Punjab Treasury Rules 1985

THE PUNJAB TREASURY RULES

VOLUME I

SECTION I INTRODUCTION

1. (i)These rules may be called the Punjab Treasury Rules,1985

(ii) They shall come into force at once.

(2) Where the Government is of opinion that it is necessary or expedient so to do, it may by order, for reasons to be recorded in writing relax any of the provisions of these rules with respect to any class or category of persons.

SECTION II- DEFINITIONS

3. In these rules, unless the context otherwise requires:-

(a) “Accountant General” means the “Accountant General , Punjab”;

(b) “Bank” means any office or branch of the Banking Department of the Reserve Bank of India, any branch of the State Bank of India, acting as the agent of the Reserve Bank of India Act, 1934 (Central Act No. 2 of 1934) and any branch of a Subsidiary Bank, as defined in section 2 of the State Bank of India (Subsidiary Banks) Act,1959 (Central Act No. 38 of 1959), which is authorised to transact government business as an agent of the State Bank of India or any other agency appointed by the Reserve Bank of India;

( c ) “Comptroller and Auditor General” means the Comptroller and Auditor General of India;

(d) “Constitution” means the Constitution of India;

(e) “Collector” means the Chief Officer of the revenue administration of a district and includes any other officer for the time being authorised by Government to discharge the duties of the Collector for the purpose of these rules;

(f) “Competent Authority” means the Government in the Department of Finance or any other authority to whom the relevant powers may be delegated by the Government;

(g) “Consolidated Fund of the State” means the fund into which all revenue received by the Government of the State, loans raised by the Government by the issue of treasury bills, loans or ways and means advances and money received by the Government in repayment of loans are credited, and from which the expenditure of the State, when authorised by the Legislature, is met;

(h) “Contingency Fund of the State” means the fund, in the nature of an imprest into which shall be paid from time to time such sums as may be determined by law to enable the Governor of Punjab to make advances out of such fund for the purpose the meeting unforeseen expenditure pending authorisation of such expenditure by the Legislature by law;

(i) “Currency Office” means the Delhi Branch of the Issue Department of the Reserve Bank of India;

(j) “Currency Officer” means an officer of the Reserve Bank of India in charge of the currency office;

(k) “Currency Chest” means a chest of the Issue Department of the Reserve Bank of India;

(l) “Form” means a form appended to these rules;

(m) ‘Government” means the Government of the State of Punjab;

(n) “Head of District or District Officer” means Collector or the Deputy Commissioner;

(o) “Indian Audit & Accounts Department” means the officers and establishment, being in India and subordinate to the Comptroller and Auditor General of India that are employed upon the audit or upon the keeping and audit of the accounts of the Central Government and of the State Government or upon one or other of these duties; 

(p) “Public Account of the State” means the account into which all public moneys other than those which form a part of the Consolidated Fund of the State received by or on behalf of the State, are credited and from which disbursements are made in accordance with these rules;

Note:- All moneys received by or deposited with any officer employed in connection with the affairs of the State in his capacity as such, other than revenues or public moneys raised or received by the Government of the State, should also be paid into the “Public Account of the State”;

(q) “Reserve Bank”means the reserve Bank of India;

(r) “State” means the State of Punjab

(s) “Treasury” means any District treasury of the State Government and includes a sub treasury.

SECTION III LOCATION OF MONEYS STANDING IN THE CONSOLIDATED FUND,

THE CONTINGENCY FUND AND THE PUBLIC ACCOUNT OF THE STATE.

4. (1) Subject to the provisions of sub-rule(2) of rule 8 and rule 10, moneys standing in the Consolidated Funds of the State, the Contingency Fund of the State and the Public Account of State shall either be held in the treasury or in the Bank. Moneys deposited in the Bank shall be held in the books of the Bank on behalf of the Government.

(2) The deposits in the Bank of the moneys referred to in sub-rule (1) shall be governed by the terms of an agreement reached between the Governor of the State and Bank under section 21-A of the Reserve Bank of India Act, 1934(Central Act No.2 of 1934).

Note: For Form of agreement, see Appendix ‘A” to Volume II of these rules.

SECTION IV-GENERAL SYSTEM OF CONTROL OVER TREASURY

(i) DISTRICT TREASURIES

5. (1) Unless the Government in the Department of Finance after consultation with the Accountant General, otherwise directs in any special case, there shall be a treasury in every district. If moneys standing in the Consolidated Fund of the State, the Contingency Fund of the State, and the Public Accounts of the State are, in any district, not deposited in the bank but are deposited in the treasury of the district concerned, such treasury shall be divided into two departments; a department of accounts under the charge of Superintendent, and Department of cash, stamps and opium under the charge of District Treasurer. The two Departments should as far as possible be located in different rooms.

(2) Subject as hereinafter provided in these rules, the general procedure and conduct of business in a treasury of the district shall be regulated by the provisions contained in Part II of these rules and such other instructions as may be issued by the Government from time to time in consultation with the Accountant General.

(3) Each treasury shall be under the general charge of a Treasury Officer with the overall supervision of Department of Finance. The Treasury Officer shall be responsible for the proper observance of the procedure specified by or under these rules and for the punctual submission of all returns required by the Government, the Accountant General and the Reserve Bank.

Note 1:- The Treasury Officer will be in charge of the Treasury and Sub Treasury under him. A report indicating the Cash balance taken over by the Treasury Officer shall be submitted by him to the Accountant General and to the Reserve Bank of India under advice to the Secretary to government in the Department of Finance.

Note 2: - It shall be the duty of the Treasury Officer to satisfy him -self that the register of valuables and other records are kept up to date according to rules.

Note 3: The sub treasuries, which are under the charge of Assistant Treasury Officers, shall function under the control of Treasury Officers. The Sub-Treasuries, which are under the charge of Tehsildars or Naib Tehsildars, shall regulate their functions as per instructions of the Treasury Officer and the Department of Finance.

(4) It shall be the duty of the Treasury Officer to verify, certify and send a report to the Accountant General and the Department of Finance about the monthly cash balance in the treasury in such manner and on such form as may be specified by the Department of Finance after consultation with the Accountant General. It shall be the duty of the Treasury Officer to conduct the above verification in person once in six months.

(5)When a new Treasury Officer is appointed, he shall report immediately his appointment and also send a certificate to the Accountant General in Form P.T.R.9 about the amount of the cash balance, opium, stamps, permanent advance etc. This certificate shall be submitted by the Treasury Officer after observing the method of verification as specified in Part-II of these rules.

(6) No responsibility for the proper management and working of treasuries shall devolve upon the officers of the Audit & Accounts Department.

(7) The Treasury Officer shall report immediately to the Accountant General and the Department of Finance any serious irregularity in the treasury, accounts defalcation, loss in public money, departmental revenue of receipt, stamps, opium, stores of other property discovered in treasury even when such loss has been made good by person or persons responsible for it.

(ii) SUB TREASURIES

6. If the requirements of the public business necessitate the establishment of one or more sub treasuries under a district treasury, the arrangements for the administration thereof and for the proper conduct of business therein shall be such as may be specified by the Government after consultation with the Accountant General. The daily accounts of receipts and payments of moneys at a sub-treasury shall be included in the accounts of the treasury

(iii) OFFICE OF THE ACCOUNTANT GENERAL

7. The Accountant General may, with the consent of and subject to such conditions and limitations, as may be specified by the Comptroller and Auditor General of India perform all or any of the prescribed part of the duties of a treasury in respect of claims against the Government that may fall due for disbursement and moneys that may be tendered for credit to the Consolidated Fund of the State, the Contingency Fund of the State and Public Accounts of the State at the headquarters of the Government.

SECTION V-PAYMENT OF REVENUE OR PUBLIC MONEYS RAISED OR RECEIVED BY THE STATE GOVERNMENT INTO THE CONSOLIDATED FUND, AND OTHER PUBLIC MONEYS INTO THE PUBLIC ACCOUNT

8(1) Save as hereinafter provided in this section, all moneys received by or tendered to any Government employee on account of the revenue of the Government or Public moneys raised or received by the Government shall, without undue delay be deposited in full into the treasury or into the Bank as the case may be and shall be included in the “Consolidated Fund of the State”. Money received as aforesaid shall not be appropriated to meet departmental expenditure nor otherwise kept apart from the Consolidated Fund of the State. No department of the Government may require that any moneys received by it on account of the revenues of the State be kept out of the Consolidated Fund of the State.

Note: - The Government employee when not posted at, or not touring through, the headquarters of treasuries are permitted to credit into the treasury, such Government income as they may receive in the course of their normal duties once a week, or earlier if the amount in hand exceeds Rs.100/-(Rupees one hundred), on the understanding that proper steps are taken by the Heads of Offices concerned for the safe custody of all such income until deposited into the treasury and subject to the further condition that a security of Rs.150/- (Rupee one hundred fifty) is furnished by the official responsible for crediting the amount into the treasury. 

The above principle shall apply to those offices which are situated at a distance of more than 8 kilo metres from the treasury headquarters. In other cases, the general rule that all cash receipts should be deposited into the treasury or bank immediately after receipt, shall apply.

(2) Notwithstanding anything contained in sub-rule (1) of this rule direct appropriation of departmental receipts for departmental expenditure is authorised in the case of: -

(a) moneys received on account of the service of summons, diet money of witnesses and similar purpose in Civil Revenue and Criminal Cases;

(b) deposits received at a civil court and utilised by the Court to meet claims for refund of such deposits;

( c ) fees received by Government employees appointed as Notaries Public under Notaries Act,1952 (Central Act No.53 of 1952) and utilised to defray legal expenses incurred by them in the discharge of their duties as such Notaries Public;

(d) permission by Department of Public Works to use under departmental regulations the cash receipts temporarily for currency works expenditure or in very exceptional cases, for disbursement of pay and travelling allowance charges, where this course has been authorised by the Accountant General to prevent any abnormal delay in payment.

(e) cash received by the Department of Forest and utilised in meeting immediate local expenditure;

(f) cash found on the persons of prisoners at the time of their admission to jail and used for repayment by Jail Superintendents under departmental regulations of similar sums due to other prisoners on their release;

(g) moneys received from students on account of lost library books and utilised for the purchase of other books for the library;

(h) replacement of apparatus damaged by students under training out of their caution money;

(i) receipt, realised under section 12 of the Cattle Trespass Act,1871 (Central Act of 1871) and utilised for payment and refunds due to owners of cattle under section 17 of that Act; 

(j) receipts on account of the market value of green fodder given to bullocks out of the farm produce of the Government educational institutions;

(k) land revenue assignments paid by Lambardars to assignees direct from the collection of land revenue when such payment is to be made under the provisions of rules 52 and 55 of the Land revenue Rules;

(l) remittances received from local bodies and other institutions entitled to purchase stationery against cash payments, which are to be returned to them by the State Stationery Office as being too late for supplies being made within a financial year.

(m) Stationery and Printing Department, Publication Branch, to permit the refund of moneys deposited in advance by indentors and advertisers for supply of publications and advertisements in the Gazette, respectively out of the sale proceeds of the publications and the Gazette;

Provided that the authority hereby given to appropriate departmental receipts for departmental expenditure shall not be construed as authority to keep the departmental receipts and expenses defrayed there from outside the account of the payment into and the withdrawals from the Consolidated Fund of the State.

9. All moneys received by or deposited with a Government employee in his official capacity, other than revenues of public moneys raised or received by the Government, shall be deposited into the Public Accounts of the State.

10. A Government employee may not, except with the special permission of the Government, deposit in a bank moneys withdrawn from the Consolidated Fund of the State, Contingency Fund of the State and Public Accounts of the State, under the provisions of Section VII of these rules.

(2) Provided that with the permission of the Governor, his private or Military Secretary may open an account in the bank for the deposits of funds under the personal control of the Governor. 

Note:- Accounts permitted under this rule shall be opened with an office of the Reserve Bank of India or with a branch of the State Bank of India according to the convenience of the Officer opening the account. Where there is no office of the Reserve Bank of India or branch of the State Bank of India, an account may be opened with the Post Office Saving Bank or with the previous approval of the Government with any other Bank.

11. The procedure to be adopted by Government employees treasuries or other authorised collecting agencies for receiving moneys on behalf of the State, for granting receipts of such moneys and for depositing them into the Consolidated Fund of the State or Public Account of the State at the treasury shall be regulated by the provisions contained in Part-II.

SECTION VI- CUSTODY OF MONEYS RELATING TO OR STANDING IN THE CONSOLIDATED FUND, THE CONTINGENCY FUND AND THE PUBLIC ACCOUNT

12. (1) The procedure for the safe custody of Government moneys with the Government employees or in a treasury shall be regulated by the provisions contained in Part-III of these rules and such shall be subject to such directions as may be issued by the Government. 

(2) The responsibility for the safe custody of Government moneys deposited in the Bank shall be that of the bank concerned.

SECTION VII-WITHDRAWAL OF MONEYS FROM THE CONSOLIDATED FUND, THE CONTINGENCY FUND AND THE PUBLIC ACCOUNT

13. In this section “ withdrawal” with its cognate expressions, refers to the withdrawal of funds from the Consolidated Fund of the State, the Contingency Fund of the State and the Public Accounts of the State, for disbursement on behalf of the Government other than disbursements in the United Kingdom.

14. Save as expressly provided by or under these rules or unless the Government in the Department of Finance after consultation with the Accountant General, Punjab otherwise directs in any case, moneys may not be withdrawn from the Consolidated Fund of the State, Contingency Fund of the State and the Public Account of the State, without the written permission of the Treasury Officer or any officer authorised by the Department of Finance.

15. The Accountant General, may permit withdrawal for any purpose.

16.(1) Subject as hereinafter provided in this section a Treasury Officer may permit withdrawal for all or any of the following purposes, namely:-

(i) To pay sums due from the Government to the drawing officer;

(ii) To provide the drawing officer with funds to meet claims likely to be presented against the Government in the immediate future by-

(1) Other Government employees, or

(2) Private parties;

(iii) to enable the drawing officer to supply funds to

another Government employee to meet similar claims;

(iv) To pay direct from the treasury or from the Bank sums due from the Government to a private party;

(v) In the case of a Government Officer or authority empowered to make investments of moneys standing in the Consolidated Fund, Contingency Fund and the Public Account of the State, for the purpose of such investments.

(vi) To pay sums on account of loans and advances, grants-in-aids, contributions, etc.

(vii) To pay sums to drawing officer on account of permanent Advance sanctioned to his office.

(2) Unless expressly authorised by the Accountant General, a Treasury Officer shall not permit withdrawal for any purpose other than those specified in sub-rule(1)

17. Except as provided in rules 25 and 26, a Treasury Officer shall not permit withdrawal for any purpose, unless the claim for withdrawal complies with the provisions contained in Part V as to the person by whom and the form in which the claim shall be preferred and checks to which the claim shall be submitted by the Treasury Officer before directing payment thereof.

18. A Treasury Officer shall have no general authority to make payments on demands presented at the treasury, his authority being strictly limited to the making of payments authorised by or under these rules. If a demand of any kind is presented at a treasury for payment, which is not authorised by or under these rules, or is not covered by a special order received from the Accountant General, the Treasury Officer shall decline payment for want of authority. A Treasury Officer shall have no authority to act under an order of the Government sanctioning a payment, unless the order is an express order to him to make the payment, and unless such special order is, in the absence of an urgency, sent through the Accountant General

19. A Treasury Officer shall not honour a claim, which he considers to be disputable. He shall require the claimant to refer it to the Accountant General, the head of the Department or other responsible officer concerned, as the case may be.

20.(1) Except as provided in Part V, a payment shall only be made in the District in which a claim arises.

(2) In case of doubt as to the District in which a particular claim has arisen the decision of the Government shall be final.

21.(1) No withdrawal shall be permitted on a claim for the first on any series of payments in a district of pay or allowances to a Government employees other than a person newly appointed to Government service unless the claim is supported by a last pay certificate in such form as may be specified by the Comptroller and Auditor-General.

Note: - For rules regulating the preparation of last pay certificates, its form and other instructions relating thereto, from time to time issued by Comptroller and Auditor General of India have been reproduced see Appendix B to Volume II of these rules.

(2) In the case of Government employees transferred to another audit circle or within the same audit circle (i) from one Department to another or (ii) from one Public Works Division to another, the last pay certificate shall contain all the necessary information specified in Appendix

‘B’ referred to above so that the classification of charge may be correctly noted by the drawing officer in the bill of the new office.

(3) In the case of reversion of Government employee from foreign service, the copy of the last pay certificate issued by the foreign employer should be attached with the first pay bill presented at the treasury.

22. (1) In the case of compensatory allowance bills of the Members of the Punjab Vidhan Sabha, the production of a last pay certificate under rule 21 may be dispensed with, provided a certificate duly countersigned by the Secretary, Punjab Vidhan Sabha is recorded by the Members concerned to the effect that no payment has already been obtained by him on that account.

(2) Withdrawal for a claim for traveling allowance in respect of a journey, by a retiring government employee and the members of his family from his last place of duty to a place where he wishes to reside, may be permitted by a treasury officer even without surrendering the last pay certificate.

23. The Treasury Officer shall be responsible to the Accountant General for acceptance of the validity of a claim against which he has permitted withdrawal, as also for the evidence that the payee has actually received the sum withdrawn.

24. The Treasury Officer shall obtain sufficient information as to the nature of every payment he is making and shall not accept a voucher which does not formally present that information unless there are valid reasons, which he shall record in writing for omitting to require it.

25. A Treasury Officer may correct an arithmetical inaccuracy or an obvious mistake in any bill presented to him for payment, and shall intimate to the drawing officer any such correction which he makes. He shall also report to the Accountant General and the Government such arithmetical inaccuracy as is suspected of involving frauds, etc.

26. A Collector may in circumstances of urgency, by an order, in writing, authorise and require the Treasury Officer to make a payment, not being a payment of pension, without complying with the provisions of these rules. In any such case, the Collector shall at once forward a copy of his orders and a statement of the circumstances requiring it, and the Treasury Officer shall at once report the payment to the Accountant General and the Government.

Note: - The need for exercising the special power under this rule shall not arise at all in normal conditions. The powers shall be used only in real cases of urgency, e.g. floods, earthquake and the like, and withdrawal of moneys under this rule should, as afar as possible, exclude all personal claims of Government employees.

SECTION VIII- TRANSFER OF MONEYS STANDING IN THE CONSOLIDATED FUND, THE CONTINGENCY FUND AND THE PUBLIC ACCOUNT

27. The transfer of Government moneys from one treasury to another and between the currency chest balance and treasury balance of a treasury and between a treasury and the Bank shall be governed by such instructions as may be issued in this behalf by the Government after consultation with the Reserve Bank. The transfer of moneys from or to a small Coin Depot to or from a Treasury under the control of the Government of the State shall be governed by instructions issued by the Central Government.

Note: For instructions issued under this rule by Government after consultation with the Reserve Bank see Part-XI of these rules

SECTION IX – RESPONSIBILITY FOR MONEYS WITHDRAWN

28. If a Treasury Officer receives intimation from the Accountant General or Department of Finance that moneys have been incorrectly withdrawn and that a certain sum should be recovered from a drawing officer, he shall effect the recovery without delay and without regard to any correspondence undertaken or contemplated with reference to the retrenchment order; and the drawing officer shall without delay repay the sum in such manner as the Accountant General may direct.

Note: - For other instructions on the subject, see Punjab Treasury Rules 228.

29. (a) Subject as hereinafter provided in this rule, the procedure to be observed by a Government employee in regard to the disposal of moneys withdrawn from the Consolidated Fund of the State, Contingency Fund of the State and the Public Account of the State, for expenditure shall be regulated by the provisions contained in Part-IV.

(b) A Government employee supplied with funds for expenditure shall be responsible for such funds until an account of the same has been rendered to the satisfaction of the Accountant General. The Government employees concerned shall also be responsible for seeing that payments are made to persons entitled to receive them. 

(c ) If any doubt arises as to the identity of the Government employee by whom an account of such funds shall be rendered, it shall be decided by the Government in the Department of Finance in consultation with the Accountant General, if necessary.

Note: - See also section III, Chapter I of Part V of these rules.

SECTION X- INTER GOVERNMENT TRANSACTIONS

30. (1) Save as otherwise provided hereafter in this section, no transaction of the Government with another State Government shall be adjusted against the balance of the State, except in accordance with such directions as may be given by the Comptroller and Auditor General of India with the approval of the President of India to regulate the procedure for the accounting of transactions between different State Governments..

(2) Moneys presented within the jurisdiction of another Government for credit to the Consolidated Fund of the State, Contingency Fund of the State and the Public Account of the State, or a payment made by another Government as a withdrawal affecting the balance of that Government shall not be credited or debited to the account of that Government except under express authority of the Accountant General or any other Accounting Officer authorised in this behalf by the Comptroller and Auditor General of India.

(3) All adjustments against the balance of the State by debit or credit to another Government shall be made through the Central Accounts Section of the Bank.

(4) The accounts between different State Governments will partake of the nature of suspense account requiring periodical clearance by adjustments through the Central Accounts Office of the Reserve Bank. This suspense account will be termed "Inter State Suspense Account".

Suitable sub-heads will be provided under this head to accommodate transactions on behalf of different State Governments.

31. Where such a course is authorised in consequence of a delegation of functions made under clause(1) of article 258 of the Constitution of India, the Treasury Officer may receive or authorise the Bank to receive moneys tendered on behalf of the Central Government and may make or authorise the Bank to make disbursements on behalf of the Central Government in accordance with such procedure as may be specified in the rules made by or under the authority of the President of India. Such receipts and disbursements on behalf of the Central Government shall be initially adjusted against the balances of the State Government. The Accountant General, on receipt of intimation from the treasury, shall make the requisite adjustment in respect of such transactions by cash settlement with the Principal Accounts Officers of the Ministries/Departments of Government of India.

Note1:- Officers in charge of the treasuries and the sub-treasuries in Punjab have been authorised by Central Government to undertake the functions of receiving and disbursing and authorising the Bank to receive and disburse moneys of the Central Government. The Central Government has further directed that in respect of these transactions, the treasury and sub treasury Officers shall act in accordance with the rules made under clause (X) of article 283 of the Constitution of India. 

Note2: The Punjab Government has agreed to the payment of leave salary of gazetted Government employees and pensions of all Government employees belonging to the Central and other state Government being made at any treasury in the Punjab. The Central Government and other State Governments have also agreed to similar payments being made to employees of the Punjab Government at treasuries within their respective jurisdiction. Transactions arising in any treasury in the State relating to payment of pensions including pensions to freedom fighters and pensions in lieu of resumed Lands and Jagirs etc. will be taken by the treasuries directly against the balances of the Central Government in the Central Section of the accounts and accounted for by the Accountant General under final heads.

Note3: - In order that the transactions pertaining to the Central Government may be correctly recorded against the balance of the Central Government, all challans, bills, cheques, vouchers, etc., which serve as evidence for payments into or withdrawals from the Public Account of the State or on the authority of which adjustments in the initial accounts are made against the balance of the Central Government by treasuries and the Bank shall be printed on blue paper. Provided that in the case of any particular kind of document aforesaid, the Government may, after consultation with the Comptroller and Auditor General, suspend or waive the operation of this rule. This is subject to the condition that whenever forms other than those of blue colour are used, such forms must invariably be so prominently marked as to indicate clearly that they pertain to transactions of the Central Government.

32.(1) The Treasury Officer may, subject to any general or specific direction of the Government in this behalf, receive or authorise the Bank to receive moneys tendered on behalf of another State Government in India and may, if so required by the Accountant General, make or authorize payment of any claim against that State Government. The necessary credits or debits in respect of such receipts and payments against the balance of the State Government concerned shall be made by the Accountant General through the Central Accounts Section of the Bank, but until such adjustments are made, the credit and debit shall be entered in the Consolidated Fund of the State, the Contingency Fund of the State, and the Public Account of the State.

(2) Moneys paid or received in the office of the Accountant General on behalf of another State Government or book entries made in his office effecting the accounts of another State Government shall be adjusted by the Accountant General through the Central Accounts Section of the Bank against the balance of the State Government concerned.

(3) The Accountant General shall arrange with the Central Accounts Office of the Reserve Bank to have the requisite adjustment made monthly in the course of the next month by advising the necessary transfers to the Central Accounts Office of the Reserve Bank.

33. The provisions of the preceding rule may be extended with or without modification to payments made or received in the State on behalf of the Railways, Post and Telegraph or Defence. Transactions appearing at the State treasury on behalf of Railways, Post and Telegraph or Defence will be settled by cash except that these transactions will be taken under the minor head-Cash Settlement Suspense Account,

SECTION XI-RECEIPTS AND DISBURSEMENTS OF THE STATE IN THE UNITED KINGDOM

34. Until other provision is made by the Government in this behalf, , moneys received in the United Kingdom on account of the revenue of the State may be paid into, and funds required for disbursement of, or on behalf of, the State in that country, may be withdrawn from the balances of the Central Government in that country, in accordance with such procedure as may be prescribed by or under the authority of the President of India for the transactions of the Central Government in the United Kingdom. These transactions shall be adjusted in India at the earliest opportunity, against the balances of the Consolidated Fund, the Contingency Fund and the Public Account of the State, according to such directions as may be given in this behalf by the Comptroller and Auditor General with the approval of the President of India.

SECTION XII- SUPPLEMENTAL

35. The Accountant General, in exercise of any of his functions under these rules shall be subject to the general control of the Comptroller and Auditor General of India.

36. Nothing in these rules and nothing prescribed under these rules, shall have effect so as to impede or prejudice the exercise by the Comptroller and Auditor General of the powers vested in him by or under the Constitution of India to make rules or to give directions regulating the submission to the Indian Audit and Accounts Department of the accounts kept in treasuries or in departmental offices, and to be accompanied by such vouchers for their support as the Comptroller and Auditor General may require for purposes of audit or for the purpose of keeping the accounts for which he is responsible.

37. Nothing contained in or in the application of these rules shall have effect so as to impose upon the Bank in connection with the business of the Government any responsibility not imposed upon the Bank by the terms of its agreement referred to in rule 4.

38. (1) Where under the provisions of these rules the detailed procedure with respect to any matter is required to be specified or regulated by departmental regulations and where no rule or order has been made by the Governor as to the authority by which the regulations shall be made, such regulations to be observed by particular departments shall be made by the Government, or with the approval of the Government, by such departmental authorities as may be authorized by the Government to act in this behalf.

(2) Nothing contained in this rule shall affect the validity of any order, instruction or direction contained in any authorised departmental regulation in force on the date of promulgation of these rules, except in so far as such order, instruction or direction is inconsistent with or re-pugnant to any distinct provision contained in these rules.

39. The Treasury Rules (Punjab) and Subsidiary Treasury Rules issued there under, as contained in the Punjab Financial Hand Book No. I , revised edition 1963, are hereby repealed.

Provided that anything done or any action taken under the rules hereby repealed shall be deemed to have been done or, taken under the corresponding provisions of these rules.

PART-II

SECTION I- GENERAL ORGANISATION

MANAGEMENT

40. The responsibility for the proper management and working of the treasury rests entirely with the Treasury Officer acting under the orders of Department of Finance( in Treasury and Accounts Branch). During the short absence of the Treasury Officer on casual leave or duty outside the headquarters, the Assistant Treasury Officer or Superintendent of the Treasury would hold charge of the Treasury as a temporary measure, but this will in no way relieve the Treasury Officer from his responsibility.

RESPONSIBILITY OF THE COLLECTOR

41. The Collector who is responsible for the over all supervision shall be bound to satisfy himself by periodical examination at lease once year for cash, opium, stock notes, stamps, securities, bills and money order forms that the:-

(i) Actual stock of cash, stamps opium and securities is kept under joint lock and key, and corresponds with the book balance, that the treasurer does not hold a sum larger than is necessary for the convenient transaction of the Government business, and that this sum, together with the value of the stamps and opium in his sole custody, is not larger than the security given by him.

(ii) Stock of bills, cheques, drafts and similar forms which are intended for use in monetary transactions are carefully kept under lock and key by the District Treasury Officer/Treasury Officer and periodically tallied with the nominal balance of such forms on the stock books; and (iii) Treasury balances are verified once a month by the officer-in-charge of the sub-treasury besides verifying the balance himself during his tours.

Note(1): - The rules of inspection as laid down in these rules will be duly applied while conducting inspection.

Note(2) The word "Stamps" used in this rule and other rules includes "Match Excise Banderoles".

42.(1) Any defalcation or loss of public money , stamps, opium or other property of the Government deposited in a treasury or Sub-treasury shall at once be reported by the officer concerned to his immediate superior officer as well as to the Accountant General, even when such loss has been made good by the person responsible for it; and when the matter has been fully enquired into , a further and complete report shall be submitted of the natute and extent of the loss, showing the error or the neglect of rules, by which such loss occurred, and the prospects of effecting the recovery . The submission of such reports shall not debar the local authority from taking any further action, which may be deemed necessary.

(2) In the event of a deficit being discovered in the balance of the accounts, Government will not admit of any claim to money found in the Treasurer's custody, until its own claim are fully satisfied. Instructions for regulating the enforcement of responsibility for loss and defalcation of stamps are contained in Appendix C to these rules.

43. When an irregularity is noticed it shall be got investigated by the Department of Finance (in the Treasury and Accounts ) at the appropriate level instead of merely relying on the explanation or report of the subordinate.

Note: - All the irregularities charged by the Accountant General and or the Reserve Bank of India against the treasury and sub-treasury subordinate to it should be entered in the register of irregularities in Form PTR I. Action taken should be indicated against the relevant entry.

44. No Indian Administrative Service or Punjab Civil Service Officer shall be placed incharge of the treasury when posted to a treasury for the purpose of training. However, he shall sign such documents and registers as require signatures, and he shall do so on behalf of and subject to the supervision of the regular treasury officer, who has been shown in returns as the Officers-in-charge of the treasury and who shall continue to sign payment orders and retain the keys of the double locks and the strong room.

Note: - A certificate in the following form shall be issued by the Treasury Officer to an officer posted at the Treasury for training; -

Certified that …………….has duly attended to and satisfactorily completed his treasury training at. ……………from……………..to……………."Treasury Officer"

45.(1) The Treasury Officer shall be personally responsible for the-

(i) due accounting of all moneys received and disbursed and for the safe custody of cash, notes, stamps, opium, securities and other Government property (for stamps and opium jointly with the Treasurer);

(ii) observance of all treasury rules relating to receipt, custody and payment of moneys and preparation and punctual submission of accounts and strict attention to the duties of the treasury work;

(iii) conduct of subordinate Treasury officials and through observance of all rules for his guidance in every branch of his duties; and

(iv) sums of moneys disbursed by him in a public capacity without authority

(2) It shall be the duty of the Treasury Officer to-

(i) attend to all objections and orders communicated to him or to the Sub-Treasury Officers through him by the Accountant General by letter, audit memoranda or periodical objection statements; and to return the objection statements or audit memoranda within a fortnight or send letters explaining the cause of delay;

(ii) report any failure on the part of Sub-Treasury Officers in relation to treasury work to the Department of Finance;

(iii) send under his signatures or with his approval, replies to important communications addressed to him or Assistant Treasury Officers through him by the Accountant General; 

(iv) see that implicit obedience is given to the instructions issued from the audit office and to send immediate notice to the Accountant General of any embezzlement in the treasury and to supplement such notice by a detailed report, as soon as possible, after personal enquiry;

(v) see that the treasurer furnishes sufficient security to protect Government against any loss due to the negligence or fraud of such Treasurer;

Note: For security Form, see sub rule (2) of rule 48; and

(vi) get verified in April each year the financial status of persons who have stood surety for the treasurer.

RELATION WITH THE ACCOUNTANT GENERAL

46. The Accountant General may direct his communications regarding treasury accounts and procedure to the Treasury Officer.

RELATION WITH THE CURRENCY OFFICER

47. The Currency Officer shall ordinarily direct his communications to the District Treasury Officer. All communications to the Currency Officer shall be issued under the signatures of the Collector or with his approval. The Currency Officer shall bring to the notice of the Collector cases in which the District Treasury Officer appears to have to be negligent in his duties. 

TREASURER

48. (1) it shall be the duty of the Treasurer to-

(i) receive and test all notes or coins brought to the treasury;

(ii) to make authorised payments and to account for all receipts and payments;

(iii) keep an account of stamps and opium under his charge (either solely or jointly with the Treasury Officers); and

(iv) retain promissory notes or Post Office Saving Certificates lodged as security permanently or until it is certain that there is no necessity for keeping the same any longer.

(2) It is the duty of the Treasury Officer to see that the Treasurer furnishes sufficient security to protect Government against loss due to his negligence or fraud.

(3) The Treasurer's security bond shall be drawn in one or the other of the following forms:-

(i) if Government promissory notes or Post Office National Saving Certificates exclusively are pledged as security, in Form P.T.R.2.

(ii) if landed or immovable property alone is pledged as security, in Form P.T.R.3; and

(iii) if security taken consists partly of Government paper and partly of immovable property in both Forms P.T.R.2 and P.T.R.3.

Note:- A Form of deed for mortgage(Form P.T.R.4) accompanies Form 3 for use in connection therewith.

(iv) The promissory notes or Post Office National Savings Certificates lodged as security may be retained permanently or until it is certain that there is no necessity for keeping the same any longer.

Note:- It shall be duty of Treasury Officer to get verified in April each year the financial status of persons who have stood surety for the treasurer concerned.

ACCOUNTANT

49. The Accountant shall be responsible under the orders of treasury officer to-

(i) keep record of cash and book transactions of the district and subordinate treasuries;

(ii) compile accounts and returns strictly in accordance with the directions and orders in force;

(iii) see that the rules and orders are observed in respect of all transactions of the treasury;

(iv) bring all cases of irregularity to the notice of the Treasury Officer; and

(v) inspect the account record of sub treasuries and to check percentage of the initial accounts.

SECTION II- TREASURY ACCOUNTS TREASURER'S RECORDS

50. The Treasurer shall maintain a simple cash book (without subordinate registers), in which each receipt and payment shall be posted at the time and on the date on which they actually occur and in the order of occurrence. The Treasurer shall sign and immediately return to the Accountant (after the necessary entry in his accounts) all receipts for money received. He shall stamp all payment vouchers "Paid" and retain them for delivery to the Accounts

Department when the books are compared.

Note: - 1. -When a payment is made by transfer' that is, by entry of the amount, in the accounts as received under some head of receipt, no payment of cash takes place, so the voucher shall neither be stamped 'paid' by treasurer nor will find place in his Cash Book. It should however, be stamped by accountant as "paid by transfer to the credit of -----------------(Revenue head concerned)"

Note 2_Cheques received in payment of value of service stamps should be entered in the Treasurer's cashbook on both sides.

Note 3-Receipt stamps affixed to bills and voucher should be punched through without destroying the signature after the bills have been paid at the Treasury or Sub-Treasury.

(2) The Treasurer shall also maintain stock registers for stamps match excise banderols and opium in the custody of Treasury Officer, vide Article 31 of the Account Code Volume II.

(3) When stamps of opium have been sold the total sale shall be entered before the cash book is closed by the Treasurer and memorandum shall be prepared and forwarded to the Accountant so that the necessary entry may be made in the accounts.

51. All accounts kept by the Treasurer or his subordinate office whether at the Treasuries or at the Sub-treasuries should be kept in Punjabi characters and English figures.

ACCOUNTANT'S BOOKS

(i) INTRODUCTORY

52. The rules regulating, -

(i) the form in which the initial or subsidiary accounts are to be kept;

(ii) the form in which the accounts compiled from these initial and subsidiary accounts, are to be submitted to the Accountant General; and

(iii) the rendering of accounts to the Accountant General on specified dates; have been issued by the Comptroller and Auditor-General of India and are contained in Account Code,

Volume II. The forms referred to in item(i) above can, however, be modified in matters of detail by the Government in consultation with the Accountant General. Changes of a local nature can likewise be authorised by the Accountant General in respect of the forms referred to in item (ii) above.

(ii) CLASSIFICATIONS OF TRANSACTION IN TREASURY

53. All transactions of receipt and payment occurring at a Treasury should be classified in the Treasury Accounts in accordance with the provisions of Chapter II of Account, Code 

Volume-II.

54(1) The form and procedure with regard to the initial accounts kept in the Treasury and the methods and principles in accordance with which the accounts are kept shall be governed by the directions contained in the Account Code, Volume II. It is the duty of the Treasury Officer to satisfy himself that those directions are strictly observed, that the accounts are correct in all respects and that the record of receipts and payments are so clear, explicit and self contained as to be produce -able, if necessary, as satisfactory and convincing evidence of facts. 

Note 1(a)- A complete record of cash transactions and book transfers relating to the district treasury and those of sub-treasuries within its jurisdiction, shall be kept in the Accountant's Cash Book. Every item received or paid as well as all adjustments by transfer shall be entered in the cash book or in some register subsidiary to the cashbook in accordance with the directions contained in the Account Code, Volume II. The daily total from each subsidiary register shall pass into the cash book.

b) Any erasures or over writings in the Cash Book and other registers of initial record or in any account or schedule shall not be allowed by the Treasury Officer and he shall verify and initial every correction in them.

( c ) The Cash Book and other registers subsidiary thereto shall be maintained by the Accountant in accordance with the provisions of Articles 32 to 41 of Account Code, Volume-II.

Note 2- In the case of receipts remitted by the postal money order and adjusted by book transfer under rule 109 entries in the subsidiary register concerned may be made daily in lump under each detailed head of account provided that they are entered in sufficient detail in the departmental registers and that daily returns are submitted to the treasury.

Note 3- A remittance of treasure, as soon as it is despatched from or paid out of a treasury, shall be charged off in the cash book, the words "Local Cash Remittances" or "Foreign Cash Remittance" being the first words of the entry. This rule shall not apply to Currency Remittances, i.e. remittances from Currency Officer or from another Currency chest. 

(b) Similarly, immediately on the arrival of a remittance credit for the whole invoiced amount shall be given, in the cash book the same heading being employed, the place whence the remittance is received also being noted therein. 

Note 4- Fractions of the paisa shall not to be entered in the treasury accounts, and they should neither be received nor paid.

Note 5 (a)- The superintendent , Treasury shall maintain a record of challans received for credit of money in payment for stamps, and the Treasury Officers shall compare this record with the register of receipts and issues of stamps maintained by the treasurer on the day following the date to which the accounts relate.

(b) A running account shall be maintained and checked as the various items are recorded in the registers referred to above.

(iii) INCORPORATION OF SUB-TREASURY ACCOUNTS

55. The transactions taking place at a sub-treasury shall be reported to and incorporated in the accounts of the District Treasury in the manner specified in Articles 47 to 49 of the Account code, Volume II. These transactions shall not pass into the Treasurer's Cash Book

Note 1- If any item in the sub-treasury daily sheet cannot be classified for want of particulars, or owing to omission, they shall be taken tentatively to the Head of Account to which they seem to belong, and on receipt of the required information, transferred, if necessary, to the proper head.

Note 2(a)- Vouchers passed by the District Treasury Officer for payment at a Sub-treasury

shall be incorporated in the Accounts of the District Treasury under the signature of the Accountant; all other vouchers shall be incorporated under the signature of the Treasury Officer.

(b) If a Treasury Officer owing to the volume of Sub-treasury transaction finds it difficult to scrutinise each and every sub-treasury voucher, he may, at his discretion, leave over the work to the Accountant, as percentage check not less than twenty percent being effected by him. All vouchers checked by the Treasury Officer himself must be initialed by him as a token of the fact that he has exercised the check.

(iv) CLOSING OF ACCOUNTS FOR THE DAY

56. (1) Subject to the directions contained in this behalf in the Account Code, Volume II, the process of closing accounts for the day shall be as follows:-

(a) The daily total of each subsidiary register shall been entered in the appropriate part of the cash book which will then be totalled, and the balance sheet will be drawn up strictly in accordance with the directions contained in Articles 50 to 52 of the Account Code, Volume II. To the account balance thus brought out, the additions and deductions indicated at foot of the cashbook form will be applied so as to bring out the cash balance at the district treasury.

(b) Meantime, the Treasurer shall also sum up both sides of his cash Book and draw up his balance memorandum in the form of Treasurer's daily balance sheet( Form P.T.R.5).

( c ) If the results shown in the two balance sheets agree, the Treasury Officer shall sign the two cash books and the two balance sheets. He shall first satisfy himself of the correctness and good order of all these documents and shall give special attention to the reconciliation of the account balance of the district with that actually in the headquarters treasury the latter excludes the balance in sub-treasuries or under remittance within the district , which the former includes.

(d) The following is memorandum of some of the more important parts of the verifications.

The Treasury Officer should;-

(i) compare each entry of payment in a register with the payment order( vide Rule 192) ticking off each voucher as it is passed . This will not be necessary if the Treasury Officer adopts the alternative plan of having the account entry presented to him for initials at the same time that he signs the order of payment;

(ii) examine at least two of the totallings on each side, marking the totals as "Exd";

(iii) see that the totals are correctly carried from the register to cash book , initialing the totals as he thus compares them;

Note:- This must be done, in the case of receipt registers, even when the total for the day is blank, but it is not necessary to initial blank payment registers. If the number of blank receipts registers is great, such registers as are only rarely required for entry may be bound in a single volume and kept under the Treasury Officers' own lock. When the volume is required for entry, he shall give out the register for the purpose, and he shall receive it back at the time of signing the daily accounts, carefully seeing in doing so that all new entries in it are correctly carried to the cash book and initialling them accordingly. It is obviously necessary to guard against fraud or mistake of omitting to bring all entries from these registers upon the cash book; and this precaution is not complete if the Treasury Officer examines only those registers from which an entry is made upon the cash book.

(iv) verify the totals of the cash book or get it done by some principal subordinate officer, other than the Accountant, who should initial it as correct;

(v) see twice every week that all vouchers are properly arranged.

(2) Before signing the Treasurer's daily balance sheet, the Treasury Officer shall roughly verify the balance in the sole charge of the Treasurer, as shown in that sheet, and satisfy himself about the following points;-

(i) that no more uncurrent coins are left in charge of the Treasurer.

(ii) that no more small silver and copper, bronze and nickel coin is so left than is actually required for current use;

(iii) that the whole balance in sole charge of the treasurer never exceeds his current requirements;

(iv) that the record of challans maintained by the Accountant(vide Rule 54) tallies with the Treasurer's Cash Book.

(3) The Treasury Officer shall always be careful to sign the Treasurer's balance sheet in the evening of the day itself to which it refers, but the signature and comparison of the Accountant's book need not be made till the following morning unless the office is to be closed for two or more days. The Accountant's balance sheet must not be signed, until it has been carefully agreed with the Treasurer's.

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