Para 7.16 — CAM
Original Rule Text
7.16 PAYMENT FROM COMPASSIONATE FUND OF GOVT. OF INDIA
7.16.1 Awards for payment from the Compassionate Fund fall under two categories namely:
a. Lump sum payments; and b. Recurring payments to be made at quarterly intervals, in arrears.
7.16.2 In cases where the award is for a lump sum amount, payment shall be made by crossed cheque/bank draft to the beneficiary. The Pay and Accounts Officer will do this after proper identification on the basis of the sanction issued by the Ministry/Department with the concurrence of the Establishment Division of the Ministry of Finance. Bill in this regard will be submitted by the DDO in Form CAM-67, enclosing a descriptive roll of the beneficiary with the sanction. The expenditure on this account will be classified under major head ‘2235 – Social Security and Welfare - Other Social Security and Welfare Programmes - Other Programmes - Payment from the Compassionate Fund’.
7.16.3 In cases where the award is of recurring nature and the payments are to be made at quarterly intervals, in arrears, the Administrative Ministry/Department will issue sanction as
above. The Pay and Accounts Officer will note the sanction in a separate Register to be maintained in Form CAM-25. At the time of first payment, a descriptive roll of the beneficiary will be sent along with the sanction. The Pay and Accounts Officer after proper identification will make payment by crossed cheque/bank draft to the beneficiary on the expiry of each quarter to which the payment relates, through submission of a pre-receipted bill in Form CAM-67. The payment will be debited to the head indicated in para 7.16.2 above. The payment through Public Sector Bank is not permitted in these cases.
What This Means
The Compassionate Fund of the Government of India provides financial assistance in two forms: lump-sum payments and recurring quarterly payments. For a lump-sum award, the PAO issues a crossed cheque or bank draft to the beneficiary after verifying identity, based on the Ministry's sanction with Finance Ministry concurrence. For recurring awards paid quarterly in arrears, the PAO maintains a register, verifies identity at first payment, and makes subsequent payments by crossed cheque each quarter. In both cases, expenditure is booked under Major Head '2235 - Social Security and Welfare'. Importantly, recurring payments cannot be made through public sector banks — only direct cheque/draft to the beneficiary.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Two types of Compassionate Fund awards: lump-sum and recurring quarterly
- 2Sanction must come from the Ministry/Department with Finance Ministry (Establishment Division) concurrence
- 3Payment is by crossed cheque or bank draft after identity verification
- 4Expenditure is classified under Major Head '2235 - Social Security and Welfare'
- 5Recurring payments through public sector banks are not permitted; bills are in Form CAM-67
Practical Example
The widow of a deceased Central Government employee is awarded a recurring quarterly payment of Rs. 5,000 from the Compassionate Fund. The Ministry issues the sanction with Finance concurrence and sends it to the PAO. The PAO enters the details in the register (Form CAM-25), verifies the widow's identity using the descriptive roll at first payment, and every quarter thereafter issues a crossed cheque to her after she submits a pre-receipted bill in Form CAM-67.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who sanctions Compassionate Fund payments?▼
Can recurring Compassionate Fund payments be credited directly to a bank account?▼
Under which budget head is Compassionate Fund expenditure classified?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.