Para 6.3.5 — MSO (Audit)
Original Rule Text
6.3.5 The public sector banks also transact Government business in respect of the National Defence Fund, Annuity Deposit Scheme, Compulsory Deposit Scheme, 1963, Government Deposit Scheme, 1968, Public Provident Fund Scheme and Special Deposit Scheme, 1975 of the Government of India. Under the scheme for payment of pension through public sector banks, these banks also make pension payments to Central and State Government pensioners. The records connected with these transactions should be
checked in audit with reference to the provisions of the schemes concerned and in accordance with the instructions in the Secret Memorandum of Instructions regarding the Extent of Audit. As far as possible the same inspection parties should be entrusted with the audit of all Government transactions in the branch of a public sector bank, so as to avoid multiple visits to the branches for purposes of audit.
# Audit of Pension Payments
What This Means
Public sector banks also handle transactions for special government schemes like National Defence Fund, Public Provident Fund, pension payments to Central and State Government pensioners, and other deposit schemes. Audit must check these transactions against the rules of each scheme. To avoid multiple visits, the same inspection party should ideally audit all government transactions at a branch in one visit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Banks handle transactions for National Defence Fund, PPF, pension payments, and other government schemes
- 2Audit must check compliance with each scheme's specific provisions
- 3Same inspection party should audit all government transactions at a branch to avoid multiple visits
- 4Pension payments to Central and State Government pensioners through banks must be audited
- 5Secret Memorandum of Instructions governs the extent of audit for these transactions
Practical Example
An audit party visiting an SBI branch that handles both Ministry of Defence payments and pension disbursements for 500 retired Central Government employees audits both sets of transactions in a single visit. They verify pension payments against PPO details, check PPF account operations against scheme rules, and examine National Defence Fund transactions — all during the same inspection to maximise efficiency.
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 one party audit all government transactions at a branch?▼
Which specific schemes must be checked during bank inspection?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.