Para 3.2(1) — CAM
Original Rule Text
(vi) All Cheques drawn by CDDOs shall be crossed. {Para 3.2(1) to (14) of Subsidiary Instructions to Rules, 2022}.
(vii) All cheques should be signed in indelible ink only and in case of cheques of category 'A', the account number and the details of bank/branch should be written after the name of the payee.
(viii) Irrespective of the category, all cheques drawn or electronic payments made for ₹10 lakhs and above shall bear two signatures/ digital signatures. For this purpose the Head of the accounting organisation shall nominate another gazetted officer /senior most non-gazetted officer, as second signatory (O.M. No. 1(3) /95/TA/Pt.file/578 dated 27.7.98).
What This Means
This para prescribes safeguards for cheque issuance by Cheque Drawing DDOs. All cheques drawn by CDDOs must be crossed (meaning they can only be deposited into a bank account, not cashed over the counter). Cheques must be signed only in indelible ink. For Category 'A' cheques (negotiable ones), the payee's bank account number and bank/branch details must be written after the payee's name. Most importantly, any cheque or electronic payment of Rs 10 lakh or above must carry two signatures or digital signatures. The Head of Accounting Organization nominates a second signatory - another gazetted officer or the senior-most non-gazetted officer - for this purpose.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1All CDDO cheques must be crossed - no uncrossed cheques are permitted
- 2Cheques must be signed only in indelible ink
- 3Category 'A' cheques must include the payee's bank account number and bank/branch details
- 4Cheques and e-payments of Rs 10 lakh and above require two signatures/digital signatures
- 5The second signatory is nominated by the Head of Accounting Organization, preferably a gazetted officer
Practical Example
A CDDO needs to issue a cheque for Rs 15 lakh to a contractor for office renovation. Since the amount exceeds Rs 10 lakh, the CDDO signs the cheque in indelible ink and then has the nominated second signatory (a gazetted officer designated by the Pr.CCA) also sign it. The cheque is crossed and marked with the contractor's bank account number and bank branch details. Without the second signature, the bank would refuse to honour the cheque.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why must all CDDO cheques be crossed?▼
When is a second signature required on cheques?▼
Who serves as the second signatory?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.