Para 3.13.24 — MSO (Audit)
Original Rule Text
3.13.24 Loans obtained from autonomous institutions like the Life Insurance Corporation of India, National Cooperative Development Corporation, National Bank for Agriculture and Rural Development, etc. are managed by the departmental officers of Government. On the other hand, the Public Debt offices of the Reserve Bank of India manage the open market borrowings of Government (other than Treasury Bills).
- A. Interest on open market loans
What This Means
Government borrows from two types of sources: autonomous institutions (like LIC, NABARD, NCDC) whose loans are managed by departmental officers, and the open market (bonds and securities, excluding Treasury Bills) whose borrowings are managed by the Public Debt offices of the Reserve Bank of India. The audit approach differs based on who manages the loan.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Loans from autonomous institutions (LIC, NCDC, NABARD, etc.) are managed by departmental officers
- 2Open market borrowings (excluding Treasury Bills) are managed by RBI's Public Debt offices
- 3Different audit approaches apply depending on the loan management arrangement
- 4Treasury Bills are excluded from Public Debt office management
Practical Example
A State Government takes a Rs 300 crore loan from NABARD for rural infrastructure and also raises Rs 1,000 crore through market bonds. The NABARD loan records are maintained by the Rural Development Department, so auditors check those records during departmental audit. The market bond records are maintained by RBI's Public Debt office, and a different audit procedure applies involving coordination between the Accountant General (Audit) and the RBI.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why are Treasury Bills excluded from Public Debt office management?▼
What are some examples of autonomous institutions that lend to the government?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.