Para 3.10.19 — MSO (Audit)
Original Rule Text
3.10.19 Public sector undertakings, autonomous bodies, statutory bodies, etc. under the Central or the State Governments requiring payments to be made on their behalf by either of these Missions will arrange to send a rupee draft of an amount equivalent to the likely expenditure in the designated foreign currency at the prevailing commercial rate of exchange to the Controller of Accounts, Ministry of External Affairs, duly supported by the foreign exchange sanction of the Ministry of Finance (Department of Economic Affairs).
What This Means
When public sector undertakings, autonomous bodies, or statutory bodies need the London or Washington missions to make payments on their behalf, they must first send a rupee draft equal to the estimated foreign currency expenditure (at prevailing commercial exchange rates) to the Controller of Accounts, MEA. This must be accompanied by the foreign exchange sanction from the Ministry of Finance (DEA).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1PSUs/autonomous bodies must send advance rupee draft to Controller of Accounts, MEA
- 2Amount equals estimated expenditure at commercial exchange rate
- 3Foreign exchange sanction from MoF (DEA) is mandatory
- 4Applies to payments through London and Washington missions
- 5Advance deposit system ensures no financial burden on government accounts
Practical Example
A central PSU needs to pay USD 100,000 to an American supplier through the Washington Embassy. The PSU obtains DEA's forex sanction, then sends a rupee draft of approximately Rs 83 lakh (at the commercial exchange rate) to the Controller of Accounts, MEA. Only after this deposit is received does the embassy proceed with the USD payment.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why must PSUs send money in advance?▼
Why is the commercial exchange rate used?▼
What happens if the actual payment differs from the advance deposit?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.