Para 7.7 — MSO (A&E)
Original Rule Text
7.7 Except where by law or rules having the force of law Personal Deposit Accounts are created by transferring funds from the Consolidated Fund for discharging liabilities of the Government arising out of special enactments, Personal Deposit Accounts, created by debit to the Consolidated Funds should be closed at the end of the financial year by minus debit of the balance to the relevant service heads in the Consolidated Fund, the Personal Deposit Accounts being opened next year again, if necessary in the usual manner.
What This Means
Personal Deposit Accounts funded from the Consolidated Fund must generally be closed at the end of each financial year. The unspent balance is returned to the relevant service heads in the Consolidated Fund through a 'minus debit.' If needed, the account can be reopened the next year in the usual manner. The exception is when a law or rule with legal force creates the account for discharging specific government liabilities under special enactments.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Personal Deposit Accounts from Consolidated Fund must close at year-end
- 2Unspent balance is reversed via minus debit to the original service heads
- 3Account can be reopened next financial year if necessary
- 4Exception: accounts created by law for discharging liabilities under special enactments
- 5Prevents indefinite parking of Consolidated Fund money in deposit accounts
Practical Example
The Disaster Relief Authority has a Personal Deposit Account funded by Rs 10 crore from the Consolidated Fund for flood relief. At March 31, Rs 2 crore remains unspent. Since no special enactment governs this account, the Rs 2 crore balance is reversed to the Disaster Relief head in the Consolidated Fund via a minus debit entry. In April, a fresh allocation is made and the PDA is reopened if required.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a 'minus debit'?▼
When does the exception apply?▼
Why must these accounts be closed annually?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.