Para 3.3 — CAM
Original Rule Text
3.3 PROCEDURE FOR PAYMENT
4.2.2 The use of Payment Advices is detailed in para 3.3 of Subsidiary Instructions to RPR, 2022. While passing bills for payment, the following points relating to payment advice will be observed:
(i) Payments to the suppliers or vendors for work done or service rendered or articles supplied, grantee, loanee institutions, autonomous bodies, State and UT Government shall be
made by any authorised mode for payment from Government Account at the request and expense of the payee concerned:
Provided that all payments exceeding ₹ 5000/- shall be through Payment advices only. (Authority para 2.2(2)
(c) of Subsidiary Instructions to R&P Rules, 2022).
(ii) All payments towards settlement of retirement/terminal benefits such as gratuity, commuted value of pension, encashment of leave salary, CGEGIS, withdrawals from GPF etc. shall be paid by direct credit to the bank accounts of the beneficiaries.
(iii) All payments to Government servant including salary shall be made by Payment advices for direct credit to their bank accounts or Post Office Savings Bank Accounts, subject to availability of banking facilities or at Post Offices:
Provided that relaxation may be granted by the competent authority for payment by cash in cases of, -
(a) hardship, where the reasons are duly approved by Head of Department in consultation with Head of Accounting Organisation; and
(b) for operationalization of a policy decision for implementing specific nature of operation or programmes or schemes where details of payments are not to be disclosed. (Authority: Rule 14 (5) of R&P Rules, 2022).
(iv) Payment of immediate relief in terms of Rule 79 and 80 of Compendium of Rules on Advances to Government Servants, 2005 to the family member of the government servant who dies in service, is not covered under
(i) above. In this case, DDO shall draw and disburse eligible amount of immediate relief in cash either from Imprest or by drawing money from the Bank. DDO should ensure adjustment of this advance against the arrears of pay and allowances, leave salary, Death Gratuity, balance of GPF/CPF or any other payment due in respect of the deceased government servant.
(v) When payment is desired by different modes of payments i.e. Payment advice/Cheque/Demand draft/Postal Order/Money Order/Cash etc., separate bills shall be prepared by the DDOs and the following shall be clearly indicated on the top of the bills:
What This Means
This para establishes the payment procedures for government transactions. All payments above Rs 5,000 to suppliers, vendors, grantees, loanees, autonomous bodies, and State/UT governments must be made through payment advices (electronic transfer to the payee's bank account), not by cash or cheque. All retirement/terminal benefits (gratuity, commuted pension, leave encashment, CGEGIS, GPF withdrawals) must be credited directly to the beneficiary's bank account. All salary payments to government servants must be by direct credit to their bank accounts, with cash payments allowed only in hardship cases approved by the Head of Department or for special operations where payment details cannot be disclosed. Immediate relief to the family of a deceased government servant can be disbursed in cash from imprest. When different payment modes are needed, separate bills must be prepared for each mode.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1All payments above Rs 5,000 must be through payment advices (electronic bank transfers)
- 2Terminal/retirement benefits must be directly credited to the beneficiary's bank account
- 3Salary payments must be by direct credit; cash relaxation only for documented hardship cases or classified operations
- 4Immediate relief on death-in-service can be paid in cash from imprest and later adjusted against terminal dues
- 5Separate bills must be prepared for each different payment mode (payment advice, cheque, DD, cash, etc.)
Practical Example
A government servant retires after 35 years of service. The DDO processes separate bills for gratuity, commuted pension value, leave encashment, CGEGIS, and GPF final withdrawal. Each payment is made by direct credit to the retiree's bank account through a payment advice - no cheques or cash payments are issued. The DDO clearly marks each bill at the top with 'Payments by Payment Advice'. If the retiree's office is in a remote area without banking facilities, the Head of Department would need to formally approve any cash payment with documented reasons.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can salary be paid in cash?▼
What happens when an employee dies in service?▼
Do all payments need separate bills for different modes?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.