Rule 97 - Personal Deposit Accounts | KartavyaDesk
Original Rule Text
(1) Authority to open Personal Deposit Account. The Personal Deposit Account shall be authorised to be opened by a special order by the concerned Ministry or Department in consultation with the Controller General of Accounts. Such special order or permission shall be issued or granted by the Ministry or Department concerned after it is satisfied that the initial accounts of the moneys to be held in a personal deposit account and disbursed, shall be arranged to be maintained properly and shall be subject to audit. Every personal deposit account so authorised to be opened, shall form part of the Government Account and be located in the Public Account thereof. The provisions relating to “Personal Deposit Account” are contained in para 16.7 of Civil Accounts Manual and Rule 191 to 194 of Central Government Account (Receipts and Payments) Rules. Rule 97 (2) Personal Deposit accounts shall generally be authorised to be opened in the following types of cases: (a) In favour of a Designated Officer appointed for the purpose of administering monies tendered by or on behalf of wards and attached estates under Government management. It shall also be ensured that proper arrangements are made for the maintenance and audit of connected initial accounts; (b) in relation to Civil and Criminal Courts’ deposits, in favour of the Chief Judicial Authority concerned; (c) where, under certain regulatory activities of the Government, receipts are realised and credited to a Fund or Account under the provisions of an Act to be utilised towards expenditure thereunder and no outgo from the Consolidated Fund is involved. (d) where a personal deposit account is required to be created by a law or rules having the force of law and certain liabilities devolve on the Government out of the special enactments; (e) officers commanding units and others concerned in the administration of public funds in the Defence Departments can be authorised to open personal deposit accounts for such funds. CAPITAL AND REVENUE ACCOUNTS Rule 98 Capital Expenditure. Significant
What This Means
Rule 97 of the General Financial Rules (GFR) 2017 deals with Personal Deposit Accounts (PDAs). Think of a PDA as a special bank account that a government department can open to manage specific funds. However, it's not as simple as just opening any account. The concerned Ministry or Department needs to get permission from the Controller General of Accounts first. This ensures that the government knows about and approves of these accounts. The main idea is to keep track of money that doesn't directly come from the government's main budget (Consolidated Fund) but is still managed by the government.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •PDAs require special authorization from the concerned Ministry/Department in consultation with the Controller General of Accounts.
- •Proper accounting and auditing of PDA funds are mandatory.
- •PDAs are part of the Government Account and located in the Public Account.
- •PDAs are typically used for managing funds related to wards/estates under government management, court deposits, regulatory activities, and special enactments.
- •Defence departments can use PDAs for administering public funds.
Practical Example
The Ministry of Social Justice and Empowerment wants to manage funds received on behalf of orphaned children under its care. They decide to open a Personal Deposit Account. Before they can do so, they must consult with the Controller General of Accounts and obtain a special order authorizing the PDA. The Ministry must also demonstrate that they have a system in place to properly track all deposits and withdrawals, and that these transactions will be subject to regular audits. Once approved, the PDA is opened, and all funds received for the children are deposited into this account. All expenditures for the children's welfare are then paid out of this account, ensuring transparency and accountability. Another example is the District Court of Jaipur needing to manage funds deposited as bail money. They would also need a PDA approved under Rule 97.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who needs to approve the opening of a Personal Deposit Account?▼
Are Personal Deposit Accounts subject to audit?▼
Where do Personal Deposit Accounts fall within the government's financial structure?▼
Can any government department open a Personal Deposit Account whenever they want?▼
What happens if a department fails to maintain proper accounts for a Personal Deposit Account?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Rule 97 of the General Financial Rules (GFR) 2017, which authority must be consulted before a Ministry or Department can authorize the opening of a Personal Deposit Account?
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