March 2011 Govt Account Closure: Special Reporting for Agency Banks

RBI/2010-11/414 DGBA.GAD.No.H.6002/42.01.029/2010-11 March 3, 2011 The Chairman & Managing Director/ The Managing Director / The Chief Executive Officers All Agency Banks Dear Sir / Madam, Scheme for Collection of Dues of (i) Central Board of Direct Taxes (ii) Central Board of Excise and Customs (iii) Departmentalised Ministries Account - Reporting and Accounting of March Transactions - Special Arrangements - Financial Year 2010-2011 Please refer to  Circular DGBA.GAD.No.H.7083/42.01.029/2009-10 dated March 4, 2010  advising the procedure to be followed for reporting and accounting of collection of Direct Taxes (CBDT) and Indirect Taxes (CBEC) and transactions of Departmentalised Ministries at the Receiving/Nodal/Focal Point branches of your bank for the Financial Year 2009-10. 2. The Government of India has decided that the date of closure of Residual Transactions for the month of March 2011 be fixed as April 15, 2011 (Friday) for the Financial Year 2010-11. 3. In view of the ensuing closing of Government Accounts for the financial year 2010-11, you may please reiterate the instructions to your branches regarding introduction of  special messenger arrangements   at your receiving branches (situated locally) from the second fortnight of March 2011. Receiving branches not situated locally should also adopt  special   arrangements  such as  courier service  etc. from the second fortnight of March 2011 for passing on challans/scrolls etc. to the Nodal/Focal Point branches so that all payments and collections made on behalf of Government towards the end of March are  accounted for in the same financial year . The branches may also be instructed to take all necessary steps to ensure that the arrears, if any, are cleared before  March 15, 2011 . 4. As regards reporting of March 2011 transactions by Nodal/Focal Point branches in April, the branches may be advised to follow the procedure as outlined in the  Annex . To sum up, the Nodal/Focal Point branches will be required to prepare separate sets of scrolls, one pertaining to  March Residual Transactions  and another for  April Transactions  during the  first 15 days  of April 2011. The Nodal/Focal Point branches should also ensure that the accounts for all transactions (revenues/tax collections/ payments) are effected at the receiving branches upto March 31, 2011  in the accounts for the current financial year itself  and are  not  mixed up with the transactions of April 2011. Also, while reporting transactions pertaining to March 2011 upto April 15, 2011, the transactions of April 2011 should not be mixed up with “ March Residual Transactions ". 5. The procedure now followed for reporting and accounting of transactions of Non-Civil Ministries viz. Defence, Posts, Railways and Telecommunications (which was revised with effect from October 1, 1993), is similar to the procedure for reporting and accounting of transactions of Departmentalised Ministries. The special arrangements for reporting March transactions by receiving branches to Nodal/Focal Point branches and the procedure for reporting March 2011 transactions in April 2011 by Nodal/Focal Point branches as indicated in paragraphs 3 and 4 above are also applicable to the reporting of transactions of  Non-Civil Ministries . The branches of your bank handling the Non-Civil Ministries transactions, if any, may, therefore, be advised to follow the above procedure. 6. We shall be glad if you will please issue necessary instructions in the matter to your branches concerned immediately. Yours faithfully (G. C. Biswal) Deputy General Manager Encl: As above ANNEXURE Enclosure to DGBA Circular No.RBI/2010-11/ dated March 3, 2011 Reporting of March Transactions Beginning from April 1, 2011, the Nodal/Focal Point branches will segregate on a daily basis all scrolls/challans pertaining to March 2011 received from the receiving branches concerned and prepare separate main scrolls for: scrolls for transactions of March 2011 or earlier period (i.e. effected during the previous financial year 2010-11) and scrolls pertaining to current transactions (i.e. those effected from April 1, 2011 onwards). 2. The main scrolls for March 2011 transactions prepared from April 1 to April 15, 2011 are to be  distinctly marked as March Residual - 1, March Residual - 2  and so on upto April 15, 2011. In other words, serial number should be allotted in consecutive order for each  main  scroll of March 2011 transactions sent from April 1 to April 15, 2011. These scrolls alongwith the copies of daily summary of Receipts and Payments prepared separately for March 2011 transactions will be forwarded to the Departmental Officials concerned (i.e. Zonal Accounts Officers/Pay and Accounts Officers and Designated Officers) in the usual way.  The Nodal/Focal Point branches will also be required to report the above transactions to the Link Cell through separate Daily Memos.  These advices must be sent by telegrams/FAX to enable the Link Cell of each bank at Nagpur, to make daily settlement with Reserve Bank of India, Central Accounts Section (CAS) Nagpur. On receipt of advices (Memo/Telegrams/FAX) from the Nodal/Focal Point branches, the Link Cell should  segregate the advices for the March Residual transactions  and forward them  separately  to Reserve Bank of India, CAS, Nagpur for being processed on the computer.  This procedure should continue upto and inclusive of April 15, 2011 only.  All transactions reported thereafter by the receiving branches will be reported and accounted for in the usual manner in the accounts of the month of report irrespective of the date of transaction. Following the special arrangements for March 2011 transactions, it is necessary for the Nodal/Focal Point branches to prepare two sets of DMS to be submitted to Zonal Accounts Officers/Pay and Accounts Officers for March 2011 transactions - one for transactions upto March 31, 2011 and another for March Residual Transactions adjusted by Nodal/Focal Point branches with Reserve Bank of India, Central Accounts Section, Nagpur, during April 1 to April 15, 2011. Since the Nodal/Focal Point branch will also be reporting the April 2011 transactions pertaining to year 2011-2012 in addition to March Residual transactions, monthly statement for April transactions should be compiled and furnished to Zonal Accounts Officers/Pay and Accounts Officers in the usual way. In order to distinguish the April 2011 (year 2011 - 2012) and March Residual Transactions, the statement pertaining to March Residual Transactions should be clearly marked as  " March Residual Account " . Note   :  As advised in our circular GA.NB.No.376/42.01.001/95-96 dated May 22, 1996 all the cheques/amounts realized on or before March 31, 2011 should be treated as transactions relating to the current financial year as "March 2011 or March Residual Transactions", the reporting of which may take place during the month of April (upto April 15, 2011).  But if any cheque is tendered on or before March 31, 2011 and realized on or after April 1, 2011, it will be treated as transaction for the next financial year as "April Transactions".  Accordingly, the banks will prepare separate scrolls for March 2011 and April 2011 (year 2011 - 2012) transactions.

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/414 · issued 03 Mar 2011. The plain-English explanation above is BankPulse’s own independent summary.

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