Banker to the

Government

� Section 20 & Section 21 of RBI Act 1934 -Banker to the Central Government - No remuneration

� Section 21A –Banker to State Governments - By virtue of Agreement

� Receipts

� Payments

� Collection of money

� Remittance of money

� Reporting - Statement of accounts

� Consolidation – Daily Position , Transfer of month-end balances to CAS Nagpur

� Payment of turnover commission/ Agency Charges

� Inspection of government business conducted by public sector banks

� 1.Personal Ledger Account – Current Account opened in the names of the Government Officers .Drawings are restricted to the balance in the account.

� 2.Assignment (or) Letter of Credit Account - Drawing accounts maintained for Government Officers to whom a particular sum is allotted by the Pay & Accounts Office for a specified period. Drawings not to exceed the amount of the assignment.

� 3.Drawing Account - Government Departments having these accounts are allowed to operate on Government balances without limit. These accounts may result into debit or credit balance.

� All receipts through a Challan� Cash� Cheques drawn on

(i) other Govt a/c or current a/c (ii) local clearing bank (iii) local non-clearing bank (iv) on outstation branches of a bank

� Payments are made in three ways

1 Cash

2 Through clearing

3 Transfer of credit to another Government Account maintained in PAD or a current account maintained in DAD.

� On the last working day of the month, all PADs transfer their balances to CAS Nagpur.

� A monthly statement (in PAD 122) is to be sent by PAD to CAS Nagpur containing date wise receipt, payment and net balance position.

� Daily statements to PAO/Treasury of receipts & payments to Central & State Governments

� Daily scrolls of Railway Fund, Defence Fund etc

� Daily scrolls, challans to Income Tax & Central Excise Departments

� Daily position figures to CAS

� Monthly Statement to CAS

� Month-end transfer of balances to CAS

� In addition to RBI, Government business is also carried out by SBI, its Associates , Nationalised banks and Private sector banks as agents of RBI which are called Agency Banks(Sec 45 of RBI Act 1934).

�PAD to inspect branches of banks operating various Government schemes to ensure that Government dues collected by them are credited to Government A/C without any delay & prescribed rules are followed by them.

�Major branches i.e. Link & Nodal branches , branches with large turnover to be inspected not less than once in two years.

�Branches with small turnover to be inspected at least once in three years

�On Line Tax Accounting System�As per recommendation of The Task force on reform of existing system of Tax Accounting chaired by Dr Vijay Kelkar.

�Phase I-June 12,2003- computerisation of work relating corporate tax collection

�Cash receipts&Transfer Receipts are booked under OLTAS Menu for accounting.

�From February16,2004 onwards tax details of all Direct Taxes are captured & sent to CAS Nagpur.

� Maintenance of Principal Government DepositAccount ( PGDA) for 29 States and CentralGovernment.

� Grant of WMA and Overdraft to Governments

� Investment of GOI and State government surplus

� Operating RBI Remittance Facilities Scheme, 2007

� Administering Miscellaneous Schemes of GOI –Relief/Savings bonds, MSS, Power bonds

� Link office of all PADs for OLTAS

� Single window payment of turnover commission and brokerage

� Advising daily, weekly and monthly balances -Central and State governments

15151515

� CAS will reimburse the drawee agency by debiting the drawing agency based on the paid instruments along with the encashment schedule sent to it by the drawee agency on a daily basis.

� Drawing schedule is not required to be forwarded by drawing agency to CAS.

� Each drawing agency to maintain an account styled as “DD/TT issued under RFS” and credit it with the amount of DDs/TTs issued on a daily basis

� Role as Banker to banks, Policy on maintenance of Current Account

� Role as banker to itself ( internal accounts )–Accounting Policy, Accounting Standards ,Weekly Statement of Affairs , Remittance Facilities Scheme, Manager of Bank’s Investment

� Annual Closing of Bank’s account � Chapter on Bank’s Account in Annual Report Ch. XI

� Reconciliation of RBI General Account

� Arrangements & mandates for conduct of government business

� Liaison with CAS for consolidation & classification of accounts

� Monitoring of 15 PADs & CAS, Nagpur

� Issue of Authorization to banks /branches

� OLTAS monitoring

� EASIEST – Electronic Accounting System In Excise & Service Tax (CBEC)

� Payment of Agency Commission to banks � CPADS – Centralised Public Accounts Department System

� Cheque Truncation System for Government cheques

� Pension disbursement & complaints � Monitoring of inspection ( of conduct of Govt. business by agency banks) carried out by PAD

� Raising & Redemption of Public debt & small savings

� Monitoring of 14 PDOs as service providers to investors

� Single window liaison with & reporting to Government authorities

� Liaison with Internal Debt Management Department (IDMD) who does the merchant banking function relating to public debt

� Allotment of five digit loan code for floatation of new loan