Para 19.7 — CAM
Original Rule Text
19.7 PERSONAL DEPOSIT (PD) ACCOUNT
19.7.1 Personal Deposit Account is an account which is authorised to be opened in the Public Account portion of Government account in an accredited bank with the approval of CGA by Central (Civil) Ministries/Departments. The proposal for opening of PD Account should be on the recommendation of Ministry/Department with the approval of Chief Accounting Authority in consultation with FA and Head of Accounting Organisation. It is a device intended to facilitate the Administrator of the PD Account to credit the receipts and effect withdrawals directly from the account. This is subject to an overall check 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. It is done (with the help of a Personal Ledger Account maintained by the bank for this purpose. The administrators of PD Account shall be only Government Officers acting in their official or any other capacity.
19.7.2 The Ministry/Department concerned is required to satisfy themselves on the need for opening such an account, the arrangements made for the proper maintenance of the initial accounts of the money that is to be kept in the PD Account, and their audit. The Principal Accounts Office shall also be consulted for the purpose, and then the proposal shall be forwarded to the CGA for their views, as well as for the opening the necessary head of account and finalization of the accounting procedure.
19.7.3 PD Account may be required to be created by a law or a rule having the force of law, or where certain liabilities devolve on the Government out of the special enactments by way o f bridging any deficit or shortfall in the account which are discharged by transferring funds to it from the CFI. In such cases, the credit balance in the PD Accounts at the end of each financial year would lapse to Government, and for this purpose the account may be closed by
affording minus debit to that extent to the relevant service head
(s) in the Consolidated Fund. The PD Account may be revived in the subsequent year again, if necessary, in the usual manner.
19.7.4 Where work relating to payment etc of a P.D. Account is entrusted to an Administrator or the PD Account holder, the Chief Accounting Authority of the Ministry/Department may determine whether or not the initial accounts, vouchers etc shall be subject to post check by the concerned PAO. The decision shall be taken with reference to the status, expertise etc of the organization functioning under him. Where post check is required to be exercised by the PAO, the Deposit Accounts holder shall furnish the detailed monthly account along with vouchers in support of the lump withdrawals/deposits made during each month, to the concerned Pay and Accounts Officer. It will be done in the same manner as required by a cheque drawing DDO under the provisions contained in Chapter 3 of this Manual. Where post check is not required to be exercised, the PAO will confine its check to the transactions of withdrawals from the accounts to see that they do not exceed the balance at the credit of the account. He will also ensure that proper paid cheques are received along with bank scrolls. The vouchers in such cases will remain in the custody of the PD Account holder, who shall be responsible for the regularity of all the payments out of the PD Account in all respects, and especially with reference to the relevant rules relating to the creation and operation of the PD Account.
What This Means
A Personal Deposit (PD) Account is a special account that a Central Ministry or Department can open in the Public Account section of government accounts, with the CGA's approval. It allows the administrator to credit receipts and make withdrawals directly through an accredited bank, without routing every transaction through the regular PAO payment process. PD accounts are useful for specific purposes like managing funds received from outside agencies or handling earmarked receipts. The opening requires recommendation from the Ministry, approval of the Chief Accounting Authority, and consultation with the FA and Head of Accounting Organisation.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1PD Account is opened in the Public Account portion of government accounts in an accredited bank
- 2CGA's approval is mandatory for opening a PD Account
- 3The proposal needs recommendation from the Ministry and approval of the Chief Accounting Authority
- 4The Financial Adviser and Head of Accounting Organisation must be consulted
- 5PD accounts facilitate direct crediting of receipts and withdrawals without routing through the regular PAO payment cycle
Practical Example
The Ministry of Skill Development receives a grant from a multilateral agency for a specific training program. To manage these funds efficiently, the Ministry proposes opening a PD Account so the program director can directly credit incoming grant installments and make payments to training partners without going through the regular bill-processing cycle each time. The proposal is routed through the FA, recommended by the Secretary, and approved by the CGA. The PAO monitors the account through periodic reconciliation.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who can authorize the opening of a Personal Deposit Account?▼
How is a PD Account different from a regular government account?▼
Is there any oversight on PD Account operations?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.