Para 3.10.13 — MSO (Audit)
Original Rule Text
3.10.13 Normally other Missions are not required to invest funds surplus to their requirements in interest-bearing fixed deposits and make efforts to neutralise its impact by cancelling or reducing future or successive remittances. However, large funds are sometimes remitted to Missions prior to the visits of important dignitaries, Indian Naval ships, etc. and the visits are subsequently cancelled resulting in these funds remaining unutilised for the intended purpose. Similarly, on occasions, the total miscellaneous receipts of some of the Missions are more than their monthly expenditure. If the Missions concerned retain such surplus funds for some time, these can be invested in short-term deposits so that Government does not lose on this account. After every third month, the Mission should seek the Ministry’s directions/approval in regard to the future disposal of the surplus funds or return them, after retaining an amount representing their requirements for four weeks only, quarterly in April, July, October and January through a Bank Draft in hard currency drawn in favour of the Controller of Accounts, Ministry of External Affairs. Audit should verify that these requirements are being complied with.
# Payments by High Commission in London and Embassy in Washington
What This Means
Missions other than London and Washington normally should not invest surplus funds in fixed deposits — instead, they should cancel or reduce future remittances. However, when large funds are remitted for events (like dignitary visits) that get cancelled, or when a mission's receipts exceed its expenditure, the surplus should be invested in short-term deposits. After every three months, the mission must either get MEA directions on surplus funds or return them (keeping only four weeks' requirements) quarterly via bank draft to the Controller of Accounts, MEA.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Most missions should not normally invest surplus funds
- 2Surplus should be handled by cancelling/reducing future remittances
- 3Exception: cancelled events or high receipts may create unavoidable surplus
- 4Such surplus should be invested in short-term deposits
- 5Quarterly review: retain only four weeks' requirement, return rest to MEA
- 6Returns made in April, July, October, January via hard currency bank draft
Practical Example
The Indian Embassy in Paris received EUR 200,000 for a Prime Minister's visit that was postponed. Since these funds will remain idle, the embassy invests EUR 150,000 in a 60-day deposit, retaining EUR 50,000 for regular operations. At the next quarterly review in July, it seeks MEA directions — since the visit is still uncertain, MEA instructs the embassy to return EUR 100,000 via bank draft to the Controller of Accounts.
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 most missions not invest surplus funds?▼
Why is the quarterly return cycle important?▼
What does audit verify regarding surplus funds at missions?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.