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Rule 7 - Custody of Funds | KartavyaDesk

RPR

Original Rule Text

(2) The custody of moneys held in the hands of Government officers or with authorised officers or in the cash or departmental treasure chests or standing in the Government Account shall be regulated as specified in the Subsidiary Instructions.

What This Means

Rule 7(2) of the Receipt and Payment Rules focuses on the secure handling of government funds. It essentially states that any money held by government officers, authorized individuals, in cash boxes, departmental treasuries, or within the Government Account itself, must be managed according to specific guidelines outlined in the Subsidiary Instructions. Think of it as a set of instructions to ensure that all government money is safe and accounted for.

This rule applies to all government employees who handle public funds, regardless of their position. It's crucial because it establishes a framework for preventing misuse, loss, or theft of government money. The Subsidiary Instructions provide detailed procedures for things like storing cash, making payments, and reconciling accounts. By following these instructions, government employees can ensure they are handling public funds responsibly and in compliance with regulations.

Essentially, Rule 7(2) is a foundational principle for financial integrity within the government. It emphasizes the importance of following established procedures to safeguard public money and maintain accountability.

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

Key Points

  • •Rule 7(2) governs the custody of government funds held by various entities.
  • •Subsidiary Instructions provide the detailed procedures for managing these funds.
  • •The rule applies to all government officers handling public money.
  • •The primary goal is to prevent misuse, loss, or theft of government funds.
  • •Compliance with Subsidiary Instructions is mandatory for all concerned.

Practical Example

Mr. Sharma, a Block Development Officer (BDO), receives a grant of ₹5,00,000 for a rural sanitation project. According to Rule 7(2) and the Subsidiary Instructions, he cannot simply keep the cash in his office drawer. Instead, he must deposit the funds into the designated government account and follow the prescribed procedures for making payments to contractors. He needs to maintain proper records of all transactions, including receipts and invoices, and reconcile the account regularly. If he needs to keep a small amount of cash for petty expenses, the Subsidiary Instructions will specify the maximum amount allowed and the security measures required for its safekeeping. Failure to comply with these instructions could result in disciplinary action and potential legal consequences.

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

Frequently Asked Questions

What are Subsidiary Instructions mentioned in Rule 7(2)?▼
Subsidiary Instructions are detailed guidelines that provide specific procedures for handling government funds, including storage, disbursement, and reconciliation. They supplement the main Receipt and Payment Rules.
Who is responsible for ensuring compliance with Rule 7(2)?▼
All government officers who handle public funds are responsible for complying with Rule 7(2) and the associated Subsidiary Instructions. Supervisory officers are also responsible for ensuring that their subordinates comply.
What happens if I violate Rule 7(2)?▼
Violations of Rule 7(2) can lead to disciplinary action, including suspension, demotion, or even dismissal. In some cases, legal action may also be taken, especially if there is evidence of fraud or misappropriation of funds.
Where can I find the Subsidiary Instructions relevant to my department?▼
The Subsidiary Instructions are typically issued by the respective departments or ministries. You should consult your department's finance or accounts section to obtain a copy of the relevant instructions.
Does Rule 7(2) apply to electronic transactions?▼
Yes, Rule 7(2) and the Subsidiary Instructions also apply to electronic transactions. The instructions will specify the security measures and procedures for handling electronic funds transfers and maintaining electronic records.

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 7(2) of the Receipt and Payment Rules, the custody of government moneys is regulated as specified in which document?

Related Rules

GeneralReceipt & Payment Rules, 2022 - GeneralRule 1Receipt & Payment Rules, 2022 - Rule 1Rule 11Receipt & Payment Rules, 2022 - Rule 11Rule 23Receipt & Payment Rules, 2022 - Rule 23Rule 12Receipt & Payment Rules, 2022 - Rule 12

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