Para 7.8 — MSO (A&E)
Original Rule Text
7.8 The scrutiny of withdrawals in the case of Personal Deposits is confined to seeing that there are proper paid cheques in support of the withdrawals.
What This Means
For Personal Deposit accounts, the AG office's scrutiny of withdrawals is limited to checking that each withdrawal is supported by a proper paid cheque. Unlike other deposit types, no detailed verification of the purpose or admissibility of each withdrawal is required at the AG level — this responsibility rests with the account holder.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Scrutiny is confined to verifying proper paid cheques support each withdrawal
- 2No detailed purpose or admissibility check at AG level
- 3Simpler verification compared to other deposit categories
- 4Account holder bears responsibility for proper utilization
Practical Example
The AG office receives the monthly schedule for a Personal Deposit Account of the State Legal Services Authority. The checking clerk verifies that each of the 8 withdrawals totaling Rs 4,50,000 during the month has a corresponding paid cheque properly signed and acknowledged. She does not need to verify what each payment was for — only that valid cheques exist.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is the scrutiny limited for Personal Deposits?▼
What constitutes a 'proper paid cheque'?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.