PART VI TRANSFER OF MONEYS STANDING IN THE GOVERNMENT ACCOUNT GENERAL
PART VI
TRANSFER OF MONEYS STANDING IN THE GOVERNMENT ACCOUNT GENERAL
308. The rules in this Part apply primarily to transfers of Government moneys¬(a) from one treasury to another;(b) from the treasury balance to the currency chest balance in a treasury or vice versa; and(c) from a treasury to the Bank or vice versa.
Such transfers are made to prevent any unnecessary locking up of moneys in treasuries and to replenish treasuries in which the cash balance has run short. The transfers are facilitated by the maintenance of currency chests in such district treasuries as do not transact their cash business through the Bank and in most of the sub treasuries which do not transact their cash business through the Bank.
𝗤1.Transfer of moneys is made to prevent any unnecessary locking of money, in treasuries. In the following transfers…….. is not supported by rule:
(A) From one treasury to another
(B) From the treasury balance to the currency chest balance and vice versa
(C) From a treasury to bank and vice versa
(D) From one scheme to another scheme and vice versa
Correct Answer:-Option:-D
The detailed procedure to be followed in regard to transfers of funds of the kinds mentioned above is indicated below:
1. Resource
Maximum normal cash balance.—
In January of each year, the Government fix the maximum normal balance for each district for the next financial year,
i.e., the amount which the total treasury cash balances in the district should never exceed except in very abnormal circumstances. When the Government consider it necessary, they may fix a higher figure as the maximum normal balance for a district for the months of the year when transactions are heavy. The maximum normal balances so fixed are communicated to the respective Treasury Officers.
The Treasury Officer should then fix the maximum normal balance for each treasury in his district which maintains a cash balance (i.e., each treasury which does not transact its cash business through the bank) and submit to the Government a statement (in duplicate) showing how he has distributed the maximum normal balance fixed for the district. If he alters this distribution later, he should submit to the Government a statement (in duplicate) showing the revised distribution.
The actual cash balance of a district or a sub treasury should ordinarily be kept much below the maximum normal balance prescribed for it.
The cash balance in treasuries including the small coin and uncurrent coin held in them should be kept at a minimum at all times so that the Government’s credit balance with the Reserve Bank may be as large as possible.
The Treasury and Sub Treasury Officers should, therefore, promptly transfer any treasury balances in the form of notes and rupees which are in excess of requirements by making deposits into their currency chests.