum, the detailed posting will be done from the particulars of the statement received from departmental officer, to be reconciled with the credits in bank scroll.

19.2.3 For the repayment of deposits, the bill shall be drawn by the same departmental officer who had deposited the amount on collection from parties, or on whose behalf the parties had deposited the amount in the Bank. He will send the bill to PAO for pre-check and payment, certifying on the bill itself that the conditions subject to which repayment is to be made have been fulfilled, and that a note has been kept in his initial records to prevent double claim. The PAO will check the availability of balance from the Deposit Register and make an entry in the repayment portion of the register with cross reference against the relevant entry. PAO will also make entries in the column against the month in which repayment is being made and then make the payment, subject to other usual checks. Posting against the monthly column of repayment will enable the PAO to reconcile between the figure of repayment as noted in the Register of Deposits and the ledger figure.

19.2.4 Except to the extent modified in these instructions, the rules contained in Central Government Account (Receipts & Payments), Rules, 2022 for deposits of various categories shall remain applicable. Deposits which lapse to Government in terms of para 2.75 of Subsidiary Instructions to Central Government Account (Receipt & Payments) Rules, 2022 shall be entered in a register in Form C.A.M. - 63 A, with cross reference to the Serial Numbers in the Register of Deposits. However, deposits that were not claimed/refunded due to litigation or arbitration cannot be treated as unclaimed deposit normally, and therefore, will not be credited to Government account. To identify such items, the PAO shall ascertain whether any legal proceeding/arbitration is pending against the relevant contracts/supply orders, from the Departmental Officer. On receipt of an affirmative reply, a note to this effect shall be recorded in the remarks column of Form CAM-63. Depending on the outcome of the proceedings, the relevant items of deposit shall be refunded, or forfeited and adjusted as the case may be. For

crediting Government account, a transfer entry shall be incorporated in the accounts to debit the major and minor head etc under which theoriginal deposit was credited, by contra credit to the major head 0075- Miscellaneous General Services- 101-Unclaimed Deposits. Before authorizing refund of such lapsed deposits, the PAO will-

(i) Verify that the Departmental Officer countersigning the application for refund has certified theclaimant's identity and title for refund;

(ii) Ascertain from the register in Form CAM 63 or 63A as the case may be, that the deposit itemwas actually received and is recorded; and

(iii) That it was transferred to the revenue head of Government account as lapsed deposit, and hasnot been paid previously.

Thereafter, the PAO will make necessary entries about payment in the relevant columns of the register. On refund, such lapsed deposits shall be accounted for under the sub-head "DeductRefund" below the major etc. head '0075-Miscellaneous General Services-101-Unclaimed Deposits.'

(b) Deposits: Receipt of each deposit as well as repayment there against will be maintained ina suitable register by the PAO vide para 19.2 of this Manual. The PAO should take steps-

(i) to verify the balances at the close of the year with the ledger balance of the class of deposit concerned;

(ii) to obtain, wherever necessary, the acceptance of the parties concerned of the balances left outstanding in the Personal Deposit Account at the close of each year; and

(iii)to credit to the Government account any unclaimed amounts which are required to be treated as lapsed amount under para 2.75 of Subsidiary Instructions to Central Government Account (Receipts & Payments) Rules,2022.

(c) Permanent Advance: As and when a permanent advance is paid to a head of office, on the basis of sanction issued by the competent authority, a note of the advance paid shall be kept in the Register of Permanent advance in Form CAM-61. At the end of each financial year an acknowledgement shall be obtained from the officer holding the permanent advance, and verified with that outstanding in the Register of Permanent Advance. The aggregate of all the outstanding shall be worked out from this register, and tallied with the ledger balance at the end of each year.

(d) Loans and Advances: The outstanding balance of principal of loans in the Loan Register as on 31st March should be tallied with the ledger balance as on that date for each year. It should also be seen whether the conditions of each loan have been fulfilled and whether the balance due at the end of each year has been communicated to, and it has not been disputed by the debtor. The result of the verification should also be reported to the Deptt. /Ministry as

provisioned vide para 262 of the GFRs 2017. In case of Housing Building Advance, Motor Car and Motor Conveyance Advances, for which PAO maintain the detailed accounts, only acknowledgement should be obtained from the concerned Govt. servants for the balance outstanding against him at the close of each financial year, through the DDO/ Head of Office.

19.14 ADJUSTMENT OF GAIN OR LOSS BY EXCHANGE 19.14.1 The question of adjustment of Loss/Gain by exchange has been considered in detail in consultation with Budget Division of the Ministry of Finance, office o f P r . C C A , MEA and the CAG of India and the following procedure has been decided upon:

(i) Disbursements made against agreements for loans/grants after Ist April, 1976 by foreign banks etc. under the Direct payment procedure, are credited as External Debt/External Grant Assistance at daily rate of exchange by contra debit to the minor head "Suspense Account for purchases etc. abroad" under the Major Head -"8658-Suspense Accounts". The deposits made by importers at the Composite rate of Exchange (fixed by the Controller o f Aid Accounts and Audit) and interest under the minor head "Deposits for purchases etc . abroad" below the M ajor Head "8443-Civil Deposits" are cleared by

(a) transferring the amounts to the above noted Suspense head thereby clearing it;

(b) adjusting the difference between daily rate and composite rate of exchange under "0075-Miscellaneous General Services-Gain by Exchange" and

(c) adjusting the element of interest recovery under the head "0049-Interest Receipts".

(ii) When loans are fully repaid, the balances lying under the head "Exchange variation" under the major head "6002-External Debt" is cleared by adjusting the same under Major etc. head "8680 – Miscellaneous Government Account" with the balance left under the head indicating credit or debit.

(iii)Capital transactions relating to acquisition of property by Missions abroad and all payments to International Bodies towards India's contribution shall be converted at composite rates of exchange, wherever such rates are prescribed for the relevant foreign currencies by the Department of Economic Affairs. However, in cases where composite rates are not prescribed, these transactions shall be accounted for at official rates of exchange prescribed by the Ministry of External Affairs. Loss or gain arising on account of the above shall be adjusted under the Major Heads "2075" or "0075" as the case may be. The remittances to Missions and expenditure relating to personal claims appearing in the accounts of H.C.I. London and chancery payments in E.I. Washington will be accounted for at the official rates of exchange prescribed by Ministry of External Affairs. The gain or loss arising on that account shall also be adjusted under the Major Heads "0075" or 2075" as the case may be.

What This Means

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Key Points

• 1The PAO is responsible for detailed deposit accounts under the departmentalized system
• 2Exceptions exist for court deposits, Public Works deposits, and Forest Division deposits which are maintained by departmental officers
• 3Specific procedures govern receipt, registration, and repayment of deposits
• 4The system ensures every deposit is properly tracked from receipt to final repayment or lapse
• 5Deposit transactions must be reconciled with bank records and the general ledger

Practical Example

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Frequently Asked Questions

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