THE MADHYA PRADESH TREASURY CODE

VOLUME I

CHAPTER - V

SPECIAL RULES FOR BANK TREASURIES

Section I- General

447. The rules in this part are intended primarily for the guidance of Collectors and
Treasury Officers and officers of the Bank in dealing with the receipt and
disbursements on account of the State Government at places in which the cash
business of the treasury is conducted by the Bank. They include information on most
points likely to arise; but in cases of doubt, and as a general rule, the Collector shall
refer the matter to the Accountant-General.

Note:- At places where there are offices of the Reserve Bank, the cash business of
the Government is, for the most part, conducted by the Reserve Bank. At
other places, where there are branches of the State Bank of India, which act
as agents of the Reserve Bank, in accordance with the provisions of the
treasury is conducted by those branches of the State Bank of India as agents
of the Reserve Bank.

448. The Bank will be kept open for the transaction of treasury business on a
recognised holiday, if so required by the Collector.

See also paragraph 10 of the agreement with the Reserve Bank of

India(Appendix I).

Note:- The Treasury Officer should. When he finds it necessary that the Bank should
be kept open for the transaction of the treasury business on any particular
recognised holiday, report the matter at once to the Collector and
Communicate his request to that effect to the Bank authorities in time.

449. (1) All bills, cheques and other documents passed by Treasury Officers and
office of Accountant-General for payment at the Bank, as well as Interest payment
Orders, etc. , being non-negotiable instruments, warrant special precaution on the
part of the Bank in the matter of identification of the payee. All such claims have
normally to be presented by the payee personally, but where payment is desired to

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be made to an endorsee(other than a banker) or messenger, the provisions of

subsidiary rule 302(2) or 457, as the case may be, should be strictly followed by the
Drawing Officer. The Bank will not, however, disburse payments of such claims
unless the Bank is satisfied about the identity of the person receiving payment as
attested by the Drawing Officer in accordance with subsidiary rule 302(2) or 457, as
the case may be. The Bank shall also verify before making the payment that the
signature of the Drawing Officer attesting the payee's signature tallies with that on
the bill as passed by the Treasury officer.

450. Payment of cheques including Public Debt Office Interest Warrants, which are
governed by the Negotiable Instruments Act, will be made in accordance with the
provisions of that act and any generally recognised practice established among
bankers by custom.

Section II- payments into the bank

GENERAL RULES

451(1) Save as here-in-after provided, and subject as provided in Subsidiary Rule

68, any one who desires to pay money into the Bank on Govt. account shall present
the money with chalan in requisite number. The Bank shall receive the money and
credit it to the proper head of account and subject as provided in subsidiary rule 78
and acknowledgement shall be granted to the payer in the original chalan the
remaining copies being retained by the Bank payer in the original challan, the
remaining copies being retained by the Bank to be forwarded to the Treasury with
daily account.

Note: - The acknowledgement on the chalan, for moneys received, may be signed by
the authorized officer of the Bank, under his full signature, only in the original
and such other copies as are required to be returned to the tenderer, the
acknowledgement in the other copies being merely initialed by him.

(2) In cases in which chalans are presented in triplicate or quadruplicate, the

acknowledgement of the Bank will be given on the original chalan, or on such other

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copy as may be specially marked for this purpose, the other copies being retained by
the Bank to be forwarded to the treasury with the daily account.

Note: - However, in case of chalans of Sales Tax Department presented under

subsidiary rule 72(3) in quadruplicate the bank shall return the original and
the duplicate copy of the chalan, duly signed, to the tenderer, forward the
triplicate copy directly to the Sales Tax Officer concerned and the remaining
one copy being retained by the bank to be forwarded to the Treasury with
daily account.

(3) Moneys tendered by a dealer on account of payments to Government in

respect of Tax, penalty, interest, etc. , under the provisions of the (1) M. P. General
Sales Tax Act, 1958(No. 2 of 1959), (2) Central Sales Tax Act, 1956(No, 74 of
1956), (3) M. P. Sugar Cane(Purchase Tax)Act, 1961 (No. 39 of (1961), and (4) M.
P. Vikraya Rashi Tatha Kraya Rashi Par kar Adhiniyam (No. 8 of 1972), may be
made either in cash or by means of a crossed cheque or a draft drawn on any
scheduled Bank. Such payments if accompanied by the special chalan prescribed for
this purpose under the above Acts, may be received directly by the Bank without the
intervention of the Treasury Officer or of the departmental Officer.

452. 1 [Deleted.]

453. Cheques on local banks will be accepted by the Bank in accordance with
Subsidiary Rule 55. There will be a daily clearance of cheques accepted and the
transactions will be included in daily account rendered to the treasury after the
cheques have been cleared.

REMITANCES OF DEPARTMENTAL OFFICERS

454. Moneys received by officers of the departments named below will be received
at the Bank direct without the intervention of the Treasury Officer in accordance with
the special rules specified against cash:--

Public Works--Subsidiary Rules 486, 487 and 488.

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Forest--Subsidiary Rules 501 to 504.

Chalan forms shall be supplied to the Bank by the treasury.

455. Moneys received by departmental officers, other than those of the departments
mentioned in the preceding rule, shall be forwarded by them daily to the Bank direct
with a chalan in duplicate, describing the several items and the heads under which
they should appear in the accost, a separate chalan being used as far as possible, for
each Major Head of Account. The duplicate copy of the chalan will be retained by the
Bank and forwarded with the accounts of the day to the treasury and the original
returned, receipted, to the departmental officer for record in his office.

The original chalan may be in the form of a book sent daily for signature.

Note:- Rules 454 and 455 apply only in cases of revenue realised by Departmental
Officers. In cases of other receipts such as recoveries on account of objection
Book Advance, General provident Fund, Loans and Advances, Deposits etc.
made by the Departmental Officers, the chalan in duplicate with the requisite
schedules or the details of Treasury Voucher number and month under which
the original amount was drawn, should be presented to the Treasury Officer
who will enface an order to the Bank to receive the money and to return the
original to the Departmental Officer duly receipted. In such cases. the
Treasury Officer will be responsible to ensure that the classification on the
chalan is in order and complete and the chalan is accompanied by relevant
schedules and contains other requisite details necessary.

DEPOSIT AND LOCAL FUND RECEIPTS

456. The detailed account of local Funds and registers of deposits will be kept in the
treasury or in Magistrate's and Judge's offices, the Bank only receiving the amounts
tendered in accordance with Subsidiary Rules 451 and crediting them under their
proper designation.

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Section III- Withdrawal from the Consolidated Fund and Public

Account at the Bank.

CIVIL CHARGES

457. All bills for pay and allowances and contingent expenses of officers of the civil
establishments, which are ordinarily drawn upon the treasury, shall be presented to
the Treasury Officer in the first instance for examination. The Treasury Officer, if he
passes the claim shall enface on the bill an order to pay a specified amount. Such
orders shall be recorded in the register of payments orders issued, which is kept
under Subsidiary Rule 477 and shall be numbered, dated and signed. The bill shall
then be returned to the persons presenting it, and will be paid at the bank in
accordance with the order of the Treasury Offer, the Bank being responsible only for
strict adherence to this order and for obtaining proper discharge from the drawer of
the bill in addition to his signature at the foot of the bill. The bill shall then be
returned to the person presenting it, and will be paid at the Bank in accordance with
the order of the Treasury Officer, the Bank being responsible only for strict
adherence to this order and for obtaining a proper discharge from the
payee/endorsee of the bill in addition to his signature at the foot of the bill. In cases
where the payee/endorsed does not find it convenient to receive payment personally,
this discharge should be signed before the bill is presented at the treasury. In such
cases, the person through whom payment is desired to be made shall be required to
produce a letter in form No. M. P. T. C. 52-A, authorising him to take the payment.

Note:- When payment is desired wholly or partly in Reserve Bank draft, and a formal
application for a draft accompanies the bill, the Treasury Officer, if he is
satisfied that the grant of the draft is permissible, will forward the application
to the Bank, specifying clearly in the pay order the manner in which payment
should be made.

458. Wherever ordered by the State Government instead of transmitting the passed
bills to the Bank for payment as required under S. R. 457, Treasury Officer issue a
chque to the drawing officer payee concerned for encasement at the bank as per
provisions in the scheme is Appendix 23 of M. P. T. C. Vol. II.

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459. [Deleted]

3
460. [Deleted]

DEPARTMENTAL PAYMENTS

461. (a) Officers of the Public Works Department are authorized to draw funds by
bills as well as by cheques while those of the Forest Department draw funds by
cheques only.

(b) Bills will be cashed by the Bank only on payment orders endorsed
thereon by the Treasury Officer.

(c) In respect of cheques, no letters of credit will be issued by the

Accountant-General, but where a divisional officer has intimated any limits on the
drawings of sub-divisional officer, the Bank will observe the prescribed limitations. In
all other cases cheques will be cashed without any limitations, if otherwise in order.

REFUNDS

462. Refunds of revenue, fines, etc. , will be made by the Bank on the bill bearing a
payment order signed by the Treasury Officer in accordance with the procedure
prescribed in Subsidiary Rule. 457.

This rules does not apply to refunds of Income -tax; in the case of such
refunds, the Income -Tax Officer is authorised to make out the refund order in the
form of a direct order on the Bank and the endorsement of second payment order by
the Treasury Officer will be unnecessary.

DISCOUNT ON SALES OF STAMPS

463. When discount on sale of stamps is allowed by deduction from the amount paid
in the purchaser, the net amount will be received and brought to account under rule
451, the receipted chalan being the payer's authority for receipt of the stamps from
the treasury.

2
vide orders on the file. regarding reprinting of M. P. T. C. Vol. I.

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PUBLIC DEBT-GOVERNMENT PROMISSORY NOTES

464. Government promissory notes, on which interest may be due, will be presented
to the Treasury Officer, who having made the necessary examination and record
under the rules in the Governme nt Securities Manual, will give the holder an order on
the Bank in the following form: --

"pay to. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rupees. . . . . . . . . . . . .

. . . . . . . . . . . . . being interest for. . . . . . . . . . . . . . . . . . . . . . . half year at. . . .
. . . . . . . . . . . . . percent due on Government promissory note No. . . . . . . . . . . . .
. . . of. . . . . . . . . . for Rupees. . . . . . . . . . . . . . . .

BEARED BONDS

465. The interest coupon attached to a bond shall be presented to the Treasury
Officer, who, having made the necessary scrutiny and record, shall issue necessary
orders on the Bank to make the payment.

STOCK CERTIFICATES

466. Interest on Stock Certificate will be paid by the Bank on Interest Warrants
issued by the Public Debt Office concerned without the intervention of the Treasury
Officer. The Bank will arrange to pay the interest due on the warrant to the
proprietor of the Stock Certificates.

467. The provisions of Subsidiary Rules 464 to 466 apply mutatis mutandls to
repayment of principal of any Promissory Note, Bearer Bond or stock Certificate,
which may be notified for discharge; but nothing in these rules shall be deemed to
override any rule or order contained in the Government Securities Manual regulating
the procedure for the payment of interest on, or principal of, any Public Debt.

DEPOSIT PAYMENTS

468(a) Repayments of deposits standing at credit of individuals in the treasury

register or in the Magistrate's or Judge's accounts will be made on the order of the

3
vide orders on the file. regarding reprinting of M. P. T. C. Vol. I.

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officer on whose registers they are, and by whom the usual check registers will be
kept. Persons claiming repayments of such deposits must therefore, apply to the
officer who received them who, after examining the appropriate register and making
the necessary record, will give the applicant an order for payment at the Bank. A
Magistrate's or Judge's order must be taken to the Treasury Officer for
countersignature before being presented at the Bank, unless the Bank keeps a
personal ledger account for the deposits of each court.

(b) In cases in which personal ledger accounts of Civil or Criminal Court

Deposits are kept by the Bank, each court should duly intimate from time to time to
the Bank the amount of lapsed deposits to be deducted from the Personal Ledger
Pass Book.

469. Unless in any case the Government direct otherwise, cheques for withdrawals
from a personal deposit account at the treasury shall be drawn upon and presented
to the Treasury Officer who will enface them with an order on the Bank to make the
payment.

LOCAL FUNDS

470. payments will be made on cheques drawn by competent drawing officers of the
local body concerned. Unless in any cases the Government direct otherwise, such
cheques will be issued on the treasury and cashed by the Bank on pay orders issued
by the Treasury Officer.

Where under any special order, a local body drawn money from the treasury
by presentation of detailed bills, the procedure prescribed in Subsidiary Rule 457
shall be followed.

REMITTANCES

471. The procedure with regard to remittance of treasury from the Bank and the
testing of remittances made to the Bank from treasuries will be regulated by the
provisions contained in Chapter X of these rules.

CURRENCY OF PAYMENT ORDERS

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472. Payment orders issued on the Bank shall be valid only for a time, not exceeding
ten days, fixed by the Collector, if presented after the allotted time they will be
refused payment by the Bank untill revalidated by the Treasury Officer.

Section IV-Daily Accounts and Returns

473. The accounts and returns to be rendered by the Bank to the Treasury Officer in
respect of transactions of the State Government will consist of---

(i) a daily account of receipt and payments in Form M. P. T. C. 53

together with connected chalans and vouchers;

(ii) a pass book or register of receipts and payments, to be daily

forwarded to, and returned by the Treasury Officer.

474. In the daily accounts rendered by the Bank, such payments and receipts will be
so classified as may be directed by the Accountant-General, in order that their
arrangements may fit in with the forms prescribed for accounts kept at treasuries.
The daily account will be prepared every day and the Manager or Agent, as the case
may be, after satisfying himself as to its accuracy, will docket and forward it to the
treasury with the register of daily receipts and payments and with all the
appertaining chalans and vouchers at the close of the day.

The net amounts of payments only are to be entered, that is, when a
deduction is made from the amount of a bill, the daily account will show only the
amount paid after deduction and not the gross amount of demand.

Note:1- is of importance that these documents be secured in a locked box when sent
by the Bank, in order that there may be no possibility of any alteration or
abstraction of any paper before they reach the hands of the Treasury Officer.

Note:2- With the concurence of the Accountant-General, the daily accounts may be
submitted in the morning following the date to which they refer, instead of at
the close of the same day.

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475. Care should be taken that vouchers sent to the Treasury are conspicuously
marked by the agent with the work "paid" inattention to this rule may lead to
documents being paid twice, in the event of their falling into unscrupulous hands.

476. The register of daily receipts and payments has five columns for (1) the date,
(2) the total receipts for the day. (3)the total payments of the day, (4) the initials of
the Manager or the Agent as the case may be and (5) the initials of the Treasury
Officer. It will be written up and forwarded with the daily account to the Treasury
Officer, the entries being certified with the initials of the Manager or Agent in the 4th
column. The Treasury Officer shall check receipt and disbursements of the daily
account, agree their totals with the figures entered in the register and examine the
vouchers, and after initialing in the 5th column of the register in toke on his
verification, shall return the Register to the Manager or Agent as soon as the
vouchers and chalans received are checked and tallied with the Pass Book, but not
later the next working day of the receipts of the pass book.

Note;- To allow sufficient time to Treasury/Sub-Treasury Officers to scrutinise daily

scrolls received from the Bank and to tally them with the entries recorded by
the Bank in Pass Book, alternate Pass Books may be used for alternate day's
transactions.

(These amendments take effect from 1. 4. 1976)

Section V-Miscellaneous

REGISTER OF ORDERS FOR PAYMENT

477. The Treasury Officer shall maintain a register in suitable form namely a register
or orders for payment. A Register of chalans may be worked by department, the
chalans of land revenue being passed and registered by the Land Revenue
Department of the Collector's Officer, those of excise revenue by the Excise
Department and so forth.

DAILY POSTING OF ACCOUNTS

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478. When the daily account with the chalans and vouchers is received from the
Bank, the account shall first be examined against the chalans and vouchers which
support it. Then the vouchers which have been already approved and registered by
the Treasury Officer, shall first be marked off in the register of orders for payment,
that is, the date of discharge shall be noted against the entries of them in those
registers. Each items of receipt or payment will then be posted from the daily
accountant, with its chalans and vouchers, into the cash book either direct or
through some subsidiary registers in the same way as transactions taking place in
non-banking treasuries, and the net difference between the total receipts and the
total payments posted in the Register of Reserve Bank Deposits in accordance with
the directions contained in this behalf in the Account Code, Volume II.

The register is provided with three columns to show (1) the date and(2) the
net payments, or (3) the net receipts of the day, and there will be only one entry in
column(2) or(3) as the case may be, against each date, when the total receipts
exceed the total payments, the difference will be posted in column(2), and when the
total payments exceed the total receipts of the difference will be posted in
column(3). At the close of the month the difference between the totals of the two
money columns of the Register of Reserve Bank Deposits should be carried into the
cash account if the total of the column for receipts exceeds the total of the column
for payments, or into the list of payments if the total of the column for payment
exceeds the total of the column for receipts.

Note:- In this process the vouchers must be numbered and arranged according to
the register in which they are entered, as the number of the payment order
cannot serve also as the number of the voucher in the actual accounts.

ADVICES AND CERTIFICATES

479. AdviCes of receipts or payments which, according to any rule or order, have to
be sent to Public Officer or Departments, and consolidated receipts or certificates of
receipts or payments required by any rule or order to be given to any Public Officer
or Department, shall be prepared in the treasury and not in the Bank, as the point to
be advised or certified is not that the money has been received or paid at the Bank,
but that the receipts or payment has entered the treasury accounts.

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Nothing contained in this rule shall be deemed to override any local usage or
practice under which advises and certificates referred to above are prepared by the
Bank.

TREASURY RETURNS

480. All treasury returns, with the exception of those the Bank is instructed to
furnish under the rules in this chapter or under express orders of the Accountant-
General, should be prepared in the treasury and not in the Bank.

SUB-TREASURIES BANKING WITH THE BANK

481. The procedure at sub-treasuries, the cash business of which is conducted by

the Bank is the same as at sadar treasury similarly situated. The sadar-treasury will
post its register of "Reserve Bank Deposits--Provincial" from the sub-treasury daily
statements in which the net transactions of each day as worked out from the sub-
Register of "Reserve Bank Deposits--Provincial" should be shown.

EMERGENCY ARRANGEMENT

482(1) In the event of the Agent of a branch of the State Bank of India or any of its
subsidiaries which conduct Treasury business dying or becoming suddenly
incapaciated for duty and it being not possible for the State Bank, or its subsidiary to
make immediate arrangements for the transacitons of business at the branch, the
Government official named hereafter should, provided the concerned Bank has by
prior arrangement requested that he should do so, at once---

(a) visit the Bank in person, take over the keys of the strong-room and
other receptacles of treasure, notes or books and ensure that the
strong-room is properly secured and direct the guard to report to him,

(b) telegraph information of the occurrence to the Local Head Office/Head

Office of the concerned Bank, and

(c) arrange for the due transaction of urgent treasury business at the
Branch.

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(2) The responsibility for performing the functions herein stipulated should, in
the first instance, be primarily that of----

(i) the Collectors at the District Headquarters,

(ii) the Sub-Divisional Officers/Tahsildars/Naib-Tahsildars at sub-Divisional

or Tahsil Headquarters, as the case may be.

(3) The concerned Government official should on no account take any action
in regard to the Bank's private business which together with such treasury business
which is not of an urgent nature may remain in abeyance till a responsible official of
the concerned Bank takes charge of the branch.

(4) When it is impossible for the concerned Government official to take the
action mentioned above in person, e. g. , on account of absence in camp, he may
delegate his function in this connection to any other Government official not below
the rank of a confirmed Sub-Treasury Officer who is within easy reach of the branch
he should nominate such Government official for this purpose specially on each
occasion when the necessity arises.

(5) Neither the Government nor any Government servant will incur any
responsibility either to the State Bank of India to its subsidiaries or to any third party
by reason of anything done bonafide under these instructions. The Government
official concerned would, however, be responsible for the safe keeping, as a bailec of
the keys of the strong room etc., taken over by him and the accounting for the cash
and other contents which he takes out from the strong-room.

ARRANGEMENT FOR CONDUCT OF GOVERNMENT BUSINESS AT TREASURY

PAY OFFIC ES.

482-a(i) The procedure for conduct of Government business at the Treasury Pay
Offices, is contained in Annexures I, II, III and IV, reproduced as Appendix 21.

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(ii) The liability to be assumed by the State Bank of India for shortages in
currency chest at different centers vide para (1) of Annexure (II) should be
determined on the following scale:-

Average deposit to be kept in the Amount of specific

currency chest at the commence- liability of the State Bank

ment of the scheme of India.

(I) (2)

Rs. 5 lakhs and under Rs. 5, 000/-

Over Rs. 5 lakhs and upto and including Rs. 10, 000/-

Rs. 10 lakhs.

Over Rs. 10 lakhs but under Rs. 20 lakhs Rs. 15, 000/-

Rs. 20 lakhs and over Rs. 20, 000/-

(iii) The average balance to be maintained in the currency chest vide para
1(v) of Annexure (II) will be fixed, on the basis of the turnover of Government
transactions at the treasury/sub-treasury concerned by the State Bank of India, in
consultation with the State Government through the Collector concerned.

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