Rule 306 — GFR 2017
Original Rule Text
Rule 306
(1)
Furnishing
of
security
by
Government servants handling cash.
Subject to any general or special
instructions prescribed by Government in
this behalf, every Government servant,
who actually handles cash or stores shall
be required to furnish security, for such
amount and in such form as Central
Government or an Administrator may
prescribe according to circumstances
and local conditions in each case, and to
execute a security bond setting forth the
conditions under which Government will
hold the security and may ultimately
refund or appropriate it.
Rule 306
(2) The amount of security to be obtained
from a Government servant shall be
determined on the basis of actual cash
handled which shall not include account
payee cheques and drafts.
Rule 306
(3) Security should be furnished in the
form of a Fidelity Bond in GFR 17, the
security bond should be executed in
Form GFR 14. The Administration shall
see that the government servant pays the
premia necessary to keep the Bond alive,
for which the government servant shall
submit premium receipt in time. If the
government servant fails to submit the
premium receipt he shall not be allowed
to perform the duties of his post and he
shall be dealt with in accordance with the
What This Means
This rule outlines the requirement for government officers who directly handle cash or manage government supplies (stores) to provide a financial guarantee, known as security. This security acts as a safeguard for government funds and assets against potential loss or misuse. The specific amount and type of security required will be determined by the Central Government or the local Administrator, based on the particular circumstances. In addition to providing security, the officer must also sign a legal agreement called a security bond, which details the terms under which the government will hold, refund, or use this guarantee.
The amount of security an officer needs to provide is calculated based on the actual physical cash they handle, but it specifically excludes money received through account payee cheques and bank drafts. This security typically takes the form of a Fidelity Bond (as per GFR 17), and the officer is responsible for paying the necessary fees (premiums) to keep this bond active. It is crucial to submit proof of these premium payments on time; failure to do so will result in the officer not being allowed to perform their cash or store handling duties and may lead to further action as per their employment terms.
Even officers temporarily filling a position that involves handling cash or stores must generally provide the full security required for that role. However, in specific short-term situations (up to four months) involving permanent government servants, an exemption might be granted if there is no risk involved and the competent authority approves it. Certain roles are completely exempt from furnishing security, including those handling minor stores (as deemed by the authority), office furniture and stationery (if adequate safeguards are in place), library staff, and drivers of government vehicles.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Government servants who handle physical cash or manage government stores must furnish security and execute a security bond.
- 2The security amount is determined by the actual physical cash handled, specifically excluding account payee cheques and drafts.
- 3Security is typically provided as a Fidelity Bond (GFR 17), and the officer must pay its premiums and submit receipts to keep it active.
- 4Failure to maintain the security bond (by paying premiums) will prevent the officer from performing relevant duties and may lead to disciplinary action.
- 5Officers temporarily filling cash or store handling posts generally need to furnish full security, though short-term exemptions (up to four months) are possible for permanent staff under specific conditions.
- 6Certain roles, such as librarians, drivers, and those handling minor stores or office furniture (with safeguards), are exempt from furnishing security.
Practical Example
Consider Mr. Anil Kumar, a newly appointed Junior Accountant in the Public Works Department, whose duties include collecting cash payments for tender forms and making small petty cash disbursements. His average daily cash handling is around ₹30,000. According to Rule 306, Mr. Kumar is required to furnish security. The Departmental Head, acting as the Administrator, prescribes a Fidelity Bond for ₹30,000, and Mr. Kumar duly executes a security bond in Form GFR 14. He then purchases the Fidelity Bond (GFR 17) and pays its annual premium, ensuring he submits the premium receipt to the Administration each year. If, for some reason, Mr. Kumar forgets to pay the premium for a year and fails to provide the receipt, the Head of Office would inform him that he cannot continue his cash handling duties until the bond is reactivated, potentially reassigning him to other tasks or initiating action as per his service conditions.
Now, imagine Ms. Priya Singh, a permanent government servant, is asked to temporarily take over Mr. Kumar's cash handling duties for two months while he is on medical leave. Since Ms. Singh is a permanent employee, the officiating period is short, and the Head of Office is satisfied that there is no significant risk involved, Ms. Singh might be exempted from furnishing the full security. This exemption would need to be formally granted by the competent authority, ensuring all conditions under Rule 306(4) are met.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.