Rule 319 — This rule provides a clear instruction on how to h
Original Rule Text
Rule 319 Financial transactions between Government and local bodies shall be rounded off to the nearest Rupee.
VIII. MAINTENANCE OF RECORDS
Rule320 (1) Destruction of Records. Subject to any general or special rules or orders applicable to particular departments as prescribed in their departmental manuals, no Government record connected with
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accounts shall be destroyed except in accordance with the provisions of Appendix -9.
What This Means
This rule provides a clear instruction on how to handle money when the government is dealing with local bodies, such as city councils, village panchayats, or district boards. Essentially, any financial exchange, whether the government is paying them or receiving money from them, must be rounded off to the nearest whole Rupee.
This means you should not include any 'paise' (the fractional part of a Rupee) in these specific transactions. For example, if a calculation results in an amount like ₹100.49, it should be rounded down to ₹100. If the amount is ₹100.50 or more, like ₹100.51, it should be rounded up to ₹101. The main goal of this rule is to simplify accounting and ensure that all such payments or receipts between the government and local bodies are recorded and processed in full Rupee denominations.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1This rule applies exclusively to financial transactions conducted between the Government and local bodies.
- 2The primary objective is to simplify financial dealings by eliminating fractional amounts (paise).
- 3All monetary amounts involved in these transactions must be rounded to the nearest whole Rupee.
- 4If the paise component is 49 or less, the amount should be rounded down to the preceding whole Rupee.
- 5If the paise component is 50 or more, the amount should be rounded up to the next whole Rupee.
Practical Example
Imagine the District Collectorate in Bhopal needs to release a quarterly grant to the Sehore Nagar Palika for urban infrastructure maintenance. The total calculated grant amount, based on approved budgets and expenditure reports, comes out to be ₹7,89,123.60. According to Rule 319, the Accounts Officer, Mr. Rajesh Kumar, cannot issue a payment for ₹7,89,123.60. Since the paise component is 60 (which is 50 paise or more), he must round the amount up to the nearest Rupee. Therefore, the actual grant released to the Sehore Nagar Palika will be ₹7,89,124.
Conversely, if the Sehore Nagar Palika had to pay a specific fee to the District Collectorate, and the calculated fee was ₹2,567.25, Mr. Kumar would round this amount down to ₹2,567 for the receipt, as 25 paise is less than 50 paise. This ensures all financial records between these two entities are consistently maintained in whole Rupees.
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.