Para 4.1 — CAM

4.1 INTRODUCTION 4.1.1 Under the departmentalized accounting system, the receipts and payments of each Ministry/Department of the Government of India are handled by the RBI or the Public/Private Sector Bank/s nominated for the particular Ministry/Department by the RBI on the advice of the CGA, in accordance with the memorandum of instructions issued by RBI to Banks (APPENDIX 4.1), and subsequent orders in this regard. If a Ministry/Department requires to change their accredited bank branch or accredit additional branches of the same agency bank, the Head of the concerned Accounting Organisation of the Ministry/Department may directly approach the accredited bank under intimation to RBI, DGBA, Central Office and RBI, CAS, Nagpur as also Office of the CGA. Immediately on commencement of Government business at such branches, the concerned bank will intimate RBI, Central Office, DGBA and RBI, CAS, Nagpur. The revised procedure will be applicable only in cases where change of FPB is not involved. In case, where a new branch is being identified as Focal Point Branch/Nodal branch or any change of existing FPB in involved, the Ministry/Department will have to seek prior permission of RBI, DGBA, Central Office. Prior permission will also be required in cases where the new accredited branch is to report transaction to RBI, CAS, Nagpur directly without intervention of an FPB. Accordingly, a new bank for a particular Ministry/Department requires prior approval of CGA and RBI. These instructions are applicable to all Civil and non-Civil Ministries/Departments of Government of India.