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Rule 6 - Government Revenue Deposit | KartavyaDesk

RPR

Original Rule Text

Immediately on receipt of Government revenues, receipts or dues of a department, the bank shall cause them to be credited into the Government Account held by the Reserve Bank in accordance with the procedure specified by the Reserve Bank in consultation with the Head of Accounting Organisation of the concerned department and Controller General of Accounts.

What This Means

Rule 6 of the Receipt and Payment Rules focuses on how government money is handled as soon as it's received. Essentially, it states that when a bank receives any government revenue, receipts, or dues on behalf of a government department, the bank must immediately deposit that money into the government's account held at the Reserve Bank of India (RBI). This ensures that all government funds are promptly and securely deposited into the central government's treasury.

The rule applies to all banks that handle government transactions. It affects all government departments and their employees who are involved in collecting revenue or receiving payments. The specific process for depositing the money is determined by the RBI in consultation with the accounting head of the relevant department and the Controller General of Accounts (CGA). This collaborative approach ensures that the deposit process is efficient, secure, and compliant with accounting standards.

In short, Rule 6 is about speed and security. It makes sure that government money doesn't sit around in bank accounts longer than necessary, reducing the risk of fraud or mismanagement and ensuring funds are available for government operations.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Banks must immediately credit government revenues to the Government Account held at the RBI.
  • •This applies to all types of government revenues, receipts, and dues.
  • •The procedure for crediting the funds is determined by the RBI in consultation with the department's accounting head and the CGA.
  • •The rule aims to ensure the prompt and secure deposit of government funds.
  • •It affects all banks handling government transactions and all government departments involved in revenue collection.

Practical Example

The Department of Land Resources collects property tax from citizens. Mr. Sharma, a citizen, pays his property tax of ₹15,000 at a branch of the State Bank of India (SBI). According to Rule 6, the SBI branch must immediately credit this ₹15,000 into the Government Account held by the RBI. The specific procedure for this transfer, including the account numbers and codes, would have been previously defined by the RBI in consultation with the Principal Accounts Officer of the Department of Land Resources and the Controller General of Accounts. This ensures the money is quickly and correctly deposited into the government's treasury.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What happens if a bank delays crediting the government account?▼
Delays in crediting the government account can lead to penalties and may be considered a violation of banking regulations. The RBI has the authority to take action against banks that fail to comply with Rule 6.
Who is responsible for ensuring compliance with Rule 6 within a government department?▼
The Head of the Department and the Principal Accounts Officer are primarily responsible for ensuring that all revenue collection and deposit procedures comply with Rule 6 and other relevant regulations.
Does Rule 6 apply to online payments made to the government?▼
Yes, Rule 6 applies to all forms of government revenue, including online payments. Banks must ensure that online payments are also credited to the Government Account at the RBI immediately, following the prescribed procedure.
What is the role of the Controller General of Accounts (CGA) in this process?▼
The CGA plays a crucial role in setting accounting standards and procedures for government transactions. They consult with the RBI to ensure that the process of crediting government revenues is efficient, transparent, and compliant with accounting principles.
How does this rule help in preventing corruption?▼
By mandating immediate deposit into the government account, Rule 6 minimizes the time during which funds could be misappropriated or diverted. This reduces opportunities for corruption and enhances accountability.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 6 of the Receipt and Payment Rules, into which account should a bank immediately credit government revenues?

Related Rules

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