PART VI

TRANSFER OF MONEYS STANDING

IN THE GOVERNMENT ACCOUNT

GENERAL

308. The rules in this Part apply primarily to transfers of Government moneys¬

(a) from one treasury to another;
(b) from the treasury balance to the currency chest balance in a treasury or vice versa; and
(c) from a treasury to the Bank or vice versa.

Such transfers are made to prevent any unnecessary locking up of moneys in treasuries and to replenish treasuries in which the cash balance has run short. The transfers are facilitated by the maintenance of currency chests in such district treasuries as do not transact their cash business through the Bank and in most of the sub treasuries which do not transact their cash business through the Bank. (See Rules 312* and 313 below).

𝗤1.Transfer of moneys is made to prevent any unnecessary locking of money, in treasuries. In the following transfers........ is not supported by rule:

(A) From one treasury to another

(B) From the treasury balance to the currency chest balance and vice versa

(D) From one scheme to another scheme and vice versa

Correct Answer:-Option:-D

The detailed procedure to be followed in regard to transfers of funds of the kinds mentioned above is indicated below:

1. Resource

309. Maximum normal cash balance.—

In January of each year, the Government fix the maximum normal balance for each district for the next financial year,

i.e., the amount which the total treasury cash balances in the district should never exceed except in very abnormal circumstances. When the Government consider it necessary, they may fix a higher figure as the maximum normal balance for a district for the months of the year when transactions are heavy. The maximum normal balances so fixed are communicated to the respective Treasury Officers.

𝗤2. Maximum normal cash balance of a treasury for each district is fixed by:

(A) Treasury Director

(B) Reserve Bank of India

(C) State Govt

(D) State Bank of India

Correct Answer:-Option:-C

𝗤5.Who will fix the maximum normal cash balance for each district treasury for the next financial year?

(A) Director of Treasuries

(B) Chief Secretary

(D) State Government

The Treasury Officer should then fix the maximum normal balance for each treasury in his district which maintains a cash balance (i.e., each treasury which does not transact its cash business through the bank) and submit to the Government a statement (in duplicate) showing how he has distributed the maximum normal balance fixed for the district. If he alters this distribution later, he should submit to the Government a statement (in duplicate) showing the revised distribution.

The actual cash balance of a district or a sub treasury should ordinarily be kept much below the maximum normal balance prescribed for it.

The authority to fix the maximum normal cash balance for each Sub Treasury in a district, is the

(A) Accountant General

(B) Finance department

(D) District Treasury Officer

Correct Answer:-Option-D

The cash balance in treasuries including the small coin and uncurrent coin held in them should be kept at a minimum at all times so that the Government's credit balance with the Reserve Bank may be as large as possible.

The Treasury and Sub Treasury Officers should, therefore, promptly transfer any treasury balances in the form of notes and rupees which are in excess of requirements by making deposits into their currency chests. Such transfers from and to the currency chests should be reported to the Director so as to enable him to verify whether the Treasury Officers are promptly transferring surpluses of cash to the currency chests. When a surplus of small coin accumulates in any treasury in his district, the Treasury Officer should, if possible, order that it be remitted within the district to another treasury which needs it or to the Bank; when that is not possible he should request the Currency Officer, Madras to order the remittance of the surplus to some place outside the district (See Rules 317 to 319 and 327 to 334 below).

𝗤3. The cash balance in treasuries should be kept at a minimum level at all times so that:

(A) The Government's credit balance with the Reserve Bank may be as large as possible

(B) The treasury is spared of retaining excess cash

(D) Risks in handling huge balances can be avoided

ANSWER:- (A) The Government's credit balance with the Reserve Bank may be as large as possible

𝗤4.The maximum normal balance of cash for retention by a sub treasury in an year is fixed by:

(A) Director of Treasuries

(B) Accountant General

(D) Revenue Department

ANSWER:- (C) District Treasury Officer concerned

310. Weekly cash balance reports.—The Treasury Officers of the non-banking district and sub treasuries should forward a weekly cash balance report in Form No. T.R. 89 to the Director of Treasuries every Saturday after the close of business giving the balances for each day of the week. If Saturday happens to be a holiday, the report should be despatched on the last working day of the week. In the report, the reason for retention of cash, if any, in excess of the limits prescribed and the steps taken to bring down immediately the cash balance within permissible limits should be clearly stated. Whenever, cases of retention of excess cash are noticed, the Director of Treasuries will, after investigation report such cases, to Government for appropriate action. While reporting such cases, the Director should clearly record his opinion, whether the retention of excess cash was inevitable.

𝗤6.A Treasury Officer of a non-banking treasury should forward a weekly cash balance report to:

(A) Accountant General

(B) Director of Treasuries

(D) Dy. Director of Treasuries

ANSWER;-(B) Director of Treasuries

𝗤7.The cash balance report of a non -banking District/Sub in form TR 89: treasuries should be forwarded to the Director of Treasuries

(A) on the last working day of the week.

(B) on the last working day of a month

(D) on every working day after the close of business

ANSWER:-(A) on the last working day of the week.

311. Monthly cash balance report.—On the third working day of each month except April, the Treasury Officer should send a cash balance report in Form T.R. 35 to the Government in the Finance Department. The report for March should be despatched not later than the sixth working day of April.

The total balance should be stated in the report in words and its distribution between the district treasury and the sub treasuries should be exhibited; the report should show separately the amounts held in each of them in each denomination of notes/coins. In the case of the balance in the district treasury, the report should show also the amount under double locks and that under the Treasurer's single lock. The figures entered in the report should be punctuated and should exhibit units under units, tens under tens and so on, since any misplacement of the figures causes great inconvenience when the addition is

checked.

In a district where any treasury transacts its cash business through the Bank, the report should show only the details of the balances at places at which the treasury does not transact its cash business through the Bank, but a separate memorandum should be attached showing the amount of small coin of each denomination and the amount of uncurrent coin of each class held by the Bank as reported by the Agent or Agents on the last day of each month.

The memorandum on the reverse of Form T.R. 35 should show—

(i) The remittances to other district despatched in the past month, and those, if any, despatched in previous months for which first acknowledgments have not been received, with date of despatch of each remittance; and

(ii) the remittances received from other districts in the past month with the dates of despatch and receipt of each remittance and of the despatch of the first and the final acknowledgments.

This memorandum should show only remittances which have been debited or credited in the treasury accounts, and should not include transactions of the following kinds:¬

(i) Currency remittance, i.e., remittances between two currency chests or between a currency chest and the Issue Department of the Reserve Bank of India, Madras which do not affect the treasury account.

(ii) Remittances not brought to account in the month to which the report relates, unless they are remittances despatched in previous months for which first acknowledgments have not been received.

(iii) Exchanges of one kind of money held in the treasury balance for another kind taken from the currency chest. (The deposit of money into and withdrawal of money from the currency chest on account of any such exchange should be done on the same day, and should not be shown in the treasury account.)

The Director is responsible for seeing that the cash balance report is submitted punctually; and delay in submitting it will be treated as a serious treasury irregularity.

312. [Deleted]

SUPPLY OF FUNDS TO TREASURIES
AND SUB TREASURIES

General

313. The currency chests maintained at treasuries contain rupees and notes which belong to the Reserve Bank of India.

𝗤8.The contents of currency chest is property of

A:-State Bank of India

B:-State Bank of Travancore

C:-Treasury Director

D:-Reserve Bank of India

Correct Answer:- Option-D

𝗤9.The currency chests maintained at treasuries contain rupees and coins which belong to _________

A:-Reserve Bank of India

B:-State Bank of India

C:-State Bank of Travancore

D:-None of these

Correct Answer:- Option-A

A permanent currency chest is maintained at each district treasury and at each sub treasury where the transactions are of such a magnitude that the additional facility for the transfer of funds thus afforded will make it possible to avoid locking up money unnecessarily in the treasury balance or to reduce the frequency of remittances of coin and notes. When however, the treasury transacts its cash business through a branch of State Bank of India (acting as the agent of the Reserve Bank) or a branch of State Bank of Travancore (acting as the agent of the State Bank of India), the currency chest is kept in the sole custody of the State Bank of India or the State Bank of Travancore, as the case may be, and the Government are in no way concerned with the operations on it.

When a sub treasury has no permanent currency chest, a temporary currency chest should, ordinarily be opened during the land revenue collecting season in order that money received in excess of requirements may be transferred immediately to the Government's account with the Reserve Bank by making deposits in the currency chest. Temporary currency chests for purposes other than meeting the requirements of the revenue collecting season may also be opened at sub treasuries for periods not exceeding six months. The District Treasury Officer has power to order the opening of a temporary currency chest at a sub treasury in his district when necessary. He should report the opening of a temporary chest and the amount of the first deposit into it by telegram to the Currency Officer.

314. Under the provisions of the Reserve Bank of India Act, 1934 (India Act II of 1934), the total amount of the currency and Bank notes in circulation, which constitute the liabilities of the Issue Department of the Bank, should not exceed the assets held by the Issue Department in gold, sterling securities, rupee coin and rupee securities. A part of these assets is held in the currency chests in the various treasuries in the form of rupee coin. The notes held in the currency chests are not notes in circulation and pass into circulation only when they are transferred to the treasury balances. The deposit of notes intoa currency chest decreases the amount of notes in circulation i.e., the liabilities of the Issue Department of the Bank, and the deposit of rupees into a currency chest increases the assets of the Issue Department of the Bank. A deposit of notes and/or rupees into a currency chest thus enables the Bank to issue notes and/or rupees from a currency chest elsewhere upto the amount deposited without affecting the adequacy of the assets of the Issue Department of the Bank in relation to its liabilities. Similarly, the effect of a withdrawal from a currency chest may be cancelled by an equal deposit into another currency chest.

In a district in which there is no treasury which transacts its cash business through the Bank, every operation on a currency chest is balanced by an "opposite transfer" carried out in another currency chest situated either at the headquarters of the district or within the district.

In a district in which there is at least one treasury which transacts its cash business through the Bank, every operation on a currency chest which is in the sole custody of the Government is balanced by an "opposite transfer" carried out under the instructions of the Currency Officer at the Madras Office of the Reserve Bank between its currency chest and the Government's account with the Banking Department of the Bank. The effect of an operation on such a currency chest together with the "opposite transfer" in Madras is from the Government's point of view, a remittance from the treasury balance to the Government's account with the Reserve Bank or vice versa.

315. Treasuries which do not transact their cash business through the Bank.—The Treasury Officer is responsible for keeping sufficient funds to meet disbursements at each treasury in his district which does not transact its cash business through the Bank, and for seeing that the treasury balance at each such treasury is kept as low as possible at all times, so that no money is locked up unnecessarily and the Government's balance with the Reserve Bank is always as high as possible.

NOTE—The Currency Officer will be responsible for maintaining the required form of currency chests. It is the duty of the Treasury Officer to see that currency chests at district and sub treasuries are adequately stocked with notes and rupees to meet all reasonable demands for change.

As far as possible, all transfers of funds from and to the treasury balance at a treasury which has a currency chest should be made only through the currency chest and actual remittances should be limited to remittances of small coin and uncurrent coin (See Rules 327 to 331 below).

316. Treasuries which transact their cash business through the Bank.—At a district treasury which transacts its cash business through the Bank the Manager or Agent of the Bank, as the case may be, is responsible for the provision of funds to meet disbursements on account of Government transactions. In order to enable him to make the necessary provision, the Treasury Officer should send him on each Saturday a statement showing as accurately as possible for each of the following two weeks:¬

1 the probable receipts and disbursements on Government account at the district treasury; and

2 the probable receipts from or remittances to sub treasuries at the district treasury.

The Treasury Officer should also inform the Bank at once of any expected payment exceeding ` 20,000 in amount, as soon as he receives information that the payment will have to be made.

This instruction applies mutatis mutandis to sub treasuries which transact their cash business through the Bank.

At district treasury which transacts their cash business through bank the Treasury Officer should send a statement showing the following details on each Saturday except one of the following. Which is that?

(A) The probable receipt and displacement

(B) Probable receipts from or remittance to sub treasures

(D) Expected loan payments exceeding 2,00,000

Correct Answer:-Option:-D

II. Remittances

317. Transfers and remittances of moneys standing in the Government account are of the following kinds, namely:—

A. TRANSFERS THROUGH CURRENCY

A transfer through currency is a transfer of money between the treasury balance and the currency chest at one place in consideration of an opposite transfer of the same amount at another place, e.g., a transfer at a district treasury against an opposite transaction at a sub treasury in the same district and a transfer at a treasury against an opposite transaction at the Reserve Bank in Madras under the instruction of the Currency Officer.

B. REMITTANCES OF COIN, NOTES

These comprise—

(i) Bank remittances, i.e., remittances from the Bank to a treasury which does not transact its cash business through the Bank or vice versa.
(ii) Remittances between treasuries, i.e., remittances from the treasury balance at one treasury to the treasury balance at another treasury.

NOTE—This method of remittance applies only to remittances to and from sub treasuries where there is no currency chest and to the remittances of small coin, uncurrent coin and foreign notes and coin between treasuries.

(iii) Small coin depot remittances, i.e., remittances of small coin from a small coin depot to a treasury or vice versa.

NOTE—Remittances from one small coin depot to another are purely central transactions and the procedure prescribed in the Central Treasury Rules should be followed in regard to such remittances.

(iv) Mint remittances i.e., remittances of uncurrent coin, or coin withdrawn from circulation, from a treasury to a Mint.

𝗤10. Mint remittance means

A:-remittance between treasuries

B:-remittance of notes and rupees from the mint to the issue department of RBI

C:-remittance of uncurrent coin, or coin withdrawn from circulation, from a treasury to a mint

D:-none of the above

Correct Answer:- Option-C

𝗤10A.The sub-treasury officer shall at once send a report in Form TR 38 of each deposit into the currency chest to the:

(A) Treasury Director

(B) Treasury Officer

(D) Finance Secretary

ANSWER:- (A) Treasury Director

NOTE—Currency remittances i.e., remittances of notes or rupees from one currency chest to another or between a currency chest and the Issue Department of the Reserve Bank of India, Madras, do not affect the Government account since the contents of the currency chests are property of the Reserve Bank of India. A remittance of this kind does not involve locking up any Government funds, and remittances of notes or rupees should therefore be sent wherever possible, as currency remittances. Subject to any general or special instructions that may be issued in this behalf by the Currency Officer, Madras, the provisions of Rules 324 to 368 below regarding remittances of coin and notes should be followed in regard to currency remittances also.

𝗤11.Mint Remittance means:

(A) Remittance of all types of coins to a mint from treasury

(B) Remittance of uncurrent coin from treasury to a mint

(D) Remittance of coins in exchange of notes

ANSWER:-(B) Remittance of uncurrent coin from treasury to a mint

A. TRANSFERS THROUGH CURRENCY

(a) In a district where there is no treasury which transacts its cash business through the Bank

318. Transfers of funds between the treasury balance and the currency chest at a District Treasury.—The Treasury Officer may, at any time, deposit surplus funds into the currency chest, and shall so deposit the surplus notes and rupees whenever the treasury balance is larger than is necessary. Whenever net receipts cause the treasury balance to exceed the maximum normal balance prescribed for it (See Rule 309 above), the Treasury Officer shall deposit the amount in excess of immediate requirements into the currency chest. When additional funds are required to meet net disbursements, the Treasury Officer shall withdraw from the currency chest the funds needed to replenish the treasury balance.

Whenever the Sub Treasury balance is larger than necessary, the S.TO may deposit the surplus cash to the
(A) District treasury
(B) Currency chest
(C) Reserve bank
(D) Nearby treasury.
Correct Answer:-Option-B

The Treasury Officer shall report every transfer of funds from the treasury balance to the currency chest or vice versa at once to the Currency Officer by telegram or by letter if a letter will reach Madras(=CHENNAI) within 24 hours, and shall also send the necessary chest slip in Form T.R. 38 [See Rule 152 (v)].

𝗤12.Transfer of funds between treasury balance and currency chest shall be reported at once to:
(A) Currency Officer Chennai
(B) Accountant General
(C) Treasury Director
(D) Finance Secretary
ANSWER:-(A) Currency Officer Chennai

319. Transfers of funds between the treasury balance and the currency chest at a sub treasury.—

(i) The Sub Treasury Officer may, at any time deposit surplus funds into the currency chest, and shall so deposit the surplus notes and rupees whenever the sub treasury balance is larger than is necessary. Whenever net receipts cause the sub treasury balance to exceed the maximum normal balance prescribed for it (See rule 309 above), the Sub Treasury Officer shall deposit the amount in excess of immediate requirements into the currency chest, unless he expects that heavy net disbursements will absorb it within the next two or three days.

(ii) The Sub Treasury Officer shall, at once, send a report in Form T.R. 38 of each deposit into the currency chest to the Treasury Officer. On receipt, of the report the Treasury Officer shall make the corresponding transfers from the currency chest to the district treasury balance.

(iii) When the Sub Treasury Officer requires funds to replenish the sub treasury balance, he shall apply to the Treasury Officer for sanction to a transfer from the currency chest in the sub treasury. If the Treasury Officer is satisfied that the transfer of funds is necessary he shall transfer the amount required from the treasury balance to the, currency chest at the district treasury and authorize the Sub Treasury Officer to make a corresponding transfer from the currency chest to the treasury balance at the sub treasury.

Exception—The Currency Officer of the Reserve Bank of India may, on the recommendation of the Treasury Officer, permit a Sub Treasury Officer to transfer funds from the currency chest to the treasury balance without the sanction of the Treasury Officer subject to such conditions as he may impose regarding the amount of each transfer and the period during which the sanction will remain in force. The Sub Treasury Officer shall send a report in Form T.R. 38 of each withdrawal from the currency chest made under the Currency Officer’s general sanction to the Treasury Officer, who shall on receipt of the report, make the corresponding transfer from the treasury balance to the currency chest.

(b) In a district where there is at least one treasury which transacts its cash business through the Bank

320. Transfers of funds from and to a currency chest in custody of the Bank.—The currency chest pertaining to a treasury which transacts its cash business through the Bank is kept in the sole custody of the Bank. All transfers from and to such a currency chest shall be effected by the Bank in accordance with the instructions issued by the Currency Officer, Madras. Such transfers do not affect the Government’s cash balance and do not pass through the Government account.

Subject to any special directions contained in Chapters II and III in Part VIII

all transfers from and to a currency chest shall be in whole rupees and/or notes

(currency and bank notes).

𝗤13.The currency chest of a treasury which transaction through Bank is kept in:

(A) the Bank

(B) Treasury Directorate

(D) Treasury Locker

ANSWER:-(A) the Bank

𝗤14.All transactions from and to a currency chest of a banking treasury shall be effected:

(A) By Treasury Director

(B) Treasury Officer

(D) By the Accountant General

ANSWER:-(C) By the Bank

321. Transfers of funds between the treasury balance and the currency chest at a treasury (i.e., a treasury which does not transact its cash business through the Bank).—At a district treasury the Treasury Officer shall follow the procedure prescribed in Rule 318.

At sub treasury the following procedure shall be observed:—

(i) In regard to deposits into the currency chest the Sub Treasury Officer shall follow the procedure prescribed in Rule 319 (i).

(ii) The Sub Treasury Officer may transfer funds from the currency chest to the treasury balance, subject to the following limitations:—

(1) that the withdrawal is necessary to meet the requirements of the sub treasury, and
(2) that the maximum normal balance fixed for the sub treasury is not exceeded as a result of the withdrawal from the sub-chest.

(iii) The Sub Treasury Officer shall report every transfer of funds from the treasury balance to the currency chest or vice versa at once to the Currency Officer by telegram, or by letter if a letter will reach Madras within 24 hours, and shall also send the necessary chest slip in Form T.R. 38 [See Rule 152 (v)].

B. REMITTANCES OF COIN AND NOTES

322. Transfers of funds from and to a sub treasury where there is no currency chest.—Funds shall be transferred from and to a sub treasury which has no currency chest by the actual remittance of coin and notes. The Treasury Officer is authorised to order such remittances within the district from and to such sub treasuries, if any, no such remittance within the district shall be made without his sanction.

323. General.—The provisions of Rules 324 to 369 shall apply primarily to remittances to and from treasuries which do not transact their cash business through the Bank. At places where the treasury transacts its cash business through the Bank, these rules shall be subject to the provisions of Rule 369 to 374 and such other instructions as may be issued by the Reserve Bank.

Despatch of Remittances

324. (a) No remittance of coin or notes shall be made from any treasury to a treasury in another district or to the Issue Department of the Reserve Bank, except in accordance with special or general orders of the Currency Officer. When the Treasury Officer considers that any such remittance not covered by the existing orders is necessary, he shall report the particulars to the Currency Officer and obtain his orders. Uncurrent coin and notes unfit for issue shall be dealt with in accordance with the procedure prescribed in Rules 331 and 332 below.

(b) The Treasury Officer shall be responsible for remittances within the district i.e., between the district treasury and a sub treasury subordinate to it or between two sub treasuries in the district. He shall order such remittances to be made when necessary, and need not obtain the sanction of any higher authority for them. He shall not however, order any remittance between two treasuries both of which transact their cash business through the Bank.

𝗤15.Non remittance of coins or notes shall be made from a treasury to a treasury in another strict except-in accordance with special or general orders of

(A) Currency officer

(B) Treasury officers of both the districts

(D) Treasury directors

Correct Answer:-Option:-A

RULE: 324

𝗤16. Remittance between two treasures in the same District should be treated

(A) Transfer outside treasury

(B)Transfer between two treasures

(D) Adjustment between treasures

325. (a) All remittances despatched by rail, river or road shall be escorted by a police guard, except remittances by a rail of nickel, bronze or copper coin at railway risk.

𝗤17. Remittance of nickel, bronze shall be booked at the risk of

(A) Treasury officer

(B) Railways

(D) Director of treasuries

Correct Answer:- Option:(B) Railways

𝗤18. All remittances despatched by rail, river and road shall be escorted by ............... except the items at railway risk:

(A) Police guard

(B) Treasury officer

(D) Peon of the office

Correct Answer:-Option:-A

(b) Immediately on receipt of a remittance order from the Currency Officer or as soon as the Treasury Officer decides to order a remittance within the districts the Police Department shall be informed of the kind and amount of the treasure to be remitted and asked for a sufficient escort. The Police Department shall supply the necessary escort according to the scale laid down by the Government. The officer despatching the remittance shall send an intimation to any office from which assistance will be required en route.

(c) The officer dispatching the remittance shall inform the receiving office in advance in Form T.R. 90 of the remittance to be despatched in order that arrangements may be made for receiving it. A remittance shall not be sent at such a time that it will be in transit at the end of a month or will reach its destination on a Sunday or other authorised holiday. The attention of the government servant in charge of the escort shall be specially drawn to paragraph 3 of the instruction in Appendix 18.

326. (a) As soon as a remittance is despatched, it should be entered in the currency chest register if it is a currency remittance to a place within the same currency circle. If it is currency remittance to a place outside the circle, the amount should be shown as in transit in the currency chest register and charged off the account on receipt of advice of arrival at the receiving office.

(b) The Treasury Officer should advise the Currency Officer of every despatch of a remittance to place outside the district on the same day on which it is despatched. If the treasury is so situated that an advice sent by post would not reach the Currency Officer within 24 hours, the Treasury Officer should send the advice by telegram. The advice should state whether the remittance is a treasury or a currency remittance and should give the name of the district treasury, sub treasury or branch of the Bank to which it has been despatched.

Remittance of Coin

327. (a) Coin shall be packed for remittance in stout bags. A slip in Form T.R. 30 shall be placed in each bag, and it shall then be tied and sealed. The Treasury or Sub Treasury Officer shall satisfy himself generally as to the contents of the bags. When a remittance is to be sent without a Treasurer or Assistant Treasurer the dispatching officer shall examine a percentage of the contents himself and place a private mark upon the slips placed in the bags so examined, and shall also request the receiving officer to take special care to guard the interests of the remitting officer. For journeys by rail or boat, and also for journeys by road if convenient, the bags shall be packed in stout boxes capable of containing ` 4,000 to ` 6,000 each, nailed down and bound with iron, without gunny covering or ropes, and the hoops shall be riveted or nailed together where they cross. Every box shall bear the name of the despatching treasury cut into it, or painted on it, with a number. For journeys by road for which the above method of packing is not convenient, the bags may be packed in treasure tumbrels or in large chests placed in carts at the door of the treasury in the presence of the Treasury Officer.

In the case of remittances within a district, coin may be packed in padlocked boxes in accordance with such detailed instructions as may be issued by the Currency Officer in consultation with the Government.

(b) When a coin is remitted to the Mint at Calcutta, or Bombay, it shall be packed in separate bags for each denomination of coin, and the contents of the bags shall be as shown below:

Denomination Value per bag Tale per bag pieces

1 Rupee 2,000 2,000 ½ Rupee 2,000 4,000 ¼ Rupee 500 2,000 50 paise 2,000 4,000 25 paise 500 2,000 20 paise 400 2,000 10 paise 200 2,000 5 paise 100 2,000 3 paise 75 2,500 2 paise 50 2,500 1 paise 20 2,000

*Substitution [G.O.(P) 14/75/Fin., dated 6th January, 1975]

𝗤19. If a Treasury Officer receives an instruction from A. G that money have been incorrectly withdrawn and a certain sum should be recovered from a drawing officer and the latter requests the Treasury Officer to defer the recovery, the Treasury Officer:

(A) may postpone the recovery

(B) shall seek the orders of AG on the request

(D) should effect the recovery without delay and without regard recovery order to any correspondence undertaken with reference to the recover order

ANSWER:-(D) should effect the recovery without delay and without regard recovery order to any correspondence undertaken with reference to the recover order

328. A buoy(=പൊങ്ങ്) made of a piece of unsplit bamboo or other floating materials shall be fastened to each box which is to be conveyed on a rivercraft or taken across an unfordable stream on a ferry. The rope of the buoy shall be at least ten yards long. The officer-in-charge of the escort shall see that the rope is never detached from the box and that it is not knotted or entangled in any way so long as the box is on board a boat. When the treasure is shipped on a sea going vessel, the despatching officer shall remove the buoys after the boxes are shipped and the receiving officer shall attach the buoys when landing the treasure. If the receiving officer is not the Treasury Officer, he shall obtain the buoys from the Treasury Officer.

ഒരു കഷണം അൺപ്ലിറ്റ് ബാംബൂ അല്ലെങ്കിൽ മറ്റ് ഫ്ലോട്ടിംഗ് മെറ്റീരിയലുകൾ ഉപയോഗിച്ച് നിർമ്മിച്ച ഒരു ബോയ് (=പൊങ്ങ്) ഓരോ ബോക്സിലും ഉറപ്പിക്കും, അത് ഒരു നദീതീരത്ത് എത്തിക്കേണ്ടതാണ് അല്ലെങ്കിൽ കടത്തുവള്ളത്തിൽ കടക്കാനാവാത്ത അരുവിയിലൂടെ കൊണ്ടുപോകണം. ബൂയിയുടെ കയറിന് കുറഞ്ഞത് പത്ത് യാർഡ് നീളമുണ്ടായിരിക്കണം. ബോക്സിൽ നിന്ന് കയർ ഒരിക്കലും വേർപെടുത്തിയിട്ടില്ലെന്നും ബോക്സ് ഒരു ബോട്ടിൽ കയറുന്നിടത്തോളം അത് ഒരു തരത്തിലും കെട്ടുകയോ കുടുങ്ങുകയോ ചെയ്യുന്നില്ലെന്നും എസ്‌കോർട്ടിന്റെ ചുമതലയുള്ള ഉദ്യോഗസ്ഥർ കാണും. കടലിൽ പോകുന്ന ഒരു കപ്പലിൽ നിധി കയറ്റി അയയ്ക്കുമ്പോൾ, ബോക്സുകൾ കയറ്റി അയച്ച ശേഷം അയച്ച ഉദ്യോഗസ്ഥൻ ബോയ്സ് നീക്കംചെയ്യുകയും നിധി ഇറങ്ങുമ്പോൾ സ്വീകരിക്കുന്ന ഉദ്യോഗസ്ഥൻ ബോയ്സ് അറ്റാച്ചുചെയ്യുകയും ചെയ്യും. സ്വീകരിക്കുന്ന ഉദ്യോഗസ്ഥൻ ട്രഷറി ഓഫീസർ അല്ലെങ്കിൽ, അയാൾ ട്രഷറി ഓഫീസറിൽ നിന്ന് ബോയ്സ് വാങ്ങും.

Exception—The above precautions need not be taken when the remittance is covered by insurance. പണമടയ്ക്കൽ ഇൻഷുറൻസ് പരിരക്ഷിക്കുമ്പോൾ മുകളിൽ പറഞ്ഞ മുൻകരുതലുകൾ എടുക്കേണ്ടതില്ല

𝗤20. When coins are remitted to mint it shall be packed in separate bags, buoy made of a piece of un split bamboo or other floating materials fastened to each box. The above precaution need not be taken:

(A) If a police official escorted

(B) The remittance is covered by insurance

(D) Total amount of coins is less than 1,00,000/-

Correct Answer:-Option:-B

329. The remitting officer shall prepare an invoice in triplicate in Form T.R. 91 for every remittance (other than a remittance of uncurrent coin), taking great care to see that it is prepared correctly. He shall retain one copy of the invoice for record despatch another by post on the same day to the receiving officer, and hand over the third to the officer-in-charge of the escort. The weights of the boxes containing the remittances shall be ascertained by weighing them in the presence of the officer-in-charge of the escort, and the weights so ascertained shall be entered in the invoice separately for each box. The officer-in-charge of the escort shall sign a receipt on each copy of the invoice stating that he has received the boxes of the marks and weights detailed therein.

NOTE—Separate invoices shall be prepared for treasury and currency remittances, the words “Treasury Remittance” or “Currency Remittances”, as the case may be, being written on the top. In the case of treasury remittances, the invoices shall show separately uncurrent (1) silver, (2) nickel and (3) copper or bronze coins, giving separate totals for each group of coins.

330. Remittances of coin from the Issue Department of the Reserve Bank of India are usually sent in patent remittance boxes. The receiving officer shall follow the special instructions regarding the method of dealing with such boxes given by the remitting officer.

331. Remittance of uncurrent coin.—Coin withdrawn from circulation shall be remitted to the Mint in accordance with the following rules:—

(i) Broken and cut coin shall ordinarily not be remitted until a sum of at least ` 20 has accumulated.

(ii) The remitting officer shall prepare an invoice for each remittance in Form T.R. 92 taking great care to see that it is prepared correctly.

(iii) The Mint Master shall prepare a valuation statement of the remittance received and forward it to the remitting treasury or branch of the Bank.

(iv) Any deficiency in tale found by the Mint Master shall be made good by the Treasurer of the remitting treasury or the Bank, as the case may be, and any excess in tale shall be returned to the remitting treasury or the Bank. Any excess in value found by the Mint Master shall be credited to the Central Government.

(v) When the proportion of current weight rupees fit for circulation found in each a remittance, whether or not cut or broken, exceeds five per cent of the whole, the Mint Master shall make a special report to the Collector concerned or the Madras Local Head Office of the State Bank, according as the remittance is received from a treasury or a branch of the State Bank, for such disciplinary action as may be considered necessary to improve the quality of shroffing in the remitting office.

𝗤21. The procedures to be followed by Treasury officer for remittance of uncurrent coin to Government Mint is detailed in:

(A) Rule 322 KTC Vol I

(B) Rule 328 KTC Vol I

(D) None

ANSWER:-(C) Rule 331 KTC Vol I

Remittance of Notes

332. All notes unfit for issue which have accumulated at a treasury shall be sent to the Madras Office of the Issue Department of the Reserve Bank of India (or to a treasury, named by the Currency Officer) on each occasion on which a remittance of notes or coin is sent to or received from that office. The note should not be cut for remittance. The remitting officer shall send an advice of the remittance, giving details of the denominations and value of the notes to the Currency Officer by post.

ഒരു ട്രഷറിയിൽ സ്വരൂപിച്ച ഇഷ്യുവിന് യോഗ്യമല്ലാത്ത എല്ലാ നോട്ടുകളും റിസർവ് ബാങ്കിന്റെ ഇഷ്യു ഡിപ്പാർട്ട്‌മെന്റിന്റെ മദ്രാസ് ഓഫീസിലേക്ക് (അല്ലെങ്കിൽ കറൻസി ഓഫീസർ നാമകരണം ചെയ്ത ഒരു ട്രഷറിയിലേക്ക്) ഓരോ അവസരത്തിലും നോട്ടുകൾ അയയ്ക്കുന്നത് അല്ലെങ്കിൽ നാണയം ആ ഓഫീസിലേക്ക് അയയ്ക്കുകയോ സ്വീകരിക്കുകയോ ചെയ്യുന്നു. പണമയയ്‌ക്കുന്നതിന് കുറിപ്പ് മുറിക്കാൻ പാടില്ല. പണമടയ്ക്കൽ ഉദ്യോഗസ്ഥർ പണമടയ്ക്കൽ ഉപദേശം അയയ്ക്കുകയും നോട്ടുകളുടെ മൂല്യങ്ങളും മൂല്യങ്ങളും തപാൽ വഴി കറൻസി ഓഫീസർക്ക് അയയ്ക്കുകയും ചെയ്യും.

333. New notes and notes fit for reissue should never be cut for remittance. When the value of the notes to be remitted does not exceed ` 2,000 and the notes cannot conveniently be sent along with a specific remittance, they should be sent by post insured for their full value. When the value exceeds ` 2,000 the notes should be sent in charge of a Treasurer or Assistant Treasurer and a police guard.

334. Notes of each denomination shall be arranged in separate bundles stitched by one edge into books of 100 each, any part of 100 in excess of a multiple of 100 being made into a separate book. A slip in Form T.R. 31 shall be attached to each bundle of books, specifying the number of pieces it contains and bearing the full signature of the government servant who has counted them and made up the bundle before despatch. When the remittance is sent in the charge of a police guard the bundles shall be packed in parcels of ten bundles each and the parcel shall be placed in strong wooden boxes, which shall be securely fastened and sealed. The procedure prescribed in Rule 329 shall also be followed in regard to every remittance of notes sent in charge of a police guard.

NOTE 1—A ‘private’ seal should not be used for sealing the wooden boxes containing the remittance to be sent in the charge of a police guard. Only the official seal should be used for the purpose.

NOTE 2—Fresh notes of the denominations of ` 5 and ` 10 are remitted from the Issue Department of the Reserve Bank of India to currency chests in the original bundles received from the Security Printing Press.

335. Duties of the Officer-in-charge of the escort for a remittance.—

(a) The escort officer shall be present when the boxes of notes and coin are weighed. In the case of chests or tumbrels containing bags of coin the escort officer shall count the number of bags. He shall sign the receipt at the foot of each copy of the invoice. The blanks shall be filled up in words and, if the escort officer does not know English, he shall be required to write the numbers of the bags or boxes which he has received in an Indian language used in the district on the copy of the invoice to be retained by the remitting officer.

(b) A copy of the memorandum of instructions contained in Appendix 18 shall be given to the escort officer, and he shall carefully carry out all the instructions given in it.

(c) If the escort officer is relieved in the course of the journey, he shall obtain a receipt in the form prescribed in paragraph 8 of Appendix 18 for the tumbrels, boxes, etc., handed over to the relieving officer.

Treasurers Accompanying Remittances

336. (a) Subject to any general or special instructions issued by the Currency Officer, Madras, in that behalf, the remitting officer may send a remittance of silver coin or notes in charge of a Treasurer or Treasurers in accordance with the following scale:¬

(i) For coin remittances—One Treasurer upto `10 lakhs
One Treasurer for every additional `10 lakhs or fraction of that amount, upto a maximum of 3 Treasurers in all.

(ii) For note remittances—One Treasurer
When only one Treasurer is admissible according to the above scale for a remittance of coin or notes, a second Treasurer may also be deputed with the sanction of the Currency Officer if the journey will occupy such a long time that one man cannot be expected to exercise the necessary supervision.

(b) A Treasurer or Treasurers sent in charge of a remittance shall remain in charge whilst it is being examined at the receiving office.

(c) When a remittance of coin or notes or both is especially heavy, the remitting officer may with the sanction of the Currency Officer, depute one or more clerks to accompany it in addition to the usual escort of Treasurers.

(d) The remitting officer may, with the sanction of the Collector, engage any extra Treasurers required for accompanying remittance or to take the place of permanent Treasurers deputed to accompany remittances. When it is not possible to engage men within the district for service as temporary Treasurers, he may engage men from outside the district.

NOTE— The term “Treasurer” occurring in this rule and in rules 337 to 375 includes an Assistant Treasurer also.

337. If any chest, tumbril or wagon containing a remittance or part of one is secured by double-locks, one key shall be held by the Treasurer and the other by the escort officer. If there is only one lock, the key shall be held by the Treasurer, but the escort officer shall be responsible for not allowing the chest or wagon to be opened before arrival at the destination, save in the case of a breakdown when the treasure shall be removed to another chest or wagon in his presence. When a remittance is sent in charge of a police guard butwithout a Treasurer, single locks shall be used and the keys shall be entrusted to the escort officer in a sealed cover, which he shall not open except when absolutely necessary, e.g., in the case of a breakdown en route.

NOTE—A ‘Private’ seal should not be used for sealing the cover containing the keys to be entrusted to the escort officer. Only the official seal should be used for the purpose.

338. (i) A Treasurer shall on no account be sent either to accompany a remittance of nickel, bronze or copper coin or to watch the examination of such coin at the receiving office;

(ii) Treasurers accompanying remittances of withdrawn silver coin and remittances for special examination to the Mints shall be released by the Mint authorities as soon as the numbers of sealed boxes in the remittances have been checked with the relative invoices and found satisfactory and correct; and on no account, shall they be detained to watch the examination of any remittance at the Mints.

339. Receipt of remittance.—

(a) Immediately on receipt of a remittance from outside the district, the Treasury Officer should send an advice to the Currency Officer stating the name of the remitting office and whether it is currency or treasury remittance. If a postal advice will not reach the Currency Officer within twenty-four hours, a telegraphic advice should be sent.

(b) On receipt of a remittance, each box contained in it shall be weighed in the presence of the escort officer and the Treasury Officer and the weight so ascertained shall be compared with that shown in the invoice. If the two weights tally for each box a receipt in the form prescribed in paragraph 7 of Appendix 18 shall be given to the escort officer and he shall be allowed to return at once. A copy of the receipt shall be sent by post on the same day to the despatching office.

If the weight of each box is not stated separately in the invoice, the boxes shall be opened and the contents examined in the presence of the escort officer, and the breach of the rule requiring the weights of the boxes to be stated separately shall be brought to the notice of the remitting officer. If the weight of any box does not tally with that stated in the invoice or if any box shows signs of having been tampered with, it shall be opened in the presence of the escort officer and its contents examined before the escort officer is released. If any box is so opened, the facts shall be entered on the receipt together with particulars of the contents of the box as ascertained by counting.

340. After the preliminary examination of the particulars given in the invoices has been completed, the boxes shall all be opened (if they have not already been opened) whether, the remittance is accompanied by a Treasurer or not. When a Treasurer has accompanied the remittance, the boxes shall be opened in his presence. If the detailed examination of the whole remittance is not to be proceeded with immediately, the bags of coin or parcels of notes shall be deposited in the strong room under double locks care being taken, as far as practicable, to place them apart from other treasure. When a remittance is expected to remain unexamined in a strong room for sometime and it cannot be separately secured in a chest, or chests steps shall be taken to guard against any abstraction of coin from the remittance. In such a case, if the amount of the remittance does not exceed ` 5 lakhs and the procedure will not cause practical inconvenience, the entire contents of each bag shall be weighed under the supervision of the Treasury Officer before the remittance is deposited in the strongroom. It may not be possible to weigh the contents of each bag when the amount of such a remittance exceed ` 5 lakhs. When a remittance remains unexamined for sometime and the contents of each bag not weighed the Treasury Officer shall satisfy himself that the remittance has not been tampered with by picking out a number of boxes and bags from time to time and having their contents weighed under his supervision. In such cases care shall also be taken to cover completely with tarpaulins all bags forming part of the remittance, and to secure any notes which have been unpacked in a chest or chests or replace them in the original boxes and fasten the lids securely.

Exception—1 When coin or notes contained in remittance are to be despatched to another treasury within a few days of the receipt of the remittance, the boxes need not be opened but may be deposited in the strong room as they are, provided that they are in good order and are in the charge of a Treasurer who will be available to accompany them to their final destination.

Exception—2 New nickel or bronze coin received either directly from the Mint or from any other treasury in the original Mint boxes may be accepted as correct without opening the boxes, provided that the boxes are numbered and the seals bear a distinct impression and that both boxes and seals are intact at the time of receipt.

341. The detailed examination of the contents of the remittance shall be conducted in the presence of the treasurer who accompanied the remittance, and under the supervision of the Treasurer of the receiving treasury or some responsible person acting on his behalf. If, however, no Treasurer has accompanied the remittance from the remitting treasury, the detailed examination shall be conducted in the immediate presence and under the personal supervision of the Treasurer of the receiving treasury, who shall see that the interests of the remitting treasury are adequately safeguarded.

342.(a) Every facility shall be given to the Treasurer of the remitting office to watch the examination of the remittance. Any complaint which he makes shall be reported at once to the Treasury Officer. If any fraud is suspected, the treasurer or treasurers who are examining the remittance shall be searched in the presence of the Treasurer of the remitting office.

(b) Only such portion of the remittance shall be taken out of the strong room as can be examined during the course of the day. When a portion of the remittance remains unexamined, the Treasurer of the remitting treasury may, if he so desires, be allowed at the time of the closing of the strong room to place a lock of his own on the chest containing the unexamined portion, or, if that is not possible, on the outside door of the strong room.

343 The notes and coin contained in a remittance shall be counted and examined in detail, so as to ensure not only that they are all genuine but also that each bundle of notes or bag of coin contains the alleged number. In the case of remittances of fresh notes send from the Issue Department of the Reserve Bank of India in bundles of 1,000 pieces, the bundles shall be split up into packets of 100 notes each. Any light weight or other uncurrent or defective coin found in the course of the detailed examination of a remittance of current coin shall be separated and dealt with in accordance with the rules in Chapter II of Part VIII. Deficiencies, whether in numbers or due to counterfeit notes or coin, shall be dealt with according to the procedure laid down in Rule 347.

344. As the examination of each bundle or bag is completed, the slip in Form T.R. 30 or T.R. 31, as the case may be, contained in it shall be taken out and replaced by a fresh slip prepared by the receiving treasury. The slips from those bags and bundles the contents of which have been found correct shall be handed over to the Treasury Officer and immediately destroyed by him; the remaining slips shall be attached to the report to be sent to the remitting treasury (See Rule 349). When, however, a remittance of coin is received from the Issue Department of the Reserve Bank of India, the Treasury Officer shall return all the slips to the Currency Officer after the remittance has been examined.

345. The Treasury Officer shall supervise the examination of the remittance generally and see that adequate safeguards are taken by the Treasurer during the examination to prevent any malpractices by the Treasurer of the remitting office or the treasurers who examine the remittance. The Treasury Officer shall put away the notes and coin which have been examined under double-locks in the treasury or in the currency chest, as the case may be, following the procedure laid down in Rules 144 and 151. When the detailed examination of the remittance has been completed, the Treasury Officer shall send a formal report to the remitting officer showing the result of the examination.

346.The examination of a remittance shall be conducted as expeditiously as possible in order that the Treasurer who accompanied the remittance may be relieved as early as possible and unnecessary expenditure on his daily allowance avoided, and also in order that any deficiency may be recovered from the Treasurer of the remitting treasury. For the examination of heavy remittances of coin additional treasurers may be engaged with the special sanction of the Director. The minimum amount of coin or notes of any one denomination to be examined by a Treasurer in a day is specified in Appendix 19.

347. (a)If a deficiency discovered at a treasury on a detailed examination of a remittance received from another treasury is not immediately made good by the Treasurer of the remitting treasury,it shall be charged in the accounts as a distinct item with full particulars; these full particulars shall also be intimated to the Treasury Officer of the remitting treasury, and he shall recover the amount and credit it in his own treasury.

(b) A deficiency discovered at the Bank (including the Issue Department of the Reserve Bank of India) in a remittance received from a treasury shall be made good from the cash balance of the receiving office and shown as expenditure on Government account under advice to the remitting treasury for recovery and credit in its accounts. Similarly a deficiency discovered at a treasury in a remittance from the Bank (including the Issue Department of the Reserve Bank of India) shall be made good from the treasury balance under advice to the remitting office, which shall credit the amount to Government account.

(c) The remitting treasury shall be responsible for any shortage discovered at the Mint or at a small coin depot in a remittance from a treasury.

𝗤22. The remitting treasury shall be responsible for any shortage discovered at the mint in a remittance from the treasury. Which is the rule?

(A) rule 342

(B) rule 347

(D) rule 349

(d) The Accountant General shall watch the recovery of all deficiencies discovered in remittances.

𝗤23. Who shall watch the recovery of all deficiencies discovered in remittances of coin or notes?

A:-District treasury officer

B:-Sub treasury officer

C:-Chief treasurer

D:-Accountant General

Correct Answer:- Option-D:-Accountant General

348. All excesses found in a remittance shall be returned to the remitting treasury through the attending treasurer, or, if this is not possible, by registered post or by money order, the cost being borne by the remitting treasury.

𝗤24. All excess found in a remittance shall be returned to the remitting treasury as required in rule

A:-Rule 275 of KTC Vol I

B:-Rule 348 of KTC Vol I

C:-Rule 248 of KTC Vol I

D:-Rule 200 of KTC Vol I

Correct Answer:- Option- B:-Rule 348 of KTC Vol

349. Every defect or deficiency discovered during the examination of a remittance shall be entered in the slip pertaining to the bag of coin (Rule 327) or bundle of notes (Rule 334) concerned and shall be specially reported to the remitting officer direct. The report shall be sent to the remitting officer together with the slip or slips concerned immediately on the close of the examination (or, if it is a prolonged, one, at the close of the day) so that the remitting officer may be able to fix the responsibility for the deficiency. If a Treasurer of the remitting office is present to witness the examination, he shall attest the entries on the slip as they are made, and shall be allowed, if he so desires, to make good any deficiency, if he makes good any deficiency, the fact shall be noted on the slip and in the report. If no Treasurer of the remitting office is present at the examination, the report shall state the name and rank of the officer who personally supervised the examination. When any bad coin or notes have to be returned to the remitting office, they shall be made over to the Treasurer of that office or, if that is not possible, sent by insured post at the cost of the remitting treasury. If any bag of coin or bundle of notes is received without a slip or is defective in any other way, a special report shall be sent immediately to the remitting officer.

350. When the number of rupee or half rupee coins which have lost more than 2 per cent in weight but not more than 6¼ per cent or 12½ per cent respectively (See Instructions in Chapter II of Part VIII) detected in any bag during examination of a remittance exceeds half a per cent of its contents, the number of such coins found in the bag shall be noted on the slip relating to it, and the slip shall be sent to the remitting office with a report in the manner laid down in Rule 349.

351. When new copper, nickel or bronze coin is received either directly from Mint or from another treasury in the original mint boxes, any excess or deficiency found on the examination of any box shall be immediately reported and the printed slip of contents shall be forwarded to the Mint Master concerned. The report shall state the number of the box in which the excess or deficiency was found and the condition of the box on delivery.

352. When the detailed examination of a remittance has been completed, the Treasurer who accompanied it should take back to the remitting office the locks, and if convenient, the bags also. If the police guard which escorted the treasure returns to the station from which the remittance was despatched, the tumbrels of chests should be sent back to the remitting treasury under its charge; otherwise the Treasurer of the remitting treasury should take these back too.

353. All charges incurred in connection with remittance of coin and notes to and from treasuries, whether as currency remittances or as treasury remittances, are borne by the Reserve Bank, subject to the conditions and exceptions mentioned in Rules 354 to 356.

354. Charges relating to remittances between two treasuries neither which has a currency chest should be borne by the Government. Charges relating to the remittance of uncurrent coin between such treasuries, when sent separately, should, however, be borne by the Reserve Bank.

355. The pay of permanent treasurers and of extra treasurers engaged on a temporary basis to deal with heavy receipts of remittances should be met by the receiving treasury and not debited to the Reserve Bank. All temporary treasurers should be paid at the rates fixed by the Government. The pay of temporary treasurers engaged under Rule 336 (d) to accompany remittances or to take the place of permanent treasurers, who are deputed to accompany remittances should be debited to the Reserve Bank. The traveling allowance of all treasurers, whether permanent or temporary, who accompany any remittance other than one between two treasuries where there is no currency chest should be debited to the Reserve Bank.

356. Travelling allowances of Treasurers, Clerks, etc., who accompany remittance.—

(a) When treasurers or clerks are sent with treasure or currency remittances, the remitting Treasury Officer should furnish them with a certificate in Form T.R. 93 with columns (1) to (8) filled in. The officer receiving the remittance should estimate with reference to the amount and kind of the remittance received and the number of men available at his office for examining it, the period for which the treasurers or clerks accompanying it are likely to be

detained at the receiving office, and intimate it to them in writing so as to enable them to make suitable arrangements for their stay in the station. After finishing the examination of the remittance, the receiving officer should complete the certificate in Form T.R. 93 and return it to the remitting treasury. If the halt has exceeded ten days, he should state in column (12) the daily allowance which he recommends for the period in excess of ten days and explain the reasons for his recommendation on the reverse of the certificate. A certificate in Form T.R. 93 should be attached to every bill for the traveling and other allowances of treasurers or clerks deputed to accompany a remittance.

(b) When a halt exceeds ten days, the Officer of the Reserve Bank of India authorised for the purpose, or when the charges are debited to the Government, the Treasury Officer will decide whether full daily allowance should be granted for the period in excess of ten days or whether a reduced rate should be allowed. In the case of charges debitable to the Bank, the Currency Officer will deal with claims relating to a halt exceeding ten days but not exceeding one month, and the Chief Accountant of the Reserve Bank will deal with claims relating to a halt exceeding one month. On receipt of the certificate (Form T.R. 93) from the receiving officer, the Treasury Officer should forward it to the Currency Officer for necessary action if there has been a halt in excess of ten days and the charges are debitable to the Reserve Bank. The authority competent to deal with the claim should indicate in column 13 of the certificate the rate at which daily allowance may be drawn for the period in excess of ten days comprised in any one halt.

(c) When a person from outside the district is engaged as a temporary treasurer under Rule 336 (d), traveling allowance should be paid at the ordinary rates for his journey from his residence to the place of appointment.

357. The Treasury Officer who despatches a remittance may grant to a Treasurer or other treasury official who is to accompany it an advance of travelling allowance upto the amount likely to be incurred for his journey. If, in any case the amount advanced proves insufficient, the receiving treasury may, on the application of the treasurer or other treasury official concerned, pay him such further advance as may be necessary. An advance made by the receiving treasury should not be met from the Treasury Officer’s permanent advance but should be drawn from the treasury and charged in the accounts and the particulars should be reported to the remitting treasury at once, so that the latter may recover the amount from the travelling allowance bill to which relates.

A Treasury Officer is not authorised to make any advance of travelling allowance to a clerk or Shroff of the Reserve Bank who accompanies a remittance.

If a Currency Officer receiving a remittance from a treasury grants an advance of travelling allowance to a treasury official accompanying the remittance, the amount of the advance will be noted on the treasury official’s certificate with the Currency Officer’s signature. The remitting treasury should deduct this amount from the travelling allowance bill of the government servant concerned. Such advances will only be made by a Currency Officer in exceptional circumstances.

358. All contingent charges incurred at the station where a remittance is received, such as labour charges, cart or boat hire should be paid by the receiving officer and charged in his accounts. The remitting officer should not meet such charges.

Additional Rules for Remittances by Railway

359. When a large remittance is to be despatched by railway, notice shall be given before hand to the railway authorities at the station of despatch, so that a wagon or wagons of convenient size may be made available at the right time.

360. When treasure is loaded for despatch by railway, the doors on one side of the wagon shall, if possible, be secured from inside and all doors that can be opened from outside shall be secured by good padlocks. The Treasury Officer shall supply the padlocks and take an acknowledgment from the escort officer for them. A sufficient stock of padlocks shall be maintained in each treasury from which remittances are sent by railway.

361.Small remittances need not be sent by wagon, but may be sent in the same compartment in which the escort in charge of the remittance travels. An escort traveling in charge of currency or Bank notes not sent by wagon shall have the box in the same carriage and shall sit in the end compartment of the carriage with the box under the seat against the outer planking. If the box is too large to go under the seat, the use of a whole compartment shall be reserved on the usual terms.

362.The Treasury Officer (or a responsible government servant deputed by him for the purpose) shall, jointly with the Police Officer deputed to travel in charge of the escort by railway, superintend the loading of the wagons. He shall also hand over to that officer a copy of the memorandum of instructions printed in Appendix 18 and as many blank receipts as there will be reliefs en route and shall take his receipt for these documents.

363. The strength of the escort deputed to accompany a remittance to the railway station of despatch and to protect the loading shall be determined in accordance with the general or special orders of the Government regarding the escorting of such a sum by road. The receiving officer shall arrange for a fresh escort of a strength determined in the same way to meet the remittance at the railway station where it is to leave the railway. During the railway journey the treasure shall be protected by a guard of reduced strength fixed in accordance with the general or special orders of the government. The guard shall be accommodated in an adjoining brake van if the remittance is carried by goods train, and otherwise in the end compartment of the carriage next and adjoining the wagon containing the treasure. Neither door of the compartment occupied by the escort shall be locked. The general principle to be observed in fixing the strength of the guard for a railway journey is that ordinarily it shall never be less than a Petty Officer with two men and that, when the remittance is loaded in more than one wagon, two men shall be allowed to each wagon. When a wagon containing treasure is to be detached from the train for any reason, the Station Master or the Guard in charge of the train will warn the Police guard in charge of the treasure in order that the necessary arrangements may be made to guard it.

364. As the members of the Police guard in charge of a remittance have to be constantly on duty, the Police Department shall arrange to relieve them at convenient points on the journey, allotting to each party a stage of about twelve hours with due regard to any general or special instructions that have been issued as to the exact length of particular stages. When an escort officer starts a railway journey in charge of a remittance, he shall telegraph to his relieving officer the probable times of his arrival at the station where he is to be relieved.

365. (a) The receiving officer should make the necessary arrangements for the transport of the treasure at destination so as to avoid delay at the railway station and inconvenience to the Police Department.

(b) The receiving officer should return the padlocks which were used on the doors of the railway wagons to the remitting treasury through the escort officer if he is returning to the station where the remitting treasury is situated. Otherwise, the receiving officer should give the escort officer a receipt for these padlocks and return them as soon as possible through the treasurer of the remitting treasury or, if no treasurer accompanied the remittance, by parcel post or railway parcel.

The responsibility for supply of pad locks for securing the doors of wagons when treasure is loaded for despatch by Railway is with:
(A) Railways
(B) Treasury officer
(C) Reserve Bank
(D) Nationalized banks
Correct Answer:-Option-B

366. (1) The railway fares and freight may be paid in cash or by warrent or credit note according to local practice. In the case of cash payment, the police or other officer may obtain from the treasury a sufficient amount as an advance to be accounted for afterwards. The remitting officer or the officer arranging the remittance will ascertain the nature and extent of accommodation required for the purpose without unnecessarily increasing the cost of remittance, and send the following requisition to the railway authorities.

“To the Station Master……………….…..Conveyance by railway to……....………is required for treasure belonging to the Government/Reserve Bank of India to the value of ……………………lakhs of rupees loaded for ……………………………..and contained in ………………………wagons.”

(2) The Station Master will give the officer commanding the guard a paper notifying that he is in charge of treasure loaded in so many wagons.

NOTE 1—The requisition mentioned above must not be confounded with the notice to be sent beforehand to the railway authorities, in order that the necessary wagons may be provided.

NOTE 2—Treasure should always be booked through to the final station, and the officer who makes the requisition should inform the railway authorities that he has provided reliefs for the guard at specified stations.

367. Remittances of nickel, bronze or copper coin shall be booked at railway risk, provided they do not exceed the limits prescribed under the Indian Railway Coaching Tarrif Rules. Consignments exceeding the prescribed limits are required to be escorted-Vide Rule 359.

368. (a) A remittances of currency or Bank notes by sea shall be sent in the charge of an escort, if freight is paid at cargo rates; in that case, the value of the notes shall not be entered in the bill of lading but only the number of pieces. If it is cheaper to pay freight at the rate for specie and the steamer company will then accept responsibility for the face value of the notes, the freight shall be paid at the rate for specie and no escort need be sent. If, however, in any case the steamer company will not accept responsibility for the face value of the notes even if freight is paid at the rate for specie, the remittance shall be sent as ordinary cargo at cargo rates in charge of an escort, although this course may entail some additional expense.

(b) Remittances of coin by sea shall ordinarily be sent insured or at the shipping company’s risk without an escort.

(c) Remittances of notes or of silver coin of any description by inland steamer shall be sent uninsured under the protection of an adequate escort.

(d) The consignee shall arrange to take delivery of the treasure on arrival at the station to which it is booked; otherwise it will be carried on to the next station at the consignee’s risk and the consignee will have to pay the demurrage charges.

Remittances to and from Branches of the State Bank of India and its subsidiary the State Bank of Travancore

369. Rules 324 to 368 apply mutatis mutandis to remittances to and from a Branch of the State Bank of India including its subsidiary, the State Bank of Travancore, transacting the cash business of a treasury, subject to the modifications indicated in the following rules, (rules 370 to 374) and to any instructions issued by the Reserve Bank.

370. When the Agent of a branch of the State Bank wishes to remit surplus notes or coin from the currency chest or surplus small coin from his balance, or desires that a remittance of notes or coin be sent to his branch, he will report the particulars to the Madras Local Head Office of the State Bank. The Local Head Office will communicate with the Currency Officer and issue orders to the Agent regarding the remittance; if the remittance concerns the Treasury Officer, the Currency Officer will issue orders to him simultaneously.

371. The agent of a branch of the State Bank will supply the Treasury Officer of the district, on request, with any coin and notes required for remittance to a sub treasury in the district (whether as a treasury or a currency remittance), except when the Currency Officer has decided that it is more convenient to supply coin and notes direct to a sub treasury from the Issue Department of the Reserve Bank of India or from a treasury or a branch of the State Bank in another district.

372. All charges incurred in connection with remittances of coin and notes to and from branches of the State Bank are met by the Reserve Bank. സ്റ്റേറ്റ് ബാങ്കിന്റെ ശാഖകളിലേക്കും പുറത്തേക്കും നാണയങ്ങളും നോട്ടുകളും അയയ്ക്കുന്നതുമായി ബന്ധപ്പെട്ട എല്ലാ നിരക്കുകളും റിസർവ് ബാങ്ക് നിറവേറ്റുന്നു..

𝗤25. All charges incurred in connection with remittance of coins and notes to and from branches of State bank are met by:

(A) RBI

(B) State govt

(D) State bank

373. The procedure prescribed in Rules 324 to 334 for the packing and despatch of remittances should be observed by the branches of the Bank, but in the absence of special arrangements to the contrary made with the Agent, the Treasury Officer should arrange for the actual conveyance and, when necessary, for the escorting of the remittance. The State Bank should bear the cost of any treasures (shroffs) engaged to deal with heavy receipts, but may engage temporary shroffs to accompany remittances at the cost of the Reserve Bank in accordance with the provisions of Rule 336 (a) after obtaining the sanction of the Currency Officer when it is required under that rule. The power vested in the Collector by Rule 336 (d) to employ additional treasurers does not apply to treasuries which transact their cash business through the Bank. The provisions of Rule 356 regarding halts by treasurers of the treasury do not apply to shroffs, employed by the State Bank; their daily allowance is regulated by the Bank’s rules.

NOTE 1—The charges for remittance of the following kinds shall be borne by the Government:—

(i) remittances to/from currency chests from/to sub treasuries having no currency chest;
(ii) remittances between sub treasuries without currency chests at both ends;
(iii) when not sent separately, remittances of uncurrent coins between treasuries and sub treasuries without currency chests at both ends; and
(iv) remittances of small coins between regular small coin depots and treasuries or sub treasuries with no currency chests.

NOTE 2—In the following cases, the charges for remittances of treasure (including cost of police escorts) shall be borne by the Reserve Bank.

(i) remittances to/from currency chests from/to treasuries or sub treasuries having currency chests,:

(ii) remittances of small coins between regular small coin depots and treasuries or sub treasuries having currency chests.

(iii) remittances of uncurrent coins between treasuries and sub treasuries whether within or outside the district, when sent separately; and

(iv) all remittances made under the orders of the Currency Officer provided such remittances are between treasuries and sub treasuries having currency chests or between small coin depots and such treasuries and sub treasuries.

NOTE 3—The Officers-in-charge of the Bank conducting despatch of Government treasure are competent to place requisitions for police escorts directly to police authorities. *The charges for police escorts shall be paid directly by the bank to the police authorities.

374. The following rules should be observed in the examination of a remittance of coin or notes made to the Bank from a treasury. They should be fully explained to every treasurer who accompanies a remittance made to the Bank:—

(a) All boxes should be weighed on receipt of a remittance. The result of the weighment should be entered on the receipt given to the officer or treasurer in charge of the remittance.

(b) The remittance should be examined in a room separate from the general business of the Bank, or, if a separate room cannot be made available, at some distance away from the place where the ordinary banking transactions are taking place.

(c) The contents of each bag of coin should be emptied into another and passed through the scales. The treasurer should see that the index of the scales is steady before the contents are thrown out.

(d) The treasure should then be secured in separate chests and kept distinct from other treasure under the joint keys of the Manager or Agent of the Bank and of the treasurer of the remitting treasury until regularly examined and brought to account.

(e) Nothing should intervene between the treasurer of the remitting treasury and the Bank’s examining shroffs, so that an uninterrupted view may be obtained by the former of the examination of the treasure. The treasurer of the remitting treasury should sit within the railed enclosures along with the Bank’s examining shroffs.

(f) As soon as the detailed examination of the remittance is completed, light-weight coin should be weighed against full weight coin and a certificate of the result granted on the spot to the treasurer of the remitting treasury.

(g) The weighment and the detailed examination of a remittance should be conducted separately, not simultaneously; the weighment should be completed before the detailed examination is begun.

(h) If the work of weighment or detailed examination be not finished within the day, the bags of coin or bundles of notes not finally taken over by the Bank should be placed in chests under double locks; the key of one of the locks should be retained by the treasurer of the remitting treasury and the key of the other by the Bank authorities.

(i) The Bank’s shroffs who begin the weighment and examination of a remittance should continue at the same duty until they have completed the examination of the remittance, or such portion of it as has been taken over for examination, they should not be replaced by others except when that is unavoidable owing to sickness.

(j) When the remittance is not accompanied by a treasurer, the Manager or Agent of the Bank should proceed with the examination only after asking the local Treasury Officer to depute a subordinate to be present at the examination and see that it is carried out by the Bank with sufficient precautions. The Treasury Officer should depute for the purpose a subordinate of some standing. The charges actually incurred in connection with the deputation of such a subordinate should be debited to the Reserve Bank.

(k) The Treasurer or Treasurers accompanying the remittance should, before finally leaving the Bank, sign in a book kept for the purpose a memorandum of the uncurrent and spurious coins and of any deficiency found in the remittance.

(l) If a Treasurer accompanying a remittance finds that any of the above rules is not complied with or that impediments of any kind are placed upon a free and open scrutiny of the proceedings during the examination by the Bank’s officers or shroffs, he should immediately report the facts to the Manager or Agent of the Bank.

C. RESERVE BANK OF INDIA REMITTANCES

(i) Introductory

375. Rules 376 to 423 below are designed primarily for the guidance of Treasury Officers in dealing with the payments into and withdrawals from treasuries in connection with the facilities afforded by the Reserve Bank to Government Officers and others for the remittances of moneys from one place to another. These remittances are arranged for by the issue of Telegraphic Transfers, Drafts, etc., on the Reserve Bank Account.

376. Remittances between places where the Reserve Bank has its own offices or is represented by its State Bank of India agencies having full currency chest facilities, will not pass through the Government Account. At places where the Reserve Bank is not so represented, all treasuries and sub treasuries in India with currency chest facilities and such other treasuries or sub treasuries as may be nominated by the Reserve Bank in this behalf, will be regarded as ‘Treasury Agencies’ of the Reserve Bank for the issue and payment of Telegraphic Transfers and Drafts drawn by or upon them. The connected debits and credits in the treasury accounts which will be carried initially against the balance of the Government owning the treasury or the sub treasury, as the case may be, will be cleared by the Accountant General by daily adjustments advised to the Central Account Office of the Reserve Bank in accordance with such directions as may be given by the Comptroller and Auditor General with the approval of the President.

NOTE 1—At places where the cash business of the treasury is conducted by sub offices of the State Bank of India having limited currency chest facilities (i.e., Treasury Pay Offices) Reserve Bank remittances will be drawn by or upon the treasury or sub treasury at such places acting as Treasury Agencies of the Reserve Bank and not the Treasury Pay Office of the State Bank, through the cash and clerical work in connection therewith will be transacted by the latter on the orders of the Treasury or the Sub Treasury Officer, as the case may be.

The names of treasuries and sub treasuries which, for the purpose of this rule, are regarded as Treasury Agencies of the Reserve Bank, will be found in the separate publication ‘List of Treasuries and Sub Treasuries in India’ issued by the Government of India.

NOTE 2—For the purpose of the rules in this section, the term ‘Draft’ includes also Reserve Bank dividend payment orders referred to in Rule 377 below.

377. The various types of remittances between one ‘Treasury Agency’ and another or between treasury agencies and places where the Reserve Bank is represented, will consist of—

(1) For Government Department, Local Funds Scheduled Banks, approved Non-Scheduled Banks, Indigenous Bankers, Co-operative Banks and Societies and for the general public— (i) Telegraphic Transfers, (ii) Reserve Bank Drafts.

(2) For the Reserve Bank’s domestic purposes-(i) Security Deposit Interest Drafts.(ii) Dividend Warrant Payment Orders.

The rates at which and the conditions and limitations under which Telegraphic Transfers and Drafts on the several accounts can be issued by Treasury Agencies will be regulated by such general or special instructions as may be issued by the Reserve Bank with the approval of the President.

NOTE— Drafts at par will be granted within prescribed limits to Government Officers and others at and on all offices and agencies (including Treasury Agencies) of the Reserve Bank for remittances on behalf of the Government and for other quasi-public purposes set forth in Appendix 20. These remittances at par will be granted only for transfers of funds within the State. Extra-State transfers will be subject to exchange charges at the rates prescribed by the Reserve Bank.

𝗤26. Terms and conditions under which RBI drafts will be issued at par are detailed in:

(A) Appendix - 24

(B) Appendix - 20

(D) Appendix - 7

ANSWER:- (B) Appendix - 20

378.The procedure to be observed by Treasury Officers in respect of the issue and payment of Telegraphic Transfers and Drafts on the Reserve Bank account will be governed by the following rules, but the Treasury Officers shall comply with any general or special instructions that may be issued to them in this behalf by the Currency Officer.

379. Subject as hereinafter provided, the various forms to be used in connection with drawings on or by Treasury Agencies will be designed by the Reserve Bank.

The form of initial accounts to be kept by Treasury Agencies in respect of remittances drawn and encashed by them and the methods by which accounts of such remittances are to be rendered by them to the Accountant General, will be governed by such directions as may be given by the Comptroller and Auditor General with the approval of the President. (See Articles 78 to 85 of the Kerala Account Code, Vol. II.)

(ii) Telegraphic Transfers, Issues and Encashments

380. A person applying for a Telegraphic Transfer must pay the amount of such transfer together with the prescribed charges, including the cost of telegram, before the Telegraphic Transfer is issued.

The application must be made in the form prescribed by the Reserve Bank, which may be obtained from the Treasury. The application form duly filled in will serve as a chalan for the money tendered. The Treasury Officer shall retain the application for transmission to the Accountant General along with the daily “Schedule of Reserve Bank of India Remittances Drawn” (Rule 407 below) and grant the remitter a receipt in the form prescribed by the Reserve Bank for the purpose.

381. In issuing a Telegraphic Transfer, the following rules shall be observed by the Treasury Officer:—

(i) The telegram to the office making payment of the transfer should be sent in Reserve Bank Cypher Code authenticated by the Reserve Bank of India Treasury Agencies Private Check Signal.

(ii) A post copy of the telegram and an advice in Form R.B.R. 6-C should be despatched to the paying office at the same time as the telegram is issued.

382. In paying a Telegraphic Transfer, the following precautions shall be observed:—

(i) The person claiming payment should be required to produce the telegraphic advice from the place where the transfer has been issued.

(ii) If the person to whom the transfer is payable is not known to him, the Treasury Officer should require identification by a well known and responsible person who should certify that the payee is known to him.

(iii) The payment of the transfer should be reported at once by a letter to the issuing officer.

(iv) If the Treasury Officer has any reason, to doubt whether any person claiming payment is entitled to it, he should telegraph to the issuing office for confirmation.

(v) If the post copy of the telegram authorizing payment is not received within three days of the date on which it should arrive, the Treasury Officer should communicate with the issuing officer and ask for his confirmation of the telegram.

NOTE—A schedule bank applying for payment of the amount of a Telegraphic Transfer may not produce the telegram received from the remitter, but, instead, a mere letter from the Agent/Manager of the branch concerned advising receipt of intimation of the Telegraphic Transfer and demanding payment should be considered adequate for the purpose of clause (i) of this rule.

383. Remittances will be payable in legal tender currency, i.e., notes or coins, at the convenience of the officer making payment. In other words, the payee will have no right to demand payment in any particular form of currency though in practice, his requirements will be met as far as possible.

384. The provisions of Rule 404 below apply mutatis mutandis to payments of Telegraphic Transfers as they apply to payments of Drafts.

(iii) Drafts, Drawings and Encashments

385. Explanations.—

The person or office that draws (i.e., issues or grants) a Draft is called the drawer,

the person or office on which it is drawn and by which it is payable is caller the drawee,

the person or party to whom a draft is granted is called the remitter

and the person or party to whom it is payable is the payee.

𝗤27. The person draws a draft is:

(A) Payee

(B) giver

(D) drawer

Answer: ((D) drawer

𝗤28. The person on which draft is drawn is:

(A) drawer

(B) Payee

(D) giver

Answer: (C) drawee

𝗤29. The person on which draft is granted is called:

(A) Drawer

(B) Drawee

(D) Payee

Answer: (C) Remitter

𝗤29A.The person or the party to whom draft is granted is called a __________.

A:-Drawee

B:-Remitter

C:-Payee

D:-Drawer

Correct Answer:- Option-B

𝗤30. The person or party to whom it is payable is the payee:

(A) drawer

(B) Payee

(D) giver

Answer: (B) Payee

386. All Drafts, unless the contrary intention appears from the form itself are transferable, the original payee being entitled to transfer his right by endorsement. This he may do by simply signing his name on the back, in which case it becomes payable to bearer, or he may write above his signature, “Pay to C.D.” or “Pay to C.D. or order” in which case C.D. stands in the same position as the original payee did originally and has the same power of transfer. The writing by which such a right is transferred is called an endorsement, the endorsement to “C.D. or order” is a Special endorsement, and the persons to whom a Draft is successively transferred are endorsees, and the person in rightful possession of a draft is the holder.

In obtaining drafts for remittance of moneys on Government account, the following instructions should be observed by all officers of the Government:¬

(a) Payments on accounts of inter-departmental or inter-governmental dues:—All such drafts should be crossed if drawn on an office of the Reserve Bank or any of its agencies other than a treasury agency, with the words “account payee” between the crossing and, if drawn on a treasury agency, the drafts should be superscribed with the words “account Government-not payable in cash” without any crossing.

𝗤31. For payments on accounts of Inter Departmental or Inter Governmental dues if drawn on a Treasury Agency, the Draft should be super scribed:

(A) & Company

(B) Account Payee

(D) Account Govt-Not payable in cash

Correct Answer:-Option:-D

(b) When the amounts of the drafts are required by officers of the Government to enable them to make disbursements in cash, on behalf of Government, e.g., pay and allowances of non-gazetted staff, contingent expenditure, permanent advance, etc.—Drafts, the amounts of which are payable to officers of the Government to enable them to make disbursement of pay and allowances of non-gazetted staff, contingent expenditure, etc., on behalf of Government, shall not be crossed but shall bear the superscription “not transferable” and shall be issued in favour of the Government officer concerned, by designation, the word “only” being added after the designation of the payee officer on the draft. For this purpose, every Government Officer, when applying for a Draft, must add the word “only” after the name of the payee in the application for the draft, so that the Issuing Officer may prepare the draft accordingly. It shall not, however, be permissible for any Government Officer himself to add the word “only” after the name of the payee of the Draft in any case in which the Issuing Officer, for any reason, fails to add the word “themselves”.

(c) Payments of personal claims of an individual (whether a Government servant or not), a firm or a company, a statutory body, etc.— All drafts in payment of such claims shall be issued invariably with the addition of the words “or order” after the name of the payee on the Draft. Such drafts, if drawn on an office of the Reserve Bank of India or any of its agencies other than a treasury agency, shall be crossed with the words “……………………………..& Co.” between the crossing unless the payee specifically asks for an open Draft in which case it need not be crossed.

𝗤32. Are the drafts obtained from the Treasury transferable?

(A) Yes. Transferable by an endorsement on its back unless instructions to the contrary appear from the form itself.

(B) Yes. Transferable in all cases.

(D) Yes, transferable if permitted by the Treasury officer

ANSWER:- (A) Yes. Transferable by an endorsement on its back unless instructions to the contrary appear from the form itself.

𝗤33. A departmental officer obtains a crossed draft the amount of which is payable to officials of Government to enable them to make disbursement of pay and allowances of non - gazetted staff. Is it correct?
(A) It is regular. Drafts are to be crossed
(B) Yes. Drafts are to be crossed to avoid possible misuse
(C) In such cases, an open draft should be obtained
(D) Should not be crossed in such cases. Instead, the words "not transferable" should be added to it
ANSWER:-(D) Should not be crossed in such cases. Instead, the words "not transferable" should be added to it

Form of Drafts

387. Drafts shall be issued in special forms to be obtained from the Currency Officer under Rule 420 below.

388. Immediately on receipt of a parcel of forms of Drafts, they shall be carefully examined by the Treasury Officer and a proper acknowledgment sent to the Currency Officer. The acknowledgment shall certify that the forms have been counted and found correct.

389.The forms of Drafts and of advices (Rule 393 below) shall be placed in store under the key of the Treasury Officer who should each morning issue for book or books containing Draft Forms and the Advice Forms, for the day’s use. He must be careful not to issue a book of a later serial number before an earlier, and therefore should see that the store is so arranged as to prevent mistakes. Every evening the unused forms will be returned to him, and he should see that this series is unbroken, that no form is kept back unissued unless it be spoilt and that the number of Draft Forms expended in the day agrees with the total number listed in the “Schedule of the Reserve Bank of India Remittance Drawn” for the day. (Rule 407 below)

Officers signing drafts shall destroy spoilt Draft Forms after noting in the remarks column of the Issue-cum—Drawing Schedule Register (Form T.A. 18 or 18A in the Kerala Account Code, Vol. II) under their full signature the printed numbers of the forms destroyed and certifying that the forms have been cancelled and destroyed.

Issue of Drafts

390. A person requiring a Draft shall tender with the money a formal application in prescribed form, which may be obtained from the treasury. The application form duly filled in will serve as a chalan for the money tendered. The application shall be retained by the Treasury Officer for transmission to the Accountant General along with the daily “Schedule of Reserve Bank of India Remittances Drawn”. (Rule 407 below)

NOTE 1—A person applying for a Draft on behalf of the Government or a Local Fund should certify on the application that the Draft is wanted for bona fide public purposes and describe the object of the remittance. If the Treasury Officer doubts whether the object is really public, he should state his doubt to the applicant or take the orders of the Collector. Questionable grants should be reported to the Currency Officer with a view to the issue of instructions for future guidance.

NOTE 2—When the purchaser of the Draft(=DD) demands a receipt for the amount of the Draft and the exchange charges thereon, the Treasury Officer may grant the purchaser a receipt in the form prescribed by the Reserve Bank for the purpose.

391.Drafts shall be prepared and signed from time to time as they are applied for, immediately on the receipt of cash or its equivalent; the business of signing them must not be postponed till the close of office, and on no account may the office be closed till all Drafts applied for have been issued. Each must be signed legibly with the full signature of the Treasury Officer.

392. At the time of signature of a Draft(=DD), the Register (Form T.A. 18A in the Kerala Account Code, Volume II), together with the application for the Draft, the advice (Rule 393 below) and the book of forms shall be laid together before the Treasury Officer. The Treasury Officer shall initial each entry in the Advice and the corresponding entry in the register at the same time as he signs the Drafts after he has satisfied himself that¬

(i) the several documents agree,

(ii) the authority for issue is sufficient,

(iii) the date and office of issue and the name of the payee are legibly and distinctly entered in the body of the Draft,

(iv) in addition to the amount being entered in figures, the amount of whole rupees is entered as second time in words and fractions of a rupee in words or figures, that words are written continuously without lifting the pen and that when the amount consists of rupees only and does not contain fractions of a rupee, the words end with the word “only”, and

(v) a sum a little in excess of that for which the draft is granted is entered in words across the Draft at right angles to the type.

NOTE 1—“Under thirty rupees” will mean that the Draft is for a sum not less than `. 20 but less than ` 30, and similarly, “under eight hundred rupees” will mean that it is for less than ` 800, but not less than `. 700.

NOTE 2—The cross entry is not necessary if the amount in words is typed perforated by a special cheque writing machine.

Advice of Remittances drawn

393. An advice of all drawings effected on a particular treasury or the Bank on any particular date shall be sent to the treasury or the office drawn upon in the special form prescribed by the Reserve Bank. The Advices shall be completed, signed and despatched by the Treasury Officer before the treasury closes on the day of issue.

Advices of drafts drawn on the Bank shall be sent direct to the Manager or Agent as the case may be, of the Bank.

NOTE—Whenever two or more sheets are used for advising the issue of Drafts, each such sheet should be signed by the Treasury Officer.

394. If alterations be made in a Draft prior to issue, the corrections shall be noted in the Advice and each alteration, both in Draft and Advice, shall be authenticated by the drawer’s full signature in order to prevent hesitation, on the part of the drawee. If the drawer should enter the amount so carelessly as to enable a stranger to alter it and fraudulently to obtain payment of a larger amount, the drawer, and not the drawee, must bear the loss. But the Treasury Officer drawn on must remember and apply the numerous defensive checks provided for him by these rules.

Regularity of Signature

395.Variation in the signature of the drawer often entails much trouble on the paying office, and the drawer will be held responsible for inconvenience or delay which may be caused to individuals in consequence of change in, or illegibility of, his signature, or other serious irregularity on the face of the draft, as the drawee would be justified in suspending payment in cases of doubt arising from such cases. An officer in charge of a treasury shall sign his name in English, or have it written in English characters below the signature in any Indian script.

396. When any change of Treasury Officer occurs, a specimen of the signature of the relieving officer shall be forwarded by the outgoing officer to all officers usually drawn on. The following form will be convenient

“ The undersigned writes to notify to ……………………………… that he has on this day been relieved of the executive charge of the treasury at ………………………. by …………………………… a specimen of whose signature is annexed. …………...……

.....................................

Relieved Officer

.....................................

The…………..20….. Relieving Officer.”

NOTE 1—If it should be necessary for a Treasury Officer to draw on a treasury or an office not usually drawn upon, to which a specimen of his signature has not been sent under the provisions of this rule, heshould, at the time of issue of a draft, also forward a specimen of his signature under a special forwarding letter duly stamped with the seal of the treasury, which should be posted on the same day in a separate cover and not in the cover containing the Advice.

NOTE 2—In the case of an officer who signs in any Indian script, his name should also be written in English characters in the notice, as well as after his signature.

NOTE 3—When an officer who was formerly in charge of a treasury resumes charge of it after a lapse of time, his signature need not again be circulated among treasury and other offices.

Encashment of Drafts

397. The Advices received from the issuing treasuries of the Bank shall be opened in the presence of the Treasury Officer, and each dated and initialled by him after he has satisfied himself of its genuineness by examining the signature of the drawer and, if necessary, the post mark. They shall then be sorted and arranged accordingly to the offices from which they are received and pasted chronologically in guard files in such a way that advices received from each drawing office may be kept together. These files shall be kept under lock and key.

NOTE 1—The Treasury Officers should particularly guard against the possibility of the fraud of altering after signature the amount shown in the Advice, by a comparison of the total amount reported in words in the heading with the real total of the figured amounts of an Advice. Any alteration of any entry, whether of names of figures, in an Advice requires the drawer’s full signature, so that it is scarcely possible that any fraud should be attempted by altering the Advice before he has signed it, since at the time of signing he would notice any uncertified correction.

NOTE 2—All covers containing “Advices of remittances sold” received from the issuing treasuries or the Bank shall be superscribed with the words “Remittance Advice”.

398. The Advices arranged in the manner prescribed in the last preceding rule will facilitate the examination and identification of Drafts, etc.,presented for payment. The entries made in an Advice should be such as to place sufficient obstacle to the encashment of Drafts forged or fraudulently altered, and their sequence should effectually bar the use, a second time, of a particular serial number, and suggest suspicion even of the Advice where a high number follows a low one.

Necessary notes of references touching irregularities of cancellation, issue of certificates of non-payment, Advices of seconds or thirds, and of any other points of importance shall be made on the Advice.

399. (a) On a Draft being presented for encashment, the Treasury Officer shall compare it with the Advice, and satisfy himself carefully that it is in order and that it is receipted on the back by a person able to give a legal quittance. It must be borne in mind that in the case of a Draft on Government account the liability to the payee named in the Draft can only be discharged by payment to—

(1) the payee or his lawful agent on identification, or

(2) The payee’s banker who should certify that the amount has been placed to the payee’s credit, or

(3) a person holding a letter of authority from the payee, whose signature must be known to the Treasury Officer and if the letter directs to the Treasury Officer to pay the money to a certain named person, that person must be identified to the Treasury Officer before payment can be made. The only endorsement on such a Draft should be payee’s receipt or that of his lawful agent.

(b) In all other cases where payment is not made on an endorsement in favour of a recognized bank, the Treasury Officer shall not only satisfy himself of the genuineness of the claimant’s signature to the receipt on the back of a Draft but, if the claimant himself is not in attendance, he must assure himself that the presenter of the Draft is the agent or messenger of the legal holder, duly authorized to receive the payment. If the presenter is unknown to the treasury officials, or, if known, should there be reasonable grounds for questioning his being in lawful possession of the Draft, the Treasury Officer shall demand a letter from the legal holder, authorizing the presenter to receive payment on his behalf. Similarly, in cases where payment is made on an endorsement to a recognized bank, the Treasury Officer must assure himself that the presenter of the Draft is the authorized agent or messenger of the Bank.

NOTE 1— The term “recognized bank” referred to in this Rule includes a scheduled bank under the Reserve Bank of India Act, 1934, or a bank or firm mentioned in Appendix 9.

NOTE 2—The letter of authority for receiving payment at the treasury referred to in this rule in not liable to stamp duty.

400. Drafts payable at the District Treasury cannot be endorsed for payment at a Sub Treasury. But if the money payable on a Draft is required at a Sub Treasury and the remittance cannot be effected in accordance with the procedure laid down in Rule 416 below, a cash order may be issued to the payee for presentation at the Sub Treasury. In such a case the payee must receipt the Draft as “Received payment by a cash order on ………………… Sub Treasury”, and the Treasury Officer at the District Treasury shall finally deal with the Draft and take the same precautions regarding the delivery of the cash order as are prescribed in Rule 401 below for payment in cash.

401. Before issuing pay orders on a Draft the Treasury Officer shall satisfy himself that the Draft has been advised; that it corresponds in all particulars with the Advice; that it bears the genuine signature of the drawer; that it has not been tampered with; and that it is not a cancelled or lapsed Draft or one of which a duplicate has been paid. A Draft may be paid—

(i) without Advice, if there is no reason whatsoever to doubt its genuineness, and if sufficient security is offered. In the case of well known and reliable holders, this security may be dispensed with at the discretion of the Treasury Officer. The Treasury Officer shall in all such cases apply for the necessary Advice without delay.

(ii) even though differing from the Advice, at the discretion of the Treasury Officer, provided there is no suspicion of fraudulent alteration, nor any possible doubt of the genuineness of the Draft. Special caution shall be exercised before paying on a Draft an amount larger than that named in the Advice.

402. As each Draft or Telegraphic Transfer drawn by the Treasury is paid, it must be stamped “paid”, the date of payment being at the same time noted in the Advice under the initials of the Treasury Officer.

403. Doubtful drawings.—In case of erasure, alteration or other serious cause for suspicion, the Treasury Officer shall, before payment, refer to the drawer, the post office, or the Currency Officer, as the case may require. Any

404. Form of receipt.—For the sufficiency of the receipt, it is necessary to see that it is not for a part only of the Draft, and that it is given by the legal holder. On no account may a Draft be paid by instalment; receipt for the full amount must be given on the reverse, and the full amount must be paid—

(a) if the legal holder be dead, payment can be made only to his legal representative; a Draft for less than ` 100 may, however, be paid without a certificate of administration.

(b) if the receipt be signed by an agent or attorney, note of the existence, and of the record in the treasury, of the power of attorney, should be made on the Draft.

(d) Draft payable to A.B. cannot be cashed on the receipt of his partner

C.D. without production of a formal power of attorney; a bill payable to A.B. and Co. can be paid on the receipt as A.B. and Co. of any member of the firm.

(e) Drafts payable to an incorporated company of any other corporate body may be paid on the receipt of the official authorized, generally or specially, by it regulations or by power of attorney to receive moneys payable to such company or body.

In the case of Draft payable to an unincorporated body, payment may be made to a person holding authority to receive moneys payable to such body, but the Treasury Officer shall first satisfy himself that the authority has been duly conferred.

(f) A government officer when he sends a Draft to a treasury not for cash payment, but for credit of its amount in the treasury accounts, must, before he signs the receipt, add to the words “Received payment” the further words “by transfer credit to……….”. Omission to do this facilitates fraudulent appropriation of the money.

(iv) Record of Drawings and Encashments

𝗤34. On no account may a draft be paid by instalment, receipt for the full amount must be given on the reverse, and the full amount must be paid

A:-Rule 401 KTC Vol. 1

B:-Rule 402 KTC Vol. 1

C:-Rule 403 KTC Vol. 1

D:-Rule 404 KTC Vol. 1

Correct Answer:- Option-D:-Rule 404 KTC Vol. 1

405. A record of Telegraphic Transfers and Drafts drawn by the treasury will be kept in a register (Form T.A. 18 or 18A) in accordance with the directions contained in this behalf in the Kerala Account Code, Volume II.

406. As each Draft or Telegraphic Transfer is paid, entry must be made in the Register of Reserve Bank of India Remittances Encashed (Form T.A. 19 in the Kerala Account Code, Volume II).

407. At the close of each day, separate schedules for drawings and encashments during the day will be prepared in special forms prescribed by the Reserve Bank for submission to the Accountant General in accordance with the directions contained in the Kerala Account Code, Volume II. The application forms for remittances drawn and also the receipted Drafts and the payees’ receipts in respect of Telegraphic transfers encashed shall accompany the schedules mentioned above.

408. The following are the cross-checks which the Treasury Officer shall, each evening, apply to the several documents connected with remittances drawn and encashed. The registers of remittances drawn and encashed and the connected schedules check one another directly; the total of each schedule must agree with total receipts or total payments for the day as booked under the head “Reserve Bank of India Remittances” in the cash book, after allowing for receipts and payments, if any Sub Treasuries which will be entered under a separate sub head. The total of the several Advices for the day must also agree with the total in the column “Amount” in the schedule of drawings, and this agreement shall be, at times, checked by the Treasury Officer himself.

409. Where the name of the payee and/or endorsee appears on the instrument in English and the signature is made in English, the Treasury Officer should, in addition to the precautions prescribed in the Rules for making payment to the proper person on identification, see that the signature tallies letter for letter with the name as spelt on the instrument. Where the name of the payee or endorsee is spelt incorrectly, the spelling of the endorsement must correspond with that of the mis-spelt name, but if the payee wishes, he may add his correct name in brackets.

(v) Other Rules

410. Issue of duplicates.—When satisfactory evidence has been given that a draft has been either lost or destroyed, and application is made within a reasonable period after issue but before it has lapsed (Rule 419 below) a duplicate may, without reference to the Currency Officer, be granted to the party who obtained the original, or to the payee, or to the legal representative of either but to no other person. If the draft could not have been presented for payment within three months, it will be necessary for the applicant to produce a certificate of non-payment from the drawee; but the issue of this certificate will be no bar to the payment of the lost Draft, if presented before duplicate is paid.

In the event of the loss of both original and duplicate, a triplicate may be issued on the same terms as the duplicate, the nonpayment of the others being certified. Neither duplicate nor triplicate can be issued without reference to the Currency Officer, if the Draft has lapsed (Rule 419 below). Issue of duplicate or triplicate shall be promptly advised to the drawee, in order that proper note may be made on the advice originally received.

𝗤35. When a Draft is lost and applied along with proof, if other conditions satisfy, Duplicate Draft may be issued to:

(A) The party who received the original

(B) Payee

(D) Anyone of the above

Answer: (D) Anyone of the above

𝗤36. A duplicate RBI draft in lieu of a lost draft based on application made within the permissible period can be granted only to:

(A) the party who obtained the original

(B) the payee

(D) any of the persons mentioned at (A) or (B) or (C) and to no other person

ANSWER:-(D) any of the persons mentioned at (A) or (B) or (C) and to no other person

411. The duplicate and triplicate shall be drawn in exactly the same terms as the original instrument with the same date, the same number, the same amount, and the name of the same payee, so that, if a lost Draft has been endorsed, the endorsee must apply for a duplicate through the original payee. It will be issued under the signature of the officer in charge of the treasury at the time, although he be not the person who signed the original Draft.

NOTE 1—Where the remitter is a department of the Government or a Local

Fund, the issue of a duplicate against an unstamped Letter of

Undertaking as given below, will be permissible.

LETTER OF UNDERTAKING Place……………….………… Dated…………………………. To ……………….......……..

…………………….......... Dear Sir, In co.nsideration of your agreeing to issue a duplicate of Reserve Bank

of India draft bearing No………….and dated ……………….for `…………… (Rupees …………………..) which has been lost, I hereby undertake that, in the event of payment being obtained from the Reserve Bank on the original draft or of the Bank incurring any expense and/or loss by reason of the issue of the duplicate, I shall reimburse the Reserve Bank to the extent of the amount paid on the original draft and any expense and/or loss incurred as aforesaid. Yours faithfully, (……………..……….) Signature (…………………..…………)

Office Seal Name and designation of the Officer executing the letter.

NOTE 2—When it is necessary to issue duplicates, the word “duplicate” should be prominently written in red ink on the face of ordinary draft forms and the relative advice forms. The duplicate should be issued only after the issuing officer has satisfied himself that the original has not been paid.

412. No duplicate or triplicate older than six months shall be paid without previous reference to the Currency Officer.

413. Cancellation and Refund.—No Draft can be cancelled without surrender of the whole set. Thus, if a duplicate or a triplicate has been issued the Draft can be cancelled only if the original together with the duplicate (and the triplicate if issued) be surrendered. Consequently, no refund can be made on a lost Draft; a duplicate must be obtained and payment taken at the treasury or office drawn on.

414. All parts being surrendered, a Draft may be cancelled and its amount refunded at the discretion of the Treasury Officer, on the application and receipt of the remitter in the case of a Draft on Government account and of the payee in the case of other Drafts. If, in the latter case, the receipt of the payee cannot be obtained, the remitter’s application for cancellation, with explanation of the reasons for his request, and of the difficulty in the way of obtaining the payee’s signature, shall be submitted for orders of the Currency Officer. Although no difficulty should be made about cancellation of Drafts on Government account, it must be clearly understood that other classes of Drafts can be cancelled only as an indulgence, and for sufficient cause shown. No exchange which has been levied can be refunded.

NOTE— If alteration of the name only of the payee is required by remitter, it will suffice for the drawer to alter the name in the Draft under his full signature and send advice to the drawee.

415. When a Draft is cancelled, the fact of cancellation shall be conspicuously noted across the face of the Draft; at the same time an intimation shall be sent to the office drawn on, in order that the fact may be recorded in the advice originally received and necessary precautions taken against the payment of the cancelled Draft. The cancelled Drafts shall be duly receipted by the remitter or the payee, as the case may be.

NOTE— The amount refunded will be entered in the “Register of Reserve Bank of India Remittances Encashed” and also in the proper columns of the schedule of such encashments for the day on which the cancellation takes place, in accordance with the directions contained in this behalf in the Kerala Account Code, Volume II.

416. A Treasury Officer may issue a Draft in exchange for one drawn on him only if the holder has been removed to the neighbourhood of another treasury or of an office or agency of the Bank.

NOTE— A Draft is said to be exchanged when the holder being unable to appear and take payment in cash, applies for a new one endorsing the original “Received payment by Draft on …………….”.

If he can appear and take payment in cash, his obtaining a new Draft

with the cash paid on the old one is a matter to be disposed of under

ordinary rules.

417. When a Draft is exchanged for another, the original Draft will be treated and entered as a Draft presented for encashment and the amount again credited as received for the issue of a new Draft.

418. Unpaid Drafts.—Drafts which are outstanding for more than six months can be paid only after obtaining the necessary confirmation from the drawing office.

𝗤37. Drafts which are outstanding for more than _______ can be paid only after obtaining necessary confirmation from the drawing office.

A:-3 month

B:-4 month

C:-6 month

D:-9 month

Correct Answer:- Option-C

𝗤37A.The period of currency of Reserve Bank of India draft is

A:-One month

B:-3 months

C:-6 months

D:-12 months

Correct Answer:- Option-C

419. Lapse of Drafts.—Drafts which are not paid before the end of the third account year after that in which they are issued, shall be treated as lapsed and shall be so marked in the Advice. Should any one apply for payment of a lapsed Draft, he should be directed to address the Currency Officer for orders.

𝗤38. To whom one should apply for payment of lapsed draft (RB) under the rules

A:-Accountant General

B:-District Treasury Officer

C:-Director of Treasuries

D:-Currency officer

Correct Answer:- Option-D

𝗤39. Drafts which are not paid before the end of the third account year after that in which they are issued, shall be treated as lapsed

A:-Rule 419 KTC Vol. 1

B:-Rule 418 KTC Vol. 1

C:-Rule 417 KTC Vol. 1

D:-Rule 416 KTC Vol. 1

Correct Answer:- Option-A:-Rule 419 KTC Vol. 1

420. Supply of forms.—Forms of Drafts and all other forms prescribed by the Reserve Bank for use in connection with the remittances dealt with in this section will be supplied to the Treasury Officer by the Currency Officer under whose jurisdiction the treasury is situated. Indents for such supplies will be in Form T.R. 94 or in such other forms as the Reserve Bank may prescribe and will ordinarily be for twelve months’ supply.

𝗤40. From which source the Treasury Officer gets RBI draft forms and other forms prescribed by it in connection with the various remittances with them?

(A) Controller of Stationery

(B) Government Press

(D) Security Press of Government of India

ANSWER:-(C) Currency officer of RBI under whose jurisdiction the treasury is situated

𝗤40A. Drafts shall be issued in special forms to be obtained from currency officer of _______

A:-State Bank of India

B:-Reserve Bank of India

C:-Treasury directorate

D:-State Bank of Travancore

Correct Answer:- Option-B

𝗤40B.Indents for supply of forms of drafts will ordinarily be for _________ months supply.

A:-6

B:-3

C:-2

D:-12

Correct Answer:- Option-D

421. Special Rules for remittances of policemen.—In the case of policemen’s remittances, the Superintendent of Police concerned shall forward the Drafts to the payees direct. There is no objection, if such a course is preferred, or is required by departmental regulations, to his sending the Draft to the Superintendent of Police of the district in which the payee resides, who will deliver it to the payee after satisfying himself as to his identity. Descriptive rolls of the payees duly filled in and signed shall, at the same time, be sent to the Treasury Officers concerned.

422.The Drafts are payable to the parties described in the roll. In cases of doubtful identity, payment may be made on security at the discretion of the Treasury Officer.

423. These drafts, if not, presented for payment at the expiration of six months from the date of issue, shall be considered as cancelled and if they are presented after that period, payments shall be refused. A draft which has become uncurrent may be returned by the payee to the drawer for the issue of a fresh draft or for the refund of the amount, as may be required. Should such a draft, whether original or duplicate, be lost in transit, the Superintendent of Police will report the loss to the Currency Officer, who will decide the case specially on its merits, sanctioning refund to the person indicated if it appears right. When the draft is six months old and therefore void, there need be no hesitation in permitting refund on production of a non¬payment certificate from the treasury or office on which it was drawn.

NOTE— These drafts may also be cancelled as provided for in Rule 414 above.

Pages

PART VI (308-423)

1. Resource

General

II. Remittances

A. TRANSFERS THROUGH CURRENCY

Treasurers Accompanying Remittances

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