Para 4.2.4 — CAM
Original Rule Text
4.2.4 BANK DRAFTS
4.2.4.1 Payment by bank drafts to outstation payees by PAOs is permissible in the following types of cases:
(a) All cases where payment has to be made by bank drafts either under the provisions of any law, or other legal or contractual obligations;
(b) Payment towards pay and allowances and other personal entitlements of outstation establishments including contingencies etc where e-payment facility for direct payment to bank account is not possible. In such cases the bank drafts will be issued in favour of DDO of the concerned outstation office to enable disbursement of pay and allowances and other personal entitlements of staff, office contingencies etc. in cash. The bank draft will be drawn in favour of the DDO by designation (and the word 'ONLY' added after the designation of the 'Payee) and bear the superscription 'not transferable'. Bank drafts for the regular monthly pay and allowances of establishment will also bear the superscription 'Not to be Presented Before.....' (The earliest date onwhich the payment can be made under Para 2.4 (1)
(a) to
(f) of Subsidiary Instructions to R&P Rules, 2022.
(c) In case e-payment facility for direct payment to bank account is not available, the Public Sector Undertakings and Corporations (Other than local bodies) set up by Government should open bank accounts at the station where the PAO concerned is located, in order to
facilitate payment to them. Wherever payments cannot be arranged through this mode, the same may be arranged by crossed demand draft(s).
4.2.4.2 For obtaining the bank drafts required for outstation payments, the Pay and Accounts Officer will present a requisition duly supported by a statement in duplicate showing the particulars of the bank drafts required along with a Cheque of category ‘A’ for the total amount drawn in favour of the bank as payee. If any special superscription is required to be made in the draft such as 'Account Payee', 'Not Transferable' or 'Not to be Presented Before.......', a specific request to this effect should be sent along with the requisition. A Register of requisition of Bank Drafts should be maintained as indicated in para 2.4.4 of chapter 2 of this manual.
What This Means
This para governs when PAOs can use bank drafts for outstation payments. Bank drafts are permissible in three cases: (1) when required by law or contractual obligation, (2) for pay and allowances of outstation establishments where electronic payment is not possible - the draft is drawn in favour of the DDO by designation with 'Not Transferable' and 'Not to be Presented Before...' superscriptions, and (3) for payments to PSUs/Corporations where direct electronic payment is unavailable, using crossed demand drafts. To obtain bank drafts, the PAO submits a requisition to the bank with a statement of draft particulars and a Category 'A' cheque for the total amount. A Register of Bank Draft requisitions must be maintained.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Bank drafts are used only when electronic payment to the payee's bank account is not possible
- 2Three permissible cases: legal/contractual obligation, outstation staff payments, and PSU payments where e-payment is unavailable
- 3Drafts for salary carry 'Not Transferable' and 'Not to be Presented Before...' superscriptions
- 4PAO requisitions drafts with a supporting statement and Category 'A' cheque for the total amount
- 5A Register of Bank Draft requisitions must be maintained per Para 2.4.4 of CAM
Practical Example
A PAO needs to pay monthly salaries for a small field office in a remote area where banking and internet connectivity are poor, making electronic payment impossible. The PAO prepares a bank draft in favour of the field office DDO (by designation), marked 'Not Transferable' and 'Not to be Presented Before 28th March' (to prevent early encashment). The requisition is sent to the accredited bank along with a statement of draft details and a Category 'A' cheque covering the total amount. The DDO in the field office encashes the draft at the local bank and disburses salaries in cash to the staff.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can bank drafts be used for routine payments?▼
What superscriptions go on a bank draft for salary?▼
How does the PAO pay for the bank draft?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.