Chapter 11 Debt And Miscellaneous Obligations Of Government 1 of 7

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1 CHAPTER DEBT AND MISCELLANEOUS OBLIGATIONS OF GOVERNMENT SECTION I. - RUPEE DEBT 194. The management of the Public Debt of the State and the maintenance of accounts relation there to are vested in the Central Public Debt Office, which is managed on behalf of Government by the Reserve Bank. Certain functions of the Central Public Debt Office are entrusted to the Public Debt Office at Madras, Bombay and Delhi, which are managed by the local offices of the Reserve Bank. A substantial part of the work, however, falls on treasuries and sub - treasuries The procedure to be followed in treasuries and other Government offices in dealing with securities of rupee loans issued by Government and in making payment of interest in respect thereof is regulated by the provisions of the Indian Securities Act (Act X of 1920), as amended from time to time, and the Statutory Rules (Indian Securities Rules), issued thereunder. Detailed rules, based mostly on the Statutory Rules referred to above, and the supplementary orders issued by Government from time to time are to be found in the Government Securities Manual issued by the Reserve Bank under the authority of the Government of India. Note. -- Unless there be anything repugnant in the subject or context, and without prejudice to the provisions of the law, and the statutory rules mentioned above, the rules in the Government Securities Manual in so for as they deal with the procedure relating to disbursement of money from, and payment of money into, the Consolidated Fund are to be regarded as rules framed under Article 283 of the Constitution of India Likewise. The rules in the Manual which prescribed the form of initial accounts to be kept at treasuries in reaccept of payment of interest on Government Securities, repayment of principal of terminable loans, receipt of subscriptions to new loans and of other allied transactions and the form in which the account of such transactions are to be rendered to be the Accountant - General, should Chapter 11 Debt And Miscellaneous Obligations Of Government 1 of 7

2 be regarded as directions given by the Comptroller and Auditor - General of India with the approval of the President of India and will be subject to any directions contained in this behalf in Volume II of Account Code Treasury bill are special forms of Government securities, which are issued and repaid under special rules and orders made by Government in this behalf.(see also Subsidiary Rules 517 and 518 of the Madhya Pradesh Treasury Code. Volume I). SECTION II-- PROVIDENT FUNDS 197. The term "Provident Funds" is strictly applicable to all "Provident Funds" within the meaning of the Provident Funds, Act, 1925 (XIX of 1925), as amended, which have been constituted for the benefit of Government servants. The procedure relating to the recovery of subscriptions to, and withdrawals from, such funds will be regulated strictly in accordance with the provisions of the respective Provident Funds Rules and the subsidiary instructions contained in Section III of Chapter VII of the Madhya Pradesh Treasury Code, Volume I 198. The legal aspect of the provisions in the Provident Fund Rules has been dealt with in the "Memorandum Explanatory of Government Provident Fund Rules vis-a -vis the law on the subject" which has been prepared by the Government of India in consultation with their legal advisers and reproduced in Appendix A Part II of the Madhya Pradesh General Provident Fund Rules. The memorandum, as state in the preface thereto, is not exhaustive and exceptional cases may arise which are not covered by the instructions in the memorandum but it will be found useful in dealing with the generality of cases arising under the various Provident Fund Rules The following instructions should be carefully observed by heads of offices with a view to the correct preparation of the Fund Schedules referred to in Subsidiary Rule 526 of the Madhya Pradesh Treasury Code, Volume I: -- Chapter 11 Debt And Miscellaneous Obligations Of Government 2 of 7

3 (i) (ii) (iii) (iv) (v) (vi) (vii) A complete list of subscribers to each fund should be maintained in each disbursing office in the form of the schedule. Each new subscriber should be brought on this list and any subsequent changes resulting from his transfer of in the rate of subscription etc., clearly indicated. Except where it is otherwise provided in the rules of the fund concerned or by special orders of Government, changes in the monthly rates of subscription will be permissible only from the first of April each year, i.e., with effect from the pay for March drawn in April. When a subscriber dies, quits the service or is transferred to another office, full particulars should be duly recorded in the list. In the case of the transfer of a subscriber to another office, the necessary note of transfer should be made in the list of both the offices. From this list the monthly schedule to be appended to the pay bill should be prepared and agreed with the recoveries made before the submission of the bill to the treasury for payment. The list of subscribers to Postal Life Insurance Fund should be maintained in a register and not in the Form M. P. T. C. 61. The proforma of the register and instructions for its maintenance and preparation of the monthly Schedules to be attached to the pay bills, are given in the Annexure to this chapter for the guidance of drawing and disbursing officers. The register should be preserved for a period of ten year after the close of the year to which it relates. Chapter 11 Debt And Miscellaneous Obligations Of Government 3 of 7

4 SECTION III-- SERVICE AND OTHER FUNDS Indian Civil Service Family Pension Fund Superior Services (Indian) Family Pension Fund Indian Civil Service (Non-European Member) Provident Fund Postal Insurance Fund 200. Contributions, donations, etc., recoverable, and pensions and other benefits payable, in respect of the funds specified above will be regulated in accordance with the rules of the respective funds and the subsidiary instructions contained in Section III, Chapter VII of the Madhya Pradesh Treasury Code Volume I Subscriptions to family Pensions or other fund not under Government management may not be received in cash or by deduction from pay or pension bills except under special orders of Government. (See Subsidiary Rule 525 of Madhya Pradesh Treasury, Volume I). Note-- It must be distinctly understood that in the case of the General Family Pension Fund the Hindu Family Annuity Fund and the Bengal Christian Family Pension Fund, Government exercises no supervision over the management of the funds and is in no way responsible for their solvency A detailed list of the subscriptions released in cash on behalf of each fund showing the date and amount of each receipt and the name of the person on whose behalf it is paid in, should be submitted by the Treasury Officer to the Accountant - General with the cash account of each month. This list will be a copy of a register maintained in the treasury The deposit accounts of these funds on the Government book will be credited with interest at such rates at such rates and at such intervals as may be prescribed by Government in each case. Note--Except in the case of the Bengal Uncovenanted Service Family Pension Fund. An important difference with regard to interest is made between subscription paid by deductions from pay bill and subscription paid in cash, no interest beings allowed for the month of Chapter 11 Debt And Miscellaneous Obligations Of Government 4 of 7

5 payment on cash subscriptions received after the 4 th of the month, whereas subscriptions deducted from a bill bear interest as though they had been received on the 1 st of the month. ANNEXURE Procedure for recovery and accounting of P. L. I. Premia 1. All the drawing officers should maintain in the form enclosed a corrected and up to date register of policyholders under their control. The name of the policyholders should be noted in alphabetical order according to surnames, leaving sufficient space between two entries to enable 'new comers' name being inserted in the right place. A separate entry should be made in the register for each policy in the case of policy holders having more than one policy. On receipt of an intimation from the Director, Postal Life Insurance, Calcutta, about the issue of a policy in favor of subscriber. Authorizing the drawing officer to commence recovery from pay or on receipt or a last Pay Certificate in respect of the subscriber. Transferred from another office, the drawing officer should make a note of the particulars of the policy in the register. The name of the office from which the subscriber has been transferred should invariable be noted in the remarks column, whenever a subscriber is transferred to another office or his policy is discharged, his name should be scored out from the register, giving necessary remarks regarding discharge of policy or indicating the office to which the insurance has been transferred as the case may be. 2. After the preparation of the monthly bill but before its encashment the bill clerk should check up the recoveries shown in the bills on account of Postal Life Insurance with the register, to see that the recovery has been made from all the subscribers and the correct amount has been recovered. This check will discover the cases of omissions to make recovery as well as cases of nothing of P. L.I. recoveries in a wrong column of the pay bill. The amount of the recovery shown in the bill should be posted in the monthly column in the register with proper reference to the bolls should be posted in the monthly column in the resister with proper reference to the bills or the vouchers, reasons for Chapter 11 Debt And Miscellaneous Obligations Of Government 5 of 7

6 short, excess or non-recovery being briefly noted in the remarks column. Extracts of this register should then be made out in the schedules. The schedule should be attached to the relevant bills in support of the recoveries. 3. While taking extracts it should be seen that the name of those insurance from whom recoveries were made in the previous months, but no recoveries have been made during the current month either on account of transfer or discharge of that policy or on account of leave salary being not drawn or the official being on leave without pay, should be included in the current month's schedule with necessary remarks noted against their names. Similarly, the remark 'New Policy' or ' Transferred from...office' should be given in the schedule against the names of insurance entered for the first time in current month. Reasons for short or excess recovery should be noted briefly in the Remarks column. In short, schedule of Postal Life Insurance recoveries to be attached to the bills. Would be a record not only of those from whom the recovery has actually been affected but also of those from whom recovery was being affected previously but has not now been affected. 4. In case of double recoveries or late recoveries, the reasons for late drawl pf pay or pension together with an indication of the month of pay or pension from which premium has been recovered, should be recorded in the Remarks Column. This information is absolutely necessary to determine the liability of the insurance to pay fine or interest and the currency of the policy. 5. Thought each policy of the insurance will be entered separately in the register and the schedule, the total amount recoverable monthly from each policy holder on account of all policies should be shown in the register by bracketing all the polices. This will serve as a guide for preparation of monthly bills, where recoveries, in respect of each policy cannot be shown separately. This total in the register should be kept corrected up-to-date on additions of new policies and exit of old ones. Chapter 11 Debt And Miscellaneous Obligations Of Government 6 of 7

7 PRO FORMA OF THE REGISTER OF POLICY HOLDER Monthly Premium rate Amount actually recovered Aug. Sept. Oct (5) (10) (12) (13) (14) Chapter 11 Debt And Miscellaneous Obligations Of Government 7 of 7