Para 8.4 — CAM
Original Rule Text
8.4 PROCEDURE FOR SETTLEMENT OF TRANSACTIONS ARISING IN THE MONTH OF MARCH.
8.4.1
(i) Normally, reimbursement of transactions arising during a month, is claimed by the first week of the following month.
(ii) However, all the transactions arising in the month of March are required to be accounted for during the same financial year in the books of the concerned PAOs.
(iii) To do so, all the PAOs in Civil Ministries, State AG, Railways, Defence, Posts and Telecommunications Departments should endeavour to settle transactions arising during the first 3 weeks of March, by raising debits duly supported with vouchers and schedules etc. at weekly intervals, against the PAOs concerned. The PAOs receiving the debits should ensure immediate settlement of such claims through authorised mode.
(iv) For the debits or payments arising on or after 25th of March of the year, fax intimation indicating the net amount of claim to be reimbursed, briefly indicating the nature of the transaction should be sent to the concerned PAO. In the case of departmentalized offices, the PAOs receiving the claim shall immediately arrange to send the cheque for such claims by placing the amount under the Minor Head EAT under the relevant functional Major Head of account, pending receipt of vouchers and documents in support of this debit. He should invariably ensure the dispatch of supporting vouchers/schedules etc. by speed post on or before the 10th of April of the succeeding financial year. On receipt of vouchers etc. the responding PAO should adjust the debit to the final head of account before the close of March (Supplementary) account and clear the Suspense Head EAT.
What This Means
This paragraph addresses the special urgency of settling inter-departmental transactions that arise in the month of March, which is the last month of the financial year. All March transactions must be accounted for within the same financial year in the books of the concerned PAOs. To achieve this, all PAOs in Civil Ministries, State AGs, Railways, Defence, Posts, and Telecommunications must send their outward claims for March transactions as quickly as possible — ideally before 31st March — so that the receiving PAOs can book them before closing their annual accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1March transactions must be settled within the same financial year
- 2All PAOs must expedite outward claims for March transactions
- 3Claims should reach receiving PAOs before year-end account closure
- 4Applies to all government accounting units: Civil, Railways, Defence, Posts, Telecom
- 5Failure to settle creates carryover suspense entries that complicate annual accounts
Practical Example
On 20th March, the PAO of the Ministry of Agriculture pays a fuel bill that should be charged to the Ministry of Rural Development. The Agriculture PAO immediately sends the outward claim to the Rural Development PAO so that it can be settled before 31st March. Both PAOs work urgently to ensure the transaction is booked in the current year's accounts rather than creating a suspense entry that would carry over to the next year.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is March settlement treated differently from other months?▼
What happens if a March transaction cannot be settled before 31st March?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.