Para 11.17 — MSO (A&E)
Original Rule Text
11.17 As the receipts and payments on account of Reserve Bank of India Remittances are required to be cleared with the Bank daily and in the accounts of the month in which the transactions originate, there should be ordinarily no balance under the head "Reserve Bank of India Remittances" at the close of the year. If any outstanding balance should occur, prompt action should be taken for its adjustment. The circumstances which lead to the balance and the action taken for its clearance should also be explained
# OTHER REMITTANCE HEADS
- CASH BALANCES
in the 'Review' in the Finance Accounts of the year.
What This Means
Since RBI Remittance transactions are supposed to be cleared daily and within the same month's accounts, there should ordinarily be no outstanding balance under this head at year-end. If any balance does remain, the AG must take immediate action to clear it. The circumstances causing the balance and the steps taken to resolve it must be explained in the 'Review' section of the Finance Accounts for that year.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1RBI Remittances must be cleared daily and within the same month
- 2There should normally be zero balance at year-end under this head
- 3Any outstanding balance requires immediate action for clearance
- 4Circumstances and corrective action must be explained in the Finance Accounts review
Practical Example
At the close of the financial year, the AG finds Rs. 15 lakh outstanding under 'Reserve Bank of India Remittances'. This should not exist since RBI transactions clear daily. Investigation reveals that two treasury transactions on March 31 were processed by the RBI on April 1 due to a system delay. The AG immediately arranges for the adjustment and includes a note in the Finance Accounts Review explaining the timing issue and confirming clearance in April.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why should RBI Remittance balances be zero at year-end?▼
Where must the AG explain any outstanding RBI Remittance balance?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.