Para 3.9 — CAM
Original Rule Text
(ix) No correction or alteration in a cheque is permissible. Any cheque requiring any kind of correction or alteration should be cancelled and a fresh cheque should be issued in lieu thereof. (Para 3.9 (1) of Subsidiary Instructions to R&P Rules, 2022).
(x) A cheque issued in India for making payment or a refund order issued for refund of revenue under these rules shall be valid for three months from the date of issue.
The procedure prescribed in Para 3.9 (6) to (09) of Subsidiary Instructions to R&P Rules, 2022 and inserted as para 5.4 of this Manual, shall be followed for the issue of a fresh cheque in lieu of a cheque issued earlier but reported to have been lost.
4.4 ISSUE OF INTER-GOVERNMENTAL ADJUSTMENT (IGA) ADVICES TO RBI (CAS) NAGPUR AND OPERATION & CLEARANCE OF THE MINOR HEAD, RESERVE BANK SUSPENSE (C.A.O.) ETC:
4.4.1 Payments of loans and grants to State Governments except Sikkim and repayments of loans/payment of interest by State Governments are effected by the issue of advices to the Central Accounts Section of R.B.I., Nagpur by various Principal Accounts Offices etc. Advices issued by a Principal Accounts Office to R.B.I.(CAS), Nagpur in this connection for effecting monetary settlement through its books will be given the same treatment in accounts as is given to cheques issued, except that the head '8658-Supense Accounts-R.B. Suspense (C.A.O.)' will be operated upon instead of the head '8670-Cheques and Bills' for affording contra credit. This suspense head will be cleared with a minus credit as soon as relevant intimation (clearance memo) is received from R.B.I., C.A.S., Nagpur about the settlement having been effected. All advices to RBI,CAS,Nagpur for payments should be entered in a register in form CAM 65 and should be submitted for signatures along with the register.
4.4.2 Principal Accounts Office/Pay and Accounts Offices would issue digitally signed eIGA Advice through PFMS on receipt of digitally signed IGA e-Sanction through sanction module of PFMS. The payment sanctions are posted in the account of PAO (CAM 33) upon its digital signing by the final authorised signatory in the system.
4.4.3 Intimations received by a Principal Accounts Office from the RBI (CAS), Nagpur about credit having been afforded to the Ministry's/Department's account based on advices from AG etc. will be dealt with in the same manner as receipt scrolls from banks (without supporting details as these would be awaited from the AG concerned) and the head "Reserve Bank Suspense (C.A.O)" minus debit will be operated upon. On receipt of details from the A.G., the suspense head should be cleared through a transfer entry, affording debit to it and contra credit to the final head (s). This procedure for operating Reserve Bank Suspense (C.A.O.) may be adopted in respect of all such clearance memos received irrespective of whether or not the particulars are received and complied.
What This Means
This para covers cheque corrections, validity, and Inter-Governmental Adjustment (IGA) advices. No correction or alteration is allowed on any cheque - if a mistake is made, the cheque must be cancelled and a fresh one issued. Cheques issued in India for payments or revenue refunds are valid for three months from the date of issue. For lost cheques, the procedure in Para 3.9(6) to (9) of Subsidiary Instructions (also in Para 5.4 of CAM) must be followed. The para also details how IGA advices to RBI Central Accounts Section, Nagpur work for inter-governmental payments like loans and grants to State Governments, using Reserve Bank Suspense (C.A.O.) head instead of Cheques and Bills head, with the suspense cleared upon receipt of clearance memos from RBI.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1No corrections or alterations are permitted on any cheque - cancel and reissue instead
- 2Government cheques in India are valid for three months from the date of issue
- 3Lost cheque replacement follows the procedure in Para 3.9(6)-(9) of Subsidiary Instructions / Para 5.4 of CAM
- 4IGA advices to RBI CAS Nagpur use head 8658 (Reserve Bank Suspense - C.A.O.) instead of 8670 (Cheques and Bills)
- 5Reserve Bank Suspense must ordinarily be cleared fully by the close of each financial year
Practical Example
A PAO issues a cheque for a State Government grant. The dealing officer notices a digit error in the amount. Rather than overwriting the figure, the PAO cancels that cheque entirely and issues a fresh one with the correct amount. Later, for a Rs 50 crore loan payment to Rajasthan, the Principal Accounts Office issues an IGA advice to RBI CAS Nagpur. The PAO debits '8658 - Reserve Bank Suspense (C.A.O.)' as the contra entry. When RBI Nagpur confirms the settlement through a clearance memo, the PAO clears the suspense with a minus credit entry, ensuring no balance remains outstanding at year-end.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can a cheque be corrected with an attestation?▼
How long is a government cheque valid?▼
What is the Reserve Bank Suspense (C.A.O.) head used for?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.