Para 8.15 — CAM

8.15 PAYMENT OF LOANS, GRANTS-IN-AID etc. TO STATES BY CENTRAL GOVERNMENT AND REPAYMENT OF LOAN, PAYMENT OF INTEREST TO CENTRAL GOVERNMENT BY THE STATES

8.15.1 Ministries/Departments of Central Government will arrange payment of loans and grantsin-aid as well as payment of States' share of Income Tax, Integrated Goods and Service Tax (IGST), etc. through their Principal Accounts Offices.

(i) On receipt of sanction orders from the Ministry/Department, the Principal Accounts Offices will arrange to credit the balance of State Government, (except in the case of Sikkim), by debit to their Ministries/Departments accounts through RBI (C.A.S), Nagpur.

Note: On receipt of sanction for effecting payment of loans/grants etc. to State/UT Governments by the Central Government, the Inter-Governmental Adjustment Advice (IGAA) should be issued to RBI, CAS, Nagpur immediately (in any case within two days at the most) or on the date prescribed for its release in the sanction itself. 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.

(ii) The Principal Accounts Office will pass an entry in his books debiting the appropriate final head of account, (e.g. Major Heads 3601, 3602, 7601 etc.) and crediting "8658 -Suspense Accounts Reserve Bank Suspense-Central Accounts Office". A copy of the advice will be sent to the concerned AG or the Chief Accounting Authority of the State also, in cases where the accounts have been separated from audit, to enable necessary adjustment in the accounts of the State Government.

(iii) On receipt of the Clearance Memo from the Central Accounts Section of the RBI, the suspense head mentioned above will be cleared by minus credit and contra credit afforded to "8675-Deposits with Reserve Bank-Central-Civil- Reserve Bank (CAO)".

(iv) The Principal Accounts Office should ensure that the amount shown and debited in the monthly account sent by the RBI tallies with the amount of advice sent by it. For detailed procedure in this connection, refer to APPENDIX 8.1 to this Chapter.

8.15.2 Repayment of loans and payment of interest on it by the State Governments (except Sikkim) for loans received from the Government of India will be arranged by the State AG or the

Chief Accounting Authority of the State. Issue of suitable advice to the RBI (CAS), Nagpur, to credit the account of the Ministry/Department of the Central Government by debiting the State balance, will be resorted to for this purpose.

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1Central loans and grants-in-aid to States are routed through Principal Accounts Offices
• 2Payments are arranged through PFMS/RBI based on Ministry sanction orders
• 3States repay loans and interest by depositing at designated RBI counters
• 4IGST settlement between Centre and States follows a special RBI-mediated procedure
• 5AG of the recipient State is advised of all payments for reconciliation

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.