Para 3.13.8 — MSO (Audit)
Original Rule Text
3.13.8 The financial rules and orders issued by Government prescribe the authority which should maintain detailed accounts of loans and watch recoveries and payment of interest. In cases where the Accountants General (A&E) maintain such detailed accounts, subsidiary loan registers are also maintained by them for advising the loanees about the instalments of principal and interest falling due periodically and for watching their remittance. After departmentalisation of accounts, the Pay and Accounts Officers also maintain similar subsidiary registers in respect of loans the detailed accounts of which are
maintained by them. These registers contain details, in respect of each loan, of the amount disbursed, the interest accrued from time to time, the instalments of principal and interest paid by the beneficiaries and the balances outstanding. The Accountants General (A&E) and the Pay and Accounts Officers also maintain suitable broadsheets in respect of loans accounted for in their books. Other departmental officers, who are required to administer loans and maintain the related accounts, also maintain similar subsidiary registers and broadsheets. In the case of loans granted by Government of India to the State Governments, besides maintaining detailed accounts, the State Accountants General (A&E) also arrange for payment of the instalments of principal and interest due to the Government of India. This is arranged through the Reserve Bank of India after obtaining the consent of the State Governments wherever necessary.
What This Means
Various authorities maintain detailed loan accounts depending on the type of loan. Accountants General (A&E) maintain subsidiary loan registers for loans they account for, advising borrowers about due instalments and watching repayments. After departmentalisation of accounts, Pay and Accounts Officers also maintain similar registers. For loans from the Government of India to State Governments, the State AG (A&E) maintains accounts and arranges payments through RBI.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Financial rules prescribe which authority maintains detailed loan accounts and watches recoveries
- 2AGs (A&E) maintain subsidiary loan registers with disbursement details, interest accrued, and outstanding balances
- 3Pay and Accounts Officers maintain similar registers after departmentalisation of accounts
- 4Broadsheets are maintained for aggregated loan tracking
- 5For Central loans to States, the State AG (A&E) arranges payment through RBI with State Government consent
Practical Example
The AG (A&E) in Maharashtra maintains a subsidiary loan register for a Rs 100 crore Central Government loan to the state for a highway project. Each quarter, the register records interest accrued (Rs 1.5 crore), the instalment paid (Rs 5 crore principal + Rs 1.5 crore interest), and the updated outstanding balance. The AG sends reminder letters to the State Finance Department before each due date and arranges payment through RBI after obtaining the State Government's consent.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a subsidiary loan register?▼
What is a broadsheet in loan accounting?▼
Why is RBI involved in Central-to-State loan payments?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.