Para 20.16 — MSO (A&E)
Original Rule Text
20.16 Whenever any case of loss in which there is a possibility of the Reserve Bank of India being made liable to Government either in respect of operation on Govt. account conducted by itself or by its agents or otherwise comes to the notice of the Accountant General, he should call for such further information as he may require on the subject. On receipt of this information which must be obtained without delay he should at once make a report of the case to the Finance Ministry/Department of the Government concerned for such action as it may deem fit.
# ANNUAL REVIEW OF THE WORKING OF TREASURIES
What This Means
Whenever the AG discovers a loss case where the Reserve Bank of India could potentially be held liable — either for its own operations on government accounts or through its agents — the AG must promptly gather all necessary information and immediately report the case to the Finance Ministry or Department of the concerned Government for appropriate action.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Covers loss cases where RBI may be liable to the Government
- 2Applies to RBI's own operations or those conducted through its agents
- 3AG must call for further information without delay
- 4Immediate report must be made to the Finance Ministry/Department
- 5Government decides what action to take against RBI
Practical Example
The AG (A&E) discovers that a bank acting as RBI's agent at a sub-treasury made duplicate payments on government securities, resulting in a loss of Rs. 10 lakh. Since the RBI may be liable for its agent's actions, the AG immediately gathers transaction details and reports the case to the State Finance Department, recommending they take up the matter with RBI for recovery.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the AG have the power to recover losses directly from the RBI?▼
What kind of RBI operations could create government liability?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.