Para 3.13.25 — MSO (Audit)
Original Rule Text
3.13.25 Audit of interest payments on open market loans managed by the Public Debt offices is divided between the Indian Audit and Accounts Department and the Public Debt office concerned. The latter’s responsibilities in regard to these payments extend to verifying that (1) the amount of promissory note is correctly stated in the voucher; and (2) the interest has not been paid twice for the same half-yearly period.
What This Means
The audit of interest payments on government's open market loans is shared between two bodies. The Public Debt office of RBI is responsible for checking that the promissory note amount is correctly stated in the voucher and that interest has not been paid twice for the same half-year period. The Indian Audit and Accounts Department handles the remaining audit responsibilities.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit of interest on open market loans is divided between IAAD and RBI's Public Debt office
- 2Public Debt office verifies the promissory note amount is correctly stated in the voucher
- 3Public Debt office checks that interest has not been paid twice for the same half-yearly period
- 4All other audit responsibilities rest with the Indian Audit and Accounts Department
Practical Example
The RBI Public Debt office in Mumbai processes interest payments on Union Government bonds. For a Rs 1,000 crore bond series, the Public Debt office verifies that each interest voucher correctly states the face value of the promissory note and cross-checks its records to confirm interest for the April-September half-year has not been paid to the same holder twice. Meanwhile, the AG (Audit) independently verifies the interest calculation, income tax deduction, and arithmetic accuracy of the vouchers.
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 audit responsibility divided between two bodies?▼
What is a half-yearly interest period?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.