Treasury Code Vol-1

GOVERNMENT OF KERALA
THE
KERALA TREASURY CODE
VOLUME I
FOURTH EDITION
2013
(Incorporating Amendments upto 31-12-2012)
Issued by the Authority of the Government of Kerala
FINANCE DEPARTMENT
Price: `
website: www.finance.kerala.gov.in
©
2013
PREFACE
Under Article (283) (2) of the Constitution of India, the custody

of the Consolidated Fund of the State of Kerala, the Contingency
Fund of the State, the payment of moneys into such Funds, the
withdrawal of money therefrom, the custody of public moneys other
than those credited to such Funds received by or on behalf of the
Government of the State of Kerala, their payments into the public
account of the State and the withdrawal of moneys from such account
and all other matters connected with or ancillary to matters aforesaid
shall be regulated by the law made by the Legislature of the State
and, until provision in that behalf is made, shall be regulated by the
Rules made by the Governor. In pursuance of this provision,
immediately on the formation of the State of Kerala, i.e., on 1st
November, 1956, the Governor by notification No. Fin. BG (5) 32727/
56, dated 1st November, 1965 directed that the rules which were in
force on the 31st day of October, 1956 in the territories concerned
in respect of such matters would continue to regulate matter in relation
to moneys received on account of the revenues of the State. Accordingly
the treasury transactions in the Travancore-Cochin and Malabar areas
of the State are being regulated by the rules in the Travancore Treasury
Code and the Travancore Financial and Account Code and the rule
in the Madras Treasury Code and the Madras Account Code
respectively.
2. Since then the question of unifying these rules so as to bringing

in uniformity of procedure in the monetary transactions of Government
has been engaging the attention of Government. Accordingly this
compilation, the Kerala Treasury Code, containing the unified rules,
is being issued. This code, comprises two volumes the first containing
the text of the Code, with its appendices and the forms in the second.
3. The rules in the Code primarily deal with the procedure which
should be followed in treasuries, including the agencies of the Reserve
bank of India conducting the cash business of the treasuries and by
Government offices generally, in their dealings with treasuries and
the Bank.As regards receipt, custody and disbursement of moneys
in offices of the various departments, these Rules provide for vital
principles and important safeguards of general applicability and special
instructions to particular departments. Details of departmental
instructions on matters of minor importance or on subjects special
or peculiar to the department concerned have been left to be prescribed
in the departmental manuals.
4. With regard to the procedure to be followed by Treasury

Officers, etc., in connection with the payment of interest on Government
securities, repayment of principal of loans, receipt of subscription
to new loans and allied transactions, the relevant rules contained in
the Government Securities in the Government Securities Manual should
be followed.
5. The rules contained in this Code supersede all existing orders

andinstructions on matters with which they deal. Any officer who
notices any error or omission in this Code should report it to the
head of his department; if the head of department considers that there
is a real error or omission requiring amendment, he should submit
suitable proposals to the Government in the Administrative Department.
Important proposals of this kind should be submitted through the
Accountant General, who will forward them with his comments to
the Government in the Administrative Department. The Administrative
Department will pass on the proposals to the Finance Department
with its remarks for final disposal.
Trivandrum, C. THOMAS,
6th April 1963. Finance Secretary.
PREFACE TO THE SECOND EDITION
During the span of ten years after the issue of the first edition
of the Kerala Treasury Code (Volume I) several amendments were
issued to the rules in the Code, Consequent on the change of
administrative control of treasuries from the Revenue Department
to a newly formed Treasury Department under the Director of
Treasuries, since August 1963 the rules of procedure in the working
of the treasuries had undergone may changes. So a general review
of the rules was conducted and amendments were issued wherever
necessary. All these amendments have been incorporated in this
new edition.
2. Wherever the Director of Treasuries or any other head of the

Department considers that any existing rule requires modification
in the keeping with the present practice or as a result of changes in
the system rendered necessary in the course of actual working he
may move the Government in the Finance Department through the
Accountant General to amend the rules, furnishing the details of
procedure in vogue and changes proposed with reasons therefor.
P. VELAYUDHAN NAIR,
Finance Secretary.
PREFACE TO THE THIRD EDITION
The present edition of the Kerala Treasury Code, Volume I

contains all the amendments issued to the Rules till 19-5-1984.
Whenever the Director of Treasuries or any other Head of

Department considers that any existing rule requires modification
in keeping with the present practice or as a result of changes in the
system rendered necessary in the course of actual working, he may
move the Government in the Finance Department through the
Accountant General to amend the rules, furnishing the details of
procedure in vogue and changes proposed with reasons therefor.
Trivandrum, K. V. RABINDRAN NAIR,

26th April 1963. Commissioner & Secretary,
Finance.
PREFACE TO THE FOURTH EDITION
The third edition of Kerala Treasury Code Volume I was published

incorporating corrections up to 19-5-1984. Several amendments have
been issued to the Rules during the last 28 years. The rules in the
code primarily deal with the procedure which should be followed in
Treasuries, including the agencies of the Reserve Bank of India
conducting the cash business of the Treasuries and by Government
officers generally, in their dealings with the Treasuries and Bank.
As regards receipts, custody and disbursement of moneys in
offices of various departments, these Rules provide the principles
and important safeguards of general applicability and special
instructions to particular departments. Details of departmental
instructions on matters of minor importance or on subjects special
or peculiar to the department concerned, have been left to be prescribed
in the department manuals.
The rules contained in this code supersede all existing orders
and instructions on matters with which they deal. Any officer who
notices any omission in this Code should report it to the concerned
department head. If the head of the department considers that there
is a real error or omission requiring amendment, he should submit
suitable proposals to the Government in the Administrative Department.
The Administrative Department will pass on the proposals with its
remarks to Finance Department for final disposal.
Thiruvananthapuram, DR. V. P. JOY,

31st December 2012. Principal Finance Secretary.
Finance Department
NOTIFICATION
No.54282/CR/59/Fin. Dated, Trivandrum, 6th April 1963.
In exercise of the powers conferred by Article 283(2) of the

Constitution of India and in supersession of Notification
No. Fin. (BG) 5-327-7/56, dated 1st November 1956, the Governor
of Kerala hereby makes the following rules:—
By order of the Governor,
C. THOMAS,
Finance Secretary.
i
CONTENTS
Part I
GENERAL PRINCIPLES AND RULES
Section Pages
No.
I Short title and Commencement .. 1

II Definitions .. 1–2
III Location of moneys standing in .. 3
the Government Account
IV General system of control over Treasury—
District Treasuries .. 3–4
Sub Treasuries .. 4
V Payment of moneys into the Government .. 4–10
Account
VI Custody of moneys relating to, or standing .. 10
in the Government Account
VII Withdrawal of moneys from the Government
Account—
Definition .. 10
General Rules .. 10
Power of the Accountant General .. 11
Special instructions to Treasury Officers .. 12–15
Payments under special authorisation of the
Collector .. 15
Instructions to drawing officers .. 15-16
VIII Transfer of moneys standing in the Government .. 17
Account
IX Responsibility for moneys withdrawn:

Treasury Officer .. 17
Drawing Officers .. 17
X Inter-Government transactions .. 18–19
ii
Section Pages
No.
XI Receipts and disbursements of the State in the .. 19
United Kingdom
XII Supplemental .. 20
Part II
GENERAL ORGANISATION AND WORKING OF THE TREASURIES
I District Treasuries:
Responsibilities of the Director .. 21-24
Responsibilities of the Treasury Officer .. 24–27
Responsibilities of the Chief Treasurer .. 27
Verification of treasury balance when there .. 27–28
is a change of Treasury Officer or Chief
Treasurer
Responsibility of the Section Heads in the .. 28
Accounts Department
Sub Treasuries.—
Location of Sub Treasuries .. 28
Sub Treasury Officer .. 29-30
Other employees of the Sub Treasury .. 30
Inspection of Sub Treasuries .. 30-31
Banks conducting treasury business .. 31–32
II Treasury Accounts.—
Treasurer’s records .. 33
Books of the Department of Accounts .. 33–34
Closing for the day .. 35–38
Closing for the month .. 38–39
Monthly account and returns .. 39
Miscellaneous .. 40
iii
Section Pages
No.
Responsibilities of the Chief Treasurer and the .. 41
Treasurer
Precautions against substitution of coins in .. 41
treasuries
Part III
RECEIPT OF GOVERNMENT MONEYS AND PAYMENT OF SUCH
MONEYS INTO THE GOVERNMENT ACCOUNT
I General Rules— General Instructions for

handling Cash Rules applicable to
Departments generally .. 42–53
Charitable Endowments .. 53-55
Issue of duplicates or copies of receipts .. 55
Special instructions for certain departments .. 56
Special to the Judicial Department .. 56
Special to the Public Works Department .. 56–58
II Receipt of moneys by the Treasury or the Bank .. 58–66
Special to the Forest Department .. 66-67
Special to the Public Works Department and .. 67
Commercial Services
III Procedure in Treasuries which do not transact
their cash business through the Bank:
District Treasuries .. 68–69
Sub Treasuries .. 69
General for all Treasuries .. 69- 70
Numbering of chalans .. 70
Village remittances .. 70-71
Anamaths .. 71-73
Undisbursed balances .. 73
iv
Section Pages
No.
Receipts for money .. 73--75
Special to Judicial Department .. 76
Issue of consolidated receipts relating to .. 76
certain departments
Forest Department .. 77
Public Works Department and commercial .. 77
services
Procedure in Treasuries which transact their cash
business through the Bank:—
Payment into the Bank by private persons .. 77–79
Special to Judicial department .. 79
Payment into the bank by Government servants .. 80
Anamaths .. 80
Village remittances .. 80-82
Part IV
CUSTODY OF MONEYS RELATING TO OR STANDING IN

THE GOVERNMENT ACCOUNT
I Cash in Departmental chests:—

Rules applicable to departments generally .. 83–84
Special to the Forest Department .. 85
Special to the Public Works Department .. 85
II Moneys held in the Treasury—Custody of
Treasury cash balances—
District treasuries:
Custody and verification of the treasury .. 86–87
balance
Treasury balance and currency chest balance .. 87
Deposit in currency chest of sealed bag .. 87–89
v
Section Pages
No.
Treasury Strong Room .. 89–90
Treasury padlocks and keys .. 90–94
Storage of treasure .. 94–95
Receipt of moneys into and issue of moneys .. 95–97
from double locks
Sub Treasuries—
General .. 97
III Verification and certification of cash balance .. 97–100
of treasuries:
IV Currency chest balance:
Location of currency chests .. 100–101
Custody .. 101–103
Verification of currency chest balances .. 103–104
V Custody, etc., of other valuables:
Stamps .. 104–105
Banderols .. 105
Opium and Ganja .. 105
Cash chests, valuables, etc., received at the .. 106–110
Treasury for safe custody
Departmental cash chests .. 110–112
Part V
WITHDRAWAL FROM THE GOVERNMENT ACCOUNT
I Rules applicable to government officers in general:

General .. 113–115
Form of Bills, etc.,—General to all departments .. 115-125
Pay and allowances (including leave salary )
of Government servants:
Gazetted Government servants .. 125–132
Place of payment .. 132–133
vi
Section Pages
No.
Non-Gazetted Government servants .. 133–139
Absentee statement .. 139-140
First drawal of pay .. 140
Increment certificate .. 140-141
Arrear bills .. 141–142
Private police guards and additional police .. 142–143
Travelling allowances .. 143
Special to the Police Department .. 143
Other Miscellaneous payments to Government .. 144
servants
Last Pay Certificate .. 144–146
Pensioners .. 146–148
Contingencies and other miscellaneous
expenditure:
Permanent advances: .
Office contingent bills .. 148–152
Supply of water .. 153
Works expenditure charged as contingent .. 153
expenditure
Renting of private building for Office and .. 153–155
residential purposes
Service postage stamps .. 155
Discount on Stamps .. 155
Recovery of amounts attached by courts .. 155–156
Grants in lieu of magisterial fines .. 156–157
Educational grants-in –aid, scholarships, .. 157–160
stipends and book allowances
Statement of amounts due to the Government .. 161
by a local body
Compensation awarded by Courts out of .. 161
fines to injured parties
vii
Section Pages
No.
Refunds of revenue .. 161–162
Refunds of Land revenue .. 162–163
Refunds on account of stamps .. 163
Refunds of process and poundage fees by .. 163
Courts of law
Refunds of registration fees .. 164
Refunds of excess receipts on account of .. 164
advertisements in the Gazette and other
official publications
Refunds of College and examination fees .. 164
Refunds of fines .. 164-165
Refunds of Sales Tax and Agricultural .. 165
Income Tax
Loans and advance .. 165–167
Survey Department bills .. 167
Bills for survey charges in the Revenue .. 167
Department
Repayment of deposits .. 167 –168
Repayment of revenue deposits .. 168–169
Repayment of civil Courts deposits .. 169
Repayment of revenue deposits and Criminal .. 169
Court’s deposits
Repayment of personal deposits .. 170 –171
Special to the Forest Department .. 171
II Procedure in Treasuries—
Treasuries which do not transact their cash
business through the Bank:
District Treasuries—
General .. 172-184
Claims of deceased Government Servants .. 184–189
Payments of persons not in Government Service .. 189–190
Payment of Pensions .. 190
viii
Section Pages
No.
Payment of endorsed bills .. 190
Payment by Postal money order .. 190
Refunds of revenue and deposits .. 190–191
Repayment of Civil Courts deposits .. 192
Receipt stamps —Defacing .. 192
Transfer payments .. 192-193
Duplicate ‘Not payable’ copies of bills .. 193–194
Treasury bill book .. 194–198
Memorandum of deductions from bills .. 198
Sub Treasuries:—
General .. 198–200
Payments of land cess and fishery rentals .. 200–201
to Panchayat
Payment of surcharge on stamp duty, etc., .. 201
to Panchayats
Treasuries which transact their cash business
through the banks—
General .. 201–205
Treasury Bill Book .. 205
Special to Judicial Department .. 205–206
Repayment of Revenue and Criminal Court’s.. 206
deposits
Special to Local Funds .. 206
III Cheques—
General—Applicable to departments generally.. 207-210
Local Fund cheque .. 210-211
Time expired cheques .. 211
Lost cheques .. 212
Cancelled cheques .. 212-215
Letters of credit .. 215-219
ix
Section Pages
No.
Special Rules for drawal of cheques when the
Treasury transacts its cash business through
the Bank—
Rules applicable to departments generally—
Cheques .. 220–221
Letters of credit .. 221
IV Payment of pensions—
General .. 222
Manner of payment of pensions and identification
of pensioners—
Pension Payment Orders .. 223-226
Register of Pension Payment Orders:—
Service pensions paid at District Treasury .. 226
Service pension paid at Sub Treasury .. 226
Political pensions .. 226
General Rules of payment .. 227-229
Leper pensioners .. 230–233
Payment of pensions by Postal Money Order .. 234–238
Payment of Pension through Treasury saving .. 238–240
Bank Account
Periodical appearance of pensioners for .. 240–241
identification
Transfer of Pension:
Transfer service pensions .. 242
Transfer of political pension .. 242–243
Renewal of Pension Payment Orders .. 243–245
Lapse of pensions—
Service pensions .. 245–246
Deceased pensioners .. 247–252
Gratuities .. 252–253
Commutation of pensions:
x
Section Pages
No.
Service pensions .. 254
Revenue pensions .. 254
Medical Allowance to Pensioners .. 254–255
V Special Instructions to Treasury Officers—
Authority of the Treasury Officer to make .. 255-256
payment
Doubtful claims .. 257
Payment under special authorizations .. 257
Part VI
TRANSFER OF MONEYS STANDING IN THE GOVERNMENT ACCOUNT
General .. 258
Resource:
Maximum normal cash balance .. 258-259
Weekly cash balance report .. 259
Monthly cash balance report .. 259–260
Supply of funds to Treasuries and Sub
Treasuries :
General .. 261–262
Treasuries which do not transact their cash .. 262-263
business through the Bank
Treasuries which transact their cash business.. 263
through the Bank
Remittances—
Transfers through currency .. 263
Remittances of coin and notes .. 264
Transfers through currency—
xi
Section Pages
No.
In a district where there is no treasury
which transacts its cash business through
the Bank—
At a District Treasury .. 265
At a Sub Treasury .. 265–266
In a district where there is at least one
treasury which transacts its cash
business through the Bank:
Transfers of funds from and to a currency .. 266
chest in custody of the Bank
Transfers of funds between the treasury .. 266-267
balance and the currency chest at a
Treasury
Remittances of coin and notes—
Transfers of funds from and to a Sub .. 267
Treasury where there is no currency chest
General .. 267
Despatch of remittances .. 267–268
Remittance of coin .. 269–270
Remittance of uncurrent coin .. 270–271
Remittance of notes .. 271–272
Duties of the Officer-in-charge of the escort .. 272
for a remittance
Treasurers accompanying remittances .. 273–274
Receipt of remittance .. 274–279
T.A. of Treasurers, Clerks etc., who accompany .. 279–281
remittance
Additional rules for remittances by railway .. 281–284
Remittances to and from branches of the .. 284–287
State Bank of India
Reserve Bank of India remittances—
xii
Section Pages
No.
Introductory .. 288–289
Telegraphic transfers .. 290–291
Drafts, Drawings and Encashments—
Explanations .. 291–292
Form of drafts .. 292–293
Issue of drafts .. 293–294
Advice of remittances drawn .. 294-295
Regularity of signature .. 295–296
Encashment of drafts .. 296–298
Doubtful drawings .. 298-299
Form of receipt .. 299
Record of drawings and encashments .. 300
Other rules— ..
Issue of duplicates .. 301-302
Cancellation and refund .. 302–303
Exchange of drafts
Unpaid drafts .. 304
Lapse of drafts .. 304
Supply of forms .. 304
Special Rules for remittance of Policemen .. 304
Part VII
RESPONSIBILITY FOR MONEYS WITHDRAWN
I Responsibility of Treasury Officer in .. 305–306

Recovering amounts disallowed by the
Accountant General
Register of recoveries .. 306
II General Rules applicable to all drawing
Officers—
Responsibility in clearing audit objections .. 307
xiii
Section Pages
No.
General rules regarding the form of .. 307–310
vouchers for disbursements made, etc.
Disbursement of pay and allowances of .. 311–313
Government servants
Disbursements out of the permanent advance .. 313
Custody of vouchers and acquittances .. 314
Cancellation and destruction of sub-vouchers .. 314
III Special rules for drawing officers of certain ..
departments:
Special to Public Works Department .. 314–316
Special to cheque drawing Departments .. 316–317
mentioned in sub-rule (d) of rule 162
Budgetary Control .. 317–323
Part VIII
MISCELLANEOUS STATUTORY RULES AND EXECUTIVE INSTRUCTIONS
The Indian Coinage Rules .. 324

Denomination-wise details of coins under .. 325–332
circulation
Currency and Bank notes—Instructions
issued by the Reserve Bank of India
Denominations of notes .. 333
Receipt and issue of notes .. 333–335
Forged, defective and lost notes .. 335–337
Procedure in Treasuries the cash .. 337
business of which is conducted by the
Bank
Indents for notes .. 337-338
Cypher Code and Treasury Agencies .. 338
Private Check Signal book
Safe custody of Code and Check Signal .. 338
Books
xiv
Section Pages
No.
Procedure to be followed in connection .. 339
with the distribution and acknowledgement
of amendment slips
Procedure to be followed in dealing with .. 339
amendment slips
Procedure to be followed in event of the .. 339-340
Cypher Code, etc., being lost or falling into
unauthorised hands
Procedure to be followed in the event .. 340
of transfer of charge
Annual Possession Certificate .. 340-341
Instructions on miscellaneous subjects—
Local Funds .. 341-342
Public Debt:
Permanent and temporary loans .. 343
Floating debt—
Treasury Bills .. 343
Ways and Means Advances .. 343–344
Transactions relating to Government of .. 344
other countries
Destruction of accounts records .. 345
Rounding off of Paise in Government` ` .. 345–348
Accounts
Remittance of moneys due from .. 348
Government by postage stamps
Government Order No. 402/2011/Fin .. 349–353
dated 23.09.11
Index .. 354–401
THE KERALA TREASURY CODE
VOLUME I
MAIN RULES
PART I
GENERAL PRINCIPLES AND RULES
SECTION I
Short Title and Commencement
1. These rules may be called the “Kerala Treasury Rules” and they
shall come into force on the 1st July, 1963.
SECTION II
Definitions
2. In these rules, unless the context otherwise requires, the
following expressions have the meaning hereby assigned to them, that
is to say :—
(a) “The Accountant General” means the Head of the Office
of Audit and Accounts subordinate to the Comptroller and Auditor General
of India, who keeps the accounts of the State and exercise audit functions
in relation to those accounts on behalf of the Comptroller and Auditor
General of India.
(b) “The Bank” means any office or branch of the Banking
Department of the Reserve Bank of India, any branch of the State Bank of
India, acting as the agent of the Reserve Bank of India in accordance with
the provisions of the Reserve Bank of India Act,1934 (Act II of 1934), and
any branch of a Subsidiary Bank as defined in section 2 of the State Bank
of India (Subsidiary Banks) Act, 1959 (Act 38 of 1959), which is authorised
to transact Government business as agent of the State Bank of India, or
any other agency appointed by the Reserve Bank of India.
(c) “Cheque” means a written order (not expressed to be payable
otherwise than on demand) addressed by a person called the “drawer” to
a bank or a treasury to pay a specified sum of money to himself or a third
party known as the “payee” and includes a demand draft drawn on any
specified bank or banker (including the Reserve Bank of India).
1
PART I KERALA TREASURY CODE RULE 2
(d) “Collector” means the head of a district and includes any

other officer for the time being authorised to discharge the duties of the
Collector for the purpose of these rules.
(e) The “Constitution” means the Constitution of India.
(f) “Director” means the Head of the Department of Treasuries

and includes any other officer for the time being authorised to discharge
the duties of the Director for the purpose of these rules.
(g) “Government Account” means the total of the Consolidated

Fund Account, the Contingency Fund Account and the Public Account
of the State.
NOTE.—In this clause the expression “the Consolidated Fund Account”,

“the Contingency Fund Account” and “the Public Account” shall
have the meaning respectively assigned to them in the
Constitution.
(h) “The State”, “the Governor” and “the Government” means

respectively the State, the Governor and the Government of Kerala and
“the President” means the President of the Indian Union.
(i) “Government servant” means any person serving in

connection with the affairs of the State whether remunerated by salary
or not, and includes every person who is authorised to receive, keep,
carry or spend moneys on behalf of the Government.
(j) “Indian Audit Department” means the officers and establishment,

being in India and subordinate to the Comptroller and Auditor General of
India, that are employed upon the keeping and audit of the accounts of
the Union and of the States or upon one or other of these duties.
(k) “Treasury” means any treasury of the State and includes a

sub-treasury.
2
PART I KERALA TREASURY CODE RULES 3-4
SECTION III
Location of Moneys standing in the Government Account
3. Subject to the provision of sub-rule (2) of rule 6 and rule 7 money
standing in the Government Account must be held either in the treasury
or in the Bank. Moneys deposited in the Bank shall be considered as
one general fund held in the books of the Bank on behalf of the State.
The deposit of such moneys in the Bank shall be governed by the
terms of the agreement made between the Government and the Bank
under section 21 of the Reserve Bank of India Act, 1934 (Act II of 1934).
NOTE.—The agreement between the Government and the Reserve Bank of
India is given in Appendix I. The name of the Bank which conduct
the cash business of the Government is given in
Appendix 2.
SECTION IV
General System of Control over Treasury
DISTRICT TREASURIES
4. (1) Unless the Government, after consultation with the Accountant

General, otherwise directs in any special case, there shall be a treasury
in every district. If moneys standing in the Government Account are,
in any district, not deposited in the Bank, the treasury of that district
shall be divided into two departments; a department of accounts
comprising of a number of sections each under the charge of a Section
Head and a cash department under the charge of a Treasurer.
Subject as hereinafter provided in this rule, the general procedure
for conduct of business in a district treasury shall be regulated by the
provisions contained in Part II.
(2) The treasury shall be under the control of a Treasury Officer
who shall be under the administrative control of the Director. The Treasury
Officer shall be responsible for the proper observance of the procedure
prescribed by or under these rules and for the punctual submission of
all returns required from the Treasury by the Government, the Accountant
General and the Reserve Bank of India.
Subject to the provisions of this rule, the respective responsibilities
of the Director and the Treasury Officer for business of the treasury
shall be defined in the provisions contained in Part II.
3
(3) The duty of verifying and certifying the monthly cash balance,
if any in the treasury in the manner prescribed in Part II of these rules
and of submitting the monthly accounts of such balance in such form
and after such verification as the Accountant General may require, shall
be undertaken by the Treasury Officer or by such other officer as may
be authorised by or under these rules to act in this behalf.
(4) [Deleted]
[G.O.(P) 111/76/Fin., dated 3rd April 1976]
(5) No portion of the responsibility for the proper management
and working of treasuries shall devolve upon the officers of the Indian
Audit Department. The inspection of treasuries by officers of the Indian
Audit Department shall not relieve the Director of his responsibilities
for management and inspection.
SUB TREASURIES
5. If the requirements of the public business make necessary the

establishment of one or more sub treasuries under a district treasury,
the arrangements for the administration thereof and for the proper conduct
of business therein shall be as prescribed in Part II of these rules.
The daily accounts of receipts and payments at a sub treasury must
be included in the accounts of the district treasury.
SECTION V
Payment of Moneys into the Government Account
6. (1) (i) All moneys received by or deposited with any officer

employed in connection with the affairs of the state in his capacity as
such other than revenues or public moneys, raised or received by
Government shall be paid into the public account *or by transfer credit
of bills, cheques etc., payable at the same Treasury provided all the
documents required for the opening of an account such as application,
specimen signature card and transfer pay-in-slip are attached with the
bill/cheque.
(ii) All moneys received by or deposited with any court to
the credit of any cause, matter, account or persons, shall also be paid
into the public account.
*Addition [G.O.(P) 1065/92/Fin. dated 14th December, 1992.
4
(iii) The head of account to which such moneys shall be

credited and withdrawal of moneys there from shall be governed by the
relevant provisions of the Kerala Account Code, Volumes I and II or
the Kerala Treasury Code or such other general or special orders as
may be issued in this behalf.
(2) Save as hereinafter provided in this section, all moneys as
defined in Articles 266,267 or 284 of the Constitution received by or
tendered to government servants in their official capacity shall, without
undue delay, be paid in full into the treasury or into the Bank. Moneys
received as aforesaid shall not be appropriated to meet departmental
expenditure, nor otherwise kept apart from Government Account. No
department of Government may require that any moneys received by
it on Government Account be kept out of that account. If any question
arises whether moneys received by government servants in any capacity
form part of the Government Account or not, the question will be referred
to the Government, whose decision shall be final.
(3) Notwithstanding anything contained in sub-rule (i) of this
rule, direct appropriation of departmental receipts for departmental
expenditure is authorized in the following cases:—
(a) Moneys received on account of the service of summons,
diet money of witnesses and similar purposes in civil, revenue and criminal
cases and in the Registration Department, for payment of charge for which
the moneys have been received.
NOTE.—The following items are included within the scope of clause
(a) of rule 6 (3):—
(1) Moneys received in civil courts on account of—
(i) Commissioner’s fees,
(ii) Fees for copying maps, plans and genealogical trees
(iii) Judgment-debtors, subsistence money,
(iv) Petty items such as money order commission for the
transmission of Commissioner’s fees, tom-tom charges, charges for the
conveyance of attached property, charges for feeding attached cattle,
postage and other charges for calling for records for reference, and for
the transmission of decrees to other courts for execution, and
5
(v) Other similar items ordered by the High Court.

(2) Process fee levied under section 36 of the Indian Registration
Act, 1908 (Indian Act XVI of 1908).
(3) Fees levied for the preparation of copies of maps, plans or
records under Article 14 of the Registration Table of Fees.
(4) Process fee levied by village panchayat courts for payment
to the establishment employed in the service of processes.
(5) Moneys received for batta to be paid to witnesses who have
to give evidence in inquiries before the Commissioner and Deputy and
Assistant Commissioners of Hindu Religious and Charitable Endowments
(Administration) Department.
All such moneys should, however, be forthwith paid in full into the
Treasury or the Bank, if the disbursement or refund is not likely to be made
within a month. Amount not disbursed or refunded within a month from the
date of receipt should also be paid in full into the treasury or the bank.
(a) With regard to item (4) mentioned above, viz., process fees
levied by a Village Panchayat Court, the President of the Court should not
keep with him more than `15 at any time and he should pay any amount
in excess of the limit into the treasury or the bank at once.
(b) Maintenance amounts deposited in court under section 488
of the Code of Criminal Procedure, 1898 (V of 1898), for payment to the parties
concerned.
(c) Fees received by Government Servants appointed as Notaries
Public under the Negotiable Instruments Act, 1881 (XXVI of 1881) to defray
legal expenses incurred by them in the discharge of their duties as such
Notaries Public.
(d) Cash receipts in the Public Works Department to defray
expenditure on current works which cannot be met from the imprest or
permanent advance of the officer incurring the expenditure, or to defray pay
and traveling allowance charges when this is necessary in exceptional cases
to prevent abnormal delay in making payments.
6
(e) Cash receipts of Range Officers in the Forest Department

to meet immediate local expenditure when there is no treasury at the
Range headquarters and the Divisional Forest Officer considers it necessary
to permit appropriation of receipts.
(f) Cattle pound receipts, to meet feeding charges, disbursement
of commissions to pound keepers, expenses connected with the sale
of cattle and money order commission in accordance with the orders
of Government.
(g) Value of stamps issued to licensed stamp vendors, to pay
discount due to them.
(h) Initial deposits and earnest money deposits made by
intending bidders at all auction sales in any department of the Government
for returning the deposits of unsuccessful bidders at the close of the
sale on each day.
(i) Moneys received by jail authorities, for the subsistence
allowance of civil debtors.
(j) Moneys realised by the subordinates of the Fisheries
Department of the Government on sale of fish, to meet urgent contingent
expenditure in connection with the deep-sea fishing operations.
(k) Daily collection of hospital stoppages and pay ward charges
for making refunds of excess collection of hospital stoppages and pay
ward charges due to the discharged patients by the Superintendents and
the Medical Officers-in-charge of the Government hospitals and other
Government medical institutions in the State.
(l) Daily collection of veterinary hospital fee, for making refunds
of excess collection of hospital stoppages due to the parties at the time
of discharge of animals by the Principal, Veterinary College, Ollukara
and other officers in charge of the veterinary hospitals or dispensaries.
(m) Revenue realised from the auction sale of unserviceable
articles, etc., may be utilised for meeting such items of expenditure
as tom-tom charges, cart-hire, etc., to be incurred in connection therewith.
7
(n) Cash property found on the person of a prisoner at the time

of his admission to jail should be deposited in the Treasury for credit
to the personal ledger account opened in the Treasury under “Transactions
in connection with the cash property of prisoner in jails”. But the Jailor
may retain a small sum for immediate disbursement of similar sums
due to other prisoners on their release and remit the balance into Treasury.
(o) Medical inspection fees realised from the students in the
Government Colleges.
(p) Moneys received in the Government Press on account of
sale of publications and advertisement charges may be utilised for
refunding excess amounts realised from parties.
*(pp) Moneys realised by the subordinates of the Dairy
Development Department on the sale of milk and milk products to meet
refund charge of advances received for which supply of milk and milk
products has not been effected.
**(ppp) Sale proceeds of “Teacher’s Hand Book” received by
Assistant Educational Officers who have been authorised to distribute
the book may be utilised by such officers to meet sundry expenses like
packing, transport of books and expenses for remittances of sale proceeds
of the books.
† (pppp) Payment of route-war batta to the crewmen of the
State Water Transport Department from the daily collection.
‡ ppppp Sale proceeds of lottery tickets received by the District
Lottery Officer, may be utilized for meeting the expenditure towards
payment of prize money upto ` 5,000 (Rupees Five thousand only) subject
to the following conditions:-
(i) The Departmental receipts shall be appropriated only for
meeting the expenditure for the payment of prize money, agent’s and
Seller’s prize and additional commission, which are now met from the
permanent advance allotted for the purpose;
* Insertion [G.O.(P) No.368/73/Fin., dated 29th August, 1973]

** Insertion [G.O.(P) 189/77/Fin., dated 17th June, 1977]
† Insertion[G.O. (P) No.3/81/Fin., dated 1st January, 1981]
‡ Insertion [G.O. (P) 1065/92/Fin. dated 14th December, 1992].
8
(ii) The net sale proceeds of a day after defraying the above
expenditure should be remitted in the Treasury on the succeeding day
itself;
(iii) The Department should maintain subsidiary accounts for
each draw, category-wise and agent-wise;
(iv) Gross receipts as per the sales account and payment as
per subsidiary accounts should be entered in the cash book daily;
(v) The Director of State Lotteries shall take steps to check
the transactions; and
(vi) The Director of State Lotteries shall present a consolidated
bill every month in respect of all districts at the District Treasury,
Thiruvananthapuram for transfer crediting the total amount paid from
Departmental receipts during the previous month to the receipt head by debit
to the departmental expenditure head concerned as provided in Rule 221
of the Kerala Treasury Code. The adjustment bill should be supported by
detailed statements of payments made for each district with supporting
vouchers and necessary certificates prescribed under Treasury Rules for
audit by the Accountant General.
NOTE.—Amendment to Sub rule (3) of Rule 6 shall be deemed to have come
into force from the 6th day of April, 1988.
#(pppppp) Sale proceeds of lottery tickets received by the
Assistant District Lottery Officers may be utilized for the payment of prize
up to ` 100 and for payment of commission to agents upto ` 100.
#This amendment shall be deemed to have come into force on 26th
March, 1997.
(q) Any other cases where the rules and codes applicable to a
particular department or departments of the Government permit the
appropriation of departmental receipts for departmental expenditure:
Provided that the authority hereby given to appropriate departmental
receipt for departmental expenditure shall not be construed as authority to
keep the departmental receipts and expenses defrayed there from outside
the account of payments into and the withdrawal from the Government
Account.
#Insertion [G.O. (P) 270/2007/Fin. dated 25th June, 2007.
9
7. A Government servant may not, except with the special permission

of the Government deposit in a bank moneys withdrawn from the
Government Account under the provisions of Section VII of this Part.
8. The procedure to be adopted by government servants in receiving
moneys on account of the revenues of the State, granting receipts for
such moneys and for paying them into the Government Account and by
the Treasury and the Bank in receiving such moneys and granting receipts
for them shall be regulated by the provisions contained in Part III.
SECTION VI
Custody of moneys relating to, or standing in the
Government Account
9. (1) The procedure for the safe custody of money in the hands
of government servants, or held in the Treasury shall be regulated by
the provisions contained in Part IV.
(2) The Bank is responsible for the safe custody of government
moneys deposited in the Bank.
SECTION VII
Withdrawal of moneys from the Government Account
DEFINITION
10. In this section “withdrawal” with its cognate expressions refers to

the withdrawal of funds from the Government Account for disbursements of,
or on behalf of, the State other than disbursements in the United Kingdom.
GENERAL RULES
11. Save as expressly provided by or under these rules, or unless the

Government after consultation with the Accountant General otherwise direct
in any case, moneys may not be withdrawn from the Government Account
without the written permission of the Treasury Officer or of an officer of
the Indian Audit Department authorised in this behalf by the Accountant
General.
10
POWER OF THE ACCOUNTANT GENERAL
12. The Accountant General may permit withdrawal for any purpose.
13. (a) Subject as hereinafter provided in this section a Treasury Officer
may permit withdrawal for all or any of the following purposes, namely:—
(i) to pay sums due from the Government to the drawing officer;
(ii) to provide the drawing officer with funds to meet claims likely to
be presented against the Government in the immediate future by—
(1) other government servants, or
(2) private parties;
(iii) to enable the drawing officer to supply funds to another
government servant from which to meet similar claims;
(iv) to pay direct from the Treasury or from the Bank sums due by
the Government to a private party;
(v) in the case of an officer or authority empowered to make
investments of moneys standing in the Government Account for the purpose
of such investments † ;
(vi) to pay sums on account of loans and advances; and †
*(vii) to pay sums to the drawing officer on account of
permanent advance sanctioned to his office.
(b) Unless expressly authorised by the Accountant General, a
Treasury Officer shall not permit withdrawal for any purpose not specified in
clause (a) of this rule.
14. Except as provided in rule 22 and 23, a Treasury Officer shall not
permit withdrawal for any purpose unless the claims for withdrawal complies
with the provisions contained in Part V as to the person by whom and the
form in which, the claim shall be preferred and the checks to which the
claim shall be submitted by the Treasury Officer before directing payment
thereof.
†“and” occurring at the end of item (v) deleted and added at the end of item
(vi) [G.O.(P) 4/75/Fin., dated 3rd January, 1975]
*Addition [G.O.(P) No.4/75/Fin., dated 3rd January, 1975].
11
SPECIAL INSTRUCTIONS TO TREASURY OFFICERS
15. A Treasury Officer has no general authority to make payments on

demands presented at the Treasury, his authority being strictly limited to the
making of payments authorised by or under these rules. If a demand of any
kind is presented at a Treasury for a payment which is not authorised by or
under these rules, or is not covered by a special order received from the
Accountant General, the Treasury Officer shall decline payment for want of
authority. A Treasury Officer has no authority to act under an order of the
Government sanctioning a payment, unless the order is an express order to
him to make payment; and even such special order should, in the absence of
urgency, be sent through the Accountant General.
NOTE.—See Rules 210(2)(m) and 306(a)(2) regarding payment of loans
and advances and grants-in-aid.
* No authorization from the Accountant General shall be necessary for
the drawal of amounts by the Government for the repayment of principal or
payment of interest in respect of loans raised by the Government.
16. A Treasury Officer shall not honour a claim which he considers
to be disputable. He shall require the claimant to refer it to the Accountant
General.
17. Except as provided by rules in Part V, a payment shall, unless the
Government by general or special order otherwise direct, be made in the district
in which the claim arises.
18. No withdrawal shall be permitted in order to meet the pay, leave
salary, or allowances of a gazetted government servant or a reward or
honorarium payable to a gazetted government servant or the transit pay and
allowances of a non-gazetted government servant promoted as a gazetted
government servant in respect of the period of transit availed of by him
after relief from the non-gazetted post and before joining the gazetted post,
or any pension, until the Accountant General has intimated to the Treasury
Officer the rate at which payment shall be made: provided that the
Government may, for special reasons and with the concurrence of the
Accountant General waive the provisions of this rule.
* Exception added vide G.O. (P) 546/87/Fin. dated 23rd June, 1987.
12
Exceptions.—*(a) for payment of honorarium of an occasional nature

by government to a gazetted government servant.
(b) for payment of honorarium to gazetted government
servant by the Kerala Public Service Commission.
(c) for payment of over-time allowance, where

admissible to a gazetted government servant.
**(d) for payment of honorarium to the Teaching Staff of
the Engineering Colleges and Polytechnics for
conducting classes for part time courses, provided
such claims are countersigned by the Heads of
Institutions concerned.
***(e) For the payment of honorarium/ remuneration/
allowance to the Teaching Staff of Colleges;
(i) for taking classes under Indian Administrative
Service coaching scheme;
(ii) for special remedial coaching to students
belonging to Scheduled Caste and Scheduled Tribe
subject to a maximum of `150 per month per
teacher;
(iii) for taking classes in Pre-examination Training
Centres subject to a maximum of † ` 300 per month
per teacher;
†This amendment shall be deemed to have come into force from
the 11th day of January, 1985.
(iv) for taking evening classes by the teachers of day
colleges;
(v) for taking classes in Banking and Secretariat
Practice in colleges where qualified staff are not
available;
* Substitution [G.O.(P) No.36/75/Fin., dated 28th January, 1975]
** Substitution [G.O.(P) No.716/82/Fin., dated 24th November, 1982]
*** Insertion [G.O.(P) 604/84/Fin. dated 20th October, 1984]
† Substitution[G.O.(P) 86/88/Fin. dated 3rd February, 1988].
13
(vi) for providing practical training to students of

Government Colleges where facilities for the
same are not available; and
(vii) for taking classes in English, Economics,
Mathematics, Hindi etc. in Government
Polytechnics/Engineering Colleges/College of
Fine Arts:
(f) for payment of National Cadet Corps honorarium
provided the bills in respect of the claims enumerated
above are countersigned by the Head of the Institution
concerned.
NOTE.—The sanctioning authority should authorise the Gazetted Officer
to draw the amount of honorarium by debit to the proper head after
deducting the income tax due.
19. No withdrawal shall be permitted on a claim for the first of any
series of payments in a district of pay or allowances to a government servant,
other than a person newly appointed to Government service unless the claim
is supported by a last pay certificate in such form, as may be prescribed by
the Comptroller and Auditor General of India. A Treasury Officer may not
permit any withdrawal in respect of pay or allowances of a government servant
to whom he has granted a last pay certificate unless the certificate is first
surrendered.
*NOTE.1—The above provision will apply in the case of a non-gazetted
officer promoted to a gazetted cadre also.
**NOTE. 2—Exception (2) under sub rule (a) of rule 169 and the
exceptions under the rule 182 shall be applicable in the
case of a claim under this rule also.
20. The Treasury Officer shall be responsible to the Accountant General for
acceptance of the validity of a claim against which he has permitted withdrawal and for
evidence that the payee has actually received the sum withdrawn.
* Insertion [G.O.(P) No.7/73/Fin., dated 2nd January, 1973].
**Addition [G.O.(P) No. 616/82/Fin., dated 22nd October, 1982].
14
21. The Treasury Officer shall obtain sufficient information as to the

nature of every payment he is making and shall not accept a voucher which
does not formally present that information unless there are valid reasons,
which he shall record in writing, for omitting to require it.
22. A Treasury Officer may correct an arithmetical inaccuracy or an
obvious mistake in any bill presented for payment, but shall intimate to the
drawing officer any correction which he makes.
PAYMENTS UNDER SPECIAL AUTHORISATION OF THE

COLLECTOR
23. A Collector may, in circumstances of urgency, by an order in writing

authorise and require a Treasury Officer to make a payment not being a payment
of pension, without complying with the provision of these rules. In any case,
the Collector shall at once forward a copy of his order and a statement of the
circumstances requiring it, and the Treasury Officer shall at once report the
payment to the Accountant General.
NOTE.—The need for exercising the special power under this rule should not
arise at all in normal conditions. The power should be exercised only
in real cases of urgency, e.g., floods, earthquake and the like and
withdrawals of money under this rule should, as far as possible,
exclude all personal claims of government servants.
INSTRUCTIONS TO DRAWING OFFICERS
24. A government servant who is authorised to draw moneys by means

of cheques shall notify to the Bank or the Treasury upon which he draws the
number of each cheque book brought into use and the number of cheques it
contain.
NOTE.—A government servant who is authorised to draw moneys by means
of cheques should notify to the Bank or the Treasury upon which
he draws the numbers of cheque books withdrawn from use and
numbers of cheques they contain, immediately after their
withdrawal.
15
25. *(a) Every government servant who is authorised to draw cheques

or bills payable at a Treasury or Bank shall send a specimen of his signature
to the Treasury or the Bank, as the case may be, through some superior or
other government servant whose specimen signature is already with the
Treasury or the Bank. When such a government servant makes over charge
of his office to another, he shall likewise send a specimen of the signature
of the relieving Government Servant to the Treasury Officer or the Bank
concerned.
(b) When such bills or cheques are drawn by a person who is not a
drawing officer on such Treasury or the Bank and the bill or cheque is
countersigned by a Departmental Authority, the specimen of the signature
of such Departmental Authority shall be sent to the Treasury or the Bank as
the case may be, through some superior officer or other Government Servant
whose specimen signature is already available at the Treasury or Bank. When
such a Departmental Authority makes over charge of his office to another,
he shall likewise send a specimen of the signature of the relieving
Government Servant to the Treasury Officer or the Bank concerned.
(c) Specimen signature shall be forwarded to the Treasuries only
in specimen signature cards in Form T.R.74A, which shall be obtained from
the Treasuries concerned.
NOTE 1.—A Government Servant who is authorized to draw, or a
Departmental Authority referred to in sub-rule (b) who is
authorized to countersign bills, cheques or other documents
payable at more than one Treasury shall send a specimen of
the relieving Government Servant’s signature to the Treasury
Officers concerned in specimen signature cards obtained
from the respective treasuries.
NOTE 2.—The Treasury Officer shall keep specimen signature cards
of Government Servants who draw on his Treasury or
countersign bills, cheques etc., in the circumstances
referred to in sub-rule (b) above, duly arranged in serial
numerical order. The cards so arranged shall be kept safely
under lock and key.
NOTE 3.—Specimen signature to be sent to a Bank need not be in cards in
Form T.R.74A, but may be furnished duly countersigned in slips
of papers.
* Substitution [G.O.(P) 207/88/Fin., dated 9th March, 1988.]
16
SECTION VIII
Transfer of moneys standing in the Government Account
26. The transfer of government moneys from one Treasury to another
and between the currency chest balance and treasury balance of a treasury
and between a treasury and the Bank shall be governed by such instructions
as may be issued in this behalf by the Governor after consultation with the
Reserve Bank of India.
The transfer of moneys from or to a small coin depot to or from a treasury
under the control of the Government of the State shall be governed by
instructions issued by the President in this behalf.
Save as provided above, the provisions of Part VI and subsidiary
instructions issued thereunder shall regulate the procedure with regard to the
matter aforesaid.
SECTION IX
Responsibility for moneys withdrawn
TREASURY OFFICER
27. If a Treasury Officer receives intimation from the Accountant
General that moneys have been incorrectly withdrawn and that a certain sum
should be recovered from a drawing officer, he shall effect the recovery without
delay and without regard to any correspondence undertaken or contemplated
with reference to the retrenchment order; and the drawing officer shall without
delay repay the sum in such manner as the Accountant General may direct.
DRAWING OFFICERS
28. (a) Subject as hereinafter provided in this rule, the procedure to be
observed by a government servant in regard to moneys withdrawn from the
Government Account for expenditure shall be regulated by the provisions made
in this behalf in Part V.
(b) A government servant supplied with funds for expenditure shall be
responsible for such funds until an account of them has been rendered to the
satisfaction of the Accountant General. He shall also be responsible for seeing
that payments are made to persons entitled to receive them.
(c) If any doubt arises as to the identity of the government servant by
whom an account of such funds shall be rendered, it shall be decided by the
Government.
17
SECTION X
Inter-Government Transactions
29. (1) Save as provided hereinafter in this section, no transactions of
the State with another government shall be adjusted against the balance of
the State except in accordance with such directions as may be given by the
Comptroller and Auditor General of India with the approval of the President
to regulate the procedure for the accounting of the transactions between
different governments.
(2) Moneys presented within the jurisdiction of another
government for credit to the Government Account or a payment made by
another Government as a withdrawal affecting the balance of the Government
Account shall not be credited or debited to the Government Account except
under express authority of the Accountant General of the receiving or the
paying government concerned or any other Accounting Officer authorised
in this behalf by the Comptroller and Auditor General of India.
(3) All adjustments against the balance of the State by debit or credit
to another government shall be made through the Central Accounts Section
of the Reserve Bank of India.
30. Where such a course is authorized in consequence of a delegation
of functions made under Article 258(1) of the Constitution, the Treasury
Officer may receive or authorise the Bank to receive moneys tendered on
behalf of the Union Government, and may make or authorise the Bank to
make disbursements on behalf of the Union Government in accordance with
such procedure, as may be specified in the rules made by or under the
authority of the President. Such receipts and disbursements on behalf of the
Union Government shall be adjusted, as far as practicable, directly against
the balance of the Union Government held by the Bank, but where such
transactions are temporarily taken into account against the balance of the
Government account, the Accountant General will on receipt of intimation
from the treasury make the requisite adjustments in respect of the aforesaid
transactions through the Central Accounts Section of the Reserve Bank of
India, against the balance in the Government Account of the Union
Government held by the bank.
18
31. The Treasury Officer may, subject to any general or specific direction
of the Government in this behalf, receive or authorise the Bank to receive
moneys tendered on behalf of another State and may, if so required by the
Accountant General make or authorise payment of any claim against
another State. The necessary credits or debits in respect of such receipts and
payments against the balance of the State concerned shall be made by the
Accountant General through the Central Accounts Section of the Reserve
Bank of India but until such adjustments are made, the credits and debits shall
be entered in the Government Account. Moneys paid or received in the Office
of the Accountant General on behalf of another State and the book entries
made in the office of the Accountant General affecting the accounts of
another State shall, likewise, be adjusted by the Accountant General through
the Central Account Section of the Reserve Bank of India against the balances
of the State concerned.
32. The provisions of rule 31 may be extended with or without
modifications so payments made or received in the Sate on behalf of the
Railway administered by the Government.
SECTION XI
Receipts and disbursements of the State in the United Kingdom
33. Until other provision is made by the Governments in this behalf,
moneys received in the United Kingdom on account of the revenues of the
State may be paid into, and funds required for disbursements of or on behalf
of the State in that country may be withdrawn from, the balances in the
Government Account of the Union Government in that country, in accordance
with such procedure as may be prescribed by or under the authority of the
President for the transactions of the Union Government in the United Kingdom.
These transactions shall be adjusted in India, at the earliest opportunity against
the balances of the Government Account according to such directions as may
be given in this behalf by the Comptroller and Auditor General of India with
the approval of the President.
19
SECTION XII
Supplemental
34. The Accountant General in the exercise of any of his functions
under these rules shall be subject to the general control of the Comptroller
and Auditor General of India.
35. Nothing in these rules, shall have effect so as to impede or prejudice
the exercise by the Comptroller and Auditor General of India of the powers
vested in him by or under the Constitution to make rules, or to give directions
regulating the submission to the Indian Audit Department of the accounts
kept in treasuries or in departmental offices and to be accompanied by such
vouchers for their support as the Comptroller and Auditor General may require
for purposes of audit.
36. Nothing contained, or in the application of, these rules shall have
effect so as to impose upon the Bank in connection with the business of the
Government any responsibility not imposed upon the Bank by the terms of
its agreement referred to in rule 3.
37. (1) Where under the provisions of these rules the detailed
procedure with respect to any matter is required to be prescribed or regulated
by departmental regulations and where no rule or order has been made by
the Government as to the authority by which the regulations shall be made,
such regulations to be observed by particular departments shall be made by
the Government.
(2) Nothing contained in this rule affects the validity of any order,
instruction or direction contained in any authorized departmental regulation
in force on the date of promulgation of these rules except in so far as such
order, instruction or direction is inconsistent with or repugnant to any distinct
provision contained in these rules.
(3) Notwithstanding anything contained in these rules, the operation
of a Savings Bank Account of any person in a treasury of the State shall be
regulated by the instructions contained in Appendix 3 to these rules.
20
PART II KERALA TREASURY CODE RULES 38-39
SUBSIDIARY RULES
PART II
GENERAL ORGANISATION AND WORKING OF THE TREASURIES
38. Subject to any general or special orders of the Government the
responsibilities of the several officers for the proper management and working
of the treasuries will be as laid down in the following rules of this part.
SECTION I
District Treasuries
RESPONSIBILITIES OF THE DIRECTOR
39. (a) The Director as the Head of the Department of Treasuries is
responsible to the Government for the proper functioning of the Treasuries in the
State. He shall inspect each district treasury at least once in a year, examine
whether the rules relating to the custody of treasure are closely followed, whether
the registers are in good order and kept up-to-date and generally whether the
treasury is working satisfactorily and shall take such effective steps as are necessary
to remedy the defects, if any, noticed by him. In the course of the inspection, he
shall specifically examine and satisfy himself—
(i) that the actual stock of cash, opium, ganja, stamps and securities
is kept under joint lock and key and corresponds with the book balance;
(ii) that the Treasurer does not hold a sum larger than is necessary
for the convenient transaction of the Government business and this sum together
with the value of stamps, opium, ganja and other valuable articles held under the
orders of the Government in his sole custody, is not larger than the security given
by him;
and
(iii) that the stock of draft, cheque, bill and similar forms are carefully
kept under lock and key by the Treasury Officer and periodically tallied with the
balance of such forms on the stock books.
NOTE 1.—The word “Stamps” used in the above rule includes Match Excise
Banderols.
NOTE 2.—Officers inspecting stamps, opium, etc., should record certificates
of verification in their own hand.
NOTE 3.—Appendix 5 contains the detailed rules prescribed by the
Government for the inspection of District Treasuries. The Director
should see during his inspection of the treasury that the stock
of stamps especially those of denominations for which there
is no demand or only occasional demand, is not excessive. He
should pass orders at the time of inspection regarding the
disposal of any surplus stock of stamps.
21
PART II KERALA TREASURY CODE RULE 39
(b) (1) Each district treasury will be inspected periodically by an

Officer of the Indian Audit Department.
(2) A brief report of such inspection will be drawn up and sent
to the Director with a copy to the Treasury Officer. The report will be in two
parts, the first part dealing with the observance of the rules regarding the
custody of treasure, coinage, currency, remittance and public debt work as
well as the maintenance of the Currency Chest Accounts and the second part
dealing with other points. The Accountant General will also send a copy of
the first part of the report to the Currency Officer, Reserve Bank of India,
Madras.
(3) The Treasury Officer shall send his replies on each part of
the report in duplicate to the Director who shall pass such orders as he
considers necessary and send a copy of his orders together with one copy of
the reply received from the Treasury Officer to the Accountant General who
will finally dispose of the report. The Treasury Officer shall also send a copy
of his replies on the first part of the report of inspection to the Currency
Officer, Madras. The Currency Officer will forward his copy of the report
and of the Treasury Officer’s reply thereon to the Accountant General
indicating whether, so far as matters dealt with by the Reserve Bank are
concerned, the action taken is adequate or whether any further action is
required. The Accountant General may again refer to the Director any matter
brought to notice in the report in respect of which he considers that the
action taken by the Treasury and the Director is inadequate. Points which
cannot even then be settled and all important irregularities will be reported
to the Government by the Accountant General.
(4) The Accountant General will include a summary of the
general results of the inspections in his annual review of the working of
treasuries submitted to the Government.
*NOTE—The Joint Director/Regional Deputy Directors as the case may be,

are empowered to conduct the inspection of District Treasuries on
behalf of the Director, once in every year and notes on such
inspection shall be forwarded to Accountant General (A&E) through
the Director of Treasuries. The Inspection reports in respect of District
Treasuries and Sub Treasuries conducted by Accountant General’s
Inspection Wing will be forwarded to the Director, who will retransmit
reports to Joint Director/Regional Deputy Directors as the case may
be for review and finalisation.
* Insertion [G.O. (P) 581/2004/Fin. dated 13th December, 2004.]
22
*This amendment shall be deemed to have come into force with effect from
6th December, 1996
40. When an irregularity committed by any Treasury is brought to the
notice of the Director by the Accountant General the Director shall make an
investigation and pass such orders as he considers necessary except in cases
where the Accountant General has finally disposed of the matter by awarding a
“Treasury Irregularity” to the concerned Treasury Officer a copy of the orders
passed by the Director should be sent to the Accountant General.
NOTE.—A list of cases in which the Accountant General usually awards “Treasury
Irregularity” is given in Appendix 26. Part A of the Appendix contains a
list of serious irregularities which require disciplinary action and Part B
contains a list of ordinary irregularities which have the cumulative effect
of judging the quality of work of the Officer-in-charge of the Treasury at
the time of committing the irregularity.
41. When an Officer takes charge of the post of Director otherwise than
temporarily, he shall obtain from the outgoing Director, a note prepared by the
latter indicating his general impressions on the working of the Treasuries in the
State with special reference to any important item of work to be attended to
immediately as it comes to his knowledge.
42. The Director of Treasuries shall verify the cash balance (including the
imprest balance and other anamath balances) in each District Treasury at least
once in three months, without giving prior intimation about it to any member of
the staff of the Treasury. The fact of verification should be recorded in the relevant
registers kept in the Treasury. A certificate of verification specifying the amount,
should also be sent to the Accountant General and to Government in the Finance
Department.
The verification shall be done by the Director of Treasuries in person. If he
is unavoidably prevented from conducting the verification himself, he shall depute
an officer in the Directorate, not below the rank of a District Treasury Officer** to
verify the cash balance on his behalf.
** [G.O.(P) 147/77/Fin., dated 16th May 1977.] &

[G.O.(P) 326/80/Fin., dated 31st May 1980.]
* Insertion [G.O. (P) 581/2004/Fin. dated 13th December, 2004.]
23
† NOTE.—The Joint Director/Regional Deputy Directors as the case may be are

also empowered to conduct surprise cash balance/imprest balance
verification on behalf of the Director in respect of District Treasuries
under their control once in three months in the case of Banking
Treasuries and every month in the case of Non-Banking Treasuries.
Also a certificate of verification specifying the amount may be
forwarded to Accountant General (A&E) with copy to Directorate.
†This amendment shall be deemed to have come into force with effect from 6th
December, 1996.
43. [Deleted.]
[G.O. (P) 181/76/Fin., dated 26th June 1976.]

RESPONSIBILITIES OF THE TREASURY OFFICER
44. The Treasury Officer is personally responsible for the due accounting
of all moneys received into and paid out of Government account, for the thorough
observance of all rules prescribed for his guidance in every branch of his duties,
for strict attention to all details of the daily routine of the treasury work, for the
correctness of the prescribed accounts and returns and punctuality of their
submission for the implicit obedience to the instructions issued by the Accountant
General, the Currency Officer, the Director or any other competent authority, for
the security of the cash balance, stamps, opium and other Government property
and for the conduct of the subordinate treasury officials. For the custody of cash
balance, stamps, opium, ganja and other valuables, the Treasury Officer is jointly
responsible with the Treasurer. The fact that a subordinate has been required
under these rules or under special orders of the Government to attend to certain
items of Treasury work shall in no way relieve the Treasury Officer of his
responsibilities.
The Treasury Officer is responsible for keeping the accounts of the Treasury
strictly in accordance with the directions contained in the Kerala Account Code,
for the accuracy of all initial records and vouchers and for regularity of all
transactions taking place at the treasury.
† Insertion [G.O. (P) 581/2004/Fin. Dated 13th December, 2004]
24
NOTE.—An officer holding independent charge of a district treasury in the

course of a prescribed training (vide Appendix 4) will be personally
responsible for discharging the duties and responsibilities of the
Treasury Officer. However, it shall in no way, relieve the regular
Treasury Officer of his responsibilities and he should closely watch
the work of the Officer on training and give him proper guidance in
all items of work.
45. The District Treasury Officer shall send immediate preliminary report
to the Accountant General, the Director of Treasuries and the Government, of
any defalcation or loss of money, stamps or opium and other property
discovered in the treasury or any sub treasury even when such loss has been
made good by the person responsible for it. Such preliminary report shall be
supplemented as soon as possible afterwards by a detailed report, after
personal investigation into the case. In dealing with cases of defalcations or
losses as aforesaid and in reporting such cases to the Accountant General
and other authorities, the District Treasury Officer shall be guided by such
general orders or instructions as may be issued in this behalf by the Government.
Petty cases, that is, cases involving losses not exceeding ` 300 each need not
be reported to Accountant General unless there are, in any case important
features which merit detailed investigation and consideration.
46. (1) The Treasury Officer shall satisfy himself by periodical examinations
at convenient intervals that the actual stock of cash (coins and notes), stamps,
opium, ganja and other valuables (including cash chests and sealed boxes and
packets deposited for safe custody under Rule 157) which are put under double
locks, the actual stock of the forms of drafts, cheque, pass books, cash orders,
etc., and the documents pertaining to the securities of the treasury staff which are
kept in his personal custody and the actual stock of saleable forms and other
valuables held in the treasury under the orders of the government either under
double locks or under single locks in the sole charge of the Chief Treasurer,
correspond with the book balances. Such verification should invariably be done
whenever there is a change of charge and also periodically as under:
Cash (coins and notes) : Once in every month
Stamps, opium, ganja : Once in every six months
and other valuables
(2) The Treasury Officer shall examine the deposit registers himself at
least once a quarter and ensure that they are kept in accordance with the rules
prescribed for the purpose in the Kerala Account Code or elsewhere and furnish
the certificate prescribed in Article 124 of the Kerala Account Code, Volume II.
25
NOTE.—For this purpose the Assistant Treasury Officer of each District

Treasury (and one of the Assistant Treasury Officers, if there are
more than one Assistant Treasury Officer in any District Treasury)
should be in charge of the maintenance of the Deposit Registers and
the District Treasury Officer should conduct the Quarterly
Examination. The Assistant Treasury Officer shall verify and attest
every entry including the totals of daily transactions in the Deposit
Accounts. He shall be responsible to the District Treasury Officer
for the correctness of the postings and totals and also for the
preparation and timely dispatch of monthly extracts and other
periodical returns pertaining to Deposit due to the Accountant
General. He shall also be responsible to the District Treasury
Officer for rendering weekly or other periodical statements due
to the courts for filling up the pass books and for the reconciliation
of the Administrator’s figures with the treasury figures.
47. The Treasury Officer shall verify the District Treasury balance
(which term includes besides the Treasury balance the balance in the Currency
Chest of the Reserve Bank of India, if any, held in the treasury, the balance in
the small coin depot, if any, attached to the Treasury and the balance of any
imprest amount held by the Treasury Officer) in person on the first of each
month and sign the account to be rendered to the Accountant General and the
Government in the Finance Department. When, however, he is absent on
tour on the first of the month, or when he is unable to perform the duties from
physical inability, the duties may be entrusted to the officer discharging his
duties in the district treasury in his absence. The reason for his inability to
sign the accounts must be distinctly noted in the returns and accounts. In
such cases, the Treasury Officer should verify the balance and satisfy himself
as to the correctness of the monthly accounts immediately on his return to
office and record that fact in the office copies of the accounts and returns. In
no case should a Treasury Officer allow more than two consecutive months to
pass without his verifying the monthly closing balance and signing the
accounts.
48. When a Treasury irregularity is brought to the notice of the Treasury
Officer by the Accountant General, the Treasury Officer shall make a personal
investigation and his report shall be based on his own knowledge and the
results of the investigation.
26
49. The special precautions to be observed by the Treasury Officer in

matters relating to receipt, custody and payment of Government money are
specified in other relevant parts of these rules.
50. The Treasury Officer shall see—(a) that a notice is posted up
conspicuously in the Office of the hour at which the treasury closes for the
receipt and payment of money, which shall be at least an hour before the end
of the day’s work in order to allow time for closing and reconciling the
accounts; and
(b) that notices which he is required to exhibit under standing orders
or instructions received from time to time such as those regarding the
encashment of notes and the supply of small coins are exhibited
conspicuously in places which the public enter freely.
RESPONSIBILITES OF THE CHIEF TREASURER
51. The Chief Treasurer is responsible for the handling of the money at
the treasury. The Treasurers or Nottams working in the district treasury are
responsible for the handling of the money entrusted to them by the Chief
Treasurer.
VERIFICATION OF TREASURY BALANCE WHEN THERE IS A CHANGE
OF TREASURY OFFICER OR CHIEF TREASURER
52. (a) Whenever the Treasury Officer hands over charge otherwise than
temporarily, the relieving government servant shall, before taking charge, verify
the cash balance in the district treasury in the manner prescribed in Rule 144 of
part IV of these rules and report the result of his verification to the Accountant
General with a certificate in Form T.R.1. He shall also obtain from the outgoing
Treasury Officer a note prepared by him regarding the state of affairs in the district
treasury. Whenever the Chief Treasurer hands over charge, otherwise than
temporarily, the cash balance shall be similarly verified and the result of the
verification recorded in the Treasurer’s Balance Sheet.
(b) A government servant who holds charge of a district treasury during
a short temporary absence of the Treasury Officer, e.g., on casual leave, shall be
held responsible for the correctness of the balances in any double-lock receptacle
which is opened whilst he is in charge, until it is duly verified and taken over by
the permanent Treasury Officer. He should, therefore, verify the contents of any
double-lock receptacle which is opened whilst he is in charge. The permanent
Treasury Officer should verify, on his return, the contents of all double-lock
receptacles which have been opened during his absence.
27
(c) If, on any occasion, the Treasury Officer or the Chief Treasurer is so
ill that he is unable to go in person to the treasury to hand over charge of the
treasury keys to the government servant duly authorised to take charge of the
duties of his post from him, the relieving government servant shall go to the
government servant who is to be relieved and take over the keys in person. The
relieving government servant shall then verify the balance under double-locks in
the presence of the other double lock officer and record a certificate of verification
and the fact of the illness of the relieved government servant in the registers
concerned.
RESPONSIBILITIES OF THE SECTION HEADS IN THE ACCOUNTS
DEPARTMENT
53. Each Section Head is responsible under the order of the Treasury
Officer for keeping complete records of cash and book transactions of district and
subordinate treasuries and for the compilation of the prescribed accounts and
returns strictly in accordance with the directions and orders in force. He is also
required to see that the rules and orders in force are observed in respect of all
transactions of the treasury and to bring all cases of irregularity to the notice of
the Treasury Officer.
54. Each Section Head may be required to inspect under the orders of the
Treasury Officer, the account records of sub treasuries and to check a percentage
of the initial accounts.
55. The Section Head’s department and treasurer’s department should be
in different rooms, if possible. No person unconnected with the treasury should
be allowed admission on any pretence into either the room housing the department
of account or the Treasurer’s room beyond the bar or counter.
Sub Treasuries
56. Location of sub treasuries:—There shall ordinarily be a sub treasury
at the headquarters of every taluk. If there is a district treasury at the taluk
headquarters the Government may do away with the establishment of sub treasury
at the station.
57. The sub treasury is in the general charge of a Sub Treasury Officer.
58. The duties and responsibilities laid on the Treasury Officer in Rules 44
to 50 and 52 shall apply mutatis mutandis to Sub Treasury Officer also. But the
reports and certificates in respect of verification of cash and other valuables etc.,
and the accounts are to be sent by the Sub Treasury Officers to the District
Treasury Officers and not to Accountant General and the Finance Department
unless specifically directed otherwise.
28
59. The Sub Treasury Officer shall attend to the day to day
administration of the sub treasury in accordance with the treasury rules and
the instructions issued by the Government, the Accountant General, the
Director and the Treasury Officer.
60. The Sub Treasury Officers shall verify the cash balance in the sub
treasury at least twice a month. If he remains at headquarters for a period of
seven days or more at a time, he shall prove the balance in the sub treasury
once in every seven days during that period. He shall also ordinarily verify
the cash balance and the stock of stamps whenever he leaves or arrives at
headquarters and submit a report to the District Treasury Officer.
When there is a change of incumbent of a post which carries with it the
charge of a sub treasury, the new incumbent shall verify the cash balance and
the stock of stamps and submit a report to the District Treasury Officer.
Explanation.—The scope of the term ‘proving’ is explained in Note 1
under Rule 152 (iii) in Part IV.
61. The monthly closing balance of the sub treasury should be verified
and the result reported to the District Treasury Officer on the last day of the
month by the Sub Treasury Officer. The Sub Treasury Officer shall arrange to be
at the headquarters and to be present in the office on the last day of every month.
If he is unavoidably prevented from being present in the office on the last day of
the month, a special report should be submitted to the District Treasury Officer
explaining the circumstances which rendered it impossible for him to verify the
monthly closing balance. In that case the verification shall be done and the result
shall be reported to the District Treasury Officer by the Officer entrusted to discharge
the other duties of the Sub Treasury Officer for that day. In no case should a Sub
Treasury Officer allow more than two consecutive months to pass without his
verifying the monthly closing balance.
(i) Non-Banking Treasuries.—The District Treasury Officer shall verify
the cash balance (which term includes besides the treasury balance, the balance
in the Currency Chest of the Reserve Bank of India, if any, held in the sub treasury,
and the balance in the small coins depot, if any, attached to the sub treasury) in the
non-banking sub treasuries in his district once in a month. Such verification shall
be made by the District Treasury Officer himself, without prior notice. If owing to
unavoidable circumstances, the District Treasury Officer is prevented from
conducting the verification himself in any month, he may authorise his senior
Assistant Treasury Officer to conduct the verification for that particular month.
29
But he should not allow more than two months to pass without his verifying
the cash balance of a non-banking sub treasury in his jurisdiction. The fact of
verification should be certified in the treasury’s daily balance sheet and also
in such other register maintained to account for the cash kept in the treasury.
A report of verification shall also be sent to the Director of Treasuries on the
date of verification. Verification statement in respect of currency chest balance,
if any, should be sent to the Currency Officer, Reserve Bank of India as
stipulated in rule 153(iii) of these Rules.
(ii) Banking Treasuries.—The District Treasury Officer shall verify
the cash balance (including imprest balance and other anamath balances) in
the banking sub treasuries in his district once in three months. Such verification
shall be made without giving prior notice. If owing to unavoidable
circumstances, the District Treasury Officer is prevented from conducting the
verification himself in any occasion, he shall authorise his senior Assistant
Treasury Officer to conduct the verification on his behalf for that particular
occasion. But in such cases, the next verification of this particular sub treasury
should be conducted by the District Treasury Officer himself. The fact of
verification should be certified in the relevant registers kept in the Treasury
and a report of verification should be sent to the Director of Treasuries on the
very date of verification.
OTHER EMPLOYEES OF THE SUB TREASURY
62. The duties of the Treasurers, Nottams and Section Heads in the
Accounts Department of the district treasuries prescribed in Rules 51 to 55
above shall apply mutatis mutandis to the Treasurers, Nottams and the Head
Accountants of the sub treasury.
INSPECTION OF SUB TREASURIES
63. (a) The Director shall arrange for the inspection of the sub treasuries
by * an officer in the Directorate not lower in rank than that of a District
Treasury Officer at least once in two years. He shall examine the sub treasuries
himself as far as possible during his tours.
** (b) The Director shall also arrange for a further detailed
verification of the accounts and records pertaining to the Treasury Savings
Bank transactions of all the sub-treasuries once in a year by an officer
not lower in rank than that of a Sub Treasury Officer.
* Substitution [G.O.(P) 326/80/Fin., dated 31st May, 1980.]
** Addition [G.O. (P) 326/80/Fin., dated 31st May, 1980.]
30
†(c) The Joint Director/Regional Deputy Directors as the case may

be are also empowered for the inspection of Sub Treasuries under their
jurisdiction once in every two years on behalf of the Director, and dispose
the notes at their level except in major irregularities in which case the matter
to be brought to the notice of the Director of Treasuries.
†This amendment shall be deemed to have come into force with effect
from 6th December, 1996.
64. The District Treasury Officer shall conduct inspection of all the sub
treasuries in the district at least once in a year, without notice.
65. Sub treasuries will be inspected by an officer of the Indian Audit
Department, if circumstances render it necessary.
NOTE.—Appendix 5 contains the detailed rules prescribed by the government
for the inspection of sub treasuries. The Director or other inspecting
government servant should see during his inspection of a sub treasury
that the stock of stamps, especially those of denominations for which
there is no demand or only occasional demand, is not excessive. He
should pass orders at the time of inspection regarding the disposal of
any surplus stock of stamps.
BANKS CONDUCTING TREASURY BUSINESS
66. If a treasury or sub treasury is located at a place where there is a branch

of the State Bank of India or its subsidiary, the government may declare that the
cash business of that treasury or sub treasury will be transacted through the
bank.
NOTE.—A list of treasuries and sub treasuries in the State is given in
Appendix 2.
67. A branch of the State Bank which conducts treasury business should
be kept open for the transaction of that business on a recognized holiday if the
District Treasury Officer requests the Agent to keep it open for that purpose.
68. If the Agent / Manager of a branch of the State Bank of India or any of
its subsidiaries which conducts treasury business dies or becomes incapacitated
for duty and it is not possible for the bank or its subsidiary to make immediate
arrangements for the transactions of business at the branch, the government
official named hereafter, should, provided the concerned bank has by prior
arrangement be requested that he should do so at once—
†Insertion [G.O.(P) 581/2004/Fin. dated 13th December, 2004]
31
(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) give telegraph information as 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 bank.The responsibility for performing the functions herein stipulated
should, in the first instance, be primarily that of:—
(i) the Collectors at district headquarters.
(ii) the Revenue Divisional Officers at the headquarters of the

Revenue Division, and
(iii) the Tahsildars of the respective taluks at other places.
The concerned government official should, on no account, take any action

in regard to the bank’s private business, which together with the ordinary treasury
business which is not of an urgent nature should remain in abeyance till a
responsible official of the concerned bank takes charge of the branch.
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 functions 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 of the bank. He should nominate such government official for this
purpose specially on each occasion when the necessity arises.
Neither the government nor any government servant will incur any sort
of responsibility either to the State Bank of India or to its subsidiaries or to
any third party by reason of anything done bona fide under this rule. The
Government Official concerned would however, be responsible for the safe
keeping, as a bailee, 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.
32
SECTION II
TREASURY ACCOUNTS
TREASURER’S RECORDS
69. The Treasury shall maintain a simple cash book (without

subordinate registers), in which each receipt and payment shall be posted at
the time and on the date on which they actually occur and in the order of
occurrence. The Treasurer shall sign and immediately return to the concerned
Section Head in the Department of Accounts (after the necessary entry in
his accounts) all receipts for money received. He shall stamp all payment
vouchers “Paid” and retain them for delivery to the Accounts Department
when the books are compared.
70. When stamps or opium have been sold, the total sales shall be
entered before the cash book is closed, and a memorandum should be prepared
and forwarded to the concerned Section Head in the Department of Accounts,
so that the necessary entry may be made in the accounts.
BOOKS OF THE DEPARTMENT OF ACCOUNTS
71. The form and procedure with regard to the initial accounts kept in
the treasury and the methods and principles in accordance with which the
accounts are kept, are governed by the directions contained in the Kerala
Account Code, Vol. II. It is the duty of the Treasury Officer to satisfy himself
that those directions are strictly observed, that the accounts are correct in all
respects and that the record of receipts and payments is so clear, explicit and
self-contained as to be produceable if necessary as satisfactory and convincing
evidence of facts.
NOTE.—A complete record of cash transactions and book transfer relating to
the district treasury, including those to sub treasuries within its
jurisdiction, will be kept in the Accountant’s Day Book. Every item
received or paid as well as all adjustments by transfer should be
entered in the Day Book or in some register subsidiary to the Day
Book in accordance with the directions contained in the Kerala
Account Code, Vol.II. The daily total from cash subsidiary register
should pass into the Day Book.
33
72. The Treasury Officer shall prohibit any erasures or over-writings

in the Day Book and other registers of initial record or in any account or
schedule and verify and initial every correction in them.
73. The provisions contained in rules 69 to 72 and rules 75 shall apply
mutatis mutandis to the sub treasuries also. The daily account of sub treasuries
are incorporated in the accounts of the district treasuries in accordance with
the direction contained in the Kerala Account Code, Volume II. It is the duty of
the Treasury Officer to scrutinise and examine every item of receipts and
payments shown in the daily accounts and point out, and watch against all
irregularities in the same way as those at the district treasury. He shall examine
and regulate the procedure of sub treasuries, as far as he can from the daily
examination of their accounts.
NOTE.—If the Treasury Officer, owing to the volume of sub treasury
transactions finds it difficult to scrutinise each and every sub
treasury voucher, he may at his direction leave over the work to the
Assistant Treasury Officer and/or the Section Heads of the Accounts
Department, a percentage check not less than 20 per cent being
effected by him. All vouchers checked by the Treasury Officer
himself must be initialed by him as a token of the fact that he has
exercised the check.
74. The Treasury Officer shall see that the cash balance of the sub
treasury has been actually counted and certified by the Sub Treasury Officer
on the closing day. The cash balance of the sub treasury must be written in
words as well as in figures, the words being written in such manner as to
have no room for alteration or interpolation. The Treasury Officer is also
required to observe special precautions to satisfy himself that Sub Treasury
Officer’s signature on the daily sheet and supporting documents is genuine
and that the accounts have not been tampered with in transit. Unless there is
specific instruction from the Accountant General to the contrary, the accounts
must invariably be sent by post.
NOTE.—The Sub Treasury Accounts and supporting documents pertaining
to a month, if dispatched on or after the first of succeeding month,
shall be sent to the district treasury in sealed packets through a
special messenger or otherwise so that they reach the district
treasury not later than the second working day.
34
PART II KERALA TREASURY CODE RULES 75
CLOSING FOR THE DAY
75. Subject to the directions contained in this behalf in the Kerala

Account Code, Volume II, the process of closing accounts for the day shall be
as follows:-
(a) The daily total of each subsidiary register will be entered in the
appropriate part of the Day Book, which will then be totalled and the balance
memorandum at the top of the Section Head’s balance sheet will be drawn
up strictly in accordance with the directions contained in the Kerala Account
Code, Volume II. To the account balance thus brought out the additions and
deductions indicated at foot of the Day Book form will be applied so as to
bring out the cash balance at the district treasury.
(b) Meantime, the Treasurer will also sum both sides of his Day
Book and draw up his balance memorandum in the form of the Treasurer’s
daily balance sheet, Form T.R. 3 or T.R. 4, as the case may be.
(c) If the results shown in the two balance sheets agree, the Treasury
Officer should sign the two Day Books and the two balance sheets. He should
first satisfy himself of the correctness and good order of all these documents
and should give special attention to the reconcilement of the account balance
of the district with that actually in the headquarters treasury; the latter excludes
the balance in sub treasuries or under remittance within the district which the
former includes.
(d) The following is memorandum of some of the more important

parts of the verification. The Treasury Officer should:—
(i) compare each entry of payment in a register with the payment

order ticking off each voucher as it is passed. This will not be necessary if the
Treasury Officer adopts the alternative plan having the account entry
presented to him for initials at the same time that he signs the order of payment;
(ii) examine at least two of the totalling on each side, marking the
totals as “Exd”;
(iii) see the totallings are correctly carried from the register to
the Day Book, initialling the totals as he thus compares them;
35
NOTE.—This must be done, in the case of receipt registers even when the total
for the day is blank; but it is not necessary to initial blank payment
registers. If the number of blank receipt register is large the following
plan may be adopted. Such registers as are only rarely required for entry
may be bound in a single volume and kept under the Treasury Officer’s
own lock. When the volume is required for entry, he should give out of
register for the purpose, and he should receive it back at the time of
signing the daily accounts, carefully seeing in doing so that all new
entries in it are correctly carried to the Day Book and initialling them
accordingly. It is obviously necessary to guard against fraud or mistake
of omitting to bring all entries from these registers upon the Day Book;
and this precaution is not complete if the Treasury Officer examines
only those registers from which an entry is made upon the Day Book.
(iv) verify the totalling of the Day Book or get it done by some
principal subordinate officer other than the Accountant who should initial it is
correct;
(v) see twice every week that all vouchers are properly arranged.
(e) Before signing the Treasurer’s daily balance sheet, the Treasury
Officer should roughly verify the balance in the sole charge of the Treasurer,
as shown in that sheet, and satisfy himself on the following points:-
(i) that no uncurrent coins are left in charge of the Treasurer;
(ii) that no more small silver and copper, bronze and nickel coin
is so left than is actually required for current use;
(iii) that the whole balance in sole charge of the Treasurer never
exceeds his current requirements.
(f) when a deficiency is found in the cash balance of any day it should
be made good at once by the person responsible for it and the closing cash
balance of the day should be the full balance including the amount lost and made
good. If, however, for any exceptional reason the amount of deficiency is not
immediately restored to the treasury balance, it should be charged in the accounts
of the day on which the deficiency is discovered under “8550. Civil Advances—
Other Advances—Other items” on a voucher signed by the Treasury Officer
specifying the name of the person who should make good the amount. The
amount recovered should be credited to the same head of account. “8550. Civil
Advances—Other Advances—Other items”.
36
When any excess is found in the cash balance, it should be credited to

Revenue Deposit on the day on which the excess is found, pending enquiry
and disposal of the amount. If the enquiry does not establish beyond doubt
that the excess is due to a particular person, it should be credited to
Government under “0070 Other Administrative Services-C Other Services-
Other receipts-Other items”. If the amount is proved to be payable to any
particular person, the refund should be made under the orders of the Director
of Treasuries
Such deficiencies or excess should be reported to the Director of
Treasuries and Accountant General.
(g) The Treasury Officer should always be careful to sign the
Treasurer’s balance sheet in the evening of the day itself to which it refers
but the signature and comparison of the Day Book need not be made till the
following morning unless the office is to be closed for two or more days.
The Section Head’s balance sheet must not be signed, until it has been
carefully agreed with the Treasurer’s.
NOTE.—Ordinarily, the Treasurer’s balance sheet should be compared and
agreed with that of the Assistant Treasury Officer and/or the Section
Heads of the Accounts Department before closing the treasury for
the day and it is only when pressure of work renders this impossible
that the comparison may be postponed till the following morning.
When this is necessitated, the certificate over the Treasury Officer’s
signature at foot of the Section Head’s balance sheet should be
altered in manuscript by cancelling the words “agreed with the Section
Head’s daily balance sheet and” before the form is signed by the
Treasury Officer which must be done before closing the day. An
additional certificate will then be added and signed by the Treasury
Officer in the following morning viz., “agreed with the Section Head’s
daily balance sheet”. For the 31st March and the first few days of
April it will be necessary for the Assistant Treasury Officer and/or
the Section Heads of the Accounts Department to prepare a separate
rough balance sheet on each of these days for comparison with that
of the Treasurer as the completion of the Assistant Treasury Officer
and/or the Section Heads of the Accounts Department balance sheet
for the 31st march has to await the receipt of the Sub Treasury
accounts.
37
(h) The foregoing provisions of this rule apply also to treasuries

which transact their cash business through the Bank subject to the
modification that the correctness of the daily accounts should be tested by
a comparison of the totals of receipts and payments in the day Book with the
corresponding totals in the daily accounts received from the Bank also.
NOTE.—When with the concurrence of the Accountant General the daily
account of the Bank is submitted to a treasury in the morning of the
day following that to which it refers, the signature and comparison
of the Day Book may be made in the evening instead of in the morning
of the day on which the Bank’s accounts are received, provided the
pressure of work renders it necessary to so postpone it.
CLOSING FOR THE MONTH
76. (1) The monthly accounts of the District Treasury shall be kept
open till the receipt of daily sheets of every Sub Treasury subordinate to it
for the entire period of the month. Every effort shall be made to close the
accounts of the each month at the earliest possible date and in any case not
later than the 6th of the succeeding month.
(2) The monthly accounts of each non-banking Sub Treasury should
be closed on the last working day of each calendar month. Those of each
banking Sub Treasury shall be closed on the working day immediately
following the last working day of each calendar month i.e., after accounting
the transactions taking place at the bank on the last working day of the month.
The transactions of every Sub Treasury for each day shall be included in the
accounts of the District Treasury on the day on which the daily sheet is
received except in the case of daily sheets pertaining to one calendar month
received in the District Treasury on or after the first of the succeeding month
in which case the transactions as per such daily sheets shall be included in
the District Treasury accounts for the last working day of the calendar month
to which they relate.
77. (1) In closing the accounts of the District Treasury for the month,
the month’s total of the subsidiary registers will be carried into the cash
account in the case of receipts and into the list of payments in the case of
payments, the cash account being closed in accordance with directions
contained in the Kerala Account Code Volume II. The cash must be verified by
actual counting and the cash balance report made out in accordance with the
procedure prescribed in Part IV.
38
(2) The monthly cash account shall be subjected to very careful

check by the Treasury Officer when it is laid before him. He must satisfy
himself that the opening and closing balances of this account are not merely
deductions from accounts but are statements of facts certified to have been
verified by actual enumeration of coins and notes. The Treasury Officer shall
also check each entry in the cash account and list of payments with the
corresponding totals in the Day Book and see that the totals of all the registers
are correctly carried into the Day Book.
NOTE.—If, at any time, the Treasury Officer be unable to compare all, at least
he may compare some; notably, he should compare the entries in the
plus and minus memorandum of deposits, stamps, etc., with the entries
in the account, for example if the plus and minus memorandum shows
a reduction in the stock of judicial stamps to the value of ` 5,000 and
if the credit in account be less, the difference must be traced and
satisfactorily accounted for.
MONTHLY ACCOUNTS AND RETURNS
78. (1) A complete list of treasury accounts and returns to be rendered

on different prescribed dates to the Accountant General, the Currency Officer
and other authorities shall be kept at each treasury. The accounts and returns
should be written up in accordance with the directions contained in this behalf
in the Kerala Account Code, Volume II, and such orders and instructions as
may be issued by the Director.
(2) With regard to the punctual submission of the accounts and
return the Government shall view with displeasure any avoidable delay on the
part of the Treasury Officer in the despatch of the prescribed accounts and
returns with complete schedule and vouchers, particularly those required by
the Government, the Accountant General, and the Currency Office concerned.
NOTE.—The returns due for despatch on a holiday may be sent one day (but
not more than one day) late.
79. Vouchers pertaining to each schedule relating to the cash account
or the list of payments shall be numbered consecutively in a separate monthly
series and kept under lock and key in order of payment till they are
despatched. Before despatch of the lists of payments and schedules, the
Treasury Officer shall by inspection satisfy himself that the required vouchers
are all attached. He may find it profitable at intervals during the month to take
up a schedule and see that all its vouchers are present in proper order and as
no payment can be made without a voucher, there can be no excuse for the
absence of any unless it be that for a specific remittance.
39
MISCELLANEOUS
*80. Fidelity Insurance guarantee shall be obtained for the following

security posts in the Treasury Department for the amounts noted against
each, namely:-—
(a) Treasuries in District Fidelity Insurance
and Sub Treasuries guarantee for ` 3,000
(b) Nottam and Gollahs Fidelity Insurance

in the District and guarantee for ` 500
Sub Treasuries
All the security posts, namely, Treasurers Gollahs and Nottams in the
Department of Treasuries shall be covered by a Single Fidelity Guarantee
Insurance Policy in the name of the Director of Treasuries subject to the
following conditions:—
(1) The Blanket Insurance Policy need not contain the name or names
of the persons covered but shall mention the designation and the number of
persons in each category.
(2) Whenever there is an increase in the number of post in any of the
categories covered, the Director of Treasuries shall intimate that fact to the
State Insurance Department within 15 days of the date of appointment to the
post. The additional premium required shall be paid within the prescribed
period on receipt of intimation from the State Insurance Department.
(3) Only regular employees shall be allowed to hold these security
posts.
(4) Whenever there is necessity for any substitution and officiating
arrangements, necessary office orders in this regard shall be recorded by
the officer making the arrangement and shall be made available for verification
by the Insurance Authority, if found necessary.
(5) The Blanket Insurance Guarantee Policy shall be renewed at the
appropriate time every year.
[Rules 81 to 84 omitted]
[G.O.(P) 747/79/Fin., dated 16th August 1979]
* Substitution [G.O. (P) 747/79/Fin., dated 16th August, 1979.]
40
85. Responsibilities of Chief Treasurer and the Treasurer in the

handling of money.— A Treasurer should not be placed in charge of the
treasury keys, and should not be made to keep any accounts other than those
property pertaining to his office. If the Chief Treasurer of a district treasury
goes on casual leave, however, he may, at his option, hand over his treasury
keys to the Treasurer or to the Senior Accountant serving under him, on the
clear understanding that, in all cases, the Chief Treasurer will be personally
responsible for any loss that may occur.
Each of the Treasurers or the Nottams should be required to make

good any uncurrent or counterfeit coin received by him and any overpayment
made by him.
86. Precautions against substitution of coins in Treasuries.—To guard

against the possibility of uncurrent or counterfeit coin being substituted in a
treasury for good coin presented by the public or received in a remittance,
every Treasurer and other government servant who handles coin in a district
treasury should be required, on arrival for the day’s work to hand over to the
Chief Treasurer or a responsible subordinate chosen by the Chief Treasurer
for the purpose, all coins (private cash, etc.) which he is carrying at the time
and to take them back when leaving the office after the day’s work.
The procedure described above should also be followed at a sub

treasury, the duties assigned to the Treasurer of a district treasury in this
connection should be performed by the Sub Treasury Officer in the sub
treasuries.
87. Subject to the foregoing Rules 80 to 86* the detailed instructions

regarding the form of security the time limit, the custody and any verification,
the release of securities, etc., are contained in the Kerala Financial Code,
Volume I.
*Rules 81 to 84 omitted [G.O.(P) 747/79/Fin., dated 16th August 1979]
41
PART III KERALA TREASURY CODE RULES 88-89
PART III
RECEIPT OF GOVERNMENT MONEYS AND PAYMENT OF SUCH
MONEYS INTO THE GOVERNMENT ACCOUNT
SECTION I
General Rules—General Instructions for handling cash
APPLICABLE TO DEPARTMENTS GENERALLY
88. Moneys tendered as dues of the Government or for deposit in the
custody of the Government shall not pass through the hands of a departmental
officer unless he is authorised to collect such dues/deposits by a general or
special order of the Government. Direct payment into the treasury or into the Bank
by the person who tenders such money shall be insisted on and direct payments
arranged whenever this is practicable *provided that individual remittances upto
and including ` 100 shall be accepted by any departmental officer who maintains
a cash book in Form T.R. 7A and remitted at the Treasury in lump on the next
working day itself.
89. (a) A government servant who receives any moneys on behalf of the
Government shall receive them only in one or more of the following forms:
(i) Legal tender coin,
(ii) Legal tender currency or bank notes,
(iii) Reserve Bank drafts drawn on the treasury with which the
government servant deals and made payable to him**,
#(iii) (a) Remittance through e-payment for Commercial Taxes Department
(iv) Crossed cheques drawn on the Reserve Bank of India, the State
Bank of India, the State Bank of Travancore, any other scheduled Bank in India or
on any other bank approved by Government and made payable to the government
servant concerned:
Provided that cheques shall not be accepted in payment of fines,
compensation amounts etc., payable in criminal courts, and:
Provided also that a government servant who receives a cheque drawn
on a Bank situated at a place where there is no branch of the State Bank of India,
State Bank of Travancore or any other subsidiary of the State Bank of India
should collect from the party concerned commission charges at 1/64 per cent for
collecting such cheques on behalf of the Government.
* [G.O.(P) 176/84/Fin. Dated 26th March, 1984.
** Deletion [G.O.(P) 648/88/Fin.dated 1st October, 1988]
# Insertion[G.O.(P) 421/09/Fin. dated 30th September, 2009]
42
PART III KERALA TREASURY CODE RULE 89
(v) † Crossed Postal Order drawn in favour of the departmental

Officer, and
(vi) Postal Money Order in favour of the departmental Officer.
NOTE 1.—The State Bank of India, the State Bank of Travancore or the
branches will collect the cheques tendered in payment of
Government dues on the following terms and conditions:—
(i) All Government cheques drawn in places where either the
State Bank of India, State Bank of Travancore or any other
subsidiary of the State Bank of India is established, will be
collected free of charge.
(ii) In other cases the Banks will claim a nominal charge of 1/64
per cent. The government servant receiving such cheques
in settlement of government dues will collect this also from
the parties tendering cheques.
(iii) So as to enable the Treasury Officer to verify the
consolidated treasury receipts of post offices in respect
of cheques remitted by the Postal Department and to facilitate
early incorporation of credits in the Treasury accounts, the
State Bank of Travancore, while advising the credits to the
Accountant General, will furnish a copy of the advice direct
to the Treasury Officer also. The Accountant General will
watch the clearance of the suspense head “bills receivable”
which will initially be credited by him with the proceeds of
cheques advised to him by the bank as credited to
Government account and debited by the treasuries
concerned on making the necessary adjustments in the
treasury accounts or receipt of the copies of advices by
them from the bank direct.
NOTE 2.—Cheques drawn in favour of quasi-Government institutions such
as Panchayats, Municipalities, the University, the Electricity
Board, etc., the transactions of which are mostly conducted
through their Personal Deposit accounts with the treasuries‡
‘and private institutions which are having P.D.Accounts operated
† Addition [G.O.(P) No. 648/ 88/Fin. dated 1st October, 1988.
‡Insertion [G.O.(P) 116/74/Fin., dated 10th May, 1974]
43
in treasuries’ will also be accepted at treasuries and the proceeds of

such cheques will be credited to the accounts of those institutions
with the treasuries. The collection of such cheques will be made in
accordance with the provisions contained in Note (1) above.
The bank commission and/or other cheques involved in the
collection of cheques received at the treasuries from the above
institutions will be recovered from the proceeds of the cheques and
the next amount alone will be credited to the accounts of the
institutions concerned.
NOTE 3.—A government servant receiving a cheque which is to be credited
to a Personal Deposit Account or a banking account of a Local
Fund kept at a branch of the State Bank of India shall collect
from the party concerned full commission charges, if any, payable
to the State Bank on such cheques.
NOTE 4.—When cheques on which commission charges are payable are
accepted, credit in Government accounts will be afforded only
for the net amount realised after deducting such charges.
NOTE 5.—Officers-in-charge of Departmental Hostels and Tourist Bungalows
under the Tourist Department are authorised to accept the “Rupee
Traveller’s Cheques” of the following Banks in settlement of
dues to Government:
1. The State Bank of India.
2. The Punjab National Bank.
3. The Bank of Baroda.
4. The Bank of India.
5. The Central Bank of India.
NOTE 6.—†Bank cheques presented by the depositors of Treasury Savings
Bank for credit to their account will be collected in accordance
with the provisions contained in Note 1 above:
‡NOTE 7.—When a cheque presented by a Party to a Departmental Officer,
in satisfaction of Government dues is not honoured on
presentation, the cheque concerned will be returned by the bank
† Insertion [G.O.(P) 303/73/Fin.dated 23rd July, 1973]
‡ Addition[G.O.(P) 221/93/Fin.dated 18th March, 1993]
44
to the Departmental Officer with a request to reimburse the

handling charges. The Departmental Officer shall, within 7
days from the date of receipt of the bounced cheque, draw
and disburse the amount of handling charges to the Bank
debiting the expenditure under Office Expenses. The amount
so disbursed to the Bank shall be realized from the party
in cash and remitted to Government account at the earliest.
(b) A cheque received under clause (a) of this rule shall be treated
as a final payment, only after it has been met and the amount has been actually
credited to the Government.
90. (a) A government servant who receives† any money including
money received in the form of Postal Money Order on behalf of the Government
shall give the payer a receipt in form T.R.5 unless in any case the Government
have by a general or special order dispensed with the grant of receipt.In the
said Rules, in sub-rule (a) of rule 90, for Note 1, the following Note shall be
substituted, namely:—
*NOTE 1.—All receipts must be written in figures and in words in the
original and such other copies of chalans in Form T.R.12 as
are required to be given to the tenderers of moneys and signed
in full over the “cash received/received payment” stamp. Other
copies of the chalan and interim receipts may however be
initialled against the amount already indicated therein over
the “cash received/received payment” stamp.
NOTE 2.—Receipt Book in Form T.R.5 will be printed with interleaved
perforated copies to be taken by carbon process. Copying
pencils and double faced carbon papers should be used for
this purpose. The original should be retained as office copy
and the duplicate issued to the party.
$NOTE 3.—The Postal Money Order received shall forthwith be entered
in a register of Money Order received in form T.R. 5A. The
Officer while signing the money order acknowledgement, will
simultaneously initial the entries in column 5 in the register
in Form T.R. 5A. Total amount received as per the register
in Form T.R. 5A shall be entered as a single entry in the receipt
† Substitution [G.O.(P) 76/95/Fin. dated 21st January, 1995]
* Substitution [G.O.(P) 494/75/Fin. dated 24th October, 1975]
$ Insertion [G.O.(P) 76/95/Fin. dated 21st January, 1995]
45
side of the cash book in form T.R. 7A, giving the details of
T.R. 5 receipts in column 2 *In view of the computerisation
in Motor Vehicles Department, the computer generated Form
T. R.5 (C) shall be issued in lieu of Form T.R.5. The receipts
shall be in triplicate, the original copy shall be issued to the
remitter for the purpose of attaching the same with the
application for which he seeks service from the office, the
duplicate shall be retained in the office as record and the
third copy shall be given to the remitter as acknowledgment
This amendment shall be deemed to have come into force with effect
from 25th October, 2002.
(b) When a cheque is received, a preliminary acknowledgement in
Form T.R.6 shall be given for the cheque only. ** A final receipt for the
payment in Form T.R.5 shall be issued to the party by the Departmental
Officer on receipt of the original chalan receipt from the Treasury/Bank after
the amount has been realised. If the cheque is not honoured on presentation,
the fact shall be intimated to the person from whom the cheque was received,
and payment in cash shall be demanded. The Government accept no
responsibility for any loss or damage to the payer on account of delay in
giving intimation that a cheque has not been honoured.
NOTE 1.—When a cheque is not honoured on presentation, the
accompanying chalan should not be returned by the receiving
bank but should be retained and destroyed in due course.
†Only the dishonoured cheque should be returned to the
presenter along with claim for reimbursement of handling
charges, if any, and the preliminary acknowledgement of the
receipt of the cheque should be got back from him.
NOTE 2.—The officers who are authorised to collect money should be
specified and they should be asked to give the payer a receipt
in the prescribed printed form in all cases. They should keep
a complete account of the receipt books that they have
received and should be able to produce them always used
or unused. The books should be carefully examined to see
* Insertion [G.O.(P) 180/09/Fin. dated 12th May, 2009]
** Substitution [G.O.(P) 103/82/Fin., dated 5th March, 1982]
† Substitution [G.O.(P) 221/93/Fin. dated 18th March, 1993]
46
that the number of forms contained in each is intact and a

certificate of count recorded on the fly-leaf. Ordinarily more
than one book should not be used at one and the same time
and a new book should be brought into use only after the
old one is exhausted. The stock register of receipt books
should show the dates on which a book was brought to use
and the date on which it was completed. Counterfoils of used
receipt books should be kept under lock and keys in the
personal custody of the head of the office.
NOTE 3.—The required printed receipt books (machine numbered) should
be obtained by the head of each department or other
controlling officer and distributed to all subordinate officers
a stock account thereof being maintained showing the numbers
of the books (and number of forms contained in each) received
and issued to each individual officer.
NOTE 4.—At the time of inspection it should be seen that all the receipt
books supplied to each office have been accounted for properly
and that the amounts received as per receipts granted have
been brought to the cash book.
91. When Government dues have to be paid by fixed date and payment
as made by cheque with reference to item (iv) in Rule 89 (a), the payer
should see that the cheque reaches the government servant authorised to
receive it not later than the day before the fixed date. If the cheque is so
received and is honoured on presentation, the payment should be treated as
having been made on the due date. When a cheque is received on the fixed
date or later, the date when the amount is credited in the Government account
after realization of the cheques should be treated as the date of payment;
*Provided that in the case of dues to the Motor Vehicles Department
which are remitted in the form of Demand Drafts drawn on banks conducting
Government business, the payment will be treated as having been made in
time, even if the Demand Draft is presented to the Officer authorised to receive
it on the due date only.
NOTE.—“Demand drafts” shall not be distinguished from cheques for the
purpose of these rules.
* Addition [G.O.(P) 40/82/Fin., dated 28th January, 1982]
47
92. (a) Save as otherwise expressly provided in these rules or in any

authorised departmental regulations, the following rules shall be observed by
all Government Officers who are required to receive and handle cash:—
(i) Every Officer receiving money on behalf of Government should
maintain a cash book in Form T.R.7A.
*NOTE.—The cash book shall be bound in convenient volumes and their
pages serially numbered. Before bringing a cash book into
use the head of the office shall count the number of pages
and record a certificate of count on the first page of the
cash book.
(ii) All monetary transactions should be entered in the cash book as
soon as they occur and attested by the head of the office in token of check
** Provided that in the case of Trivandrum Public Library all amount received
in the Book Room upto 4 p.m., each day along with the previous day’s receipt
from 4 p.m. to 7 p.m. shall be brought to the main cash book on the same day. All
receipts in the Office Room upto 5.15 p.m. each day shall also be accounted for in
the main cash book on the same day itself.
(iii) The cash books should be closed regularly and completely checked.
The head of the office should verify the totalling of the cash book or have this
done by some responsible subordinate other than the writer of the cash books
and initial them as correct.
(iv) At the end of each month, the head of the office should verify the
cash balance in the cash book and record a signed and dated certificate to that
effect. The certificate should also be recorded on the monthly cash account,
primary abstract or account current, where such account, abstract or account
current is required to be submitted to the Accountant General. Such certificates
must be signed by the head of the office who should invariably date the signature.
(v) When Government moneys in the custody of a Government officer
are paid into the treasury or the Bank, the head of the office, making such payments
should compare the Treasury Officer’s or the bank’s receipt on the chalan or his
pass book with the entry in the cash book before attesting it, and satisfy himself
that the amounts have been actually credited into the treasury or the bank.
* Addition [G.O.(P) 639/78/Fin., dated 22nd August, 1978]

** Insertion [G.O.(P) 304/76/Fin., dated 29th September, 1976]
48
† When the number of payments made in a month is more than ten and
the total amount involved therein exceeds ` 1,000, he should, as soon as
possible after the end of the month, prepare a statement of all remittances
made during the month and get it verified and certified by the Treasury Officer,
which should be compared with the postings in the cash book.
NOTE.—Notwithstanding the provisions of the clause the Head of Office

may at his discretion prepare a statement of remittance irrespective
of the number of payments made in a month and the total amount
involved therein and get it verified and certified by the Treasury
Officer.
(vi) An erasure or overwriting of an entry once made in the cash

book is strictly prohibited. If a mistake is discovered it should be corrected
by drawing the pen through the incorrect entry and inserting the correct one
in red ink between the lines. The head of the office should initial every such
correction and invariably date his initials
NOTE.—The functions assigned to the head of the office in sub-clauses (i) to

(iii) and (v) and (vi) above may be performed by any other gazetted
subordinate officer specifically authorised by Government in this
behalf. [See also Rule 131(c)].
*(b) When a government servant who does not maintain a cash

book as prescribed in clause (a) above is authorized to receive any money on
behalf of the Government, he shall, on receipt of such money, grant a
temporary receipt in Form T.R. 5A to the payer and either remit the money
into the treasury with a chalan in duplicate and send the receipted chalan with
full particulars such as the number, and date of the temporary receipt to his
immediate superior officer who maintains a cash book or where there is no
treasury in or near his headquarters remit the money to the same superior
officer with a remittance slip. The officer who maintains the cash book shall,
on receipt of the chalan or the money and the remittance slip, enter the amount
in the cash book and send a final receipt in Form T.R. 5B to the subordinate
who received the money in the first instance for delivery to the payer within a
month.
† Insertion [G.O.(P) 176/73/Fin., dated 29th May, 1973]

* Substitution [G.O.(P) 1065/92/Fin dated 14th December, 1992]
49
*NOTE.—(1) The forms for temporary and permanent receipts (Form T.R.
5A and 5B) should be printed and bound in books, in such
a way that the copy to be issued to the party as a receipt
and a carbon copy to be retained as the office copy may be
prepared simultaneously with carbon paper. The pages of the
books should be machine-numbered.
*(2) Every receipt book (temporary or permanent) should be carefully
examined by the Government servant concerned immediately on receipt, and
the number of forms in the book should be counted and a certificate of count
should be recorded in the following form which shall be printed on the inner
side of the outer cover of the book.
CERTIFICATE
The receipts in book No………….............… are complete and in

consecutive order from……................…….. to……….....................………
Signature:
Date: Designation:
NOTE.—Amendment to rule 92 (b) shall come into force at once.

(c) Except when he remits money to a superior authority under clause
(b) above, a government servant who receives any money in the form of coin
and notes on behalf of the Government shall remit it into the treasury with
which he normally deals (or the nearest treasury into which the money can be
remitted) on the date of receipt or as soon afterwards as is possible without
causing undue inconvenience to the payer or if a superior authority has
permitted him to make remittances at periodical intervals or when the balance
in hand reaches a certain amount, in accordance with those instructions. A
government servant who receives a cheque (including a bank draft) on behalf
of the Government shall do as follows immediately on receipt:—
† (i) If the officer concerned deals with a treasury or sub treasury
which transacts its cash business through the Bank, he shall forward the
cheque along with chalan duly filled up to the Bank direct, for collection
and credit to Government account;
* Substitution [G.O.(P) 1065/92/Fin dated 14th December, 1992]

† Substitution [G.O. (P) 334/77/Fin.dated 6th September, 1977]
50
(ii) In other cases, he shall forward the cheque (including bank

drafts) to his departmental superior for collection and credit to Government
account.
NOTE 1.—The departmental officers collecting money on behalf of
Government shall be responsible for the correctness of the
Head of account to which the proceeds are to be credited.
NOTE 2.—The departmental superior officers collecting the proceeds of
the cheque/bank drafts shall send the chalans to the
subordinate officer who received the Bank drafts/cheques.
NOTE 3.—Classification noted in such chalans shall also be checked up

by the Treasury Officer before finally incorporating in the
treasury accounts”
93. (a) When a government servant is permitted to handle in his official
capacity, moneys, not being revenues of Government institution, such moneys
should be included in Government accounts. When a government servant
administers moneys relating to endowments such as for grant of medals,
prizes, scholarships, etc., in Government Educational Institutions, even when
the corpus of endowments is invested outside the Government accounts and
the income from the endowment is not utilised for the maintenance of a
Government Institution the interest on the endowments or other receipts
connected with them shall be included in Government account.
(b) When the moneys of a society or body are included in the

Government account with reference to clause (a) above, a personal deposit
account shall be opened in the treasury in the name of the government servant
concerned. When any such case arises the government servant concerned
shall apply at once to the Government through the proper channel for the
opening of the personal deposit account in his name in the treasury for the
purpose, if the Government have not already issued orders on the point
when giving him permission to handle the moneys in his official capacity.
(i) [Omitted]
[G.O.(P) 712/81/Fin., dated 28th October, 1981]

*(bb) A Government Servant who is permitted to open a P.D.
Account under sub-rule (b) shall account for all moneys received by him
*Addition [G.O.(P) 712/81/Fin., dated 28th October, 1981]
51
towards such P.D.Accounts in his office cash book in Form T.R.7A and remit
them into the Treasury on the same day or on the next working day. He shall
also maintain separate detailed accounts of the transactions pertaining to
the fund administered by him in the manner laid down in the departmental
manuals, codes, rules or orders creating the fund. If there are no specific
provisions in the departmental manuals, codes, orders, etc., creating the fund
as to the manner in which detailed accounts of the fund are to be kept, detailed
accounts shall be kept, in the following manner, namely:—
(1) In cases where the amount deposited has to be refunded to
the remitter or in cases where the deposits lapse to Government after a
specific period, the government servant administering the fund shall maintain
a simple ledger account in Form T.R.7B and also a register of deposits in Form
T.A. 13 and a Register of repayment in Form T.A. 14 of the Kerala Accounts
Code, Volume-II by modifying the relevant columns “Initials of T.O. “ into
“Initials of the Administrator of P.D. Accounts” and changing the words ‘ day
book’ in Column-8 of T.A. 13 into “T.R. 7B”. Each item of receipt should be
entered in the register of deposits as a distinct item assigning serial numbers
in chronological order in separate series for each financial year. The directions
contained in Article 64 to 67 of Kerala Account Code, Volume -II shall be
followed mutatis mutandis by the government servants concerned in
maintaining the above registers;
(2) In other cases the government servant administering the
deposit account shall maintain only a simple ledger account in Form T.R.
7B for all transactions pertaining to the deposits;
(3) In both the cases specified in clauses (1) and (2), the entries
are to be made in the accounts as and when the transactions occur. When the
amounts are received direct by the Government Servant, entries of receipt are
to be made while issuing receipts in Form T.R.5 or T.R. 6 and when remittances
are made at the Treasury by the parties when the parties produce the receipted
chalans. Entries of withdrawals are to be made as and when the cheques for
withdrawal are drawn and issued. If the date of actual remittance into the
Treasury or date of payment at the Treasury differ from the dates of receipt
and withdrawals noted in the above accounts, the actual date of treasury
transactions shall be noted in red ink below the date originally entered. In
cases where, government servants subordinate to the Administrator of a
deposit account have been authorized to accept remittances towards the
52
deposit account and issue receipts the details of collection so made should be
gathered at the close of each month and entered in the accounts kept by the
Administrator.
(4) In whatever manner the accounts are maintained, the
Government servant concerned should reconcile his accounts periodically
at least once in a month with the accounts kept by the treasury and prepare a
reconciliation statement at the end of each month and see that the closing
balance of the month (T.R. 7B) agrees with the balance in the account kept
by the Treasury, subject to the deductions on account of cheques issued, but
not cashed and additions on account of remittances made at the Treasury, but
not incorporated in the Administrator’s P.D. Accounts. He should also furnish
to the Treasury at the end of each financial year a certificate showing the
closing balance in the account as on the 31st March of each year after
reconciling the balance with the Treasury figures. In the case of Personal
Deposits which lapse to Government after a specific period, the Government
Servant administering the P.D. account, should also prepare and furnish to
the Treasury before the 15th April every year a statement of deposits lapsed
to the Government at the close of each financial year and deduct the amount
so lapsed from the opening balance for the next year.
(c) A government servant shall not place any private money in a
cash chest used for keeping money received in his official capacity.
NOTE.—(1) Charitable Endowments.—The following procedure should be
followed in regard to funds of charitable endowments:-
(a) A government servant, in his capacity as administrator of a
charitable endowment, should remit into the Government account moneys
representing—
(i) interest on securities pertaining to endowments received from
the Treasurer of Charitable Endowments; and
(ii) income from properties relating tothe endowments and
interest realized in respect of the securities relating to endowments divested
from the Treasurer of Charitable Endowments.
53
NOTE—1 (b) Interest realised from the Bank shall be credited in the
accounts to the head ‘Civil Deposits-Personal Deposits’.
Normally payments in such cases are made by the
Treasurer of Charitable Endowments, only on receipt
of requisition from the administrators for amounts
required for immediate disbursement and it will not be
necessary to credit the amount again to the Government
account. In order, however, to ensure that no unutilized
amount is retained by the administrators, they shall send
certificates of disbursements to the Treasurer of
Charitable Endowments together with unutilized balance,
if any, which shall be credited into the Personal Deposit
Account.
(c) In the case of cash in the hands of administrators, which

includes balances relating to endowments transferred
to them, amounts of interest realized by them periodically
and, in a few cases, income from properties in their
custody, it shall be paid into a single deposit account
in the treasury and drawn again when required for
disbursement. These transactions should be exhibited
in the accounts under a separate deposit head “Deposit
account of divested charitable endowments”.
(d) Administrators of endowments, divested from the

Treasurer of Charitable Endowments, shall remit into
the treasury for credit under the deposit head mentioned
above, all amounts received by them and draw the sums
again when required. Administrators having custody of
properties, other than securities held by the Treasurer
of Charitable Endowments, shall remit the income from
such properties to the deposit head and draw it again
when required.
(e) As the deposit will be operated upon by government
servants belonging to several departments in their
capacity as administrators of the endowments, the
Government in the Revenue Department shall control
the transactions in the account and render.
54
(i) monthly certificates of reconciliation of account

figures with the departmental figures relating to the
account; and
(ii) an annual certificate of acceptance of balance in the
account on the 31st March of each year.
(f) The administrators of charitable endowments divested from
the Treasurer of Charitable Endowments and those
having custody of properties other than securities held
by the Treasurer of Charitable Endowments shall submit
to the Government in the Revenue Department every
month a report of their remittances and drawals relating
to “divested” endowments with particulars of the
amounts remitted or withdrawn, dates of such remittances
or withdrawals and the name of the treasury or sub
treasury concerned.
NOTE—(2) Amounts required for payment of scholarships under the National
Scholarship Scheme, National Loan Scholarship Scheme and the
Scheme of Merit Scholarships administered by the Ministry of
Education will be paid in advance in two installments to the
institutions in which the scholars are undergoing studies. The head
of each institution (whether Government or private) receiving such
amounts is permitted to open a personal deposit account in his name
in the local treasury. The amounts received by him for payment of
the above mentioned scholarships should be credited to the personal
deposit account and the amounts actually required for disbursement
should be withdrawn by means of cheques whenever necessary.
94. Issue of duplicates or copies of receipts.—No government servant
may issue a duplicate or copy of a receipt granted for money received by
him on the allegation that the original receipt has been lost or is not available.
A certificate may, when necessary, be given that on a specified day a certain
sum was received on a certain account from a certain person, and a fee of
*two rupees shall be levied for every such certificate issued to a private party.
This prohibition extends only to the issue of duplicate on the allegation that
the original has been lost, and does not apply to cases authorised by these
rules or by special orders of the Government in which duplicates may be
prepared and tendered with the originals.
*Substitution [G.O. (P) 544/87/Fin. dated 23rd June, 1987]
55
SPECIAL INSTRUCTIONS FOR CERTAIN DEPARTMENT
95. In the Public Works and Forest Departments and in the Government
commercial undertakings, cheques accepted in payment of Government dues
should be entered in the cash account as “Receipts” as and when received
and as “disbursements” when remitted to the treasury for encashment, just
like moneys received by a government servant-vide Rule 92(b) and (c). If a
large number of cheques is received daily, they should be initially entered
in a subsidiary register in Form T.R. 8 for watching the encashment of the
cheques and only the daily total of receipts and remittances accounted for
in the cash book.
NOTE.—Commission charges collected from parties for collection of cheques
shall be entered in a separate column.
SPECIAL TO THE JUDICIAL DEPARTMENT
96. (a) Receipts of moneys by Civil Courts.—In certain cases specified

by the High Court in which money can be disbursed forthwith, e.g., money
paid by suitors for the service of summonses and diet money of witnesses
deposits are received direct at the court and the parties are not required to pay
the money into the treasury or the Bank. A person who wishes to make any
such deposit should present with the money a receipt in the prescribed form
stating fully the particulars and the purpose of the deposit. The Officer of the
court who is authorised to receive the money should receive it, sign the
receipt and return it at once to the depositor.
(b) Receipts of moneys by Criminal Courts.—Magistrates trying Railway
cases under sections, 112, 113 and 115 of the Indian Railways Act, shall subject to
directions issued by the High Court, in this behalf, deposit the Railway dues (fare
and penalty) collected by them, with the Station Master concerned under clear
receipt. The fines levied by the courts and creditable to the State Government
shall be remitted into the Treasuries/Banks through chalan.
SPECIAL TO THE PUBLIC WORKS DEPARTMENT
97. Receipt of money by government servants in Public Works

Department.—Only Divisional Officers, Sub Divisional Officers and other
Government servants specially authorised by the Government have power to
issue final receipts for money received on behalf of the Government. The Head
Clerk or Cashier may, when specially authorised to do so by Divisional or Sub
Divisional Officer, receive money at headquarters when the latter is in camp.
56
Whenever he does so, he should promptly issue a temporary receipt in Form

T.R. 9 for the cash actually received by him and simultaneously enter the
amount in the cash book. A final receipt in Form T.R. 10 in confirmation of each
temporary receipt should be signed by the Divisional or Sub Divisional Officer,
as the case may be, and issued to the payer as soon as that officer returns to
headquarters.
When a Section Officer collects revenue from parties to whom grass
plots, fruit trees, canal berms, etc., are leased or receives money from the
sale of materials, etc., and when any government servant who is not in charge
of a cash book similarly receives any money on behalf of the Government in
exceptional circumstances, he should keep it separate from the imprest and
any other cash in his charge and should remit it at the earliest opportunity to
the Sub Divisional Officer (or other nearer superior officer having a cash
book). Along with the money he should send a remittance slip in Form T.R.
11 on the back of which he should enter full particulars of the amount in
question and the date of receipt by him. He should also send a copy of the
remittance slip to the Divisional Officer for check of the receipt entry which
should appear in the copy of the sub divisional or other cash book. The
Section Officer or other government servant who receives the money in the
first instance should also issue promptly to the payer a temporary receipt in
Form T.R. 9. The Sub Divisional Officer or other nearer superior officer who
maintains a cash book should, on receiving the remittance slip with the money
fill in the two forms of memorandum of acknowledgement attached thereto in
duplicate, make the necessary entry in the cash book and send forthwith to
the government servant who collected the money a copy of the memorandum
of acknowledgment and final receipt in Form T.R.10 for issue to the payer in
confirmation of the temporary receipt. If the memorandum of acknowledgment
and final receipt are not received by the government servant who collected
the money within one week of his sending the cash he should forthwith report
the fact in writing to the Sub Divisional Officer by name and obtain them.
NOTE—1 The forms for temporary and permanent receipts (Forms T.R.
9 and T.R. 10) should be printed and bound in books, in such
a way that the copy to be issued to the party as a receipt
and a carbon copy to be retained as the office copy may be
prepared simultaneously with carbon paper. The pages of the
books should be machine-numbered.
57
NOTE—2 Every receipt book (temporary or permanent) should be

carefully examined by the Government servant concerned
immediately on receipt and the number of forms in the book
should be counted and a certificate of count should be
recorded in the following form which will be printed on the
inner side of the outer cover of the book.
“CERTIFICATE
This receipts in book No……………………........... are complete and
in consecutive order.
Signature……..............………
Date…………… Designation…............………”
98. A Government servant of the Public Works Department who remits
any cheque received by him to the treasury for credit to the Government shall
enter the particulars in his remittance book (See Rule 105), and send the book
to the treasury with a chalan in duplicate. The treasury shall give a preliminary
acknowledgment for the receipt of the cheque in the remittance book, the final
receipt being given by it on the original chalan after the cheque has been
cleared.
SECTION II
Receipt of moneys by the Treasury or the Bank
99. (a) When a treasury or the Bank receives any money from a private
party for credit to the Government, it shall receive it only subject to the
provisions of Rule 89(a) and the notes under it*
(b) Subject to the provisions of Rule 92(b) and 92(c), a
Government servant who receives money on behalf of the Government
under Rule 89(a), shall remit it into the treasury or the Bank on the day
of receipt or as soon afterwards as is possible without causing the payer
undue inconvenience**
* Second Sentence and the exception omitted [G.O.(P) 334/77/Fin.,
dated 6th September, 1977]
** Second Sentence omitted [G.O.(P) 334/77/Fin., dated 6th
September, 1977]
58
(c) Every payment into the treasury or the Bank for credit to the
Government shall be accompanied by a memorandum or chalan containing all
the particulars necessary for crediting the amount correctly in the Government
account and preparing a receipt to be given to the payer. When a payment is
made into the treasury, the treasury shall check the chalan and make sure that
it is in order and complete, test and count of money, bring the payment into
account in the prescribed registers and give a receipt to the payer. When a
payment is made into the Bank, the Bank shall receive the money and give a
receipt to the payer, and the treasury shall bring the payment into account in
the prescribed registers. When a private person makes a payment into the
Bank on Government Account, the chalan shall, in the absence of special rule
or order to the contrary, be first presented at the treasury, where it shall be
checked and returned enfaced with an order to the Bank to receive the moneys
and grant a receipt.
#(d) For remittance through e-payment, a filled up Chalan or detailed
memorandum as prescribed in sub-rule (c) shall not be insisted.
100. Whenever under the provisions of sub-rule (2) of Rule 6 moneys
received on account of the revenues of the State, instead of being paid into a
treasury or the Bank, are utilised to meet departmental payments, the gross
receipts and the payments made therefrom shall be entered as receipts and
expenditure in any record that may be kept of the payments into and
withdrawals from the Government Account and accounted for to the
Accountant General. If the receipts are in excess of payments made, the excess
shall be remitted to the treasury or the Bank, as the case may be, and save
where it is otherwise provided in these, the officer making such remittance
shall note on the memorandum or chalan presented under Rule 99(c) the full
amount of cash actually received by him, and per contra, the expenses
disbursed therefrom, and not merely the net receipts.
When a departmental officer remits cheque to the treasury or the Bank in
adjustment of departmental receipt temporarily appropriated for departmental
payments the particulars of the cheques shall be noted on the chalan or
remittance note.
101. Whenever a Government servant sends a cheque or bill to the
treasury for credit to the Government, he shall endorse the words ‘Received
payment by transfer credit to the head (here insert the head of account)’,
# Insertion[G. O. (P) 421/09/Fin. dated 30th September, 2009]
59
on the document and sign the endorsement. The word “transfer” shall be
deleted from this endorsement when entered on a cheque not payable by
the Government. If any Government servant endorses a cheque or bill of
which the amount is to be credited to the Government without entering
these words above his signature, he shall be held primarily responsible
for any loss which may occur if the cheque or bill is paid in cash.
102. (a) The chalan which accompanies a payment of money into the
treasury or the Bank shall contain full information as to—
(1) the nature of the payment,
(2) the amount paid,
*(3) name and address of the remitter,
(4) the head of account to which the amount should be
credited, and
(5) the allocation of the amount between Governments
and departments, if any, such allocation has to be
made.
**(6) the name of office and designation of the receiving
departmental officer to whom the remittance relates
to be written in the top of each chalan
(b) When a payment to the Government is to be credited partly
to one head of account and partly to another, a separate chalan shall
ordinarily be presented for the amount to be credited to each head.
If, however, two or more credits relating to the same transaction are so
closely connected that it would be convenient to use separate chalans for
them, they shall be entered on the same chalan.
(c) The chalan shall be prepared in Form T. R. 12, or in such other
form as may be prescribed under these rules or in a departmental manual
or code. These forms, shall be printed both in English and Malayalam.
* Substitution G.O.(P) 690/83/Fin., dated 27th October, 1983]
** Addition G.O.(P) 690/83/Fin., dated 27th October, 1983]
60
(d) When a payment is made partly in cash and partly by cheque,

the amounts paid in cash and by cheque respectively shall not be included
on the same chalan.
(e) The chalan shall ordinarily be presented in duplicate; the
original copy shall be returned to the payer signed as a receipt, and the
second copy shall be retained in the treasury or the bank. [See also Rule
90(b) in regard to cheque]. When a private person pays money into the
treasury or the bank to be credited to the Government under a head which
concerns a departmental officer, the duplicate chalan shall be initialed by
that officer, if he is at the same station as the treasury; otherwise, the chalan
shall be presented in triplicate and the treasury shall send the third copy
to the departmental officer concerned, unless there are orders issued to the
contrary in individual case or classes of cases—See clause (g) below. In
cases where a private person presents a chalan in triplicate the
departmental officer need not initial the chalan even if he is at the same
place as the treasury at which the chalan is presented.
Remittances to treasury on account of over-payments should be
supported by chalans in triplicate, containing full particulars of the number
and date of encashment of the bill and also the head of account under which
the amount was originally drawn, one copy of the chalan being forwarded
by the Treasury Officers to the Accountant General in support of credits
incorporated in the monthly schedule of receipts of the department
concerned.
*Remittances representing recoveries of expenditure previously
debited to expenditure heads (Revenue Account) will be exhibited direct
under the service heads concerned as reduction of expenditure irrespective
of whether they relate to overpayments pertaining to the current year or to
any previous year.
#NOTE 1.—The departmental officers concerned with the levy and

collection of Government taxes and dues of forceable or
periodical nature should maintain a reasonable stock of chalan
forms for issue to the intending depositors on demand. Chalan
forms duly filled in all respects may as far as practicable, be
issued to the persons along with the letter of demand so that
they may sign and present the chalan at the treasury/bank
along with the money.
* Substitution [G. O. (P) 536/84/Fin. dated 20th September, 1984]
# Renumbered vide G. O.(P) 690/83/Fin., dated 27th October, 1983]
61
*NOTE 2.—Whenever there is a departmental remittance through

deduction from expenditure bills, chalans should be
insisted and the Treasury should also note the details of
such chalans in the subsidiary register of receipts maintained
at the sub treasury/ district treasury. This is not applicable
to the deductions towards income-tax, house building
advance and other similar deductions made in the salary
bills/establishment bills which are adjusted in the treasuries
and to the recoveries towards short term loans.
(f) # (i) A single chalan shall be presented with any money tendered for
payment into the treasury or the bank on account of State Excise revenues on
payment for a Reserve Bank draft or a cash order on a sub treasury, and with any
money tendered for payment into the treasury or the bank along with a pass book
or a remittance book in which the Treasury Officer or the bank is required to
acknowledge the receipt of the moneys. The chalans for remittance on account of
State Excise revenues shall, however, be countersigned by the Excise Inspector or
any higher departmental authority. Form T.R. 14 shall be used for acknowledgement
of receipt of payments on account of State Excise revenues. In the remaining
cases, Form T.R. 12 shall be used when necessary.
# (ii) For remittance through e-payment, the conditions under sub-
rule (c) shall not be insisted.
(g) (i) An agent or dealer or on oil distributing company shall present a
chalan in triplicate along with any money tendered for payment into the treasury
or the bank on account of fees for the issue of packed petrol storage licenses. The
treasury or the bank shall retain the triplicate copy of the chalan and return to the
payer the original and duplicate copies duly receipted. The duplicate copy shall
invariably be stamped with the word “duplicate” in bold characters.
(ii) A person making a payment into the treasury or the bank on
account of sales tax, agricultural income tax, tax on tobacco, entertainments tax
and tax on motor spirit shall present a chalan in triplicate along with the money,
* Addition G.O.(P) 690/83/Fin., dated 27th October, 1983]

# Renumbered vide G..O. (P) 421/09/Fin. dated 30th September, 2009.
# Insertion [G..O.(P) 421/09/Fin. dated 30th September, 2009]
62
irrespective of the fact whether the departmental officer concerned is resident

at the same station or not. The treasury or the bank shall retain the original
and the triplicate copy of the chalan and return to the payer the duplicate
copy duly receipted. The duplicate copy shall invariably be stamped with the
word “duplicate” in bold characters. The originals shall be handed over to the
Sales Tax staff who will arrange to collect them daily from the treasury of the
bank.
Departmental officers who remit into the treasury the Sales Tax equivalent
collected on sales of goods shall write the chalans in triplicate for presentation
at the treasury. The Treasury Officer shall send one copy to the Sales Tax
Officer of the district, retain one copy with him and give the third copy to the
officer remitting the amount.
#NOTE 1.— Remittance of tax by dealers may be made through e-payment
also.
#NOTE 2.— Online payment of tax along with e-Return can be done with
the integration of Commercial Taxes Department official
Website with the approved Bank’s site. The tax due as per
the return can be remitted by debit from the dealers account
or any other account authorized by him on this behalf in
State Bank of India/State Bank of Travancore or any other
Bank as and when so specified. When the amount is debited
from the dealers account or any other account authorized by
him on this behalf, the bank system will generate a Cyber
Receipt with a unique number. This transaction will be updated
in the Kerala Value Added Tax Information System.
#NOTE 3.— The designated branch of the bank shall give an abstract
of the scroll countersigned and also a soft copy of the data
in an encrypted format on a daily basis to the appointed
Treasury Officer.
#NOTE 4.— The data received from the bank is to be loaded in the
Treasury database and the Treasury Officer will reconcile the
scroll received from the Bank with the scroll generated in the
Treasury system.
#NOTE 5.— After incorporating the Data in the Treasury system a report
will be generated with counter date and sequence number
and to be given to the Commercial Taxes Department along
with the soft copy. Commercial Taxes Department shall upload
this data in Kerala Value Added Tax Information System.
# Insertion[G.O.(P) 421/09/Fin. Dated 30th September, 2009]
63
(iii) Payments by Government Pleaders and Pleaders doing

Government work shall be made in triplicate chalans in all cases. The treasury
shall retain the triplicate copy of the chalan and return the original and duplicate
duly receipted to the pleader. The duplicate copy shall invariably be stamped
with the word “duplicate” in bold characters. The pleader shall attach the
original copy to his report to be submitted to the Collector.
(iv) Payments made into the treasuries of the amounts collected by
Bench Courts towards the taxes and other dues creditable to municipalities
shall be made in triplicate chalans in all cases. The treasury shall retain the
original copy of the chalan and return the duplicate and triplicate duly receipted
to the Bench Court concerned. The triplicate copy shall invariably be stamped
with the word “triplicate” in bold characters. The Bench Court will keep the
duplicate for its record and send the triplicate copy to the municipality
concerned immediately after payment is made into the treasury.
(v) A local body should, when paying contribution and fee to
Government, on account of the analysis by the Public Analyst of food samples,
present a chalan in triplicate and the treasury will return the original and the
duplicate duly receipted. The local body should send the original to the Public
Analyst, for intimation of credit.
(vi) Local bodies when paying amounts towards the cost of
maintenance of bore-wells and pumps under the rural water supply scheme
should present chalans in triplicate. The original will be sent to the
departmental officer concerned. One copy will be retained in the treasury and
the other will be returned to the local body concerned.
(vii) In the case of remittances of principal and interest made in respect
of ‘Loans and Advances’ the chalans shall be prepared in triplicate irrespective of
whether the remittances are made by a private party or by a departmental officer.
The original copies of the chalans should be returned to the remitters and the
duplicate copies retained in the treasury. In respect of Loans and Advances the
detailed accounts of which are being maintained by the Departmental officers the
triplicate copies of the chalans shall be forwarded by the Treasury Officer to the
Departmental Officers concerned. In respect of loans and advances the detailed
accounts of which are being maintained by the Accountant General as per Article
244 (3)(b), Kerala Financial Code, Volume I, the triplicate copies of the chalans
should be forwarded by the Treasury Officer to the Accountant General along
with the monthly cash account.
64
•(viii) In the case of remittances or recoveries of subscription and

refund of temporary withdrawals in respect of General Provident Fund the
chalan shall be prepared in triplicate irrespective of whether the remittances
are made by a private party or by a departmental officer. The name of subscriber
and his account number shall be noted in all the three copies. Over and above
this, a schedule of Provident Fund Deduction in the prescribed form giving
full details should invariably be attached to the Chalan. The original copies of
the chalans should be returned to the remitters and the duplicate copies retained
in the Treasury. The triplicate copies along with the Provident Fund Schedules
should be forwarded by the Treasury Officer to the Accountant General along
with the monthly cash account
* NOTE—Chalans for the remittance of principal or interest on loans and
advances and revenue deposits and security deposits shall be
presented at the treasuries first in the case of banking treasuries
also.
(h) When the Government have permitted any class of payments
into the treasury to be made by sending money orders to the Treasury or Sub
Treasury Officer, no chalan shall be required with a money order relating to
any such payment.
** NOTE—(1) Private persons may obtain chalans in the prescribed form
from the Treasury. Chalans for use by Departmental Officers may
be obtained direct from the Government Press.
(2) Fines levied by Magistrates in respect of which the
Government pay grants-in-aid to local bodies and other authorities should be
shown separately in the chalans under a district head “Fines for which
compensation is payable to local bodies and others”. Fines levied under the
Motor Vehicles Taxation Act, should also be shown under a separate head.
(3) When any amount is paid to the Government in respect of
loan or advance made by the Government, the chalan presented at the treasury
should contain the date and amount of the loan or advance or other particulars
sufficient to identify it. If the amount paid includes interest as well as
principal, the amount of interest paid should be specified separately in the
chalan. If the payment is a periodical fixed payment including both principal
and interest, a reference to the order fixing the amount should be entered in
the chalan.
• Insertion [G.O.(P) 545/87/Fin. dated 23rd June, 1987]
* Substitution [G.O.(P) 839/79/Fin., dated 31st August, 1979]
** Substitution [G.O.(P) 668/79/Fin., dated 30th July, 1979]
65
PART III KERALA TREASURY CODE RULE 102-103
† In the case of banking treasuries also, chalans for the remittance of

principal or interest on loans and advances and revenue deposits and security
deposits shall be routed through treasuries as stated in the note to rule
102 (g) (vii).
(4) In the case of certain deposits, e.g., local fund deposit and
personal deposits, the account kept in the treasury or the Bank is purely a
banking account. Particulars of the deposit head concerned alone need be
entered on the chalan accompanying a remittance into the treasury or the
Bank for credit to such an account. No further information as to the nature of
the receipts is required.
(5) In cases where the personal deposit accounts and the
banking accounts of Local Funds are kept at the bank (See note under the
second paragraph to Rule 124 below) all adjustments made to the credit/debit
of such accounts either by the treasury or by the Accountant General should,
without delay, be communicated by the treasury to the bank.
**(i) The following instructions shall be scrupulously followed
the departmental officers to facilitate reconciliation receipts:—(1) The
departmental officers should post the original Chalan received in their offices
in a register or statement so that details of remittances will be available for
reconciliation.
(2) The third copy of the Chalan received from the treasuries
shall be retained in the office for reconciliation.
SPECIAL TO THE FOREST DEPARTMENT
103. (1) Forest revenues collected at outlying stations may be paid into
the treasury by making remittances to the Treasury Officer by money orders. No
chalan need be presented with any such payment. The money which the post
office pays to the Treasury Officer should be credited in the accounts. The treasury
should send the Divisional Forest Officer the usual acknowledgement on the
relevant portion of the money order form, and also a daily advice of all the
remittances received from him by money order on each day on which there is any
such transaction.
† Substitution [G.O.(P) 839/79/Fin., dated 31st August, 1979]

** Insertion G.O.(P) 690/83/Fin., dated 27th October, 1983]
66
(2) When a Divisional Forest Officer is absent from headquarters

and no other Forest Officer is available there, his head clerk may sign for him
chalans to be presented with payments of forest revenue into the treasury or
the bank. Similarly, when a Range Officer is absent from headquarters and no
other Forest Officer is available there, his head clerk or (if he has only one
clerk) his clerk may sign such chalans for him.
(3) When a Forest Officer receives any deposit from contractors
or purchasers of forest produce, he should pay them into the treasury or the
bank as soon as possible and furnish a list showing the name of each depositor.
The treasury or the bank, as the case may be, should treat the moneys so
remitted in all respects as if they had been paid direct by the depositors, and
should therefore issue a separate receipt for the amount relating to each
depositor.
When any Forest Officer, other than a Divisional Forest Officer,
pays any such deposit into the treasury or the bank, he should forward to the
Divisional Forest Officer the receipt obtained for the payment.
SPECIAL TO THE PUBLIC WORKS DEPARTMENT AND
COMMERICAL SERVICES
104. No deposit account can be opened in a treasury by officers of the

Public Works Department and Commercial Services. Whatever sums are paid into
a treasury by an officer of the Public Works Department or a Commercial Service
or on his account, must be carried to the credit of that department or service in the
civil accounts. This rule applies also to deposits made at the instance of the Public
Works Department or Commercial Services by municipalities or other local bodies
to meet the cost of works to be carried out by the Public Works Department or
Commercial Services. In this case, the accompanying chalan should state clearly
the name of the Division in the Public Works Department or Commercial Services
to which the amount is creditable and the work for which the deposit relates.
105. A Public Works Officer who frequently makes remittance to the treasury
or the bank should keep a remittance book (Form T.R. 15) in which he should make
an entry of the amount of each remittance and should send this book as well as a
single chalan along with each remittance, so that the Treasury Officer or the Bank
may acknowledge receipt, by signing the entry in the book. As regards remittance
of cheques, see Rule 98.
67
SECTION III
Procedure in Treasuries
(i) TREASURIES WHICH DO NOT TRANSACT THEIR CASH BUSINESS
THROUGH THE BANK
(A) District Treasuries

106. *(a) The chalan with which money is tendered for payment into
the treasury shall be presented first to the Section Head/Junior Superintendent
(Receipts) who shall check it to see whether it is in order in all respects and, if
he is satisfied, put an initial in the chalan and affix a seal in token of having
verified the correctness and sent it to the treasurer for accepting the remittance.
The Treasurer shall receive the money as per the chalan, count and test
the money, enter the amount in his Cash Book, give it a serial number, sign
the chalan and then send it back to the Section Head/Junior Superintendent.
The Section Head/Junior Superintendent shall make a brief entry of the
particulars in the “Chalan Number Book” (Form T.R. 16) noting the chalan
number assigned by the Treasurer under his initial and put his signature in the
original copy of the chalan and return the original chalan to the party if it is for
the amount mentioned in item (a) of sub rule (f) of rule 120. If the remittance is
for the amount mentioned in item(b) of the sub rule (f) of rule 120, the chalan
shall be sent along with the Chalan Number Book to the Assistant Treasury
Officer who shall sign the chalan after initialling the corresponding entry in
the Chalan Number Book. At the end of the day, agreement shall be effected
between the Chalan Number Book (T.R. 16) and the Day Book on the one hand
and the usual agreement between the Day Book and the Treasurer’s Cash
Book on the other. The Section Head/Junior Superintendent shall examine the
Chalan Number Book at the close of every day and certify that the amounts
credited to Government and the amounts for which receipts have been given,
have been agreed to and initial the certificate. The Treasurer’s Cash Book
shall have a continuous serial number for each month both for receipt and
payment items. Entries shall be made in the chalan number book in the serial
order, so that a cross check with the entries in the Treasurer’s Cash Book
would be easy.
* Substitution [G.O.(P) 77/78/Fin., dated 16th January, 1978]
68
Postings of Subsidiary Registers and the Day Book shall be made after
the issue of original chalans to the parties with reference to the duplicate
copy of the chalan and other connected records.
106. (b) [Omitted.]
[G.O.(P) 334/77/Fin., dated 6th September 1977.]
(B) Sub Treasuries

107. *(a) The procedure prescribed in sub-rule (a) of rule 106 for the
District Treasuries shall apply mutatis mutandis to the Sub Treasuries also,
except that the Head Accountant/Junior Superintendent and the Sub Treasury
Officer in Sub Treasuries shall perform the functions prescribed for the Section
Head/Junior Superintendent and the Assistant Treasury Officer respectively
in the District Treasuries.
107.(b) [Omitted.]
[G.O. (P) 334/77/Fin., dated 6th September 1977.]
(C) General for all Treasuries

108. A cheque received at a treasury should be treated as a final payment
only after it has been met and the amount has been actually credited to the
Government. The provisions of Rules 90(b) and 91 regarding the preliminary
acknowledgment and final receipt to be given by a departmental officer when
a payment is made by cheque, the procedure to be followed when a cheque is
not honoured, and the date to be treated as the date of payment if the cheque
is honoured, apply mutatis mutandis to a cheque received at a treasury.
109. **Deleted
**This amendment shall be deemed to have come into force on the 1st
day of October, 1985.
110. When departmental officer has a claim against a Post Office Savings
Bank deposit pledged to him as security by a government servant or a
contractor, the amount due to the Government should be withdrawn in the
manner indicated in Article 313(e) of the Kerala Financial Code. The Postmaster
should send a treasury voucher to the departmental officer for the amount
* Deletion [G.O.(P) 82/88/Fin., dated 3rd February, 1988]
69
withdrawn instead of cash. On receiving this voucher, the departmental officer

should verify the entries in it, countersign it and forward it to the treasury or
sub treasury concerned as soon as possible, to enable the Treasury or Sub
Treasury Officer to initial the entry in Postmaster’s treasury pass book when
he receives it and complete the transaction.
111. A Treasury or Sub Treasury Officer should receive payment of a
revenue money order in cash. The transaction should be adjusted by a transfer
in the accounts on a receipt in the prescribed form signed by the Postmaster
for total amount of the revenue money orders to be paid each day.
This procedure applies also to the payment of an ordinary money order
payable to a Collector, Treasury Officer or Sub Treasury Officer in his official
capacity. The transaction should be adjusted by a transfer in the accounts,
and the necessary entries in the revenue registers should be made from the
money order coupon or treasury advice. Ordinary money orders payable to
any other government servant in his official capacity should also be paid by
transfers in the accounts, if the Treasury or Sub Treasury Officer sends a
Postmaster a written requisition to that effect. Money orders payable to a
local body which has a banking account with the treasury should also be paid
by transfers in the accounts.
112. Numbering of chalans.—The chalans relating to each subsidiary
register shall be numbered in a separate monthly consecutive series, and
those which are entered directly in the day book shall bear a separate series of
numbers. The chalans which accompany payments of revenue deposits or
civil and criminal courts’ deposits shall however be numbered in a separate
annual series for each department.
113. Village remittance.—The money shall be sent to the treasury in
sealed bags together with a village remittance list in the form prescribed in the
Departmental Manuals or orders and a chalan in the form of an extract of the
cash book prescribed in the Departmental Manuals or Orders. After the
remittance list and the chalan have been checked, the Treasury Officer shall
sign the remittance list and return it to the person who brought the remittance
to be tendered to the Treasurer along with the sealed bags. The Treasurer
shall take the bags, break the seals in the presence of the village official or
messenger who brought the remittance, and count and test the money. If the
amount is found to be correct the Treasury Officer shall certify to that effect at
the foot of remittance list and return it to the person who brought the remittance.
70
If any counterfeit or uncurrent note or coin or any deficiency is found, the

Treasurer shall at once bring the fact to the notice of the Treasury Officer, who
shall, if satisfied that the note or coin is counterfeit or uncurrent or that there
is a deficiency, examine the village official or messenger who brought the
remittance and record the fact on the remittance list.
114. Anamaths.—All moneys paid into the Government account at a
treasury shall be credited immediately on the receipt under the appropriate
heads of account in the Government accounts and shall form part of the
general treasury balance. As a general rule, no sums of money shall be kept in
a treasury strong room unless they have been paid into the Government
account and form part of the general treasury balance, but the following items
shall be treated as exceptions to this rule and dealt with in accordance with the
special instructions which apply to them:—
(a) a village remittance which is received, when the treasury is not
open for transactions,
(b) a treasury or currency remittance which is received when the
treasury is not open for transactions,
(c) other money sent by a government servant from a distance for
payment into the treasury (or paid in respect of postal money orders) which is
received when the treasury is not open for transactions,
(d) money contained in the cash chests, etc., deposited by other
offices for safe custody (See Rules 157 to 160), and
(e) the balance of the permanent advance and imprests, and
undisbursed balances of amounts drawn from the treasury or otherwise
received for disbursement (See Rules 432 and 433).
The moneys described under items (a) to (e) above shall be placed in the
strong room on the day when they are received and brought to account
immediately when the treasury opens on the next working day. The treasurer
shall maintain an Anamath Balance Register in Form T.R. 19 for recording
these Anamath transactions and a separate column shall be provided for each
class of items concerned. The opening balance, the totals of the daily receipts
and the daily disbursement respectively and the closing balance shall be
entered in each column. The Treasury Officer shall check this register every
71
evening, verify the various closing balances with the actual cash, bags of
coin and cash chests, etc., in the strong room and initial the register in token
of the correctness of the entries.
115. If a village remittance arrives at a treasury when it is not open for
transactions, the sealed bag or bags containing it should be placed in the
strong room as soon as possible and kept in a special late remittance chest. A
counterfoil receipt form from a book consecutively numbered should be given
in exchange for the bag. As soon as the treasury opens on the next working
day, the bag should be taken out, the money counted and tested, and the
amount brought to account. The receipt given for the sealed bag should be
taken back and pasted on to the counterfoil. A register should be maintained
in Form T.R. 20 and the date of receipt and date of return of each sealed bag
containing a village remittance and the date on which the amount is brought
to account should be noted in it.
NOTE.—Remittances received by 3 p.m. should, if possible, be shroffed and
brought to account that day. The treasury should be closed by sunset.
Remittances received after 3 p.m. but before sunset should simply be
sealed and kept in the strong room for the night, no attempt being
made to shroff them and bring them to account.
116. If a treasury or currency remittance arrives at a treasury when it is
open for transactions but it is not possible to count and test the money
completely on the day of receipt, it should nevertheless be brought to account
on the day of receipt and should also be entered in a register in Form
T.R. 21. The counting and testing should be completed as soon as possible
and, if any deficiency or any counterfeit or uncurrent note or coin is
discovered, it should be made good by the Chief Treasurer or Treasurer, if
any, who came with the remittance. Otherwise, the amount should be drawn
on a simple receipt as an advance and placed in the treasury or currency chest
and the necessary steps taken for the adjustment of the advance.
If a treasury or currency remittance arrives at a treasury when it is not
open for transactions, it should be entered in the same register in Form T.R. 21
and placed in sealed bags in the strong room as soon as possible without
opening the receptacles in which it arrives (See Rule 158). It should be brought
to account as soon as the treasury opens on the next working day.
72
117. If any money sent by postal money order or by a Government

servant from a distance, for payment into the treasury arrives at the treasury
when it is not open for transactions, it should be recorded in the register in
Form T.R. 19 mentioned in Rule 114, placed in the strong room in sealed
bags as soon as possible and brought to account as soon as the treasury
opens on the next working day.
118. No sums of money which have been sent to a treasury for payment
into the Government account should be kept in Anamath for want of information
as to the nature of the credit or pending confirmation of a sale.The total cash
balance of all the outstanding items in the Anamath Balance Register (See
Rule 114) should be entered at the close of the day in following places in the
accounts:—
(1) In a sub-treasury : Treasurer ’s daily balance sheet
(Form T.R. 4) Day Book (Form T.A. 4
in the Kerala Account Code, Vol. II).
Daily sheet (Form T.A. 7 in the Kerala
Account Code, Vol. II).
(2) In a district treasury : Treasurer’s daily balance sheet
(Form T.R. 4).
The Treasury Officer should verify the balance every evening.
119. Undisbursed balance.—Separate registers should be maintained
for recording the transactions relating to each class of undisbursed balances
such as those relating to amounts payable for the acquisition of land, cash
orders or military pensions. [In regard to undisbursed balances of pay and
allowances, See Rule 432 (c)]. Each such register should show the opening
balance, receipt, disbursement and closing balance of each day on which
there is any transaction. The Treasury Officer should verify daily that the
closing balance in each such register agrees with the balances entered in the
Anamath Balance Register (Form T. R. 19).Alternatively, a combined register
in Form T.R. 22 may be maintained for watching all the undisbursed balances,
if it is considered more convenient (See Rule 432 (c)].
120. Receipts for money.—(a) When a chalan in duplicate is received
with the money, the treasury shall use the original for the receipt to be given
to the payer and shall retain the duplicate for record. If there is a third copy
the treasury shall forward it to the government servant or other person to
whom the credit relates.
73
(b) When a treasury receives a cheque under *[Rules 106(b) and

107(b),] the tenderer shall be given a preliminary acknowledgement in Form T.
R. 6 for the cheque only. A final receipt for the payment on the original chalan
shall be sent to the payer after the amount has been realized.
(c) When money is received on account of State Excise revenues,
the treasury shall receive with it only a single chalan countersigned by the
Excise Inspector or any higher departmental authority, and shall give the
payer a separate receipt in Form T.R. 14 and send a copy of it to the Excise
Inspector or higher departmental authority who has countersigned the chalan,
to serve as an advice. When any money is received on being tendered along
with a single chalan and a pass book or a remittance book, receipt shall be
acknowledged in the pass book or remittance book. When any money is
received in payment for a cash order, no separate receipt need ordinarily be
given as the cash order issued in exchange for the moneys is a sufficient
acknowledgment of the receipt of the money; if, however, the payer insists
on being given a separate receipt in any such case, he shall be required to
present a chalan in duplicate in Form T. R. 12 with the money and the treasury
shall give him a receipt on the original chalan.
(d) When the fees of a number of candidates for a government
examination, e.g. the S.S.L.C. Examination, are paid into the treasury in a lump
sum, only a single receipt shall be given for the lump sum as a whole.
(e) For every payment made by cash or cheque for service postage
stamps issued by it, the treasury shall give a receipt in machine numbered
form T.R. 23.
**(f) The receipts for money paid into the treasuries shall be
signed by the following persons as shown below:
When the amount involved is— District / Sub Treasury
(a) Below ` 2,500 Head Accountant or
Junior Superintendent and the
Treasurer
(b) ` 2,500 and above Assistant Treasury Officer/
Sub Treasury Officer,
Head Accountant or
Junior Superintendent and the
Treasurer.
* Rules 106(b) and 107 (b) Omitted [G.O.(P) 334/77/Fin., dated
6th September, 1977]
** Substitution [G.O.(P) 431/77/Fin., dated 4th November, 1977]
74
(g) Every treasury shall prominently exhibit notices in English and

the local language embodying the substance of clause (f) above one in the
room of the Treasurer or the Sub Treasury Officer, as the case may be, and one
near the Treasurer’s counter, in order that the persons who make payments
may verify that the receipts given to them satisfy the rule.
(h) Every receipt issued by a treasury shall show distinctly the
name of the treasury, the date of issue, the designation of each government
servant who signs it and the head of account to which the amount has been
credited. Each signature on it shall be written legibly and in full.
NOTE 1.—Duplicate receipts.—The provisions of Rule 94 regarding the
issue of duplicate receipts apply to all government servants
including those attached to treasuries. With a view to avoiding
the misuse of duplicate chalan as a duplicate receipt, special
care should be taken to see that the treasury officials
mentioned in Rule 120(f) sign in full only the copy or copies.
See Rule 102(g) of the chalan to be returned to the payer,
and merely initial the remaining copy or copies of the chalan.
*NOTE 2.—The receipt for a sum paid by transfer in the accounts at
a district/sub treasury shall not be signed by the Treasurer.
All such receipts irrespective of the amount involved shall
be signed by the Section Head/Head Accountant/Junior
Superintendent and the Accountant concerned. This
instruction does not apply to receipt for sums paid by transfer
in the accounts for service postage stamps (See note 3 below).
NOTE 3.—Payments for service postage stamps.—The treasury should

not give any receipt for a payment made for service postage
stamps by transfer in the accounts.The draft receipt for a
payment made by cash or cheque for service postage stamps
should always be sent to the Sub Treasury Officer at a
sub-treasury or the Assistant Treasury Officer at a district
treasury for signature through a government servant employed
in the treasury and not through any person from outside the
treasury. After the receipt has been duly, signed, it should
be handed over together with the service postage stamps
concerned simultaneously to the person who paid the cost
of the stamps into the treasury.
* Substitution [G.O.(P) 431/77/Fin., dated 4th November, 1977]
75
121. Special to Judicial Department.—A person who wishes to pay

any money into a civil court dealing with a treasury, which does not transact
its cash business through the Bank, should obtain from the court a chalan in
Form T.R. 24 and pay the money into the treasury along with it (See also Rule
96).
A person who wishes to pay any money into a court dealing with a
treasury which does not transact its cash business through the Bank should
deliver the money along with the chalan and counterfoil receipt obtained from
the court to the treasury, which should retain the chalan and return the
counterfoil receipt duly signed. He should then take the receipt to the court,
which should enter the credit in its account and give the person who made the
payment a court receipt for the amount duly signed in exchange for the treasury
receipt, which the court should retain. The treasury receipt should, when filed
in the court, be attached by gum to the office counterfoil chalan.
NOTE—A District Judge or a Subordinate Judge may authorise his Sherishtadar

to sign chalans and a District Munsiff may authorise his Head Clerk
to do so. The chalan should bear a serial number, it should be duly
filled in at the court, and particulars of the notes and coin tendered
should be noted on the reverse. The counterfoil receipt should be
duly filled in at the court, except as to the date of payment into the
treasury and the signature of the Treasury Officer.
Issue of consolidated receipts relating to certain
departments
122. Forest Department.—On the first working day of each month the
Treasury Officer shall send to each of the Divisional Forest Officer who deals with
the treasuries in his district a consolidated receipt in Form T.A. 11 in the Kerala
Account Code, Volume II, for the total amount received and credited under Forest
Remittances during the previous month in respect of the Forest Officer’s Division.
If any remittances relating to a Divisional Forest Officer have been received and
credited to Revenue deposits, the Treasury Officer shall enter in the consolidated
receipt the numbers assigned to the several deposits in the treasury [See also rule
129(b)]. As soon as the consolidated receipt is received from the treasury, it shall
be compared with the postings in the cash book and the Divisional Forest Officer
shall satisfy himself that the amounts remitted have been actually credited in the
treasury or the Bank.
76
123. Public Works Department and Commercial Services.—A Public

Work Officer or an officer of a Commercial Service who keeps a remittance
book (Form T.R. 15) in which the Treasury Officer is required to acknowledge
receipt of remittances shall prepare at the end of each month a consolidated
receipt in Form T.R. 25 for the whole of the remittances made during the period
and send it to the Treasury Officer with the remittance book. The Treasury
Officer shall verify the entries by comparison with the Schedule of Receipts
(Form T.A. 9, Kerala Account Code, Volume II) in which the treasury records
all receipts relating to the Public Works Department and Commercial Services.
If the entries are correct he shall sign the book and the consolidated receipt
and return them to the officer concerned. The Treasury Officer shall sign the
consolidated receipt himself, however small the amount may be, and, if there
is any difference between the amount shown in the consolidated receipt and
the credit in the treasury account, he shall explain the reasons for the difference
in detail in the consolidated receipt (See also rule 129(b)].
{ii) TREASURIES WHICH TRANSACT THEIR CASH BUSINESS
THROUGH THE BANK
(A) Payment into the Bank by private persons
124. When a private person desires to pay any money into the Bank
on Government account he shall first present at the treasury concerned a
chalan (Form T.R. 12) prepared in duplicate, or otherwise, as the rules require.
The Government servant whose duty is to examine the chalan shall do so and,
if it is in order, he shall specify the head of account, if it has not already been
done.
*NOTE—In the case of income tax chalan form, the Bank may return the
‘original’ copy of the chalan direct to the Income Tax Officer
concerned, instead of routing it through the treasury.
If the chalan is in order, the words “Correct” on all parts of it

and shall also be initialed at a district/sub treasury by the **Section
Head/Head Accountant/ Junior Superintendent for all the chalans
irrespective of the amount involved, and when so initialled, it shall
amount to an order to the Bank to receive the money and grant a
* Insertion [G.O.(P) 346/76/Fin., dated 10th November, 1976]
** Substitution [G.O.(P) 431/77/Fin., dated 4th November, 1977]
77
receipt to the payer. The person making the payment shall then take
the chalan (both or all parts) to the Bank. The Bank shall receive the
money and credit it to the proper head of account, give an
acknowledgment of receipt to the payer on the original chalan and
forward the duplicate chalan to the treasury along with the daily
account.
[G.O.(P) 40/77/Fin., dated 31st January, 1977]
When private persons have been duly authorised to make payments
of a particular kind direct into the Bank on Government account and
desire to make payments accordingly, the procedure laid down in
Rule 126 shall be followed mutatis mutandis.
[G.O.(P) 113/78/Fin., dated 24th January, 1978
*NOTE 1.—If a chalan on which a date of validity has been specified
by the departmental officer is presented after that date, it
shall not be accepted at the bank or money thereof accepted
by the bank until it is revalidated by the departmental officer.
NOTE 2.—[Omitted]
[G.O.(P) 40/77/Fin., dated 31 st January, 1977]
NOTE 3.—The acknowledgment on the chalan, for moneys received may
be signed by the officer authorized by the Bank, under his
full signature, only in the original and such other copies as
are required to be returned to the tenderer, the
acknowledgment in the other copies being merely initialed
by him.
† [G.O.(P) 334/77/Fin., dated 6 th September 1977]
NOTE 4.—For rules regarding the acknowledgment of cheques, the
procedure to be followed when a cheque is dishonoured and
the date to be treated as the date of payment, see [Rules 90(b),
91 and 108.]
* Substitution [G.O.(P) 839/79/Fin., dated 31st August, 1979]
† Omitted the para beginning the words “Every cheque which is to
be credited to Government” and ending with the words “has been
cleared.” [G.O.(P) 334/77/Fin., dated 6th September, 1977]
78
NOTE 5.—Payments for stamps sold to the public by ex officio vendor

may be made direct to the ex officio vendors instead of the
Bank. At places where the treasury and the bank are closely
situated and it is, therefore, not inconvenient to follow the
procedure laid down in Rule 124 above, that procedure may
be followed.
A government servant should pay for any service postage
stamps for which he indents on the treasury by means of
an adjustment bill or a cheque and should not make any
payment direct into the Bank on this account. The treasury
should not give any receipt for a payment made for service
postage stamps by transfer in the accounts.
125. Special to Judicial Department.—A person who wishes to pay
money into a civil court dealing with a treasury which transacts its cash
business through the Bank should follow the same procedure as that
prescribed in Rule 121 except that he should pay the money into the Bank
with a chalan in Form T.R. 26 together with a counterfoil receipt. The chalan
will be signed by the Bank Agent instead of the Treasury Officer. The chalan
and the counterfoil receipt need not be first presented at the treasury.
The procedure laid down in the second paragraph of rule 121 should be
followed mutatis mutandis in regard to the issue of receipts by the Bank
and the court concerned for such payments and filing of the Bank receipts in
the court.
Every civil court dealing with a treasury which transacts its cash business
through the Bank should maintain a register in Form T.A. 13 in the Kerala
Account Code, Volume II and make the necessary entries in it regarding all
moneys which private persons pay into the court as deposits with reference
to this instruction. Each deposit should be entered separately in the register
and numbered. There should be a fresh series of numbers for each year. The
Judge of the court should carefully check the particulars of each entry and
then write his initials against it in the proper column in token of its correctness.
NOTE—The procedure relating to the receipt of money in the High Court is
governed by the Original and Appellate Side Rules of the High Court
contained in the “Civil Rules of Practice”.
79
(B) Payment into the Bank by the government servants

126. When a government servant realises a fine, forfeiture or other
miscellaneous receipt on behalf of the Government, he shall pay the money
direct into the Bank with a chalan in duplicate which need not be first
presented at the treasury. The bank shall retain one copy of the chalan and
forward it to the treasury with the daily account and shall return the original,
duly receipted, to the government servant for record in his office. The
government servant who tenders the money at the Bank shall, before leaving
the Bank, obtain the Bank’s receipt for the money on the original chalan,
which may be in the form of a remittance book sent along with the money for
signature.
* NOTE—The chalan for remittances of principal or interest on loans
and advances, and revenue deposits and security deposits shall
be routed through treasuries - vide also note below clause
(vii) of sub-rule (g) of rule 102.
127. Anamaths.—A district treasury which transacts its cash business
through the Bank need not maintain the Anamath Balance Register in Form
T.R.19 (See Rule 114; but the closing balance under each of the heads
mentioned in Rule 114 under which it is possible for the treasury to have
transactions shall be noted in the Treasurers Daily Balance Sheet
(Form T.R.3)
NOTE—The total cash balance of all the outstanding items should be entered
at the close of the day in the accounts of the district treasury or
sub treasury in the place specified in Rule 118 and verified in the
manner indicated there.
128. Village remittances.—Except where a special order of the
Government requiring that village remittances be paid directly into the Bank
is in force, they shall not be paid directly into the Bank, but shall be paid into
treasury, which shall receive the money and subsequently remit it to the Bank.
The procedure laid down in Rule 113 and 115 shall apply also to such money
received at a treasury which transacts its cash business through the Bank.
Credit shall be given under the proper heads of account in the treasury accounts
for the amounts received, and they shall be remitted to the Bank as soon as
possible along with chalan in duplicate which shall be prepared in the treasury
* Substitution [G. O. (P) 839/79/Fin. dated 31st August,1979]
80
and entered in the register of chalans issued. Whenever a remittance of this

kind is send to the Bank from the treasury, the Treasury Officer shall send an
advice to the Currency Officer, Reserve Bank of India, Madras, on the same
day showing the amount and the date of despatch to the Bank. The Treasury
Officer shall debit the amount remitted in his accounts under the head “Cash
remittances - Reserve Bank of India”. If there are any sums of money of this
kind in the treasury on the same day fixed for the closing of the monthly
accounts, they shall be remitted to the Bank in full on that day, so that no cash
balance shall be shown against the treasury in the monthly accounts.
In order to ensure that every village remittance is duly credited in the
treasury, which transacts its cash business through the Bank, every treasury
concerned shall maintain a register in Form T.R. 27 and enter in it with a
serial number the particulars of each village remittance as soon as it is
tendered at the treasury. After the money in a village remittance has been duly
counted and tested and an entry of the receipt made in the day book or
subsidiary register, the Treasury Officer shall tick the entry in the register in
Form T.R. 27. When the money has been paid into treasury or the Bank and
the chalan has been received back from the treasury or Bank duly receipted,
the Treasury Officer shall write his initials in the last column of the register.
After duly counting and testing the money tendered in a village
remittance, the treasurer shall enter the receipt in his cash book. When closing
the treasury for the day, the Treasury Officer shall verify, by comparing the
Treasurer’s cash book with the village remittance register (Form T.R. 27), that
all the village remittance received have been brought to account.
NOTE 1.— Whenever the Bank receives a remittance sent by a sub
treasury under the above rule, the Bank Agent should credit
the amount to the Government under the head “Cash
remittances-Reserve Bank of India” and send an advice of
the receipt of the remittance, showing the amount and the
date of receipt, to the Currency Officer, Reserve Bank of India,
Madras on the day of receipt,
NOTE 2.—In the case of treasuries at the following places, village
remittances shall be paid direct to the Bank:-Cochin, Tellicherry,
Palghat and Cannanore.
81
The procedure to be followed in receiving and checking these

remittances is laid down below:
(a) The Bank will make every effort to receive all village remittances
tendered before the closing hour and shroff and acknowledge them the same
day. If it receives a remittance, it will invariably complete the shroffing and
acknowledge the remittance the same day. If the Bank is unable to receive for
shroffing on the same day a remittance tendered shortly before its closing
hour, it will direct the village official who tenders it to return to the treasury
with the remittance and will give him a memorandum stating the time when the
remittance was tendered and the fact that the Bank is unable to receive it for
shroffing on the same day. The bags should then be sealed in the presence of
the village official and kept in the treasury strong room according to the usual
procedure and should be handed over to the village official to be tendered at
the Bank as soon as it reopens the next day.
(b) The Bank will give the village official who presents a remittance
full facilities for watching the shroffing of it. If the Bank finds that there is a
shortage on account of bad or defective coins or otherwise, the village official
will be given an opportunity of making it good at once. If he does not do so,
the Bank will inform the Treasury Officer and the Tahsildar of the taluk
concerned the amount and nature of the shortage, and will credit the
Government account only with the amount actually received by it.
129. (a) When a treasury transacts its cash business through the Bank,
the treasury and not the Bank shall issue any advices or certificates of receipts
which have to be sent to public officers and the periodical consolidated receipts
which have to be sent to certain public officers, unless the Government, with the
concurrence of the Bank, specially order that in a particular class of cases this
shall be done by the Bank.
(b) The Treasury Officer of a district treasury which transact its cash
business through the Bank shall send a monthly consolidated receipt to each of
the Divisional Forest Officers who deal with the treasuries in the district in the
manner laid down in Rule 122. He shall also follow the procedure laid down in Rule
123 in regard to signing the remittance books and consolidated receipts prepared
by Public Works Department Officers and Officers of Commercial Services at the
end of each month.
82
PART IV KERALA TREASURY CODE RULES 130-131
PART IV
CUSTODY OF MONEYS RELATING TO OR STANDING
IN THE GOVERNMENT ACCOUNT
SECTION I
Cash in Departmental Chests
RULES APPLICABLE TO DEPARTMENTS GENERALLY
130. Moneys received by a government servant on behalf of the

Government and not immediately remitted to a superior authority or a treasury
[See Rule 92 (b) and (c) of Part III] shall, until they are so remitted or otherwise
disposed of in accordance with the rules, be lodged in a cash chest, which shall be
kept in the government servant’s office or in his personal custody, as may be
convenient. The government servant who is responsible for the moneys shall
keep the key of the chest and the duplicate key shall be deposited in the treasury.
When a large amount of cash is frequently kept in the chest, it shall be fitted with
double locks of different patterns and the keys of the two locks shall be kept in the
custody of two different government servants, unless the Government have given
special permission in any case to dispense with this procedure. When an office is
provided with an iron safe for the custody of cash or other valuables, the safe
shall, if practicable, be embedded in masonry so as to prevent removal by thieves.
131. (a) Subject to the provisions of clauses (b) and (c) below, the contents
of the cash chest or the cash on hand shall be counted by the head of the office
or, under his orders, by a gazetted subordinate at the close of business on each
working day and verified with the book balance as shown, in the cash book and
other registers after they have been closed for the day. A memorandum of
verification, as shown below, shall be signed and dated by the government servant
who counted the cash:-
Balance shown in cash book .. ..
Balance shown in acquittance rolls or
Register of undisbursed pay, etc. .. ..
Balance of permanent advance shown in
contingent register or permanent advance
disbursement register .. ..
Total book balance .. ..
Cash balance ascertained by counting
83
If there is any difference between the book balance and the actual cash
balance which cannot be reconciled at once, action shall be taken under
Article 315 in the Kerala Financial Code.
(b) In an office in which there are no regular daily transactions or

the transactions are few, the head of the office may, with the previous approval
of his immediate superior, order the closing of the cash book etc., less
frequently than every day, e.g. once a week; but the registers should be
closed and the cash balances verified often enough to prevent malpractices
and in no case less frequently than once a month.
(c) When the head of office is absent on tour or otherwise the

Officer (Gazetted or non-gazetted) next below in rank and present shall discharge
all the duties of the head of office with regard to the maintenance of cash book
and verification of cash balance in accordance with the rules. The head of
office on his return, shall verify the correctness of the entries in the cash book
and other connected records, attest them and verify the cash balance and
shall record a certificate to this effect in the cash book.
(d) Cash received and despatched book.—Every office dealing with

cash should maintain a small note book in Form T.R. 27-A in which the officer
in charge of money will enter items as he hands over money, cheques and
drafts to the last grade government servant messenger and obtain his signature
against the entry. The officer will similarly sign in the book when he receives
money from the messenger. For amounts handed over to the clerk, the latter’s
signature shall be taken and it shall be seen that these amounts are brought to
the cash book promptly.
132. The Government in the Finance Department shall arrange to hold

surprise inspection of cash, stores and accounts in Government offices by
the Inspection Wing of the Department. Any grave or important irregularities
detected during the local inspection shall be intimated to the Accountant
General also.
84
SPECIAL TO THE FOREST DEPARTMENT
133. Verification of monthly closing cash balance.—Each Divisional

Forest Officer should verify in person his monthly closing cash balance as at the
close of business on the last day of each month and append a certificate of
verification to the monthly classified abstract of cash account
.If, however, a Divisional Forest Officer is absent on tour when his monthly
closing cash balance has to be verified and certified, or is so incapacitated by
sickness that, it is physically impossible for him to attend to these duties, the
senior subordinate Forest Officer present at the Divisional Forest Officer’s
headquarters (excluding the Head Clerk and other office employees) should do
so, but in that case the fact of the Divisional Forest Officer’s absence or sickness
should be distinctly noted in the return. Except with the special permission of the
Chief Conservator of Forests on each occasion, a Divisional Forest Officer should
not allow more than two consecutive months to elapse without personally verifying
his monthly closing cash balance. The result of each verification of the monthly
closing cash balance should be reported to the Accountant General.
SPECIAL TO THE PUBLIC WORKS DEPARTMENT
134. Verification of monthly closing cash balance.—The actual balance

in the cash chest of each office should be counted on the last working day of each
month immediately after closing the cash account of the month or, if this is not
possible, at least on the morning of the next working day before any further
transactions take place. A statement of the details of the actual cash balance
should be prepared in the prescribed form. A certificate of verification specifying
the actual cash balance (exclusive of imprests and temporary advances) both in
words and figures and stating that it was ascertained by actual counting by
himself should be recorded below the closing entries in the cash book and signed
and dated by the disbursing officer.
When it is impossible for the disbursing officer, owing to absence from

headquarters or illness, to count the cash balance on the prescribed date, he
should do so at the earliest opportunity and record the reason for the delay on the
cash balance report [Form No. 5, Book of Form (P.W. Accounts)].
85
PART IV KERALA TREASURY CODE RULE 135
SECTION II
Moneys held in the Treasury
A. CUSOTDY OF TREASURY CASH BALANCES
(i) District Treasuries
135. Custody and verification of the treasury balance.—
(a) The bulk of the treasury cash balance, generally known as the
“main store” or the double lock balance, shall be kept in the treasury strong
room under double locks. The Treasury Officer shall hold the key of one of the
two padlocks placed on the entrance to the double lock strong room of a
district treasury and the Chief Treasurer, the key of the other.
The Treasury Officer and the Chief Treasurer shall both be present in
person whenever the double lock strong room is opened and shall remain
there till it is closed. When opening the strong room, the Treasury Officer and
the Chief Treasurer respectively shall himself unlock the padlock of which he
holds the key and immediately remove the key, similarly, when closing it, each
shall himself lock the padlock of which he holds the key. When closing the
strong room, each double lock officer shall satisfy himself that each double
lock receptacle has been double locked and that no one remains inside the
strong room; the entrance to the strong room shall then be closed and double
locked, and each double lock officer shall satisfy himself that this has been
properly done.
When the strong room is finally closed for the day, the Treasury
Officer and the Chief Treasurer respectively shall, after locking the padlock on
the entrance to the strong room of which he holds the key, place the key in a
leather bag and have the bag sealed in the presence of both the officers by a
subordinate, who shall not take the key out of the bag. Both the official seal
and the private seal of the Treasury Officer shall be affixed to each of the bags.
Each double lock officer shall take his bag from the subordinate immediately
after it has been sealed. Both the seals shall then be affixed to each of the two
padlocks on the entrance to the strong room and each double lock officer
shall satisfy himself that this has been properly done before he leaves the
place.
The Treasury Officer and the Chief Treasurer respectively shall never,
under any circumstances, hand over the key held by him to anyone other than
a government servant who has been duly authorized to take charge of the
duties of his post from him.
(For the corresponding rule for a sub treasury, see Rules 140 and 141)
86
(b) The Treasurer may be allowed to hold in his separate custody a

sum sufficient for the convenient transaction of Government business. The
Treasury Officer shall see that the amount so held does not ordinarily exceed
` 5,000 and that any request by the Treasurer for a larger sum is carefully
scrutinized taking into consideration the cash receipts of the day which may
also be utilised for the expenditure for the day. Before signing the Treasurer’s
daily balance sheet when closing the treasury for the day, the Treasury Officer
shall verify the balance in the Treasurer’s sole charge as shown in that sheet
and satisfy himself that it does not exceed the current requirements, that it
contains no uncurrent coin and that it does not contain more of any kind of
small coin than is needed for current use. He shall also verify that the total
value of the cash, stamps, opium, gunja and banderols held in the Treasurer’s
sole charge does not exceed the amount of the security furnished by the
Treasurer, and shall then have them placed in the double lock strong room.
NOTE 1.—Treasury balance and currency chest balance.—The moneys
held in a treasury as part of the Government’s cash balance
form the treasury balance, from which Government
disbursements are made and into which Government receipts
are paid. A separate currency chest also is ordinarily kept
in the treasury. The currency chest balance consists partly
of notes which are treated as not “in circulation” and partly
of coin (rupees and gold coin) which is part of the assets
held by the Issue Department of the Reserve Bank of India
against the note issued in accordance with the provisions
of the Reserve Bank of India Act, 1934 (India Act II of 1934).
The contents of the currency chest are the property of the
Reserve Bank but the Government are responsible to the
Reserve Bank, for them. All the government servants
concerned should take the same care to safeguard the currency
chest balances as in the case of the treasury balance.
NOTE 2.—Deposit in currency chest of sealed bag of coin or bundle
of notes relating to a loss of cash from the currency chest
or the treasury balance.—In cases of losses of money due
to theft from currency chests, the amount recovered is sealed
in a packet or bag and deposited into the currency chest.
When the loss is due to defalcation, the deficient bags or
bundles, from which money has been removed, are also kept
87
sealed in the currency chest. When it becomes necessary

to take out the sealed packet and/or bag or deficient bag and/
or bundle for exhibition in court, the transaction should be
treated as a definite withdrawal from the chest on the day
of withdrawal and included in the advice and currency chest
slip to be sent on that day to the Currency Officer, Madras.
Similarly, when these are deposited into the currency chest
(which should be done as soon as possible), the transactions
should be treated as a deposit into the currency chest and
included in the transactions of the day and in the chest slip
to be sent to the Currency Officer, Madras.
Whenever a sealed packet of notes or bag of coins
is deposited into the currency chest, there should be a clear
certificate attached to the packet or bag as the case may be,
in the handwriting of and over the full signature with the
date and designation of the officer whose private seal is affixed
on it, stating the contents and value of the sealed packet
or bag. The certifying officer should be someone other than
the officer-in-charge of the treasury or sub treasury and
should be either the Magistrate who is dealing with the case
in question or an officer of the Revenue Department not below
the rank of a Revenue Divisional Officer. In respect of a bag
so sealed and till the case is finally disposed of, there is no
need to break open the seal every time the currency chest
has to be verified. The officer verifying the currency chest
balance should accept the certificate so long as the seal is
intact and include the amount in the balance. When the case
is over and the sealed bag is no longer required for production
in a court of law, the usual procedure for making up the notes
into bundles or coins into bags and for verifying their contents
should be followed.
The above instructPART IVions apply also to cases of losses
from the treasury balance. If, for any specially strong reason,
the Magistrate finds it necessary to seal the bags the
following procedure should be observed:—
If the sealed bags do not contain any small coin and contain
only rupee coin or notes in even hundreds of rupees, the
sealed bags should be deposited into the currency chest and
88
an equivalent amount taken out from it in exchange for the

contents of the sealed bags. Whenever a need arises for taking
the sealed bags out of the currency chest for production in
court, the transaction should be treated as a definite withdrawal
on the day of taking them out and included in the advice
and currency chest slip to be sent for that day to the Currency
Officer, Madras. Similarly, when sealed bags are replaced in
the currency chest, the transaction should be treated as a
deposit into the chest and included in the transactions of
the day and in the chest slip to be sent to the Currency Office,
Madras.
If, however, the sealed bags contain small coin or amounts
which are not in even hundreds of rupees, such exchange
from the currency chest is not permissible. Once a bag is
sealed by the court as an exhibit in a case, the contents of
the bag cannot be taken out for treasury disbursements till
the case is closed. Such sealed bags which cannot be
deposited in the currency chest should be accounted for as
valuable property in the Safe Custody Register Form T.R. 28
until the final disposal of the case, i.e., they should be excluded
from the treasury balance by making a debit to the head
“Suspense-Payments in Cash”, which will be cleared on the
close of the case. Each issue of the sealed bag from the
treasury for production in court and receipt of the bag back
from the court should be noted in red ink in the register
mentioned above.
136. Treasury strong room.—
(a) No place should be used as a strong-room, unless an officer of
the Public Works Department not lower in rank than an Executive Engineer
has certified that it is secure and fit for use as a strong room. He should
examine particularly the condition of any part of the enclosing walls which
is not, on the outside, under the observation of the guard. When giving his
certificate, he should prescribe any conditions that may be necessary as to
the manner of storing the coin e.g., that it should not be piled on trestles but
should be kept in boxes, or that no bag or box should be placed within a
prescribed distance of the wall or in any particular part of the room.
(b) An iron safe used in the strong room should be embedded in
masonry, so that the handles of the lid just reach the ground level. Locks and
bolts should be kept well oiled and free from dust.
89
(c) Every strong room should be inspected annually by the

Executive Engineer or by an experienced Assistant Engineer or an officer
holding sub divisional charge deputed by the Executive Engineer for the
purpose and the Treasury Officer should obtain a certificate of safety from the
Inspecting Officer after each annual inspection.
(d) The Superintendent of Police should record an order prescribing
the positions of the sentries, and may require any additional precautions to be
taken in regard to the strengthening of fastenings, burning of lights, etc. The
responsibility for the security of the building and its fixtures will, however,
remain with the Executive Engineer, and the responsibility for the security of
chests and other treasury furniture not forming part of the building or fixtures
will remain with the Treasury Officer.
(e) A copy of the latest certificate given by an Inspecting Public
Works Officer under clause (c) above and a copy of the order of the
Superintendent of Police under clause (d) above should be hung up in a
conspicuous place inside the strong room. The Treasury Officer should see
that any conditions as to the manner of storage of treasure mentioned in these
documents are complied with.
(f) The doors and windows of the strong room should be kept
permanently closed and locked, except during the time necessary for moving
coin or other valuables into or out of it. As an exception to this rule, the
opening of shutters is permitted during office hours in an aperture, which is
otherwise barred, if it is necessary for the admission of light or air to any
other part of the building, provided that all coins and valuables remain securely
packed in locked receptacles.
(g) Chubbs, Hobbs, Godrej or Dindigul Padlocks or Sparling patent
padlocks manufactured at the Sparling Lock Works at Aligarh should be used
as the double locks on the entrance to a strong room, and also on double lock
receptacles kept in the strong room.
137. Treasury padlocks and keys.—
(a) A register of all the padlocks and keys belonging to the district
treasury and its sub treasuries should be maintained in Form T.R. 29 and
kept in the strong room of the district treasury. Separate pages should be
assigned to the district treasury and to each sub treasury. Each sub treasury
should also keep a list of its own padlocks and keys in the same form.
90
*The Treasury Officer or the Treasurer, as the case may be, shall initial in column
9 of the register against each original key in his charge as an acknowledgment that
he has received it. In regard to each duplicate key, which is kept in the box of
duplicate keys under the joint custody of the Treasury Officer and the Treasurer,
a note shall be made to that effect and initialed by the Treasury Officer and the
Treasurer in column 7 of the register. The Treasury Officer shall note the number
and date of safe custody deposit item of the sealed box containing the duplicate
keys of the padlocks used on the entrance of the district treasury strong room,
etc., [See clause (e) below] in the appropriate place of the register. The Treasury
Officer shall obtain the acknowledgment from each Sub Treasury Officer for the
original Sub Treasury keys in his possession and the number and date of each
acknowledgement shall be noted in the register.
All padlocked boxes, locks and keys used for remittance purposes are
the property of the Reserve Bank which will be responsible for repairs to, and
replacements of, such boxes, locks, keys, etc. All Treasury Officers and Sub
Treasury Officers should maintain a separate account of all such articles in their
custody in the form prescribed by the Reserve Bank. The boxes should be marked
“R.B.M.” and used for remittance purposes, when necessary. Any charges for
repair or replacement of these boxes, locks and keys should be incurred only with
the previous sanction of the Currency Officer and debited to the Reserve Bank.
(b) Every padlock should have a number impressed upon it or attached
to it by a metal or other label, and the same number should be impressed on, or
attached to each key belonging to it. No two padlocks in the same district should
bear the same number.
(c) Whenever a padlock is out of order or no longer required the
Treasury Officer should sent it to the Superintendent, Public Works Department,
Engineering Workshop, Trivandrum for repairs or for disposal. If a key is lost, the
Treasury Officer should at once report the fact to the Director of Treasuries and
send the padlock to the Superintendent, Public Works Department, Engineering
Work shop, Trivandrum, requesting him to have its lever altered and provide new
keys for it. If the key lost is the property of the Reserve Bank, the loss should be
reported to the Bank. No padlock of which a key has been lost may be used again
in the districts, until it has been so altered. The Treasury Officer should ordinarily
recover the cost of the alteration and the new keys from the person or persons to
whose carelessness he attributes the loss of the key.No local mechanic may ever
be allowed to repair a treasury padlock or to make a new key for one.
* Substitution [G.O.(P) 181/76/Fin., dated 26th June, 1976]
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(d) No spare padlocks should be kept at a sub treasury or except

with the permissions of the Director of Treasuries at a district treasury.
The Director of Treasuries should see that no necessary padlock and
keys and no unnecessary duplicate keys are supplied to, or retained in any
treasury. No duplicate keys should be kept at a sub treasury.
(e) All spare padlocks with their keys which are kept in a District
Treasury with the approval of the Director of Treasuries and all duplicate keys
pertaining to the District Treasury and the Sub Treasuries in the District,
except the duplicate keys of the locks used in the entrance to the strong
room of the District Treasury and the District Stamp Depot if any and that of
the duplicate key receptacle shall be kept in the District Treasury strong
room in a receptacle with double locks as an item of deposit under safe
custody. The key of one of the locks of this duplicate key receptacle shall be
kept with the District Treasury Officer and the key of the other with the
Treasurer. The District Treasury Officer and the Treasurer shall keep these
keys in their personal custody and shall not hand them over to any one except
under the written orders of the Director of Treasuries. But the District Treasury
Officer shall hand over the keys in his possession to the Assistant Treasury
Officer/Officer-in-charge of the District Stamp Depot if any, when he is absent
from headquarters on account of tour or inspection work or otherwise. The
District Treasury Officer may also authorise another Treasurer of the District
Treasury to keep the key in the custody of the Treasurer present when the
regular Treasurer is absent on leave or for some other valid reasons.
(f) The District Treasury Officer shall, in the presence of the Treasurer-
in-charge of the keys of the strong room of the District Treasury put the duplicate
keys of the locks used on the entrance of the District Treasury strong room as well
as those of the locks of the entrance door of the strong room of the District Stamp
Depot, if any, and those duplicate keys of two locks used on the duplicate key
receptacle referred to in sub-rule (e) in a box having double lock arrangement and
fitted with chubbs, hobbs, godrej or dindigul padlock or sparling patent padlocks
and keep one key of the lock of the box, with himself and one key of the other lock
being kept by the Treasurer; the duplicate keys being kept in duplicate receptacle.
The box shall then be wrapped and tied around by means of a tape or thread. The
Treasury Officer and the Treasurer shall affix their seals on the tape or thread in
such a way that the wrapper cannot be opened without tampering with the seals.
The District Treasury Officer shall then deposit the box in the nearest branch of
92
the State Bank of India/State Bank of Travancore. The District Treasury Officer
and the Treasurer shall keep their respective keys of the box in their personal
custody and shall never under any circumstances hand over the key held by them
to any one other than a government servant who has been duly authorised to take
charge of the duties of their respective posts from them. Once in a year, in April,
the District Treasury Officer shall take back the box from the Bank and open the
safe in the presence of a Treasurer, examine the keys, lock the box and seal it again
in the aforesaid manner and return it to the appointed person. He should also
make a note at the same time in the register of padlocks and keys stating that the
keys were examined by him and the Treasurer found them to be correct under
attestation by both.
(g) Whenever the Collector, or the Treasury Officer hands over
charge, all padlocks and duplicate keys belonging to or kept in the treasury
should be examined and compared with the register of padlocks, and keys
and the relieving officer should sign a certificate in the register showing whether
he has found them to be correct. The padlocks and duplicate keys need not,
however, be examined when the Collector or the Treasury Officer is transferred
only temporarily or goes on casual leave and the temporary incumbent is not
likely to have any occasion to open the receptacle containing spare padlocks
and duplicate keys. If it becomes necessary for the temporary incumbent to
do so whilst in charge, he should at once carry out the examination of all
padlocks and duplicate keys and sign a certificate in the register as prescribed
above.
*In sub rule (g) for the words “The Collector or the Treasury Officer”
in both the places where they occur, the words “The Treasury Officer or the
Treasurer” shall be substituted.
Whenever either of the two government servants who hold the two
sets of keys of the double locks in use at a sub treasury hands over charge
otherwise than temporarily, all the padlocks and keys in use in the sub treasury
should be checked with the register of padlocks and keys and the relieving
government servant should sign a certificate showing whether he has found
them to be correct.
(h) Whenever an officer of the Indian Audit and Accounts
Department inspects a treasury, he will report whether the rule prescribed by
the government for the custody of the padlocks and keys of the treasury
strong room and chest are duly observed.
*Substitution [G.O. (P) 181/76/Fin., dated 26th June, 1976.]
93
Whenever the Director or one of his assistants inspects a sub treasury,

he should check all the padlocks and keys in use in the sub Treasury with the
register of padlocks and keys and record the result in the register. The Assistant
should also report the result of his check to the Director.
(i) The Director of Treasuries may modify these instructions in
matters of detail to suit local convenience, when necessary, but there should
be no departure from the essential instructions relating to important matters,
such as the responsibility for the custody, of duplicate keys, the examination
of duplicate keys periodically and when there is a transfer of charge, and the
report to be made when the key is lost.
138. Storage of treasure.—
(a) Coin shall be stored in a strong room in one of the following
three ways.—(i) In bags of uniform size and contents placed in strong iron
boxes or safes, or wooden chests, or built recesses or wells, each of which
shall have two independent locks and be so constructed that it is impossible
to have any access to the contents until both locks have been opened. Bags
made of net material shall always be used for storing whole rupees. The
Treasury Officer shall hold the key of one of the two locks on each double
lock receptacle in a district treasury and the Treasurer, the keys of the other.
The Treasury Officer and the Treasurer respectively shall never, under any
circumstance, hand over any double lock key held by him to any one other
than a government servant who has been duly authorised to take charge of
the duties of his post from him.
(For the corresponding rule for a sub treasury, See Rule 140).
(ii) In bags of uniform size and contents piled upon trestles. Bags
made of net material shall always be used for storing whole rupees. This
method must not be adopted unless every door, window, drain, sky-light,
ventilator, or other aperture in the walls or ceiling of the strong room is so
closed, as to make it impossible to insert any rod or instrument into the strong
room.
(iii) Temporarily in preparation for making a remittance, in stout
boxes capable of containing ` 4,000 to ` 6,000 each, nailed down and bound
with iron, without gunny covering or ropes. The iron hoops on each box
should be rivetted or nailed together where they cross. Each box should bear
a number and the name of the despatching treasury cut into or painted on it.
94
(b) All notes shall be stored in separate receptacles and not along
with coin. High value notes shall be stored in a tin box, and the remaining
notes in suitable receptacle that will protect them from injury by damp,
insects, etc. They shall be kept in bundles of not more than a hundred notes,
each, and each bundle shall contain notes of one denomination only.
Explanation.—Notes of the denomination of ` 100 or more shall
be treated as high value notes.
NOTE—Nottams should not be placed in charge of the keys of the treasury
nor should they be made to keep any accounts other than those
pertaining to the Nottams. They should be liable only for bad coins
received and over payments made by them during the day. A Treasurer
going on casual leave should hand over his key to an Assistant
Treasurer (if there is such a post in the treasury). If there is no post
of Assistant Treasurer, the Treasurer going on casual leave should
hand over his keys to another government servant employed in the
treasury (who may be either an Accountant or a Nottam) as nominated
by him on the clear understanding that the responsibility in the event
of loss during the period of charge of such nominee rests on the
Treasurer.
139. Receipt of moneys into and issue of moneys from double locks.—
The following procedure shall be followed:—
(a) Coin of each denomination shall be made up in bags of uniform size
and contents by the Treasurer for reception into the double locks. The Treasury
Officer shall verify the contents of each bag, and shall then count the bags into
the double lock receptacle.
(b) Notes intended for delivery into double locks shall be made up in
bundles according to denomination in the order of receipt. No bundle shall contain
more than a hundred notes. The Treasury Officer shall count the notes in each
bundle with his own hands and satisfy himself that it does not contain any note
of a denomination different from that specified on the label in Form T.R. 31 affixed
on top of the bundle, and shall sign the label as a token of his verification. He shall
then count the bundles so verified into the tin box containing high value notes or
the double lock receptacle with his own hands and, if the tin box has been taken
out of the double lock receptacle shall replace it therein with his own hands.
The detailed check of fresh notes of the denomination of ` 10 and ` 5
received in a remittance from the Currency Office may be confined to one bundle
in every ten taken at random.
95
(c) Notes shall be given out of double locks by counting the number
of bundles. The bundles shall be arranged in the double lock receptacle in the
order of receipt and given out in the same order, taking first those which were
received earliest, so that notes of the older issues shall not be stored
indefinitely. As soon as the Treasury Officer and the Treasurer have opened
a double lock receptacle for the purpose of taking out notes, the Treasury
Officer shall take out with his own hands the requisite bundles of notes (or,
if it is required, the tin box containing the high value notes) and the receptacle
shall immediately be closed. The Treasury Officer shall take out with his
own hands all notes that have not be taken out of the tin box containing high
value notes and, during any period required for counting the notes, the tin
box shall be kept closed. As soon as the transaction relating to the notes kept
in the tin box has been completed, the Treasury Officer shall replace it in the
appropriate double lock receptacle with his own hands.
(d) A double lock receptacle shall not be kept open or unlocked
for longer than is necessary and in no circumstances shall more than one
double lock receptacle be kept unlocked at a time. As soon as the
transaction relating to a receptacle has been completed, it shall be properly
double locked.
(e) The provisions in clauses (b) and (c) above requiring the
Treasury Officer to take out notes from double lock receptacles with his own
hands and to count them himself in no way affect the responsibility of the
Treasurer for the handling of the moneys in the treasury as laid down in Rule
135.
(f) A memorandum in Form T.R. 32 for coin, or one in Form T.R. 33
for notes, shall be kept in each double lock receptacle showing its contents.
Whenever any amount is passed into or out of double locks, the Treasury
Officer shall make the necessary entries in these memoranda and in Form T.R.
4 (Treasurer’s Daily Balance Sheet) at the time with his own hands.
(g) When notes are prepared in accordance with clause (b) above
for reception into double locks, a slip in Form T.R. 31 stating the number of
notes the bundle contains and their denomination, and bearing the full
signature of the government servant who made up the bundle and the
government servant who last counted the notes in it shall invariably be affixed
to the top of each bundle, so that if any deficiency or defect of any kind is
detected subsequently, there may be no uncertainty as to who counted and
examined the notes. A slip in Form T.R. 30 shall be duly filled up and placed in
each bag of coin which is prepared for reception into double locks.
96
(h) The Treasury Officer shall “prove” the balance whenever money
is transferred from double locks to single lock and vice versa and from double
locks to the currency chest and vice versa.
Explanation.—The scope of the term “proving” is explained in note
under Rule 152(iii).
(ii) Sub Treasuries
General
140. Subject to the provisions contained in rule 141 the provisions in
rules 133 to 137 shall apply generally to the sub treasuries also. Duties and
responsibilities assigned to the Treasury Officer in the district treasury shall
rest with the Sub Treasury Officer in the case of sub treasuries.
141. The amount of cash required for current purposes to be left in the
custody of the Treasurer in a sub treasury shall be fixed by the District Treasury
Officer and such cash should be kept by the Treasurer under single lock in the
strong room. If on account of the receipt, the amount in the hands of the
Treasurer becomes larger than the maximum fixed by the District Treasury
Officer he shall at once inform the Sub Treasury Officer or other officer-in-
charge of the sub treasury so that the latter may transfer the excess to the
main sub treasury balance under double locks.
142. [Deleted]
143. [Deleted]
SECTION III
Verification and Certification of Cash Balance of Treasuries
144. The monthly cash balance in the treasury, i.e., the cash balance at
the close of the day on which the accounts of the month are closed, shall be
verified as follows:—
(a) Copper, bronze and nickel coin.—The Collector or other
verifying government servant shall adopt such method of verification as he
thinks satisfactory, remembering that he is personally responsible for the
correctness of the balance stated by him. He shall always count the number of
bags at the time of verification, and shall examine their contents at frequent
intervals, though it is not essential to do so every month.
97
(b) Notes.—(i) The verifying government servant shall personally

examine and count all notes of *denominations above ` 100.
(ii) The following method shall be adopted for verifying notes of
other denominations, if the verifying government servant cannot count them
personally without undue inconvenience:—
The notes shall be kept in bundles of a certain marked number. In
each bundle a few notes at the top shall be folded back and the rest counted
by clerks or assistants, who are not persons responsible for the correctness
of the bundles. The verifying government servant shall then see whether the
addition of the notes folded back to the number already counted makes up the
total number marked on the bundle.
The verifying government servant shall also satisfy himself that the
notes in each bundle are all of the alleged value, e.g., that a five rupee note is
not counted as one of a bundle of ten rupee notes.
145. These rules shall be printed and pasted on a board and hung up in
the strong room in a conspicuous place.
146. The Collector or other government servant who verifies the
monthly cash balance in the treasury shall certify to the balance in the District
Treasury Cash Balance Report (Form T.R. 39) in the following form:—
“I hereby certify that I have personally ascertained by counting, that the
balance in the district treasury, for which I am responsible, amounted on the
…………………………………………..…….……. to `…………….
(in words) …………………………………………………………. I further
certify that the bulk of the treasure is kept under double locks the key of
one of which is in the exclusive custody of the Treasury Officer and that of the
other with the Treasurer. I further certify that the balance under single lock
with the Treasurer amounted on the above date to ` ………………….. and
that at no time did the Treasurer hold in his separate custody a sum larger than
was necessary for the convenient transaction of Government business or a
sum which, together with the value of stamps, opium, etc., in his sole custody,
was larger than the security given by him.
147. When the cash balance is verified on any date other than the first
working day of a month, it should be verified in the manner prescribed in Rule
144 above and the balance should be reported to the Government in the Finance
Department, and to the Accountant General in the usual form of cash balance
report (Form T.R. 35) (vide also Rule 311).
* Substitution [G.O.(P) 385/77/Fin., dated 7th October, 1977]
98
This provision regarding reports does not apply to the reports of the
verification of the cash balance on account of a transfer of charge; they
should be sent in accordance with Treasury Rule 4(4) of Part I and Rule 52 of
Part II.
The provisions of Rules 142, 143 and 145 are applicable to the verification
of sub treasury balances also.
148. The Sub Treasury Officer or other government servant who verifies
the monthly closing cash balance of the sub treasury shall sign a certificate as
follows on the sub treasury cash balance report (Form T.R. 36):
“I hereby certify that the balance in the sub treasury amounted on the
……………...........................………. to Rupees …………………….. and that I
have personally examined and ascertained that the said balance was actually
in the said sub treasury had agreed with the details of notes and coins entered
above.”
NOTE 1.—When verifying the stamps kept under double locks, it will
be sufficient for the Sub Treasury Officer or other government
servant who verifies the cash balance personally to check
10 per cent of the stock in each class of stamps and to
supervise the checking of the remaining stock in each class
by a reliable subordinate. The clerk who maintains the stamp
accounts and the Treasurers, Gollahs and Peons working in
the sub treasury office should not be allowed to assist in
verifying the stamps. The result of the verification should
be recorded in the stock register of stamps and attested by
all the government servants who are required to be present
during the verification.
NOTE 2.—A sub treasury which transacts its cash business through
the Bank should have no cash balance at the close of any
accounts month, and any cash in hand on the last day of
the accounts month should be remitted into the Bank on the
same day without fail.
99
NOTE 3.—Whenever the whole balance under double lock is verified,

a certificate of verification should be entered in the Treasurer’s
daily balance sheet. The fact of verification of the contents
of each double lock chest should also be noted in the
memorandum kept in the chest, whenever the contents are
verified.
SECTION IV
Currency Chest Balances
LOCATION OF CURRENCY CHESTS
149. Unless in any case the Government after consultation with the
Reserve Bank of India direct otherwise, permanent currency chests should be
maintained at all treasuries and sub treasuries where the transactions are of
such a magnitude that the additional facility for the transfer of funds thus
afforded reduces appreciably the locking up of moneys or the frequency of
remittances of coins and notes. At sub treasuries where a permanent currency
chest is not maintained, temporary chests for period not exceeding six
months may be opened during the revenue collecting season, in order that the
money collected at the sub treasury may be available at once for transfer
through currency. Treasury Officers are authorized to open temporary
chests at sub treasuries when required, but they should report the opening of
each chest and the amount of the first deposit into it by telegram to the
Currency Officer.
Explanation.—Under the provisions of the Reserve Bank of India Act,
the amount of currency and bank notes in circulation,
which constitute the liabilities of the Issue Department
of the Bank, should not exceed the assets of that
department held in gold, sterling securities, rupee coin
(including rupee notes), and rupee securities. A portion
of these assets is held in the various currency chests
in the form of rupee coin and rupee notes. The currency
and bank notes held in these chests are notes in
circulation but pass into circulation only when they are
transferred to the treasury balances. Assuming that there
are no transactions elsewhere, the deposit of currency
and bank notes in a currency chest decreases the amount
of such notes in a circulation and the deposit of rupees
100
and rupee notes inthe chest increase the assets of the

Issue Department of the Bank. A deposit notes or coin
in a currency chest thus enables the Bank to issue notes
elsewhere upto the amount deposited without
increasing the total amount of the notes in circulation.
If, therefore, a transfer of funds from the treasury balance
at ‘A’ to the treasury balance at ‘B’ is required, this can
be effected at short notice and without the actual
remittance of coin or notes by transferring money from
the treasury balance to the currency chest at ‘A’ and
transferring the same amount from them enables the
treasury balance at a treasury or sub treasury to be kept
at a low figure, as it is always possible to replenish the
balance quickly by a transfer of money from the currency
chest. It also obviates the necessity for frequent
remittances of coins and notes, as surplus funds can
always be deposited into the currency chests and made
available for use elsewhere, pending a convenient
occasion for remittance.
NOTE 1.—At places where the cash business of the treasury is conducted
by the Bank, the currency chests are kept in the sole custody
of the Bank.
NOTE 2.—The Currency Officer will be responsible for maintaining the
required form of currency chests. It is the duty of the Treasury
Officers to see that currency chests at district and sub
treasuries are adequately stocked with notes and rupees to
meet all reasonable demands for change.
CUSTODY
150. At a treasury which does not transact its cash business through
the bank, an entirely separate receptacle or receptacles should be set apart for
the contents of the currency chest and kept under double locks. The keys of
these double locks should be held in the same manner as the keys of the
double locks placed on receptacles used for the double lock treasury balance—
See Rules 136 (a) (i) and 138.
101
151. The notes and coin held in the currency chest should be kept
quite distinct from the treasury balances and should not be touched, except in
accordance with the rules contained in this Code or the instructions of the
Currency Officer, Reserve Bank of India, Madras. The procedure described in
Rule 139 for receiving moneys into, and issuing moneys from, double locks
should be followed in making deposits in or withdrawals from, the currency
chest.
152. The following instructions apply to all currency chests for which
the Government are responsible:—
(i) Every transaction should be in even hundreds of rupees.
(ii) Copper, bronze and nickel coins should never be deposited in
the chest.
(iii) A currency chest book in Form T.R. 37 should be kept in the
chest and the balance entered in the book, proved and signed at every
transaction by the officials in joint charge of the chest. They should satisfy
themselves that the transaction has correctly entered and that the balances
have been correctly calculated. They should invariably see that the currency
chest book is found within the chest when it is opened, that it is replaced in
the chest as soon as each transaction has been completed and the entry in the
book signed, and that the chest is then properly double locked at once.
NOTE 1.—For the purpose of “proving” the currency chest balance as
contemplated above at every transaction involving an addition
to or subtraction from the contents of the chest, the number
of bundles of notes and bags of coin under the various
denominations and any loose amounts less than a full bundle
or bag should be counted and tallied with the currency chest
book. It is not necessary for this purpose to verify in detail
by actual counting all the coin and notes in the chest.
NOTE 2.—A currency chest book should be retained for three complete
financial years after it ceases to be in use.
(iv) The officials in charge of the currency chest may deposit notes in
it in exchange for coin or notes of other denominations, or coin in exchange for
notes. These exchanges should not ordinarily be of small sums and they should
be avoided, as far as possible, during the last week of the month. If important
exchanges are made during the last three days of the month, the transactions
should be telegraphed to the Currency Officer.
102
(v) On every day on which the chest is opened, a serially numbered

currency chest slip in Form T.R. 38 should be prepared, signed by the two
government servant in charge of the currency chest and sent to the Currency
Officer, Madras, when the treasury is closed for the day. Further detailed
instructions regarding currency chest transactions and currency chest slips
contained in Appendix 7 should also be followed.
VERIFICATION OF CURERNCY CHEST BALANCES
153. (i) The Reserve Bank of India will conduct through its own officers
the verification of the balance in a chest in the sole custody of the Bank in
such manner as its considers desirable.
(ii) The balance in the currency chest at a district treasury which
does not transact its cash business through the Bank should be verified at the
close of each month by the Government Servant who verifies the treasury
balance under rules 4(3), 47 and 142* subject to the conditions stated in those
rules.
(iii) The balance in a sub treasury currency chest should be verified
at the close of business on the day on which accounts for the month are
closed by the Sub Treasury Officer or other officer who verifies the sub
treasury balance under Rule 61 and he should send a verification certificate
in Form T. R. 39 to the Treasury Officer. An inspecting officer who verifies the
treasury balance at such a sub treasury should also verify the currency chest
balance and send a verification certificate to the Currency Officer.
(iv) At every change in the incumbency of the post of either of two
government servants holding joint charge of a currency chest, the balance
should be verified by the relieving government servant in the presence of the
outgoing Government servant and of the other government servant who holds
joint charge and a report of the correctness of the balance of notes and coin
should be sent to the Currency Officer.
(v) The Treasury Officer should send the Currency Officer every
month a consolidated verification certificate in Form T.R. 39 for the currency
chests in his districts other than chests in the sole custody of the Bank,
showing the balance in each chest separately and certifying that the balance
in the district treasury chest, if any, is correct and that he has received from
* Rule 142 Deleted
103
the Sub Treasury Officers or the Government servants holding their keys
certificates of the correctness of the balances in the sub treasury chests. Sub
Treasury Officers or the Government servants holding their keys should submit
these certificates to the Treasury Officer in Form T.R. 39. Each certificate in
Form T.R. 39 should be retained by the Currency Officer or the Treasury
Officer as the case may be, until the next one relating to the same district or
chest has been received.
(vi) The balance in a currency chest not in the sole custody of the
Bank should be verified in the following manner:—
(a) The balance of notes or coin kept in receptacles which have
not been operated on since the last verification and which are under the
previous verifying government servants seal need not all be examined at each
verification, but the examination should be so arranged that no receptacle is
left unverified for over six months. The seal to be affixed on such receptacles
should be the private seal of the verifying government servant or a special
seal kept in the custody of the Collector or a gazetted assistant of the district
staff other than the Treasury Officer. The seals on the receptacles left unverified
at any monthly verification should be scrutinised carefully to see that they are
intact.
(b) Notes should be counted and examined in the manner
prescribed in clause (b) (i) of Rule 144.
SECTION V
Custody etc., of Other Valuables
(a) STAMPS
154. The bulk of the stock of adhesive stamps and stamped papers
should be kept in the double lock strong room in one more double lock
receptacles, of which the keys should be held in the same manner as those of
double lock receptacles used for moneys. Every place in which any stamps
are stored should always be kept properly dry. Stamps should be made up for
reception into double locks in parcels each of which contains a known quantity
of stamps of a single denomination. In a district treasury a limited amount of
stamps, not exceeding the probable amount required for sale during a week,
may be kept in the Treasurer’s sole custody under single lock. In a sub treasury
a small stock of stamps required for current purposes, not exceeding a maximum
amount which the District Treasury Officer should fix for each sub treasury,
104
may be kept in the Treasurer’s sole custody under single lock. Stamps should
be sold from the single lock store. The detailed rules regarding manufacture,
custody, supply, sale, etc, issued under the Kerala Stamp Act and the Indian
Stamp Act should also be strictly followed.
When a supply of stamps is received at a treasury, the officer in charge
of the treasury should personally, examine the outward appearance of the
boxes or packets and satisfy himself that they bear no marks of having been
tampered with. He should then have them opened in his presence and the
contents of each box or packets should be counted, either by himself or in his
presence, immediately on its being opened. He should compare the number
and value of the stamps received with the invoice or the passed indent and
send a receipt for them at once to the government servant who supplied them.
(b) BANDEROLS
155. The procedure prescribed in Rule 154 should be followed generally
in regard to receipt, custody and issue of banderols also.
(c) OPIUM AND GANJA
156. The main stock of opium and ganja should be kept in the double lock
strong room in one or more double lock receptacles, the keys of which should be
held in the same manner as those of double lock receptacles used for moneys. In
a district treasury no stock need ordinarily be kept in the Chief Treasurer’s sole
custody, but, if it is found necessary in practice to permit the Chief Treasurer to
keep a small amount of opium and ganja under single lock, the District Treasury
Officer should, with reference to the conditions in his district, fix the maximum
amount which may be so kept. Sales should be made from the single lock store, if
there is one.
In a sub treasury a small amount of opium and ganja required for current
purposes, not exceeding the maximum amount which the District Treasury Officer
should fix for each sub treasury may be kept in the Treasurer’s sole custody under
single lock, and opium and ganja should be sold from the single lock store.
The detailed rules contained in the State Excise Manual and special orders,
if any, regarding the custody, sale, etc., of opium and ganja should be strictly
adhered to.
105
(d) CASH CHESTS, VALUABLE, ETC., RECEIVED AT THE TREASURY

FOR SAFE CUSTODY
157. The following articles should be kept in safe custody in the

treasury when sent there for that purpose:—
(a) Sealed boxes purporting to contain jewellery or other valuables
brought into court of law under the Civil Rules of Practice and Criminal Rules
of Practice provided that a written request is received from the presiding
officer of the court.
(b) Sealed packets purporting to contain duplicate keys and
padlocks of strong rooms and currency chests for the branches of the State
Bank of India/State Bank of Travancore and sealed boxes purporting to contain
duplicate keys of the padlocks used on remittance boxes held by the Agents
of the State Bank of India/State Bank of Travancore on behalf of the Reserve
Bank of India.
(c) Sealed packets purporting to contain duplicate keys of iron safes
and cash chests provided for the use of government institutions and
government servants.
(d) Cash chests of Co-operative Land Mortgage Banks.
(e) Box containing the duplicate keys of the cash chests of local
bodies and co-operative societies registered under the Co-operative
Societies Act.
(f) Sealed packets purporting to contain duplicate keys of iron safes
and cash chests of Union Government Departments.
(g) Sealed covers purporting to contain National Savings
Certificates, if tendered by the holders on written request.
*(gg) Confiscated weapons sent for safe custody under the orders
of the Collector or Additional District Magistrate (Personal Assistant to the
Collector) pending their disposal in auction, provided a written request is
received from the officer concerned;
(h) Sealed cash chests and sealed packets purporting to contain
valuables not falling under clause (a), (b), (c), (d), (f), (g), or (gg) above and
iron safes and chests of private banks provided that no such safe, chest or
packet may be received unless the District Treasury Officer has issued an
* Insertion [G.O.(P) 104/76/Fin., dated 30th March, 1976]
106
order authorising the treasury to receive it for safe custody. Such orders
issued by the District Treasury Officer shall be subject to scrutiny and
approval post facto by the Director. In doubtful cases the District Treasury
Officer shall obtain the sanction of the Director in advance.
Whenever a District Treasury Officer issues an order authorizing a
treasury to receive a safe, chest or packet for safe custody with reference to
sub para above, he should communicate a copy of the order (together with a
copy of the application when necessary) to the Accountant General so that
he may examine the propriety of the grant of permission.
As regards the receipt of iron safes and chests of private banks for
safe custody in treasuries with reference to the first sub para above the
following further instructions shall be followed:—
If the chests or safes of any private bank are small in size and not too
many, they may be accommodated in treasuries and sub treasuries where,
space is available. Application for such accommodation should be made to
the District Treasury Officer. If the accommodation is to be made in a sub
treasury, the District Treasury Officer shall deal with such applications in
consultation with the Sub Treasury Officer. In the event of a refusal to give
such accommodation, the District Treasury Officer should make a report to
the Director explaining in detail the reasons for refusal to afford the facility to
the applicant banking company. The Director will forward to the Government
the report of the District Treasury Officer with his remarks and the Government
will then review the case.
In cases where the facility is granted, the depositing banks will have
to keep and remove their safes or chests with reference to their daily or periodical
requirements in the presence of both the double lock officers of the treasury.
With a view to avoid dislocation of work in treasuries and sub treasuries on
this account, it is necessary to fix definite hours for the agents of the private
banks for operating on their chests in the strong room. The hours between
10.30 a.m. and 4 p.m. on working days other than Saturdays between 10.30
a.m. and 1 p.m. on Saturdays may be generally suitable. The Treasury Officer
concerned will fix a definite time for this purpose in consultation with the bank
concerned.
107
The Treasury or Sub Treasury Officer accepting the cash chests or

safes of private banks for safe custody in the strong room will not take any
cognizance of the contents of the chests or safes and the receipts to the
banks will be issued in the form prescribed in Rule 158 below with a remark
that the contents of the chests or safes are unknown.
Rent at a flat rate of `.5 per mensem or part thereof will be collected
in advance for each safe or chest for which accommodation is lent. The receipts
on account of this should be credited to the Government under “0070. Other
Administrative Services”.
158. (1) No cash chest or packet containing valuables should be
received at a treasury for safe custody unless it is properly sealed. When any
such article is received at a district treasury, the Treasury Officer and the Chief
Treasurer should examine it carefully to see that the seals are intact and place
it under double locks, and the Treasury Officer should give a receipt for it
merely acknowledging the receipt of sealed cash chest or packet. When any
such article is received at a sub treasury, the Sub Treasury Officer should
follow the same procedure.
The Treasury Officer or the Sub Treasury Officer as the case may be should
insist on the return of any written acknowledgement or safe custody receipt
granted by the treasury before he returns any cash chest or packet containing
valuable out of safe custody.
The treasury should maintain a safe custody register in Form T.R. 28 and
record in it the necessary particulars regarding all sealed cash chests and sealed
packets received for safe custody.
The receipt to be issued by the officer in charge of a district treasury or sub
treasury as the case may be, when acknowledging receipt of a sealed cash chest
or packet for safe custody, should be in the form of a printed receipt with counterfoil
bound into a book, serially numbered. The counterfoil alone should be signed
and issued for every receipt of cash chest or sealed packet. When the sealed cash
chest or packet is returned the counterfoil issued at the time of its receipt at the
treasury should be got back, signed and pasted on to its original bearing the same
number in the printed receipt book. The printed receipt should be in the form
noted below:—
108
PART IV KERALA TREASURY CODE RULES 158-158A
…………………...............................................……. Treasury.
Received this…………………….day of ……………20……… cash chest/

sealed packet said to contain ……………………………………from
the………………………………and entered as item ……………….........of
……………………in the safe custody register ……….
This should be produced when the article is required back.
Dated ………………… Officer-in-charge of Treasury.

*(2) The Treasury should maintain a separate register in Form
T.R. 28, in which the particulars of the confiscated weapons accepted for safe
custody shall be noted. Separate serial numbers shall be assigned for the
weapons accepted for safe custody during each financial year. A receipt in the
Form prescribed in sub-rule (1) with suitable modifications shall be given to
the depositor at the time of receipt of the weapons. A separate receipt book
shall be utilised for the purpose. Whenever weapons deposited for safe custody
are to be returned to the depositing officer, the original receipt issued at the
time of deposit of the weapon, shall be got back and kept pasted on the
treasury copy of the receipt concerned, kept in the treasury.
**158A. In the case of articles deposited for safe custody in treasuries
and which remain unclaimed for a period of more than 25 years from the date
of original deposit, the District Treasury Officer shall publish a notification in
the Kerala Gazette specifying the name and address of the depositor, the item
number and a brief description of the articles deposited and calling upon
claimants, if any, to take back the articles within a period of one month from
the date of publication of the notification duly furnishing proof of their claim.
If no claimant comes forward to claim back the item within the prescribed
period, then the District Treasury Officer shall open the packets in the presence
of the Additional District Magistrate [i.e., the Personal Assistant (General) to
the District Collector] and prepare a ‘Mahazar’ of the contents of the packet
duly signed by the double lock officers of the District Treasury and the
Additional District Magistrate. The entries in respect of the article shall be
* Insertion [G.O.(P) 104/76/Fin., dated 30th March, 1976]
** Insertion [G.O.(P) 1030/79/Fin., dated 24th November, 1979]
109
PART IV KERALA TREASURY CODE RULES 158A-159
deleted from the safe custody register and the entries regarding such deletion
in the register shall be duly signed by both the double lock officers. The
contents of the packets shall then be disposed of in public auction and if they
are of no marketable value, destroyed. The proceeds, if any, of the sale shall
be credited to the miscellaneous receipts of the Treasury Department. In the
case of such articles available at the Sub Treasuries, they shall be transferred
to the concerned District Treasury and included in the Register of safe custody
articles of the District Treasury and thereafter action taken as envisaged above.
Such articles in the District and Sub Treasuries shall be taken up for disposal
once in a year, in April and action completed within 3 months.
DEPARTMENTAL CASH CHESTS
159. In regard to a departmental cash chest *or a sealed box containing

thondi articles deposited by a court, only a single entry should be made in the
safe custody register; this should be made at the time when the chest *or
sealed box is first deposited and the authority under which it is received for
safe custody should be quoted. A separate departmental cash chest register
in Form T.R. 40 should also be kept for each such chest *or sealed box showing
the particulars of the daily (or periodical) return and re-deposit of the chest
*or sealed box. On each occasion when the chest *or sealed box is deposited
in the treasury, the District Treasury Officer/Sub Treasury Officer or the Section
Head/Head Accountant, as the case may be, should acknowledge its receipt
in this register, which should remain with the depositing officer so long as the
chest *or sealed box is in the treasury. When the depositing officer wishes to
withdraw the chest *or sealed box, he should send the register to the treasury
after signing in column (3) in token that he has authorized the messenger
named in column (2) to receive the chest *or sealed box. On receipt of the
signed register, the Treasury Officer or the Sub Treasury Officer, as the case
may be, should return the chest *or sealed box and obtain the messenger’s
signature in column (4) of the register as an acknowledgment of his having
received the chest *or sealed box.
* Insertion [G.O.(P) 629/85/Fin. dated 11th October, 1985]
110
A treasury should not receive any cash chest *or sealed box for safe
custody unless it is properly locked as well as sealed, and should not take
charge of any key of a cash chest *or sealed box received for safe custody.
The Treasury Officer or the Sub Treasury Officer is responsible only for duly
returning the sealed chest *or sealed box with the seals intact when the
depositing officer sends necessary acknowledgment. If the chest *or sealed
box is duly returned with the seals intact, the depositing officer remains
fully responsible for the correctness of its contents.
NOTE— The above procedure will apply to the cash chests *or sealed boxes
of Co-operative Land Mortgage Bank also.
160. The Treasury Officer or the Sub Treasury Officer, as the case may
be, should verify the presence of all the sealed chests and packets in safe
custody in the treasury periodically at intervals not exceeding six months and
satisfy himself that the seals of each chest or packet are intact and note the
result of his verification in the safe custody register. Whenever a Treasury
Officer or a Sub Treasury Officer hands over charge (otherwise than temporarily
in such circumstances that the government servant temporarily in charge will
have no occasion to deal with the articles in safe custody), the relieved and
the relieving government servants should personally hand over and take
charge, respectively of all the sealed chests and packets in safe custody in the
treasury, and sign the safe custody register in token that they have done so.
Whenever the Chief Treasurer of a district treasury or Treasurer of a sub
treasury hands over charge (otherwise than temporarily in such circumstances
that the government servant temporarily in charge will have no occasion to
deal with the articles in safe custody), the relieving government servant should
verify the presence of all the sealed chests and packets in safe custody in
treasury and note the result of his verification in the safe custody register.
161. The following additional precautions should be observed in

connection with the receipt, custody and delivery of any sealed packet
purporting to contain the duplicate keys of the padlocks used on the strong
room and currency chest at a branch of the State Bank of India:-
* Insertion [G.O.(P) 629/85/Fin. dated 11th October, 1985]
111
(i) The agent of the branch of the State Bank of India should
personally deliver the sealed packet purporting to contain the duplicate keys
to the Treasury or Sub Treasury Officer and obtain his receipt.
(ii) The sealed packet should not be taken out of double locks
except on joint personal application by the Agent of the branch of the State
Bank of India and the Head Cashier of the branch. When such joint application
is made the Treasury or Sub Treasury Officer should deliver the packet to the
Agent and the Head Cashier jointly on receiving back the receipt given by him
for the sealed packet under sub-paragraph (i) and also obtaining the joint
receipt of the Agent and the Head Cashier for the packet.
(iii) The Agent of the branch of the State Bank of India will
periodically, at intervals of not less than six months, verify the presence of the
sealed packet under double locks in the treasury and satisfy himself that the
seals on it are intact.
NOTE—The procedure is applicable to the State Bank of Travancore also.
112
PART V KERALA TREASURY CODE RULE 162
PART V
WITHDRAWAL FROM THE GOVERNMENT ACCOUNT
SECTION I
Rules applicable to Government Officers in general
CHAPTER I
GENERAL
162. *(a) Save as hereinafter provided, bills presented by a departmental

officer, personal claims preferred by a Government Officer and all cheques
tendered at the treasury or at an authorised office of disbursement shall be
duly receipted for payments and stamped, wherever necessary. Receipts, duly
stamped, where necessary, for all other payments made on bills shall be given
at the time of payment. Every bill or other document shall contain full details
as to the amount and the nature of the claim, and all particulars necessary for
the proper classification of the payment in the account. A bill or other document
drawn by a government servant shall be signed and, when necessary,
countersigned by the government servant competent to do so under the
relevant rules. A bill or other document drawn in respect of a claim of a person
who is not in government service shall ordinarily be signed or countersigned
by the head of the department or some other responsible government servant
belonging to the department concerned with the payment.
Explanation.—A bill is a statement of claims against the Government containing
specification of the nature and amount of the claim either in
gross or by items, and includes such a statement presented
in the form of a simple receipt
A bill or other document becomes a voucher when it is only receipted and
stamped “paid”.
(b) The treasury shall receive and carefully scrutinize all bills and
other documents presented. If the Treasury or Sub Treasury Officer is satisfied
that a bill or other document is in order and that the claim is one which he is
authorised to pay, he shall sign a payment order on it. Payment shall then be
made accordingly and entered the accounts.
* Substitution [G.O.(P) 386/77/Fin., dated 7th October, 1977]
113
(c) At a place where the treasury transacts its cash business through
the Bank, the Bank shall make all government payments other than those included
in classes of payments which the Government have specially ordered to be
made elsewhere. At such a place every bill or other document shall, in the
absence of a special rule or order to the contrary, be presented at the treasury
for scrutiny and authorisation of the payment and after such scrutiny and
authorization the Treasury Officer shall forward it to the Bank. At a district
headquarters station where the district treasury transacts its cash business
through the Banks, the Bank shall not conduct the business of the headquarters
sub treasury, if there is any.
*NOTE—Requisitions by the Accountant General or an Officer of the Indian
Audit and Accounts Department authorised by the Accountant
General in this behalf for obtaining Reserve Bank of India drafts for
effecting monetary settlement of inter Governmental and other
miscellaneous transactions need not be presented at the treasury,
but may be presented at the bank direct without the express pay
order from the treasury.
#(d) Claims against the Government relating to the following
departments shall be presented to the department Government servants concerned,
who are authorized to draw cheques on the treasury in respect of all authorized
expenditure.
(i) The Forest Department;
(ii) The Public Works Department;
(iii) The Public Health Engineering Department;
(iv) The Harbor Engineering Department.
NOTE—The drawing officers of cheque drawing departments shall send a cheque
for L.I.C. deductions direct to the concerned Divisional Manager of the
L.I.C. along with the connected records.
#(e) When a Government servant of another department authorized to
incur expenditure against the appropriation placed at the disposal of any of the
department specified in sub-rule (d) above, he shall have authority to draw cheques
on the treasury as a disburser of the particular department whose funds are
operated upon by him in the same way as a Government servant that department
itself ;
* Addition [G.O.(P) 613/81/Fin., dated 23rd September, 1981]
# Substitution [G.O.(P) 175/84/Fin., dated 26th March, 1984]
114
PART V KERALA TREASURY CODE RULES 162-163
(f) The detailed procedure to be followed by drawing officers in

preparing bills, and other documents and the cheques to be exercised by the
Treasury or the Bank before making any payment are laid down in Rules
163 to 269 below. Rule 15 to 25 of these rules also relate to these matters.
(g) The duties imposed on the Treasury Officer in the rules
mentioned in sub rule (f) above shall be performed by the Forest Disbursing
Officer in respect of payments made by him through cheques drawn on
treasuries.
(h) In every case in which it is deemed necessary to utilize the
treasury of other States or the agency of a bank or of a private banker for
disbursement of any claims due by the Government, such claims shall, unless
there are express orders of the Government to the contrary be presented in
accordance with the procedure prescribed in these rules for presentation of
claims at a government treasury.
FORM OF BILLS, ETC.—GENERAL TO ALL DEPARTMENTS
163. (a) A bill or other document presented at the treasury as a claim

for the payment of any amount by the Government shall contain particulars
of—
(1) the nature of the claim,
(2) the amount claimed,
(3) the period to which the claim relates if it arises periodically, e.g.,
a claim for pay and fixed allowances,
(4) the orders sanctioning the charge, if it was incurred under special
orders,
(5) the authority for any deduction made in the bill,
(6) the major head, minor head, sub head and detailed account head
to which the charge (or each part of it) is debitable, and
(7) the allocation of the charge between Governments (including
the Central Government) and departments, if any, such allocation
is necessary.
115
(b) Every bill or other document shall be prepared in the form

prescribed under these rules or in the departmental manual or code concerned
for bills or other documents of the kind in question. Such forms shall be
printed in English *or in Malayalam or bilingually in English and Malayalam.
As far as possible, all bills and other documents shall be prepared in English.
When it is necessary to prepare a bill or other document in Malayalam, a
brief abstract shall be endorsed on it in English stating the payee’s name, the
amount claimed and the nature of the claim, and the drawing officer shall
sign this abstract. When printed forms are not available, stenciled or typed
forms may be used; but the use of the latter should be avoided as far as
possible.
**NOTE 1.—The entire Non-Gazetted establishments under the control of a
drawing officer shall, ordinarily be treated as a single unit and
a single bill shall be prepared for the claims relating to the
entire establishment preferred on a day. A similar procedure
shall be adopted for the preparation of Travelling Allowance
bills, Overtime bills, and Contingent bills other than those
payable to third parties by clubbing the same kind of
transactions on the same day in one bill. In the case of amounts
debitable to #more than one sub head of account, separate
bills shall be prepared in respect of amounts debitable to each
such head of account. In respect of charges debitable to plan
expenditure a separate bill shall be prepared.
$ NOTE 2.—In respect of cases where the strict adherence of rules in Note 1
have been rendered impossible the reason therefore may be
stated in the bill in the form of a certificate.
(c) Every bill or other document shall be filled in, in ink. Original
copies of typewritten bills or other documents may, however, be honoured
at the treasuries at the risk of the drawing officers. The total amount claimed
shall, so far as the whole rupees are concerned, be written in hand, in words
as well as in figures in ink. So also every bill or other document shall be signed
in ink. The entry with ‘Below Rupees…………………’ should be recorded in
* Substitution [G.O.(P) 335/77/Fin., dated 6th September, 1977]

** Note renumbered [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
# Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
$ Addition [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
116
red ink. The amount of paise may be written in figures after the words stating
the number of rupees e.g., Rupees Twenty five and Paise 78. If there is no
paise, the word ‘only’ shall be written after the number of whole rupees e.g.,
Rupees Twenty five only”. In either case, great care shall be taken to leave no
space that could be used for making an interpolation.
The spaces left blank either in the money column or in the column for
particulars of the bill should invariably be covered by oblique lines. A note to
the effect that the amount, of the bill is below a specified amount expressed in
whole rupees should invariably be recorded (in words and figures) in the
body of the bill in red ink. The amount so specified should be a sum slightly in
excess of the total amount of the bill.
# NOTE 1. —*Use of ball point pen shall also be permitted for filling in bills
and other documents presented to the treasuries.
†NOTE 2.—The detailed contingent bill shall, as far as possible be typewritten
and presented .The total amount of the Bill and the endorsement
shall however be made in hand in words as well as in figures in
ink and shall invariably be signed in ink.
(d) No bill or other documents containing any erasure shall be
presented at the treasury. Every correction or alteration in the total of a bill
shall be separately attested by the full signature with date of the person who
signs the receipt. Every correction or alteration in the payment order shall
be similarly attested by the signing officer, if it is drawn on the Bank, and, in
other cases, by the Treasury or Sub Treasury Officer who signs it.
(e) When a charge is debitable to more than one major head of
account, the drawer shall ordinarily present a separate bill for the amount
debitable to each major head.
(f) Claims for which no other specific form has been prescribed
shall be made in Form T.R. 42 e.g., claims for house building advances,
advances for the purchase of motor car or other conveyances, etc
NOTE—Claims of Government servants for any advances of pay and for
travelling allowances shall be preferred in the respective forms
prescribed for claiming pay and travelling allowances.
*Addition [G.O.(P) 68/77/Fin., dated 22nd February, 1977]
# Renumbered, † Insertion [G.O.(P) 582/2004/Fin. dated 13th December, 2004]
117
(g) Unless the Government have expressly authorised it in the case

of any specified office, no bill or other document and no payment order shall
be signed by a clerk for the head of the office, even if it is customary for the
clerk to sign letters for him when he is absent. No bill or other document and
no payment order shall be signed with a stamp (facsimile). The head of an
office may authorise a gazetted government servant serving under him to sign
bills, other documents and payment orders for him but, if he does so, he shall
communicate the government servant’s name and specimen signature to the
treasury or treasuries concerned. A delegation of powers of this kind shall not
in any way, relieve the head of the office of his responsibility for the accuracy
of the bill, etc., and for the disposal of the moneys drawn from the treasury.
When a claimant or payee is unable to sign his name, he may furnish
his signature on a bill or other document in the form of a mark or preferably
a thumb/great-toe-impression. No payment shall be made on any bill or other
document so signed, unless some person known to the treasury or bank, as
the case may be appears with the payee and identifies him and attests his
mark or thumb impression in token of his genuineness.
Similarly, when an illiterate person, who is unable to sign his name
in any language, draws a cheque on the treasury or the Bank by furnishing his
thumb/great-toe-impression on the cheque, no payment shall be made unless
some person known to the treasury or the Bank, as the case may be, appears
with the drawer and identifies him and attests his thumb impression in token
of its genuineness. The person who attests the thumb impression should be
one who is not employed in the treasury or the Bank and he should also
furnish his address.
NOTE—Bills affixed with facsimile signature of the authorised officer
presented by the Posts and Telegraphs Department for telegram
and trunk call charges, by the Municipalities and Corporations for
water and electricity charges and by the Air India International and
the Indian Airlines on account of their dues against Government
(for passage fares, cargo and excess luggage charges) forming sub-
vouchers of the contingent bills, may be accepted for payment, if
otherwise in order.
(h) When a rule or order requires that bills of a certain kind shall be
countersigned before payment, no such bill shall be presented at the treasury
until it has been duly countersigned.
118
NOTE—On all bills on which countersignature is required before payment or

which have to be enfaced for payment at a treasury or both, the
words “contents received” which are usually printed above the place
for the signature of the drawing officer should be struck out at the
time the bill is first signed and before it is sent for countersignature
or for enfacement for payment at the treasury. When the bill is
received back, the words “contents received” should be written on
it and signed and the bill then sent for encashment. All Treasury
Officers should be careful to see that such bills are not paid unless
they bear a second signature (acquittance of the officers concerned,
below the words “contents received”.)
(i) When a bill relates to a charge incurred under a special order of
sanction, the particulars of the order shall be entered on the bill, and a copy of
it shall be attached to the bill and duly certified to be a true copy by the
government servant who signs the bill.
*NOTE 1.—If an order of attachment against a government servant is received
before a previous order of attachment against the same
government servant, has been fully complied with, the
recoveries shall be made by the disbursing officer so long as
the total amount recoverable with reference to the attachment
orders is within the maximum limits prescribed in Article 102,
Kerala Financial Code, Volume I.
NOTE 2.—If a new attachment order has the result of increasing the amount
beyond the maximum limits prescribed, the disbursing officer
shall return the attachment order to the Court concerned with
a statement showing:—
(i) Particulars of the existing attachment.
(ii) Particulars of the amount withheld and paid into the Court
concerned upto date in respect of the existing attachment; and
(iii) (a) the balance amount available to be recovered after
effecting the existing attachment.—
(b) the actual attachable amount.
* Insertion [G.O.(P) 7/75/Fin., dated 3rd January, 1975]
119
(j) The drawing officer shall deduct from a bill for the pay, etc., of an
establishment any amount attached by a prohibitory order of a court of law.
He shall attach to each establishment pay bill, in which any such deduction is
made, an advice list containing particulars of the suit, the name of the
government servant whose pay is attached and the amount deducted from
the bill. When the court which issued the attachment order is not suited at the
headquarters of the treasury which pays the bills the drawing officer shall
also attach to the bill a postal money order form duly prepared for the remittance
of the amount by the Treasury Officer to the court. The commission payable
to the post office on the money order shall be shown as a deduction in the bill
as well as the amount to be remitted. The procedure to be followed by the
Treasury Officer for remitting such amounts to the courts is laid down in Rule
211 and also the procedure that he should follow in paying attached amounts
to courts located at this headquarters.
(k) Recoveries from the salary of government servants on account
of dues to co-operative societies registered under the various Co-operative
Societies Acts, where such Acts impose a statutory obligation on the
Government to make such deductions, shall be made by the drawing and
disbursing officers in the case of non-gazetted government servants who do
not draw their own bills, and in other cases, by the treasury Officers or other
disbursing officers concerned, as the case may be, in accordance with such
procedure as may be laid down by Government from time to time.
(l) Deductions made in bills shall, where required by the rules relating
to such deductions, e.g., Provident Funds, Postal Life Insurance, State Life
Insurance (Official Branch), etc., be supported by schedule in the prescribed
form detailing the deductions made Schedules for Provident Fund deductions
shall be prepared in Form T.R. 104. If such deductions are made in a bill in
respect of two or more subscribers whose accounts are maintained by different
Audit Officers separate schedules shall be attached to the bill in respect of the
deductions which are to be accounted for by each Audit Officer.
When recovery is made from occupants of Government residential
buildings by deductions from pay bills, one copy of the demand statement,
which will be rendered in duplicate in T.R. 43 giving particulars of the recoveries
shall be attached to the pay bills. After the recovery has been made, the remaining
120
copy of the demand statement shall be returned to the authority from which it was
received after noting the amounts recovered and recording a certificate to the
effect if the recoveries are in order, that the recovery has been made and the
emoluments are correct. When recovery is made on account of an interest-
bearing advance a schedule of recovery in Form T.R. 106, separately for each type
of such advance, shall be attached to the bill in which the recovery is made. In the
case of such recoveries from the claims of non-gazetted government servants, the
drawing officer shall certify on the recovery schedule attached to the bill for the
month of February encashed in the month of March every year that the balance
shown as outstanding therein have been accepted as correct by the government
servants concerned.
Where recovery is made on account of an advance of pay or traveling
allowance, or both sanctioned to a government servant on transfer, a schedule in
the following form shall invariably be attached to the pay or traveling allowance
bills in which the recovery is made.
Amount recovered
Balance yet to
original advance
District, department
Amount of the
which the advance
be recovered
and the month in
in the bill
was drawn
Remarks
Name of
the
governme
nt servant
Rs. Rs. Rs.

1 2 3 4 5 6
Disbursing officer, that is, Treasury Officer in the case of gazetted

officers and heads of offices in the case of non-gazetted officers should, as
required by section 289 of the Indian Income Tax Act, 1961 issue to the person
from whose salary income tax is deducted at source, an annual consolidated
receipt in Form T.R. 44 for the tax so deducted during a financial year. *The
Treasury Officer shall not accept the salary bills for the month of February and
August every year, unless such bills contain a certificate, from the concerned
Self Drawing Officers in the case of gazetted bills and Drawing and Disbursing
Officers in the case of establishment pay bills to the effect that profession tax
*Addition [G.O.(P) 249/98/Fin. dated 19th January, 1998]
121
due to the Corporation/Municipality/ Panchayat from the officers/

employees for the half year concerned is remitted and details of remittance
communicated to the authorities concerned.
(m) No copies of orders regarding promotions and similar changes
or of correspondence, etc., regarding a claim shall be attached to any bill
or other documents.
(n) When payment is desired wholly or partially in Government
drafts, a formal application for them shall be presented with the bill, and the
manner in which payment is desired shall also be indicated in the drawer’s
receipt on the bill.
(o) When the drawer of a bill other than a bill for pay, allowances,
leave salary or pension, desires that the treasury should remit the whole or a
part of the amount of the bill to a person or persons (other than the drawer)
by postal money order, the necessary money order form or forms duly filled
up, except for the date and the Treasury Officer’s signature, shall be presented
with the bill, and the drawer shall show both the amount to be sent by money
order and the commission due on it as deductions in the bill.
Exception—The money order forms relating to payment of the bill for
the Police Department and bus warrants to bus owners shall
be signed by the drawing officers instead of by the Treasury
Officers. (See Article 98 of the Kerala Financial Code.)
(p) A head of an office whom the Government have specially
authorised to send bills of a specified kind of the treasury by post shall send
along with each such bill, a postal money order form duly filled up except
for the date and the Treasury Officer’s signature. The money order
commission shall be treated as a contingent charge of the drawing officer
and not shown as deduction in the bill.
Exception.—The money order commission for the remittance of pay and
allowances of Government Medical Officers employed in out
of the way places shall be debited to the contingencies of
the remitting treasury.
(q) When the drawing officer desires that the treasury should pay
to some other person the amount of a bill, cheque or other document drawn by
him, except those relating to the claims of government servants he shall
122
specifically endorse on it and sign an order to pay to that person specifying

his name as well as his designation. All such bills, cheques or other documents
preferable at a treasury for payment being non-negotiable instruments, can be
endorsed only once in favour of the specific party to whom the money is to be
paid:
Provided that—
(1) when the endorsement is made on a bill or cheque in favour of a
banker, a second endorsement can be made by the banker in favour of a messenger
or an agent for collection only;
(2) in the case of a contingent bill which has been endorsed in favour of
a firm of suppliers or private parties under the provisions of Rule 188 (viii), the firm
of the private party can re-endorse to its banker or to a messenger for collection
only and the banker can in turn endorse it to a messenger or an agent for collection
only. Thus, in all three endorsements are permissible in such cases provided that,
of the three, one is to the payee’s banker and one is to a messenger or agent for
collection only; and
(3) an agent may, notwithstanding anything contained in (1) and (2) for
the purpose of collecting the bill or cheque endorse it in favour of his messenger.
Explanation.— *In this rule a Banker includes Post Office Savings Bank
and Treasury Savings Bank and an ‘Agent’ means any
banks including Post Office Savings Bank and Treasury
Savings Bank acting as a collecting agency for and
on behalf of the payee’s banker.
NOTE—(1) Cheque drawn directly on the Bank without the intervention of the
Treasury Officer are negotiable instruments and are not subject to
the provisions of this Rule.
NOTE—(2) When an illiterate person endorses a bill or other document by
means of his thumb impression, he should affix the thumb
impression in the presence of the Treasury Officer and have it
attested by a person well-known to the Treasury. The person
attesting the thumb impression should be one who is not employed
in the Treasury or the Bank and he should also furnish his address.
*Substitution [G.O.(P) 208/75/Fin., dated 31st May, 1975]
123
(r) A government servant shall not issue a copy of any bill or other
document which has already been paid on the allegation that the payer’s copy
has been lost or is not available, although a certificate may, when necessary, be
given that on a specified day a certain sum was paid to a certain person on a
certain account. A fee of one rupee shall be levied for each certificate issued to a
private party. This prohibition extends only to the issue of a copy on the allegation
that the payee’s copy has been lost or is not available, and does not apply to a
copy marked “Not payable at the treasury” and tendered at the treasury with the
original in accordance with the rules.
If a bill or other document that has been passed for payment at the
treasury is alleged to have been lost before payment, the government servant
who drew the original bill or other document shall ascertain from the treasury
whether payment has already been made on the original or not, and shall request
the treasury not to make payment on the original if presented subsequently. If the
treasury has not made payment on the original, he may issue a duplicate which
shall bear distinctly on its face the word “duplicate” written in red ink.
(s) Every receipt for a sum exceeding # ` 500 shall be duly stamped by
the payee *with a revenue stamp as required by section 3 of the Indian Stamp Act,
1899 (Central Act 2 of 1899) read with article 53 of Schedule 1 there of, subject to
the exemptions, etc., listed in Appendix 8.
#This amendment shall be deemed to have into force on 13th May, 1994.
NOTE—(1) In determining whether the receipt obtained in respect of an amount
drawn on a bill preferred against Government should be stamped
or not, the net amount of the bill and not the gross amount payable
should be taken into account, unless the receipt is exempted under
exceptions referred to above.
NOTE—(2) Receipts for payments made outside India should be obtained
from the payees and stamped in accordance with the local laws, if
any, governing the stamping of such receipts.
NOTE—(3) A single receipt, stamped where necessary given by a payee in
acknowledgement of several payments or a lump sum payment,
either in cash or by cheque, made to him, on one occasion, shall
constitute a valid quittance and the disbursing officer in such
cases, should give cross reference on all vouchers to which the
receipt relates.
*Substitution [G.O.(P) 434/81/Fin., dated 7th July, 1981]
#Substitution [G.O.(P) 572/97/Fin. dated 7th June, 1997]
124
(t) †Every government servant, who is authorised to drawn cheques

or sign ^bills payable at a treasury shall send a specimen of his signature to
the Treasury Officer in Form T.R. 74A duly attested by his superior officer or
another officer whose specimen signature is already on record with the treasury.
When such an officer hands over charge of his office to another, he shall
likewise send a specimen of the signature of the relieving officer duly attested
by him (relieved officer) to the Treasury Officer concerned.
NOTE— The specimen signature of every non-gazetted Drawing Officer shall
be attested by his Gazetted Controlling Officer or official superior;
‡(u) [Deleted]
C HAPTER II
PAY AND ALLOWANCES (INCLUDING LEAVE SALARY) OF
GOVERNMENT SERVANTS
A. Gazetted government servants

164. (a) In the absence of any special order of the government to the
contrary, a gazetted government servant may draw the bills for his own pay,
allowances and leave salary based on the pay slip or the leave salary certificate
issued by the Accountant General. A claim by gazetted government servant
for pay and fixed allowances shall be presented on a bill in Form T.R. 46. A
gazetted government servant who draws a special pay or allowance in respect
of a separate office of which he is in additional charge, need not present a
separate bill for it, unless it is met from some source other than the revenues
of the State.
*NOTE 1#—Gazetted officers are authorised to draw their pay and allowances
provisionally without pay slip from the Accountant General up
to a period of 3 months after the expiry of sanction to the
continuance of posts, at the same rate as they were drawing in
these posts on the basis of a certificate in Form T.R. 112 being
attached to the pay bill. The certificate should be signed by the
Controlling Officers authorised to sign their T.A. bills. In cases
where the officer is himself the Controlling Officer for T.A claims,
†Substitution G.O.(P) 25/78/Fin., dated 6th January, 1978]
^Omission [G.O.(P) 207/88 dated 9th March, 1988]
‡Deletion [G.O.(P) 367/76/Fin., dated 27th November, 1976]
*Added vide G.O.(P) 180/77/Fin., dated 8th June, 1977
#Renumbered vide G.O.(P) 99/89/Fin. dated 24th February, 1989.
125
the certificate should be obtained from the next higher authority.

In cases where further delays are anticipated necessitating
continuance of such provisional payment of salary beyond the
period of 3 months, the officer concerned shall have to approach
the Audit Officer through his Head of Department for
authorisation of provisional salary explaining the circumstances
for the delay in issue of sanction for the continuance of post.
#This amendment shall be deemed to have come into force with
effect from 19th May, 1988.
**NOTE 2—The Gazetted Officers specified under item(1) to (4) below shall
be allowed, without insisting on the production of pay/leave
salary slip from the Accountant General, to draw their pay and
allowances at the rates indicated against each for a period of
three months or till the receipt of the pay/leave salary slip from
the Accountant General whichever is earlier.
Categories Pay and allowances admissible
1. Officers who are promoted to Pay last drawn in the lower non-
a gazetted post from a non-gazetted gazetted post or the minimum pay in
post the gazetted post whichever is higher,
Dearness Allowances shall be paid at
the rate applicable to such pay. House
rent allowance shall be at the rate
applicable at the station where posted.
2. Gazetted Officers who are Pay last drawn in the lower post or
promoted to another post the minimum pay in the higher post
whichever is higher, Dearness
Allowance shall be at the rate
applicable to such pay. House Rent
applicable at the station where posted.
# G.O.(P) 99/89/Fin. dated 24th February, 1989.
**Insertion [G.O.(P) 99/89/Fin dated 24th February, 1989]
126
3. Gazetted Officers who are Pay equivalent to that drawn in the

transferred from one post to another old post. Dearness Allowance shall
at a different station be at the rate applicable to such pay.
House Rent Allowance shall be at the
rate applicable to the Station where
posted.
4. Gazetted Officers who 1. The rate at which pay,
return from leave on the expiry of Dearness Allowance and House
leave already sanctioned Rent allowance were drawn on the
date prior to the date on which the
Officer proceeded on leave, when
there is no change in station.
2. When there is change in
station the rates of pay and
Dearness Allowance applicable
shall be those drawn prior to
proceeding on leave. House Rent
applicable to the station to which
the officer is transferred.
In all the above cases where there is any change in the rates of pay,
Dearness Allowance and House Rent Allowance as per the pay slip received from
the Accountant General, the payments made shall be regularized as soon as the
pay slip from the Accountant General is received and adjusted in the bill presented
thereafter at the Treasury for encashment.
** This amendment shall be deemed to have come into force with effect
from 19th May, 1988.
(b) When a gazetted government servant draws his first pay bill on
being appointed to a post in government service for the first time or on being re-
employed after resignation, or forfeiture of past service, he shall attach to the bill
a certificate from the authority to whom he reported for duty on first appointment
that the health certificate required by rule 13 of Part I of the Kerala Service Rules
has been furnished by the officer. His copy of the pay slip shall also be attached
to the bill.
(c) A claim by a gazetted government servant for traveling allowance
shall be presented on a bill in Form T.R. 47. When the government servant has
**Insertion [G.O.(P) 99/89/Fin dated 24th February, 1989]
127
travelled by a circuitous route, he shall state the reason for doing so in the bill.
When he claims actual expenses, he shall, in the absence of any order to the
contrary, set them out in detail. When he claims travelling allowance on account
of any members of his family, he shall furnish a certificate showing the number and
relationship to himself of the members of his family on account of whom he makes
the claim and all other relevant details. When he claims the cost of carriage of
personal effects or a conveyance, etc., he shall furnish the receipt granted by the
railway or steamer company for the amount actually paid. A travelling allowance
bill shall be countersigned by the controlling officer referred to in rule 113 of Part
II of the Kerala Service Rules unless the claimant has been declared to be his own
controlling officer (See rules 113 and 115 of Part II of the Kerala Service Rules).
(d) When any special pay, allowance, honorarium or other recurring
additional remuneration is claimed in a bill by a gazetted government servant for
any additional or part time work rendered by him, the following certificate issued
by the Head of the Office or Institution in which the work is rendered shall be
attached to the bill:-
“Certified that Sri/Smt……….........……(Name and designation) has
actually discharged during the period from…………….to........…………………the
duties for which the remuneration of..................…………………..is claimed.
Dated signature……………………….
Name………………………………….
Designation……………………………”
165. (a) Pay, leave salary and travelling and other allowances payable
to a gazetted government servant in India shall be paid on his personal claim and
to his personal receipt and not otherwise, except as provided in rule 167 or with
the Government’s special sanction in each case. The government servant may, if
he wishes, send a messenger to the Treasury or the Bank with a separate letter
requesting that the moneys be sent through him, and the moneys shall then be
handed over to the messenger, but only on the strict understanding that the
Government accept no responsibility whatever for any fraud or misappropriation
in respect of any moneys, cheque or bill handed over to him.
(b) Subject to any orders or procedure that may be prescribed by
the Government, the leave salary of a gazetted government servant, when payable
in India, shall be drawn from the treasury from which his pay was being drawn
immediately before proceeding on leave and he should make his own arrangements,
where necessary for getting his leave salary remitted to him. He shall not begin to
128
draw the leave salary without producing a leave salary certificate in Form No. 48
from the Audit Officer who audited his pay before he proceeded on leave. In case
where a period of leave is followed by transfer, such portion of the leave salary as
could not be drawn at the old station may, however, be drawn at the treasury from
which the pay in respect of the new post is drawn.
(c) If gazetted government servant signs his bill himself, he must either
appear in person at the place of payment or furnish a life certificate signed by a
responsible officer of Government or some other well known and trustworthy
person. If he draws his leave salary through an authorised agent, the agent whether
he has or has not the power of attorney, must either furnish a life certificate as
aforesaid, or execute a bond to refund overpayments. A life certificate may be
given periodically, a bond being given to cover intermediate payments not
supported by the life certificate.
(d) ^No gazetted government servant may draw a changed rate of pay,
leave salary or fixed allowance, unless the bills in which he claims it is accompanied
by a letter from the Accountant General authorising the changed rate. A fresh
authorisation from the Accountant General is also required when there is a change
in designation of a gazetted officer, even if there is no change in emoluments. The
Accountant General shall issue these letters as early as possible, but when any
such change occurs near the end of a month or takes effect from a date which
cannot immediately be ascertained and cannot be fixed by a certificate of transfer
of charge appended to the bill, the government servant concerned should draw
his bill at not more than the old rate, if he does not receive the letter of authority by
the end of the month.
^This amendment shall be deemed to have come into force on 7th day of
April, 1986.
NOTE—1 In case, where, on the expiry of leave, an officer is appointed to the
same post from which he proceeded on leave, he shall draw bills
for his pay and allowances from the date of his assumption of such
charge on the basis of the authority for pay and allowances issued
to him by the Accountant General before his proceeding on leave
and, if such authority has been superseded, on the basis of such
revised authority for pay and allowances.
*NOTE—2 In the case of payment of dearness allowance and other allowances
to the Gazetted Officers sanctioned by Government from time to
^Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]
*Insertion [G.O.(P) 409/75/Fin., dated 8th September, 1975]
129
time, a general letter of authority shall be issued by the Accountant

General to the Treasury Officers authorising them to make payments
thereof to the Gazetted Officers on the basis of the rates prescribed
by the Government without a specific authority from the Accountant
General for each individual case.
*NOTE—3 Transfers from one post to another in groups of posts like-
(a) Munsiff, Principal Munsiff, Additional Munsiff;
(b) Sub Judge, Additional Sub Judge; and
(c) Tahsildar, Special Tahsildar, etc., will be treated as involving a
change in designation, only in case any change in emoluments
is involved.
166. (i) At his written request, the pay bill of a government servant
who is permitted to draw his own bills may be made payable to some well-known
banker or agent provided that the receipt of the banker or agent shall not be
accepted as a final acquittance, unless the bill itself is duly endorsed in favour of
the banker or agent by means of a distinct pay order. The receipt of the banker or
agent alike, if it is recorded on the bill itself or separately, shall be stamped unless
the receipt on the bill has already been duly signed and stamped by the government
servant himself. No re-endorsement of such a bill by the bank or agent otherwise
than to a messenger for collection shall be recognised [See also the second
paragraph of Rule 163(q)].
(ii) No government servant or other individual shall be recognised
as an “agent” for the purpose of this rule or the next one unless he holds a valid
power of attorney to act for the government servant concerned.
167. (a) A gazetted government servant who claims leave salary or
vacation allowances or subsistence allowance otherwise than through a bank or
agent shall, either appear in person at the place of payment or furnish a life
certificate showing that he was alive on the last day of the period to which the
claim relates and signed by a responsible government servant or if there is no
such government servant at the place where the gazetted government servant
resides, some other well known and trustworthy person. A gazetted government
servant may draw his leave salary or vacation allowances or subsistence allowance
through a well known bank or agent (See the previous rule) if he gives the bank or
agent a power of attorney for the purpose of leave his signed bills with the bank
*Insertion [G.O.(P) 527/75/Fin., dated 19th November, 1975]
130
or agent for presentation, provided that, unless the bank or agent has executed an
indemnity bond in Form T.R. 49 or Form T.R. 50 duly stamped, as security for the
refund to the Government of any overpayment to the government servant, a life
certificate showing that the government servant was alive on the last day of the
period to which the claim relates and signed by a responsible government servant,
or, if there is no such government servant at the place some other well known and
trustworthy person shall be furnished along with each bill. Life certificates may be
furnished at intervals, as may be convenient, provided that an indemnity bond
has been executed which will cover intermediate payments not supported by a life
certificate.
The Treasury Officer shall enter the particulars of all powers of attorney
furnished with reference to this rule in the register (in Form 16 of the Government
Securities Manual) kept in the treasury for the purpose.
NOTE— When separate bills for leave salary, vacation pay, etc., relating to
different periods are presented and paid simultaneously it is not
necessary to furnish separate “Life Certificates” for the different periods.
Only one certificate in respect of the date of presentation of the bills
should be enough.
Exceptions— In the following cases the life certificates should not be
insisted on:—
(i) when the arrears of leave salary are drawn by a Gazetted Officer
after he has resumed duty;
(ii) when the leave salary is claimed in the same bill as the duty pay for
the period following that of leave salary; and
(iii) when the report of taking over charge after the expiry of leave has
already been sent to Treasury Officer.
(b) An indemnity bond executed by a bank or agent for the purpose
of drawing pay, etc., on behalf of a single government servant shall be in Form T.R.
50. When a well known bank (or a firm or agents acting as bankers) of good
standing has a number of constituents who are government servants and desire
to draw their pay, etc., through it, the Government, in consultation with the
Accountant General, may, if they think fit, permit the bank (or firm) to execute a
single indemnity bond in respect of all pay, etc., drawn by it from the Government
on behalf of such government servants. Such a bond shall be in Form T.R. 49 and
shall be duly stamped. Appendix 9 contains lists of the banks, etc., which have
executed such bonds. All indemnity bonds whether in Form T.R. 49 or Form T.R.
50 shall be properly stamped.
131
The authority competent to accept the indemnity bond on behalf of

the Government shall, before accepting the bond, verifies that the person who
signs a bond of indemnity on behalf of a firm or bank has authority to bind it.
Indemnity bonds in Form T.R. 50 executed by a bank or agent for the
purpose of drawing pay, etc., on behalf of a single government servant shall
be kept in the custody of the Treasury Officer. General indemnity bonds in
Form T.R. 49 for the purpose of drawing pay, etc., on behalf of government
servants of the Kerala Government alone shall be kept in the custody of the
Government.
No endorsement of a bill drawn on behalf of a government servant
by a bank or agent permitted to draw the Government servant’s pay, etc.,
under this rule shall be recognised with the exception of an endorsement to
a messenger for collection.
(c) A bond in Form T.R. 49 executed by an unincorporated firm
requires that information be given to the Government at once if there is any
change in the constitution of the firm. As soon as any such information is
received, the new partnership shall be required to execute a fresh bond in
Form T.R. 50 by a specified date or acknowledge in writing that it is bound
by the existing bond by which the old partnership was bound, if it wishes to
retain the privilege of drawing pay, etc., on behalf of government servants.
*168. (a) Place of Payment.—The claims of a Gazetted Government
Servant shall be drawn from the District/Sub Treasury to which his institution
is attached either under the orders of the Accountant General for under the
orders of the Director of Treasuries or in accordance with the notifications
published by the Government realigning the jurisdiction of District/Sub
Treasuries.
(b) When any pay is due in India to a government servant who is
absent from India, he should make his own arrangements to receive it in India.
Provided that when the government servant has finally quitted India
and it is not possible for him to make his own arrangements for receiving his
pay and allowances in India, payment may be made to him through the High
Commissioner for India or through the India Office.
NOTE—When a government servant who is away from the State on study
leave or undergoing a course of training, etc., desires payment of his
leave salary or pay and allowances within the State, the procedure
prescribed in Rule 165 (c) should be followed.
*Substitution [G.O.(P) 89/82/Fin., dated 25th February, 1982]
132
(c) When a government servant is transferred from one district to
another within the same Audit Circle, the last pay certificate granted to him should
specify last the regular monthly payment and his entire pay for the month in which
the transfer takes place should be paid in the new district, except as provided in
Article 87 (d) of the Kerala Financial Code. Payment on account of his claims for
travelling allowance arising in the old district in respect of journeys performed
before the transfer may also be made in the new district, provided that the
controlling officer for the old post certifies that claims are correct.
(d) A government servant who is transferred may be allowed to draw an
advance of pay on transfer at his new station within a month of his arrival there, if
his last pay certificate show that he did not draw any such advance at his former
station. A government servant, who receives an order of transfer during his leave,
may draw an advance of pay and travelling allowance from the treasury from
which he drawn his leave salary.
NOTE—The drawal of advance under the above rule is subject to the condition
that the government servant concerned is entitled to and has been
sanctioned by the proper authority an advance of pay under Article 260
of the Kerala Financial Code.
(e) [Deleted.]
B. Non-gazetted Government Servants
169. (a) *The pay and allowances of an establishment should be drawn
by the gazetted officers-in-charge of it.
Exception.—(1) Such classes of non-gazetted officers as are mentioned
in Appendix 10 may draw bills relating to the pay and
allowances of their own and their establishment without
counter signature provided they possess the prescribed
test qualification which should be certified in the bill. If
they do not possess the prescribed test qualification the
bill should be countersigned by the Controlling Officer
referred to in Rule 113 of Part II of the Kerala Service
Rules.
(2) A Government Servant who is reverted from a Gazetted post to a
Non-Gazetted post may draw his arrear claims for pay and allowances in respect of
the period of Gazetted service in bills in Form T.R. 46 on the strength of the pay
slip/letter of authority issued by the Accountant General. Such bills being subject
*Substitution [G.O.(P) 1065/92/Fin, dated 14th December, 1992]
133
to countersignature by the Gazetted controlling Officer. In such cases, the

surrender of Last Pay Certificate as required in rule 19 of the Kerala Treasury
Code to the Treasury Officer is not necessary.
NOTE.—(i) In the case of non-gazetted heads of offices having separate
establishment of their own their pay and allowances shall be
drawn in their Establishment Pay Bills.
NOTE.—(ii) In the case of non-gazetted officers like Co-operative
Inspector of Co-operation Department, Junior Engineer,
Industries Extension Officer etc., who have no separate
establishments of their own, their pay and allowances shall be
included in the establishment bills of their Controlling
authority.
NOTE.—(iii) The pay and allowances of Policemen and Sub Inspector of
Police should be included in the establishment pay bills of
the concerned Superintendent of Police.
NOTE.—(iv) The claims on account of pay and allowances of the Non-
gazetted personnel should be deemed to arise at the station
where the drawing officer who draws the claims is stationed.
NOTE.—(v) The aforesaid provision and note (i) to (iii) above apply only
for the drawal of pay and allowances of the concerned persons
and do not extend to the drawal of Travelling Allowance claims
for which the provision of rule 178 Kerala Treasury Code Volume
I shall apply.
(b) Form T.R. 51 shall be used for bills for the pay, fixed allowances
and leave salaries of Non-gazetted government servants drawn by the head
of the office for disbursement to them. *A single bill shall be prepared in three
parts for the following classes, if it exists:—
(i) Permanent Establishment.
(ii) Temporary Establishment.
(iii) Establishment for whom no service books are maintained.
This amendment shall be deemed to have come into force with effect
from 1st April, 1980.
*Substitution [G.O.(P) 121/80/Fin., dated 8th February, 1980]
134
With the exceptions mentioned in Rule 171, the name of every substantive,
officiating or temporary government servant on whose behalf a claim is made shall
be shown in column (2) against his post in column (1). Against each temporary
post the number and date of the order sanctioning it and the name of the authority
which passed the order shall be entered. The rate of pay, etc., claimed shall be
shown against each name in column (2). If the payment of any claim for the month
to which the bill relates if postponed, it shall not be omitted from the bill, but the
amount of each claim held over for future payment shall be noted in red ink in the
appropriate columns (3) to (6) and ignored when totalling the bill. When pay, etc.,
is claimed only for part of the month, the number of days, for which it is claimed
shall be entered either against the government servant’s name or in a note at the
foot of the page. The part of a bill relating to each section (See Article 86 of the
Kerala Financial Code) shall be marked off in red ink. The component items of an
establishment bill shall be checked, and the total shown in the bill shall also be
checked by adding up the items. If the bill relates to a small establishment the
drawing officer shall either check it himself, or have it checked by a gazetted
government servant under his order, before he signs it. If the bill relates to a large
establishment, the drawing officer shall ensure that the whole bill is thoroughly
checked by someone other than the clerk who prepared it, and shall himself check
a part of the bill or arrange for a gazetted government servant to do so, before he
signs it.
*NOTE. 1— In the case of non-gazetted officers, the drawing officers who are
authorised to draw pay and allowances of the establishment in
accordance with sub rule (a) of rule 169 are empowered to draw the
pay and allowances of their establishment provisionally upto a
period of 3 months, after the expiry of sanction to the posts at the
same rate as they were drawing in these posts pending sanction
for the continuance of the posts on the basis of a certificate in
Form T.R. 113 being attached to the pay bill. In such cases where
provisional payment is authorised, the fact should be noted both
in the office copy and fair copy of the pay bill. When the sanction
for the continuance of temporary posts is received, the number
and date of Government Orders should be noted in red ink in the
office copy of the pay bill and attested by the Drawing Officer. It
* Inserted vide G.O.(P) 180/77/Fin., dated 8th June, 1977,
Note renumbered vide G.O.(P) 1065/92/Fin. dated 14th December, 1992.
135
shall be the responsibility of the drawing officer concerned to

intimate the fact of provisional payment immediately to the higher
authorities for obtaining sanction for the continuance of
temporary posts in such cases.
Exception—The pay and allowances (including leave salary and travelling
allowances) of the following classes of officers shall be drawn
separately in the form provided for gazetted officers instead
of being included in the pay bill of the establishment. But they
should be treated for purposes of audit, etc., as other non-
gazetted officers:-
(1) Supervisors, Junior Engineers, Head Draftsman and Overseers
of the Public Works Department.
(2) Rangers and Deputy Rangers of the Forest Department.
(3) Inspectors of Co-operative Societies.
(4) [Deleted]
[G.O.(P) 130/82/Fin., dated 22nd March, 1982]
(5) Superintendents of Rescue Homes and the Assistant
Superintendent, Rescue Home, Ernakulam.
(6) Sub Inspector of Police.
(7) Inspectors of Plantations.
(8) Sub Officers of Fire Force Department.
(9) Overseers of Rural Housing Cells of the Village Housing Project
Scheme one for each district.
(10) Industrial Extension Officers.
(11) Claim Inspectors working in the accident Insurance Branch of
the State Insurance Department.
(12) Junior Electrical Inspectors of the Electrical Inspectorate.
However, the bills for pay and fixed allowances of each of the
above officers should be countersigned before payment by a
gazetted officer in control over him; or by the head of the
department, at the discretion of the latter and the traveling
allowance bills should be countersigned by the controlling
offices referred to in Rule 113 of Part II of the Kerala Service Rules.
136
Copies of all orders of appointment, promotion, transfer or leave of

the above classes of officers should be sent to the Accountant
General.
*NOTE. 2—The stipend and kit allowance payable to Sub Inspector Cadets who
are undergoing training in Police Training College shall be drawn
consolidated in establishment pay bills on the basis of an
attendance statement prepared under due attestation of the
Principal, Police Training College and disbursed on proper
acquittance through the Inspector, Training Team.
† NOTE—3 The shift allowance payable to the staff of the Printing and
Stationery Department shall be drawn in Form T.R. 51A.
(c) The leave salary of a non-gazetted government servant on leave
cannot be drawn in India, except over the signature of the head of his office; and
the latter is responsible for any overcharge.
The leave salary of a non-gazetted government servant holding a
permanent post in one office and officiating in a post in another office may be
drawn at the office from which he proceeded on leave, if he would have continued
in that office but for his leave and is expected to return to it on its expiry. No last
pay certificate should be issued in such cases but the fact of the government
servant having gone on leave should, however, be intimated to the head of the
first office so that he can show the necessary arrangements in the absentee
statements of his office. The bills in which leave salary is drawn should also
indicate the permanent post on which the absentee holds a lien to facilitate correct
classification of leave salary.
In the case of a non-gazetted officer whose substantive appointment is
not a local appointment, but simply that of a member of a State staff, leave
allowances should be drawn either at the place where the office of the head of his
department is located, by the head of his department or at the place where his
salary was last disbursed and in the latter case, if he was not himself the head of
an office, he should be regarded as attached to the office in which he was last
employed, and the head of that office should draw the leave allowances and he
regarded as responsible for over charges.
*Added vide G.O.(P) No. 389/75/Fin., dated 27th August, 1975,

Note renumbered vide G.O.(P) 1065/92/Fin. dated 14th December, 1992.
137
170. If for any reason the rate of leave salary to be drawn on behalf on
a non-gazetted government servant on leave is not known (e.g., when the
kind of leave to be granted has not been settled by the sanctioning authority),
the pay to which he would have been entitled if he had remained on duty shall
be entered in red ink in the money column of the bill intended for entering
leave salary and the amount shall be left undisbursed and treated as held over
till the rate of leave salary becomes known. When a drawing officer claims
leave salary based on average pay on behalf of any government servant he
shall sign and attach to the first bill in which the claim is made a statement of
the calculations determining the amount of leave salary claimed. If any pay
drawn outside the government servant’s substantive office or section enters
into the calculations, the statement shall include references to the vouchers
on which, or the office in which, such pay was drawn. When a drawing officer
claims leave salary based on actual pay on behalf of any government servant,
he shall sign and attach to the bill a certificate that the leave salary is claimed
at the same rate as the substantive pay of the government servant on the day
immediately preceding that on which the leave commenced within the meaning
of the note under Rule 93, Part I of the Kerala Service Rules. This certificate is
however not necessary in the case of maternity leave even though leave
salary is claimed at the same rate as full pay.
NOTE.—No statement of the calculations determining the amount of leave
salary claimed need be attached to pay bills in respect of those
Government servants whose names are omitted from the bill (See
Rule 171 below:)
171. The names of government servants of the following classes may
be omitted from pay bills:—
(i) Government servants for whom service books are not required
to be maintained (Vide Rule 172 of Part III of the Kerala Service
Rules.)
(ii) All government servants in last grade service.
Each bill from which names have been omitted in accordance with the
rule shall contain sufficient information to enable the treasury and the
Accountant General to apply the necessary arithmetical checks and the drawing
officer shall certify on it as follows:—
138
“Certified that every government servant on whose behalf pay or leave

salary is claimed in this bill has actually been on duty or on authorised leave,
as the case may be, during the month for the period on account of which his
pay or leave salary is claimed and that full details of the names of the
government servants concerned and the emoluments drawn for them working
upto the total included in this bill have been duly shown in the office copy”.
The government may in consultation with the Accountant General extend
the provisions of this rule to other specified classes of establishments, when
the entry of names in the bills is not essential for audit purposes.
Claims on behalf of government servants whose names are omitted from
a bill under this rule shall not be included in a single item except so far as they
are identical in all respects. For example, a claim for the whole month for five
Head Constables each of whom draws a pay of ` 57 a month may be entered
as a single item. Claims on behalf of government servants with different
designations or government servants who have the same designation but
draw pay at different rates or for different periods shall always be shown
separately.
172. The drawing officer shall have the office copy of every pay bill
relating to government servants of the two classes mentioned at the beginning
of Rule 171 prepared separately so as to show full details of names, leave,
etc. Total of this pay bill shall then be entered in the pay bill for government
servants of other classes and the drawing officer shall see that the grand
total of the latter agrees with the total amount shown in the fair copy.
The “pay of menials” charged to “contingencies” shall not be included
in establishment pay bills—See Appendix II.
173. Absentee statement.—The drawing officer shall ordinarily attach
an absentee statement in Form T.R. 52 to the monthly establishment pay bill if
any person other than a last grade servant has been absent during the month
on leave (other than casual leave), or deputation, or suspension, or without
leave or if a post has been left vacant substantively, whether or not any
government servant officiated in it (c.f. Note 5 on the form itself). When
signing the absentee statement the drawing officer shall see that a diagonal
line is drawn across the blank space, if any, below the last entry. If no such
government servant has been absent otherwise than on casual leave during
the month the drawing officer shall sign second certificate printed on the
establishment pay bill. Form T.R. 52 also makes provisions for separate
139
statements of substantive changes in regard to members of the establishment and

must, therefore, be filled up and attached to the monthly establishment pay bill,
whenever there has been any change that has to be included in these statements
of substantive changes, even if there is no entry to be made in the absentee
statement proper.
When the scale of an establishment is fixed for the State or a District, the
controlling authority shall submit to the Accountant General, not later than the
date fixed by the latter, a consolidated absentee statement for each month showing
the complete chain of arrangements. The head of an office need not attach an
absentee statement in Form T.R. 52 to his monthly establishment pay bill so far as
it relates to any establishment the scale of which is fixed for the State or a district.
174. First drawal of pay.—When the name of a government servant
appointed to a post other than in the last grade service appears for the first time in
the pay bill of an establishment, the previous post in government service, if any
held by him shall be stated and a last pay certificate attached showing the date of
handing over charge advance, outstanding, etc. If he was not holding any such
appointment previously or is re-employed after resignation or forfeiture of past
service the drawing officer shall furnish a certificate in the bill to the effect that the
health certificate required by Rule 13 of Part I, Kerala Service Rules has been
obtained from the competent authority and filed in the office. In the case of non-
gazetted government servant mentioned in Exception to Rule 169 (b) above instead
of the drawing officer the Gazetted Officer countersigning the bill shall record the
necessary certificate in the bill.
NOTE.—Rules 163 (d) to 163 (g) above will apply to non-gazetted establishment
also.
175. *Increment.—(a) “A register of increment” will be maintained by the
Drawing Officer, in Form 9A prescribed in Volume II of Kerala Financial Code.
When an increment is claimed the drawing officer will make a note in red ink
against the relevant claim in the pay bill. Increment raising pay to `…………………
with effect from ………………….. authorised and noted in the Service book.
NOTE.—Also see Articles 89, 90 and 91 of the Kerala Financial Code, Volume I.
(b) When an increment claimed, has been specifically withheld/operates
to carry the government servant over an efficiency bar/is conditional on the
acquisition of departmental tests or completion of the period of probation, a
copy of the order issued by the competent authority, sanctioning the increment
*Substitution [G.O.(P) 5/75/Fin., dated 3rd January, 1975]
140
and specifying that the order is fit to cross the efficiency bar/has passed the
departmental examination(s) or completed the period of probation satisfactorily,
as the case may be, should be attached to the pay bill in each case in addition
to the notings required under (a) above. In case the increment claimed involves
reckoning of broken periods of service an explanatory memorandum showing
briefly how the date of increment has been arrived at, shall also be attached to
the bill.
176. Arrear bills.—Arrear pay shall be drawn on a separate bill and
not in the ordinary monthly pay bill. The amount of arrears claimed for each
month shall be entered separately in the bill with a reference to the bill
from which the amount was omitted, or withheld or in which it was recovered
by deduction. If the claim relates to an allowance or special pay newly
sanctioned, the name of the authority which sanctioned it and the number
and date of the sanction order shall be entered in the bill. Arrear bills may be
presented at any time subject to the conditions prescribed by the Government
in that regard (See Articles *52 to 58 of the Kerala Financial Code) and may
include as many items as are necessary. The drawing officer shall certify in
every arrear bill that no part of the amount claimed has been drawn
previously. A note of the arrear bill shall invariably be made in the office
copy of the bills for the period to which the claim pertains, over the dated
initials of the drawer of the arrear bill, in order to avoid the risk of the
arrears being claimed over again.
*This amendment shall be deemed to have come into force on 17th day
of April, 1986.
NOTE—1 A travelling allowance bill presented after the end of the month
succeeding that in which the journeys covered by the claims are
performed shall be treated as arrear bill for the purpose of this rule.
NOTE—2 The pay of a person, transferred from one Local Fund or
Municipality to another or from government service to service
under a Municipality or Local Fund or Vice versa, upto the date of
his transfer, should be drawn on a separate bill of the office from
which he is transferred and disbursed to him. His pay for the period
of joining time and for the rest of the month should be drawn in the
pay bill of the establishment to which he is transferred.
*Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]
141
** NOTE —3 Arrears of pay and allowances, if any, due to a gazetted

government servant in respect of a non-gazetted post held by
him prior to his promotion to the gazetted post, should be drawn
and paid to him by the drawing officer of his last non-gazetted
post and a revised Last Pay Certificate issued to the Gazetted
Officer concerned with copy to the Treasury Officer.
**This amendment shall be deemed to have come into force on 17th day of
April, 1986.
NOTE —*4 Where arrears of pay and allowances of government servant who
is transferred from one Division/Office/Department to another and
in respect of whom last pay certificate has been issued has to be
drawn and disbursed by the drawing and disbursing officer of the
Division/Office/Department to which the government servant is
transferred he shall prepared “Due and Drawn Statement” in respect
of arrears of pay and allowances of such government servant and
send it to the office from which the government servant has been
transferred for verification of the claim. The latter office shall check
these statements, make entries in their records (i.e., in the office
copy of the bills) and return to the concerned drawing and
disbursing officer with a certificate to the effect that the arrears
relating to the government servant have been noted in the relevant
office copies of bills. On receipt of the “Due and Drawn Statement”
with the certificates, the drawing and disbursing officer shall prepare
the arrear bills of the government servant in the proper form, record
the necessary certificate and draw the bill from the Treasury and
disburse the arrears to such government servant on proper
acquittance. The expenditure on this behalf shall be debited to the
budget provisions of the office in which the government servant is
serving at the time of drawing the arrears.
177. Private police guards and additional police.—The cost of police
guards, whose services are placed at the disposal of private parties is
recoverable monthly in advance. The drawing officer who draws bills on the
treasury for the charges on account of such guards shall certify on each bill
that the full amount due has been recovered from the parties concerned and
credited into the treasury and shall attach to the bill a memorandum in Form
*Addition [G.O.(P) 363/76/Fin., dated 26th November, 1976]
142
T.R. 54 in duplicate giving particular of the total amount recovered towards

the charges included in the bill and the numbers and dates of the chalans
under which the amounts were credited into the treasury. The Treasury Officer
shall record on both copies of the memorandum certificates of verification of
credits in the treasury accounts for the amount stated to have been recovered
retain one copy with the bill and return the other to the drawing officer for
making the necessary entries in the departmental accounts.
The Inspector General of Police, the District Magistrate or any other
officer authorised by the Government in this behalf recovers the cost of
additional police employed under section 14 of the Madras District Police Act,
1859 section 15 of the Indian Police Act, 1861 and the Travancore-Cochin
Police Act not in advance but subsequently. The drawing officer shall attach
to the monthly pay bill for any such additional police a memorandum in Form
T.R. 55 in duplicate showing the total charges incurred on the additional
police and the demand, collection and balance in respect of the recoveries. He
shall obtain from the District Magistrate concerned particulars of the recoveries
made and credited into the treasury every month, and shall be responsible for
seeing, that the necessary demands are issued and the recoveries are made
without undue delay. The Treasury Officer shall record on both copies of the
memorandum certificates of verification of credit in the treasury accounts for
the amount stated to have been recovered, return one copy of the drawing
officer and retain the other with the bill.
178. Travelling allowances.—The claims of travelling allowance of
clerks and other subordinates who have accompanied an officer on tour or
have performed other authorised journeys shall be prepared in Form T.R. 56
[See also article 97(c), Kerala Financial Code]. The treasury shall pay such
bills on the receipt of the head of the office, after countersignature by the
controlling authority when the head of the office is not the controlling officer,
[See also Rules 113 to 116 of Part II of the Kerala Service Rules].
Drawing Officers shall pay special attention to the detailed Instructions
and the certificates printed on the travelling allowance bill forms.
179. Special to the Police Department.—The procedure to be followed
for payment of the cost of tickets issued on motor bus warrants to Sergeants,
Sub Inspectors, Head Constables and Constables in the Police Department
who have to travel on duty by motor bus has been laid down in Article 98(c)
of the Kerala Financial Code. The bill for the amounts should be prepared in
Form T.R. 59.
143
180. [Omitted]
[G.O.(P) 386/80/Fin., dated 18th June, 1980]
181. Other miscellaneous payments to government servants.—
Overtime fees.—Every bill on which overtime fees are claimed under the
rules in force or with the sanction of a competent authority shall contain a
certificate as follows:
“Certified—
(1) that the government servants for whom overtime fees are claimed
in this bill have actually earned them by working overtime;
(2) that the periods for which overtime fees are claimed in this bill have
been checked with the initial records and found to be correct;
(3) that the overtime fees are claimed at rates sanctioned by a competent
authority; and
(4) that the overtime fees have been taken into account in calculating
the income tax to be recovered from the government servants noted
in this bill”.
When the overtime fees are to be paid out of fees collected from private
parties, the drawing officer shall certify on the bill that the prescribed fees payable
by private parties on account of the overtime have been realised and credited into
the treasury.
C. Last Pay Certificate
182. The form prescribed for last pay certificates and the rules according
to which they should be prepared, are contained in Appendix 12. A Treasury
Officer (or the head of the office in the case of non-gazetted government servant)
should on no account disburse any pay or allowances to a government servant to
whom he has granted a last pay certificate, unless the certificate is first surrendered.
#Exceptions—*(1)In respect of a Gazetted Government Servant deputed to
foreign service and in respect of whom Last Pay Certificate
has already been issued, arrears of salary, if any, due for
the period of his service under the Government shall be
paid by the Treasury Officer of the Treasury from where
*Addition [G.O.(P) 616/82/Fin., dated 22nd October, 1982]
# Substitution [GO(P) 65/83/Fin. dated 4th February, 1983]
144
the pay of the employee was drawn prior to his

deputation to foreign service, on the basis of specific
authorisation issued by the Accountant General. The
surrender of Last Pay Certificate already issued shall
not be insisted in such cases. The Treasury Officer
shall also issued revised Last Pay Certificate to the
Foreigner Employer after the disbursement of the
arrears through the Accountant General for refixing the
officer ’s emoluments in Foreign Service. The
outstanding T.A. claims of such an employee shall be
paid by the Treasury Officer only after such claims are
subjected to †pre-check by the Accountant General.
†This amendment shall be deemed to have come into force on 17th
day of April, 1986.
(2) In respect of a Government Servant other than a Gazetted Officer
deputed to Foreign Service, and in respect of whom Last Pay certificate has
already been issued, the Head of the Office from where the employee was
deputed to Foreign Service shall, draw and disburse the arrears of salary, if
any, due to such employee for his period of service under Government, without
insisting on the surrender of the Last Pay Certificate already issued. The Head
of the Office shall also issue a revised Last Pay Certificate to the Foreign
employer after the drawal and disbursement of the arrear salary for refixing the
emoluments of the officer, in the Foreign employment. The outstanding
travelling allowance claims of such an employee shall be drawn and disbursed
in the usual manner by the Head of the Office from where the Government
Servant was deputed to Foreign Service.
(3) All claims of a retired Gazetted Government Servant whether it
relates to salary or travelling allowance ‡for the journeys performed whether
before or after retirement shall, be paid by the Treasury Officer only after †pre-
check by the Accountant General, provided that such †pre-check shall not be
required for payment of last salary in respect of those governed by the Kerala
Service Rules in which case the procedure outline in sub rule (a) of rule 212 of
these rules shall be followed. The surrender of any Last Pay Certificate
previously issued, shall not be insisted on in such cases and a revised Last
Pay Certificate shall be issued after the disbursement of the arrear claims.
†Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]

‡Insertion [G.O.(P) 208/89/Fin. dated 12th April, 1989]
145
† This amendment shall be deemed to have come into force on 17th day
of April, 1986.
(4) The arrears of salary, if any, due to a retired Government Servant
other than a retired Gazetted Government Servant, in respect of whom as Last Pay
Certificate has already been issued shall be drawn and disbursed in the same
manner as regular monthly pay, allowances etc. by the Head of the office from
which the Government Servant retired, on the responsibility of such Head Office
without reference to the departmental authorities and the Accountant General.
The surrender of Last Pay Certificate already issued shall not be insisted in such
cases. A revised Last Pay Certificate shall also be issued after the drawal and
disbursement of the arrear salary, where necessary. Outstanding T.A. claims of
such officers, may also be drawn and disbursed in the usual manner by the head
of the office from which the Government Servant retired.
NOTE— The term Government Servant used in exceptions (2) and (4) above
includes a non-gazetted officer who was drawing the pay and
allowances on salary bills countersigned by a gazetted officer having
control over him as mentioned in the exception to rule 169 (b).
183. If the emoluments of a government servant upto the date of his transfer
to a new post are not drawn before he proceeds to the new post [See sub clause
(ii) of clause (d) of article 87 of the Kerala Financial Code] and his emoluments for
the whole month are therefore drawn together in the new post, the allocation of
the charge between the old post and the new post should be clearly indicated in
the bill. The last pay certificate of a non-gazetted government servant should give
the information necessary to enable the drawing officer to note the allocation
correctly in the bill of the new office. A gazetted or other government servant who
draws his own bills is himself responsible for showing the correct allocation of the
charge in any bill relating to service in more than one post.
184. [Deleted G.O.(P) 386/80/Fin., dated 18th June, 1980]
185. [Deleted G.O.(P) 386/80/Fin., dated 18th June, 1980]
186. Pensioners.—A government servant who retires on a pension is
required to produce a last pay certificate before he can draw his pension for the
first time. A last pay certificate should therefore be granted to every government
servant who retires on a pension by the Treasury Officer concerned in the
†Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]
146
PART V KERALA TREASURY CODE RULES 186-186A
case of gazetted officers and the drawing officer in the case of non-gazetted
officers. If a non-gazetted officer is himself the drawing officer his last pay
certificate should be countersigned by his immediate superior gazetted officer.
The Accountant General will direct, when he issues the order for the payment
of the pension, that no payment be made until a last pay certificate has been
produced at the treasury where the first payment of pension is made. In cases
where the application for pension to the Accountant General is made after
retirement, the last pay certificate should be submitted along with the
application for pension.
186 A.Notwithstanding anything contained in rule 164 (a), 165 (a) and
432 (a), the pay and allowances of a government servant gazetted or non-
gazetted, who is certified by a Magistrate to be lunatic should be paid in
accordance with the following procedure under the provisions of section
95 (1) of the Indian Lunacy Act, 1912.
(1) (a) On receipt of information that a government servant has
been certified to be a lunatic, the head of the office in which the government
servant, before his being certified to be a lunatic was last employed should
on the basis of the orders issued by the appointing authority indicating the
person(s) to whom and the proportion in which the pay and allowances
admissible to the government servant may be disbursed in accordance with
the provisions of section 95 (1) of the Indian Lunacy Act, 1912, draw the
pay and allowances of the government servant in the appropriate bill form,
gazetted or non-gazetted as the case may be, from the treasury or other office
of disbursement. The claim should be supported by all the relevant certificates
which the Head of the Office is required to furnish in the normal circumstances.
However, in respect of the certificates which solely depend on the personal
knowledge of the government servant and which cannot be furnished in such
cases, the head of the office should record, if he is satisfied about the
reasonableness of the claim a certificate to the effect that the claim is not
susceptible of verification but is considered reasonable. If the government
servant is invalided from service, the claim would be the last one in respect of
him and the requisite payment in case he was a gazetted government servant
shall be made only after the head of the office has satisfied himself by the
reference to the Accountant General, the department authorities, if any, and
his own records, that no government dues are outstanding against him. In
other cases payment may be made on the responsibility of the head of the
office concerned.
147
(b) The amount withdrawn in the manner stated above may be paid
to the person(s) referred to in sub paragraph (a) above, in the proportion
determined by the appointing authority and receipts obtained, stamped, where
necessary.
(2) Where a government servant has been invalided from service
and it is found that some Government dues are outstanding against him even
after the adjustment of his claims for pay and allowances, the same may be
adjusted against the amount of his death-cum-retirement gratuity, if any, and
if the same is also insufficient, the balance of the outstanding dues may be
written off under sanction of the competent authority.
CHAPTER III
CONTINGENCIES AND OTHER MISCELLANEOUS EXPENDITURE
187. (a) “Permanent advances” are granted to certain government

servants to enable them to meet contingent charges relating to their offices
before drawing bills for the amounts. When a permanent advance is
sanctioned it shall be drawn from the treasury on a bill in Form T.R. 42
supported by a copy of the order sanctioning the advance. The several items
of contingent expenditure which are met from the permanent advance shall
be recorded in one or more registers to be maintained on each office in the
form prescribed for the purpose.
(b) A gazetted government servant who is the head of an office may
draw his office contingent bills. He may also delegate this power to a gazetted
government servant serving under him—[See Rule 163 (g)].
A non gazetted government servant who is the Head of an office may
draw his office contingent bills subject to the condition that such bills should
be countersigned before payment by a gazetted officer in control over him or
by the head of the department at the discretion of the latter. *No such
countersignature shall be required for the drawal of wages of contingent
employees listed in Appendix II by those officers as listed in Appendix 10
Kerala Treasury Code, Volume II.
Exception.—(1) The Assistant Educational Officers shall draw rent bills
of Government Primary Schools in their jurisdiction;
such bills need not be countersigned.
*Addition [G.O.(P) 170/81/Fin., dated 13th March, 1981]
148
Exception. — *(2) The Assistant Educational Officers shall pass

contingent bills relating to petty construction and repair
works of primary schools for amounts upto `1,000
without the countersignature by the District
Educational Officers.
(c) Bills for contingent expenditure that require the countersignature
of the controlling authority before payment shall be drawn in Form T.R. 59.
The Treasury Officer shall not pay such bills unless they have been duly
countersigned.
(d) In regard to contingent expenditure that requires the
countersignature of the controlling authority after payment, the drawing officer
shall present abstract bills in Form T.R. 60 at the Treasury for payment, and
send monthly detailed bills in K.F.C. form No. 11 to the controlling authority
for countersignature and transmission to the Accountant General. The detailed
bills duly countersigned by the controlling officer shall be sent to the
Accountant General direct not later than the 20th of the month succeeding
that to which the bills relate. In the abstract bills the expenditure shall be
classified under the detailed account heads. The numbers assigned to the sub
vouchers pertaining to each entry in an abstract bill shall be shown against
the entry, and the amount of each sub voucher for more than $ ` 1000 shall be
stated. A certificate shall be attached to every abstract contingent bill to the
effect that the detailed contingent bills have been submitted to the controlling
officer in respect of abstract contingent bills drawn more than a month before
the date of that bill. On no account may an abstract contingent bill be cashed
without this certificate. **While forwarding the detailed contingent bill to the
Accountant General after counter signature by the controlling authority, the
Drawing and Disbursing Officers shall attach all sub-vouchers of rupees five
hundred and above, therewith. All sub-vouchers below rupees five hundred
shall be defaced, and a certificate of having defaced and retained all such sub-
vouchers shall be recorded in the detailed contingent bills by the controlling
authority.
**This amendment shall be deemed to have come into force on 25th
April, 2003.
(e) Bills for contingent expenditure that do not require
countersignature shall be drawn in Form T.R. 61. The drawing officer shall
*Addition [G.O.(P) 102/75/Fin., dated 21st March, 1975]
$ Substitution [G.O.(P) 5/84/Fin., dated 3rd January, 1984.]
**Substituted the notification issued vide G.O.(P) 80/88/Fin. dated 3rd February,
1988 with G.O.(P) 289/2008/Fin. dated 8th July, 2008.
149
show full particulars of the charge in the bill, attach to it all sub vouchers for
individual payments exceeding $ `1000 and sign the prescribed certificate in
regard to the other sub vouchers.
188. The following further directions shall be followed when preparing
contingent bills:—
(i) The heads of account relating to contingent expenditure, i.e., the sub
head of appropriation, the detailed account head, and the descriptive item
subordinate to the detailed account head are generally printed in the form prescribed
for the purpose, according to the needs of the department concerned. If any such
relevant entries have not been printed in a bill form, they shall be entered in
manuscript in the bill, and the totals from the contingent registers shall be posted
against them.
(ii) Full details regarding any expenditure which requires
explanation, e.g., miscellaneous charges, shall be entered in the bill, except when
they are available in sub vouchers that will be sent to the Accountant General.
(iii) As a rule, charges debitable to more than one major head of account
shall not be included in a single bill. Separate bills need not, however, be drawn for
such charges when they are shared in a fixed proportion by two branches of the
same office and are reviewed by the same authority, but the incidence of such
charges shall be carefully indicated on the bills, so that the charges may be
properly classified in the accounts.
(iv) Certain prescribed certificates regarding items of contingent and
miscellaneous expenditure of various classes are required on contingent bills and
bills for miscellaneous expenditure—[see Rules 181, 187 (d) above and 188 (x)
below and also Appendix 4 of the Kerala Financial Code, Vol. II]. Certain certificates
of the same kind are also prescribed in departmental manuals or codes or are
printed on the form of bills intended for particular departments.
(v) Contingent charges that require the special previous sanction of
superior authority and those (other than the payment from contingencies) that
arise periodically (e.g., rents, rates, taxes, etc.) including those for which a fixed
allowance has been sanctioned, shall be drawn on separate bills, which shall
show clearly that the charges are of a special or periodical nature. Particulars of
the sanction of the expenditure shall be furnished on each such bill. When more
than one bill is drawn in respect of expenditure for which a lump sum has been
150
granted under a single special sanction, a note shall be made on the second
and each subsequent bill of the total amount spent up-to-date under the
sanction.
NOTE— In the case of contingent bills payable at treasuries on account of
rents, rates, taxes, etc., due to local bodies which have a banking
account at the treasury, the bill shall be endorsed in favour of the
local body concerned irrespective of the amount involved.
(vi) The pay and fixed allowances of a member of the staff borne
under contingencies who has been declared to be ineligible for pension and
actually discharge duties appertaining to one of the classes of staff described
in Appendix II whatever his designation may be, shall be drawn on contingent
bills. No other pay and allowances of any kind shall be drawn on a contingent
bill.
(vii) When a permanent advance is running short and payments
exceeding the balance have to be made at once, these items too may be
included in the bill, entering against them the numbers that the sub-vouchers
will bear when the payments have been made—[see also Article 122 (a) of
the Kerala Financial Code.]
†(viii) When a contingent charge exceeding ` 1,000 is payable to a
firm of suppliers, a single party etc., separate contingent bill shall ordinarily be
prepared for the amount and endorsed for payment by Reserve Bank
Remittances drafts in cases in which the drawing officer concerned is attached
to a banking treasury or a treasury having currency chest facility. Where the
drawing officer is attached to a non-banking treasury without currency chest,
the bill for the contingent charges above ` 1,000 shall be drawn in cash from
the non-banking treasury and disbursed to the payee in cash or by money
order or by Bank Draft at the expense of the payee. When payment is made by
draft, the draft as and when obtained shall be forwarded to the payee. ‡A
proper receipt for the amount should be obtained from the party/firm concerned
and retained by the drawing and disbursing officer.
‡This amendment shall be deemed to have come into force on 9th
October, 1985.
Note:—This amendment has been given effect to w.e.f. 9th October,
1985 as per the circular No. 87/85/Fin. dated 9-10-1985 in modification of the
contrary contained in G.O.(P)No. 548/87/Fin. dated 23-6-1987.
†Substitution [G.O.(P) 548/87/Fin. dated 23rd June, 1987]

‡Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
151
*A proper receipt for the amount should be obtained from the party
concerned. If the amount involved is above `100 the receipt should be forwarded
to the Accountant General. After effecting payment a certificate to the effect that
the payment has been made to the proper person and that a proper acknowledgment
has been obtained and filed in his office may be sent to the Accountant General by
the drawing officer.
Whenever a contingent bill is endorsed to a private party, the drawing
officer shall, before signing the bill, obtain the specimen signature of the party on
the body of the bill which he shall attest before signing the bill. The drawing
officer shall simultaneously issue an advice (in Form T.R. 106) to the Treasury
Officer [* *] giving full particulars of the bill. The bill must at once be entered in the
Contingent Register and a note made to the effect under the initials of the drawing
officer that the amount has been drawn. The Treasury Officer should invariably
return the duplicate copy of the advice with the date of payment to the drawing
officer after payment is made.
Where the endorsee wishes to collect payment on the bill through a
messenger (other than a banker) the messenger must produce a letter of authority
in Form T.R. 103. †The letter of authority should be preserved in non-banking
treasuries for 10 years (See Appendix 25 of K.T.C., Vol. II).
In the case of grants-in-aid, scholarships, stipends, book allowances,
etc. of non-Government institutions including those referred to in Rule 197 (a) the
Officers authorised to countersign or pass the bills, shall simultaneously with
countersigning or passing of such bills, issue an advice to the Treasury Officer in
Form T.R. 105 giving full particulars of the bill. The Treasury Officer should order
payment on such bills only after referring to the advices received.
Exception.—Grants-in-aid bills pertaining to the pay and allowance of teachers
and non-teaching staff of the Aided Schools referred to in Rule
197 (a) do not require the advice referred to.
NOTE— [Omitted]
[G.O.(P) 669/79/Fin., dated 30th July, 1979]
(ix) The amount of the bills to be paid by book transfer shall not be
included in the body of the bill itself but only in the memorandum of appropriations,
expenditure and balance at the foot of the bill.
* Addition [G.O.(P) No. 12/75/Fin., dated 6th January, 1975]
** Omitted [G.O.(P) 20/81/Fin., dated 8th January, 1981]
†Addition [G.O.(P) No.147/74/Fin., dated 25th June, 1974]
152
(x) Supply of water.—Expenditure incurred on the supply of water to

offices should be restricted to what is really necessary. The drawing officer should
attach a certificate in the following form to every contingent bill which includes
such charges:—
“Certified that the expenditure on watermen for the supply of water has
been scrutinised and is necessary”.
189. [Deleted]
190. Works expenditure charged as contingent expenditure.—Bills for
charges on account of petty works and repairs allotted to departments other than
the Public Works Department shall be drawn in Form T.R. 62. The name of the
work, the serial number of the bill in the series of bills for that work, the number and
date of the last bill, the number and date of the order sanctioning the work and the
amount of the sanctioned estimate shall be entered on each such bill in the spaces
provided for the purpose. Each item of charge shall be fully described and details
furnished where necessary, as to the rates and quantities. All sub-vouchers for
individual payments exceeding $ ` 1000 shall be attached to the bill. If it is not
possible to furnish full details of the charges with the necessary sub-vouchers
when drawing the bill, they shall be furnished within one month in a bill headed
“Not payable at the treasury” with the necessary sub-vouchers attached.
When a bill contains a charge for labour engaged departmentally the drawing
officer shall certify that the amount charged was paid on muster rolls maintained
in accordance with the rules to labourers who actually worked on the work. These
muster rolls shall be submitted to the Accountant General, if he calls for them. In
the case of contingent employees for whom no muster rolls are maintained,
disbursing officer concerned shall furnish a certificate as follows:-
“Certified that all contingent employees whose pay has been charged in this
bill were actually entertained in Government service during the period concerned.”
191. Renting of private building for office and residential purposes.—

(a) When claiming the first charge for rent in every year, for a private
building to provide office or residential accommodation the drawing officer should
attach to the bill, a certificate from the Executive Engineer, Buildings and Roads
having territorial jurisdiction over the area, that a suitable Government building
was not available.
(b) When claiming the first charge for rent for the first year, the drawing
officer should attach to the bill, a certificate from a competent authority in the
P.W.D. (Buildings and Roads) under whose jurisdiction the building is situated
that the amount of rent fixed is reasonable, having regard to the local conditions
and the scale of accommodation provided.
$Substitution [G.O.(P) 5/84/Fin., dated 3rd January, 1984.]
153
(c) When the building rented is in a municipality the first bill on

which the rent is drawn should also be supported either by a letter from the
Executive Authority of the Municipality stating what amount he considers to
be a reasonable rent for the building, such amount being not less than the rent
charged in the bill or by an order of the Head of the Department sanctioning
the payment of the rent, if the rent is higher than that recommended by the
Executive Authority of the Municipality. The first bill on which the rent is
drawn in each subsequent year should also be supported by a certificate of
the Executive Authority of the Municipality, that the rent charged is reasonable,
or by an order of the Head of the Department sanctioning payment of the rent.
This requirement is in addition to the certificates by the other authorities
mentioned above.
NOTE 1—For the purpose of this rule, the following officers of the
P.W.Department (Roads and Buildings Branch) are competent
to issue rent certificates for the amounts noted against each in
places where there is no Rent Controller.
(i) Chief Engineer .. Any amount
(ii) Superintending
Engineer .. do.
(iii) Executive Engineer .. Rent not exceeding ` 200
per mensem
(iv) Assistant Engineer .. Rent not exceeding ` 50
per mensem
NOTE 2—In the case of departments, in which a Civil Engineering Unit is
functioning, the certificate of reasonableness of rent, issued by
officers, exercising the powers of their counterparts in the P.W.D.
may be accepted. The non availability of Government Buildings
even in these cases should be certified by the Executive Engineer
of the Division concerned.
NOTE 3—In cases where the rent of building occupied is ` 10 or below, the
Head of the Department may certify that no Government building
is available and that the rent charged is reasonable. In such cases
no certificate need be insisted from the officer of the P.W.
Department.
NOTE 4—No annual renewal of certificate of reasonableness of rent need be
insisted, if the same department occupies the same building
154
continuously at the same or lower rate of rent. If however the

occupation of the building prolongs over 3 years, the Head of
Department should furnish a certificate that there has been no
reduction in rental value of buildings in the locality. This certificate
should be attached to the first bill for rent after the expiry of the
period of 3 years. Unless the periods of lease have been specified
in the original sanction it is not, however, necessary to revise
sanction for the continued occupation of the same buildings in
subsequent years.
192. *Service postage stamps.—The Service Postage Stamps required
for an office shall be purchased from the respective Head Post Offices on payment.
The amount required for this purpose shall be drawn from the Treasury/Bank by
means of contingent bills, by bill drawing officers and cheques, by cheque drawing
officers.
*This amendment shall be deemed to have come into force on the 1st day of
October, 1985.
193. Discount on stamps.—The discount on stamps allowed to certain
class of vendors under the rules framed under the Kerala Stamp Act, 1959 is
credited to them by deduction from the purchase money to be paid by them for
stamps. Receipts in Form T.R. 64 should be taken for the payment of the discount,
besides the indent on the treasury for stamps. It is the duty of the Treasury
Officers to see that the discount has been correctly calculated. They should
certify to this effect in the subsidiary schedule of receipts on account of stamps
sent to the Accountant General with the monthly accounts. The full face value of
the stamps should be shown as a credit in the stamp accounts and the discount
shown separately as a payment.
194. [Omitted]
[ G.O.(P) 386/80/Fin., dated 18th June, 1980]
195. Recovery of amounts attached by courts.—When any moneys due
by the Government to any person, otherwise than as pay and allowances of a
government servant, are attached by a prohibitory order of a court of law, the
government servant responsible for making the payment shall give effect to the
court’s order, unless he has reason to think that the amount payable is exempt
from attachment, in which case he shall report the matter to the Government for
orders before making the payment.
*Substitution [G.O.(P) 82/88/Fin. dated 3rd February, 1988]
155
When the attachment relates to an amount for which a bill has to be drawn
on the treasury, the treasury and the department concerned shall, in giving effect
to the court’s order follow the same procedure as that prescribed in Rule 211 for
deducting from the bill and remitting into court an amount attached from a
government servant’s pay and allowances.
When the attachment relates to an amount which has to be disbursed by
means of a departmental cheque, the procedure laid down in Rule 442 shall be
followed. (Please See note after the first paragraph of Rule 208 in the case of
attachment on Personal Deposit Accounts).
196. Grants in lieu of magisterial fines.—
(a) The Government make grants to the local funds and private bodies
concerned on account of the fines that magisterial courts levy under certain
enactments and credit to the Government (See Article 327 of the Kerala Financial
Code). The grants payable to the Trivandrum and Calicut Corporations and other
local funds and to private bodies shall be paid annually on the basis of the amount
realised in the previous year. Departmental registers showing fines collected shall
be maintained by the District Magistrates. The amount due on account of the files
collected in each financial year shall be paid early in July, in the following year.
(b) *The District Magistrate shall draw bills in form T.R. 61 annually for
grants payable on account of magisterial fines to local funds and private bodies.
A consolidated bill of all panchayats coming under the jurisdiction of the District
Treasury shall be prepared for the payment to be made at the District Treasury
concerned and presented at the District Treasury along with a copy of the order
sanctioning the payment, and a detailed statement showing the particulars of
annual credits, the refunds made during the year, the amount deducted as
expenditure on account of the services of processes and batta to witness and the
net amount due to each local fund or private body concerned. He shall state
against Municipalities, Port Funds, Port Trust Funds that the amount are to be
credited by book transfer in the banking accounts of the respective local fund at
the treasury. The District Treasury Officer, on receipt of the bill, shall transfer-
credit the amount to the Personal Deposit Accounts of the panchayats concerned
and send intimation to the respective sub treasuries for raising the balance in the
banking Personal Deposit Accounts maintained at the sub treasuries. The Treasury
Officer shall then send advice to the District Magistrates for the purpose of
intimation to the local fund authorities. Separate bills shall be prepared by the
District Magistrate in respect of the private bodies falling under the jurisdiction of
*Substitution [G.O.(P) 221/77/Fin., dated 13th July, 1977]
156
different District Treasuries. In such cases the District Magistrate shall furnish
his specimen signatures and observe other formalities as required under the
rules. For every payment of this kind to a local fund, exceeding $ ` 1000 made
in the banking account of the local fund at the treasury or sub treasury, the
Treasury Officer/Sub Treasury Officer shall obtain receipt to be sent to the
Accountant General.
NOTE— In the case of institutions which are not having accounts with the
treasuries, the District Magistrate shall prepare a bill separately for
such institution and present them at the treasury, in which the District
Magistrate is a drawing officer, along with money order form duly
filled up or application for R. B. R. as the case may be.
(c) The District Magistrate shall draw in cash the amounts payable
to panchayats and the branches of the society for the Prevention of Cruelty to
Animals and send them to the authorities concerned by money order at their
expense. If, however, there is a treasury or sub treasury at the headquarters of
the authority concerned, or if it has servants of its own, the Treasury or Sub
Treasury Officer shall intimate to it the amount due and state that, unless the
amount due is collected within a month, it will be sent to it by money order at
its expense. When such amounts are sent to the authorities concerned by
money order, the money order receipts shall be treated as vouchers.
Exception—Payments due to branches of the society for the Prevention
of Cruelty to Animals, which are at the headquarters of
districts, may be made by endorsement of contingent bills
in accordance with the procedure laid down in Article 128
of the Kerala Financial Code [See also Rule 188 (vii) above].
197. (a) Educational grants-in-aid, scholarships, stipends and
book allowances.—When claiming payments due by the Government to a
non Government institution under these heads, the Correspondent, Manager
or Headmaster of the institution shall prepare bills in form T.R. 114, and furnish
particulars of the orders sanctioning each payment. The bill for a grant-in-aid
requires the countersignature of the government servant specified in the
sanction, and shall be accompanied by a duplicate in coloured form headed
“Not payable at the Treasury”.
The head of a Government institution shall prepare bills in Form T.R. 114,
for the scholarships, stipends and book allowances sanctioned for his
institution and furnish particulars of the order sanctioning each payment.
$Substitution [G.O.(P) 5/84/Fin., dated 3rd January, 1984.]
157
The following procedure shall be adopted for the drawal and disbursement
of salary of teachers and non-teaching staff of aided schools:—
*(i) On the 20th day of every month the Headmaster shall prepare in
triplicate an establishment bill for the salaries of teachers for that month in
accordance with the sanctioned strength and the rates of pay allowed and forward
the same to the Assistant Educational Officer/District Educational Officer
concerned, as the case may be, attaching the undermentioned enclosures to the
duplicate bill only. Other enclosures, if any, to be attached to the bill such as
Provident Fund Schedules, Family Benefit Scheme Schedule shall be enclosed
with the original and duplicate bills:
(a) Absentee statement .. In duplicate
(b) **[Omitted]
(c) Last Pay Certificate,
wherever necessary .. do.
(d) Combined statement of demand,
collection and balance of fee
income for the period from the
21st of previous month to the
20th of the current month in the
prescribed form. .. In duplicate
(e) Triplicate copies of the chalan
for the remittance of the fee
collection into the Treasury
from the 21st of the previous
month to the 20th of the current
month. .. do.
(f) A manuscript certificate in the
bill itself signed by the
Headmaster as follows:
“Certified that the tuition fees collected from the 21st day of the previous
month to the 20th day of the current month have been remitted into the Treasury.”
*This amendment shall be deemed to have come into force on the 4th
day of February, 1975.
*Substitution [G. O. (P) 209/88/Fin. dated 9th March, 1998]
**Omission [G.O.(P) 1065/92/Fin. Dated 14th December, 1992]
158
**(ii) The Controlling Officer, i.e., the Assistant Educational Officer

or the District Educational Officer, as the case may be, shall carefully check
and pass the bill after satisfying himself that the fee income due to Government
has been remitted into the Treasury and return two copies of the bill (the
original and the duplicate with enclosures) duly signed (countersigned in the
case of Secondary and Training Schools) to the Headmaster within three days
of their receipt in his office with the following manuscript certificate in the
original bill for encashment.
“Certified that all the documents required for audit have been enclosed
with the duplicate bill”.
The triplicate copy of the bill shall be retained in the office of the
Controlling Officer (with other enclosures) with information that “all the
documents required for audit have been enclosed with the duplicate bill”.
**This amendment shall be deemed to have come into force on the
4th day of February, 1975.
†(ii A) NOTE—If the Headmaster in whose favour the bill is endorsed for
payment by the Assistant Educational Officer or the District
Educational Officer, as the case may be, desires that the amount
of the bill should be paid to some other persons employed in
his school, he shall append a letter of authority authorizing
such person to receive the proceeds of the bill duly attesting
the signature of such other person. The bill shall be paid by the
Treasury/the Bank to the person so mentioned in the letter of
authority at the risk of the Headmaster of the Institution
concerned.
†This amendment shall be deemed to have come into force with effect
from 6th day of April, 1985.
†NOTE:—This amendment has been given effect to w.e.f. 6th April,
1985 so as to make it inclusive of the provisions in G. O. (P) 205/85/Fin. dated
6-4-1985.
(iii) The Headmaster will disburse the salaries to the teachers
immediately on encashment and get their acquittance in the acquittance roll
register and also in two more copies (loose sheets) in the same form. The two
copies signed also by the Headmaster should be sent to the controlling officer
**Substitution [G. O. (P) 209/88/Fin. dated 9th March, 1988]
†Addition [G. O. (P) 1065/92/Fin. dated 14th December, 1992]
159
with an encashment statement as in the form given below within three days
from the last date of disbursement of the money. Any failure to disburse the
amount as above if the failure is due to the fault of the Headmaster, or to remit
into the treasury the fee collection within two days of collections will be dealt
with as defalcation of Government money.
ENCASHMENT STATEMENT
Name of School etc.
1. Bill No.
2. Period of claim
3. Amount
4. Date of passing
5. Date of encashment
6. Name of Treasury
7. Date of disbursement and amount
8. Balance of undisbursed amount
(Signature of the Headmaster)
(iv) The procedure outlined above will be adopted mutatis mutandis
in the case of the pay of the non-teaching staff also.
(b) When the head of an institution prefers a claim on account of
Government scholarships granted through the Harijan Welfare Department,
he should prepare a bill *in the Form T.R. 114 or in the Form prescribed by the
concerned department, with the approval of the Government and send it to
the District Welfare Officer for the district concerned. The District Welfare
Officer should check the bill and countersign it if he is satisfied that it is in
order. If the institution is situated at a place where there is a treasury, he
should then return the bill duly countersigned to the head of the institution
for encashment at the treasury and disbursement of the amount to the scholars.
If the institution is situated at a place where there is no treasury, the District
Welfare Officer should cash the bill and remit the amount to the head of the
institution at the Government’s expense for disbursement to the scholars.
*Substitution [G.O.(P) 553/79/Fin., dated 19th June, 1979]
160
198. Statement of amounts due to the Government by a local body.—

Any amount due to the Government by a local body, including an amount due
on account of a loan which it has taken from the Government shall, if it remains
unpaid be subject to recovery by adjustment from grants payable to it by the
Government other than those payable under the provisions of a statute.
A statement showing all the amounts due to the Government by the local
body and remaining unpaid shall be presented at the treasury along with
every bill on which a local body claims payment of a non statutory grant-in-
aid. Out of the grant payable to the local body, the Treasury Officer shall
credit to Government the amount shown in the statement of amounts due by
it or the whole of the grant, whichever is less, and he shall credit the local
body’s account only with the balance of the grant, if any. The treasury shall
send the statements of amounts due by local bodies prescribed above to the
Accountant General along with the bills.
199. Compensation awarded by courts out of fines to injured parties.—
When a court orders the payment to an injured party of an amount kept in
deposit in the treasury which was awarded to him as compensation out of a
fine imposed in criminal case, it shall certify on the order either—
(1) that the sentence and award have been confirmed by the appellate
court and no order has been received from the court of revision reversing or
modifying the order of compensation, or
(2) when the order as to compensation has been modified in appeal
or revision, that the payment ordered is in conformity with such modification,
or
(3) that the appeal time has expired and no appeal has been preferred,
and that no order has been received from the court of revision reversing or
modifying the order of compensation.
200. Refunds of revenue.—Bills for drawing moneys from the treasury
on account of refunds of revenue shall be prepared in Form T.R. 65 unless
some other form has been prescribed in regard to any particular class of such
refunds. Every refund shall be noted against the original receipt entry in the
departmental accounts. The government servant who is responsible for the
maintenance of the departmental accounts containing the original receipt entry
shall certify on the bill that the refund has been so noted and shall fill in
columns (1) to (5) of the Form. The Treasury or Sub Treasury Officer shall not
161
pay any such bill unless particulars of the order of sanction of a competent
authority are furnished on the voucher and a certified copy of the order is
attached to it if no copy is separately communicated to the Accountant General.
A government servant who draws a bill for a refund of revenue shall
certify on the bill that the restrictions prescribed by the Government in regard
to time limits for claims for refunds (See Article 44 of the Kerala Financial
Code) have not been contravened. The certificate shall be in that one of the
alternative forms provided for the purpose in the form of refund bill (Form
T.R. 65) that is appropriate in each case. When he is himself the sanctioning
authority, he shall also certify on the bill that the refund claimed satisfies
the conditions, if any, prescribed in the departmental rules and administrative
orders; in other cases, this certificate shall be furnished by the competent
authority in the order of sanction.
Unlike sub-vouchers for contingent charges, sub-vouchers relating
refunds of revenue shall not be cancelled. The Treasury or other Officer,
who disburses the amounts by money order or otherwise, shall forward to
the Accountant General for audit all sub-vouchers, however small the amount
involved. The Secretary, Kerala Public Service Commission, however, shall,
in respect of the amounts drawn by him from the District Treasury, Trivandrum
for remittance by money order to the parties, send only a certificate of
disbursement to the Accountant General retaining the money order receipts
with him.
NOTE 1—Refunds of land revenue.—Revenue Inspectors are required to
make refunds of land revenue, when necessary, during their
tours. Each Revenue Inspector should estimate the amount that
he is likely to require for the purpose each month and apply to
the Tahsildar for the necessary funds. The Tahsildar should
check the amount with the published list of excess collections
that the Divisional Officer has authorised him to refund, draw
the required amount on a bill containing details of the items
included and send it to the Revenue Inspector. The Revenue
Inspector should submit the receipts obtained from the payees
to the Tahsildar, who should attach them to the bill submitted to
the Treasury Officer in support of the charge in the sub treasury
account. The Revenue Inspector should refund to the sub
treasury by the date of closing its monthly account any part of
162
the amount drawn and sent to him that he has not disbursed
and any amount that he so refunds should be deducted at the
foot of the refund voucher on which the amount was originally
drawn.
Jamabandi Officers are also required to make such refunds, when
necessary, and should obtain the amount required from the
Tahsildar concerned. The Tahsildar should draw a sum equal to
the excess collections to be refunded in respect of the villages
to be dealt with at each Jamabandi camp and hand it over to the
Jamabandi Officer before he starts work at the camp. The
Jamabandi Officer should make the refunds to claimants who
are present at the camp and return any undisbursed balance to
the Tahsildar together with the payees’ receipts before leaving
the camp.
NOTE 2—Refunds on account of stamp.—When a refund has to be made
on account of spoilt or damaged stamps (other than stamps
received back from a vendor), the Tahsildar should draw a bill
in Form T.R. 66 and obtain the payee’s receipt on it.
If the order of sanction of the competent authority is not recorded
on the bill itself, a certified copy of the order should be attached
to the bill.
NOTE 3—Refunds of process and poundage fees by courts of law.—Refunds
of process and poundage fees should be treated as refunds, of
stamp revenue. The court should make such refunds, when
necessary, from its permanent advance and recoup its permanent
advance by drawing a contingent bill headed “Refund of
process and poundage fees” on the treasury at the end of each
month. It should attach to every such bill at the relevant refund
vouchers in the form prescribed by the High Court containing
the signatures of the payees in token of having received the
amounts refunded.
When a refund has to be made after a process has been
transmitted for service from one court to another, the refund
order should be forwarded for payment to the Judge of the
court in which the process fees have been deposited.
163
NOTE 4—Refunds of registration fees.—A registering officer should make

refunds of registration fees, when necessary, from his permanent
advance and recoup his permanent advance by drawing a
contingent bill headed “Refund of registration fees” on the treasury.
He should attach to every such bill all the relevant refund vouchers
in Form T.R. 65 containing the signatures of the payees in token of
having received the amounts refunded.
NOTE 5—Refunds of excess receipts on account of advertisements in the
Gazette and other official publication.—The Superintendent,
Government Press, should meet in the first instance from his
permanent advance refunds of excess receipts on account of
advertisements in the Kerala Gazette and other official
publications, and subsequently recoup the permanent advance
by presenting bills at the District Treasury, Trivandrum. These
bills should be supported by money order acknowledgments of
the parties concerned.
NOTE 6—Refunds of college and examination fees.—When any college
fees have to be refunded under the rules and orders in force,
the Principal of the College should draw a bill for the amount to
be refunded, attach to it the order of a competent authority
sanctioning the refund and present it at the treasury for payment.
If an examination fee or a part of such fee has to be refunded,
the government servant who received the fee (the Secretary,
Kerala Public Service Commission, or the Commissioner for
Government Examinations or the Text Book Officer) should
endorse a certificate on the original receipt for the fee, specifying
the amount to be refunded. The person who paid the fee should
present the receipt so endorsed for payment at the treasury
which issued the receipt.
When the fees payable by more than one candidate in a school
have been remitted into the treasury in a lumpsum and a single
collective receipt issued and a part of the amount has to be
refunded, the procedure laid down in Rule 200 above should be
followed.
NOTE 7—Refunds of fines.—When a appellate court or court of revision,
other than the High Court, reverses or reduces a sentence of
164
fine on appeal, it should issue a refund order in the form

prescribed by the High Court.
When the High Court reverses or reduces a sentence of fine the
court which passed the original sentence should issue a refund
order on receiving the High Court’s certificate under section
425 and 442 of the Code of criminal Procedure in regard to its
order on appeal or in revision.
NOTE 8—Refunds of salestax and agricultural income-tax.—Refund of sales
tax and agricultural income-tax shall be claimed in Form 49 of Kerala
General Salestax Rules and the form prescribed in rule 32 A of the
Agricultural Income Tax Rules, respectively. When a refund is
sanctioned, the assessing authority concerned, shall forward a
refund order in the relevant form mentioned above, to the party
concerned, simultaneously giving due intimation to the Treasury
Officer regarding the issue of refund order. The refund order shall
be made payable only at the treasury in which the original credits
have been made. The Treasury Officer shall verify the original
credits noted in the refund order and put his initials in the column
provided for the purpose in the refund order, as token of having
checked them. The refund order shall be passed for payment, only
after verification of the credits, as mentioned above.
201. Loans and advances.—Particulars of the order sanctioning the loan
or advance shall be furnished in every bill or other document on which a loan or
advance is drawn.
In the case of a loan sanctioned to fully owned Government Company/
Corporation, a written undertaking in the form prescribed by the Government in
that behalf should be got executed before the loan is actually disbursed. A certificate
that the written undertaking has been obtained from the loanee should be recorded
by the countersigning authority on the bill for the drawal of the amount of the
loan. In cases where the bills for drawal of loan amounts are not required to be
countersigned by the sanctioning authority, the following procedure shall be
followed in regard to furnishing/execution of the undertaking by the loanee
institutions.
The sanction should specifically state that the undertakings/agreement would
be furnished executed by the loanee before the drawal of the amount of loan. It
should also include a clause that the Accountant General/Disbursing Officer
165
would authorise payment only on the receipt of a certificate from the

sanctioning authority that the undertaking/agreement has been obtained from
the loanee. The sanctioning authority should ensure that the requisite
certificate is furnished to the Accountant General/Disbursing Officer as soon
as the undertaking/agreement is received from the loanee, so that payment
of money is not unduly delayed.The sanction of a competent authority to a
personal advance may, if preferred, be obtained in the form of
countersignature on the bill itself before it is presented at the treasury, instead
of in a separate order.
The treasury shall not pay a bill for an advance under the head “Advances
to cultivators” (See Article 246 of the Kerala Financial Code) unless it is signed by
an officer who has power to sanction the advance. If it is presented at the treasury
duly signed together with the borrower’s receipt for the amount of the advance,
duly stamped when necessary, the treasury shall pay the amount direct to the
borrower or his duly authorised agent. As an alternative, an officer who has to
disburse advances may draw on his own receipt on an abstract bill such portion
of the amount of the sanctioned advances awaiting disbursement as he is likely to
require for payment to the borrowers during his tours. When this latter alternative
is adopted, the Collector shall prescribe for each officer concerned, with due
regard to the circumstances, a maximum amount which he may draw on such an
abstract bill, and the following rules shall be observed:-
(1) No disbursing officer shall cash another abstract bill, before
furnishing a detailed bill to account for the disbursements from the amount
drawn on the last abstract bill and refunding into the treasury any balance
remaining undisbursed. A disbursing officer who cashes an abstract bill shall
under no circumstances delay the submission of the corresponding detailed
bill beyond the end of the second month following that in which he cashed
the abstract bill.
(2) The disbursing officer shall take the receipts of the borrowers
or their duly authorised agents on the spot when he disburses the advances
and shall certify at the foot of the detailed bill that all the advances included in
it were paid in his presence.
(3) The Collector shall retain the borrowers’ receipts and after
checking the detailed bill with them, shall forward it to the Accountant General
through the Treasury Officer in support of the debits appearing in the treasury
account.
166
NOTE— In the case of advances granted to cultivators by officers of

departments other than Revenue, the Government may, by special
order, entrust the duties of the Collector under the above rule, to
the district heads of the departments concerned. In the absence of
any such special order, such duties shall be done by the Collector
of the District in respect of ‘advances to cultivators’ granted by
officers of other departments also.
202. Survey Department Bills.—Bills for temporary advances sanctioned
for survey parties for demarcation purposes shall show the state of the advance
for which a statement showing the amount drawn up-to-date, the amount covered
by recovery lists advised to the Collector and the balance available should be
attached to each bill. Bills for amounts due to contractors for survey stones and
other charges recoverable from ryots shall be in the forms prescribed in the
departmental manuals or orders. No bill for an amount due to a contractor for
survey stones shall be paid, unless both the contractor and the survey officer-in-
charge of the survey party have signed it and the survey officer has certified on it
that the stones bought for use as survey marks have been brought into the stock
registers and the necessary notes regarding payment made in order to prevent
payment of any second claim on the same account.
203. Bills for survey charges in the Revenue Department.—The
Tahsildar shall, when necessary, draw bills for advances for replacing missing
boundary marks in the form prescribed in the Standing Orders of the Board of
Revenue and shall attach to each bill for the cost of survey stones both the
contractor’s receipt for the amount and the acknowledgment of the village
officer who took charge of the stones. They shall prepare the necessary
bills in due course for adjusting these charges in the manner laid down by
the Government and shall certify on each such bill that the amount charged
to the Government under cost of survey marks has been checked and found
to be correct.
204. Repayment of deposits.—Every order issued by a court or other
authority for the repayment of a deposit from a treasury shall be in English.
The order of a court or other authority for the repayment of a deposit and
the voucher for such repayment shall be in Form T.R. 67 except when some
other form has been specially prescribed for the purpose for any class of
deposits. When only a part of a rupee is to be repaid, the space against the
words “rupees” shall be scored through or the word “nil” shall be written in it,
in order to prevent interpolation. As a safeguard against fraud, the authority
167
which orders the repayment shall enter the name of the payee after the words
“Passed for payment” thus; “Passed for payment to…………..” the authority
revalidating an order of repayment which lapsed under the provisions of Rules
207 and 237 (3) shall verify that a note of repayment over the initials of the authority
ordering the repayment has been made against the original entry in the check
register.
Deposits, the detailed accounts of which are not kept at the treasury and
which are credited to the Government under Article 296 of the Kerala Financial
Code, Volume I, cannot be repaid without the sanction of the Accountant General
who will authorize payment on ascertaining that the item was really received and
was carried to the credit of Government as lapsed and that the claimant’s identity
and title to the money are certified by the Officer signing the application for
refund.
*Deposits, the detailed accounts of which are kept at the treasuries and
which are credited to the Government under Article 296 of Kerala Financial Code,
Volume I, may be refunded without the sanction of the Accountant General. The
Treasury Officer shall before authorising refund in such cases, ascertain that the
item was really received and is traceable in his records was carried to the credit of
Government as lapsed and was not paid previously and that the claimant’s identity
and title to the money are certified by the officer signing the application for refund.
205. Repayment of revenue deposits.—
(a) A revenue deposit should only be repaid on an order of the court or
authority which ordered the acceptance of the deposit. When an earnest money
deposit has to be repaid, the departmental government servant in whose favour
the amount was deposited, should endorse a repayment order on the receipt
which the treasury issued when receiving the deposit. When, however, he decides
that the deposit should be credited to the Government, he should return the
receipt to the treasury with an order endorsed on it for payment by transfer to the
appropriate head of account.
(b) When an earnest money deposit made by intending tenderer in
another State has to be repaid, the departmental officer concerned should
arrange for the repayment through the Accountant General and for this purpose
he should forward to the Accountant General the original deposit receipt of
the Treasury Officer with the refund order duly endorsed thereon.
(c) When a deposit is to be transferred to another head of account
whether at the district treasury or at a sub treasury, the government servant who
ordered the acceptance of the deposit should prepare and sign a voucher in Form
*Substitution [G.O.(P) 136/74/Fin., dated 13th June, 1974.
168
T.R. 69 and send it to the treasury. If several items of the same nature are to be
transferred on the same day, they may be included in one voucher, but transfers
to be effected on different days should not be entered on the same voucher.
(d) [Deleted]
206. Repayment of civil courts deposits.—
(a) At stations where the treasury does not transact its cash
business through the Bank.—A person who claims that any moneys are due
to him from a court should present a receipt for the amount to the court with
his application. If the claim is in order, the court should issue an order to the
treasury for the payment in Form T.R. 70 specifying the date on which the
order is issued, the amount to be paid and the account to which the payment
is debited. The receipt taken from a party for a sum paid out of the court
should, when filed in the court, be attached by gum to the office counterfoil
of the original order book.
The claimant should present the order at the treasury in the account
month in which it is issued or, if he fails to do so, should return it to the court,
which may re-issue it after the presiding Judge has re-dated it and initialed the
correction. When an order is thus re-dated and re-issued, the further date
should be entered in the office counterfoil of the original order book.
(b) At stations where the treasury transacts its cash business through
the bank.—The procedure for obtaining payment of moneys due from these
courts is the same as that described in the preceding clause, except that the
court should compare the application with the entry in the register of receipts
and verify that the balance in deposit is sufficient to meet the payment before
issuing an order on the bank for payment of the amount and that the order
should be issued in Form T.R. 71.
(c) At stations where there is no treasury or where the treasury is
located at a great distance from the court.— The civil court should refund
the moneys claimed from the permanent advance and recoup the permanent
advance later by drawing contingent bills on the treasury, supported by the
relevant individual deposit repayment vouchers duly completed.
207. Repayment of revenue deposits and criminal court’s deposits.—
An entry should be made on every order for the repayment of a revenue
deposit or a criminal court deposit stating that no payment will be made on it
after the close of the financial year in which it is issued or three months from
the date of issue, whichever is earlier.
169
208. Repayment of personal deposits.—The treasury should make

payments only on cheques taken from a cheque book issued by the treasury,
signed by the responsible administrators of the personal deposit account and
presented within three months from the date of issue. The Treasury or Sub
Treasury Officer, as the case may be, should see that no payment is made on any
cheque unless the balance in hand is sufficient to meet it. As a rule, the responsible
administrator of each personal deposit account should have a drawing account
with, and draw cheques, on either a district treasury only or any one sub treasury
only. The Government will specify the treasury or sub treasury on which he
should draw cheques in the order sanctioning the opening of the personal deposit
account. If an administrator has to carry out transaction in more than one district,
Government may permit him to have a personal deposit account in each of them.
When a personal deposit account relates to an estate which has dealings with
more than one sub treasury in a district, its drawing account should be with the
district treasury only and Government drafts or cash orders should be obtained
for payments to be made at sub treasuries [See Rule 213 (a) below]. If an estate, the
drawing account of which is kept at a sub treasury, requires occasionally to have
payments made at the district treasury, the Treasury Officer may make the payments
and adjust them in his accounts for the estate; he should inform the Sub Treasury
Officer at once of any such payment, so that the necessary entries may be made
in the personal deposit account of the estate.
NOTE 1—[Deleted]
[G.O.(P) 362/76/Fin., dated 25th November, 1976]
NOTE 2—If a government servant attaches an estate or part of an estate he
is the “responsible administrator” of it and should sign the
cheques relating to it. If, however, the attaching officer is the
District Collector it is permissible for him to delegate this
power to a Revenue Divisional Officer, if he wishes; if he does
so, he should inform the Treasury Officer and the Accountant
General at once.
NOTE 3—*When a prohibitory order is received from a Court attaching a
certain amount from a personal deposit account maintained in
the Treasury, the Treasury Officer shall withdraw the said sum
including M.O. commission, if necessary, from the personal
deposit account concerned by presenting a bill in form T.R. 42
duly signed by him and arrange remittance of the amount to the
Court concerned in the usual manner. The Treasury Officer shall
intimate the Administrator of the personal deposit account as
and when the attachment order is effected.
*Substitution [G.O.(P) 362/76/Fin., dated 25th November, 1976]
170
NOTE 4—The Examiner of Local Fund Accounts and Treasurer of Charitable

Endowments, Trivandrum may delegate to any of the gazetted
officers in his office at Trivandrum his powers to operate on the
account in the District Treasury, Trivandrum styled ‘Personal
Deposit Account of the Treasurer of Charitable Endowments.’
NOTE 5—When a personal deposit account is opened in the Treasury with

reference to Note 2 under Rule 93 of these Rules the head of the
institution concerned (Principal of the College or a similar head
of a post-matric institution other than a college) is the
“responsible Administrator” of that account. If the institution
is situated at the headquarters of a district or anywhere in the
taluk in which the district headquarters is located the drawing
account shall be in the District Treasury and in other cases the
drawing account shall be in the sub treasury at the headquarters
of the taluk in which the institution is situated unless specifically
ordered otherwise by the Director of Treasuries.
NOTE 6—The administrator of each personal ledger account shall furnish

to the Treasury Officer, at the close of each financial year, a
certificate of acceptance of the closing balance as worked out
in the Treasury Accounts, after reconciling differences, if any,
between the Treasury Accounts, and the Administrator’s
Accounts. The Treasury Officer shall not permit withdrawals
from the Personal Deposit Account after 31st May of any year
unless and until the closing balance certificate in respect of the
previous financial year has been received by him.
209. Special to the Forest Department.—In the Forest Department

only the Divisional Forest Officer has power to order the payment of an
earnest money deposit. He should do so, when necessary by endorsing his
orders on the treasury receipt. No such deposit should ever be repaid in part
leaving a balance still in deposit.
171
SECTION II
Procedure in Treasuries
CHAPTER I
TREASURIES WHICH DO NOT TRANSACT THEIR CASH BUSINESS
THROUGH THE BANK
A. District Treasuries
210. (1) A bill or other documents presented for payment at a District
Treasury shall be received and scrutinized in the Accounts Department and
then placed before the Treasury Officer. If he is satisfied that the claim is
admissible, the authority good, the signature genuine and in order, and the
receipt a valid discharge, the Treasury Officer shall sign and order for payment
at the foot of the bill, or other document. After the bill, or other document has
been completely entered in the accounts and Treasury Officer has signed the
order to pay, it shall be sent to the treasurer’s Department and the payee shall
be directed to the Treasurer’s counter. The Treasurer shall make the payment
and enter it in his account, which is a cash book (without subsidiary registers)
in which each cash transaction is posted as it occurs. The Treasurer shall
punch the stamp, if any, affixed to the payees receipt, stamp the document
‘paid’ and retain it for delivery of the Accounts Department when the books
are compared. All bills and other documents passed for payment on any day
shall be paid on the same day and no payment shall be made otherwise than in
accordance with a written order of the Treasury Officer.
NOTE 1—In treasuries where the “token system” has been introduced the
instructions issued in that regard should be strictly adhered
to.
NOTE 2—*In respect of treasury savings bank cheques presented for
encashment, the Treasury Officer or the Officer authorised for
the purpose will examine the cheque and the amount thereof
and after satisfying himself that the claim is admissible, affix
rubber stamp “Pay Cash” on the face of the cheque and put his
dated signature in token of his order of payment. Necessary
entries regarding the amount withdrawn will be made in the
savings bank ledger account and the cash scroll simultaneously
by the Officer who passes the cheque. When the payment is
*Insertion [G.O.(P) 303/73/Fin., dated 23rd July, 1973]
172
made by the Treasurer, he will affix rubber stamp “Cash Paid”

and affix his dated signature in the cheque after passing
necessary entries in his cash book.
NOTE 3—** Bills sent to Treasuries through messengers should be
endorsed by the drawing officer in the name of messengers.
The signature of the messenger shall be taken on the bill
itself,—
(i) in the drawing office, when it is endorsed in the messengers
name, duly identified and attested by the drawing officer;
(ii) at the Treasury Counter before payment is obtained, (In cases
where more than one bill is paid to a messenger at one and the same time it
is enough if the signature of the messenger is obtained in any one of the bill,
as the messenger’s signature is obtained for the purpose of identification of
the payee only);
(iii) the messenger should acknowledge receipt of the bill amount
and discharge the claim before token is obtained from the Treasury.
(2) In checking bills and making payments, the Treasury Officer
shall observe the following rules:—
(a) The Treasury Officer shall not make any payment without
obtaining adequate information as to its nature, and shall not accept any bill
or other document which does not formally present this information, unless
there are valid reasons, which he shall record in writing, for not insisting
that the information be shown in the bill or other document (See Rule 21,
Part I of these Rules). He shall make sure, that he will be in a position to
satisfy the Accountant General that the claim made in every bill that he pays
is valid and to prove to him that the payee actually received the amount of the
bill. He shall also check carefully, that the rules regarding the completion of
vouchers and the endorsements on bills have been observed.
(b) Before paying a bill on the authority of an order purporting to
have been issued by the office of the Accountant General, the Treasury Officer
shall, in addition to checking the bill in the usual manner, verify the signature
on that order by comparison with the specimen signature of the signing officer
furnished to him by the Accountant General.
** Addition [G.O.(P) 626/81/Fin., dated 29th September, 1981]
173
A bill *pre-checked or passed by the Accountant General and

enfaced for payment at a Treasury or an authorisation issued by the
Accountant General for non-recurring payments due to a gazetted government
servant such as fees, honoraria, etc., should not be paid if it is presented at the
treasury three months after the date of enfacement or authorisation as the
case may be: Such bills or authorisations for payments debitable to traveling
allowance, contingencies, grant-in-aid scholarships, stipend etc., passed for
payment and issued in one financial year shall not be paid after the close of
that year evenif three months have not elapsed since the date of enfacement/
authorisation. In all such cases where the period of validity, is over, the bills/
authorisations should be returned to the Accountant General by the Treasury
Officer with a non payment certificate for cancellation of the enfacement/
authorization, if fresh sanction or allotment of funds is necessary or for
revalidation of the *pre-checked enfacement/authorisation as the case may
be, by the Accountant General.
*This amendment shall be deemed to have come into force on 17th
day of April, 1986.
(c) The Treasury Officer shall not accept any document bearing
an erasure. He shall return any bill, or other document bearing an erasure
and inform the drawer that he may present a fresh one. If documents bearing
erasures are received frequently from any office the Treasury Officer shall
bring the fact to the notice of the head of that office.
(d) The Treasury Officer shall correct any arithmetical inaccuracy
or obvious mistakes in a bill, presented to him for payment, but shall intimate
to the Drawing Officer at once any correction which he makes (See Rule
22, Part I of these Rules). Similarly when a bill contains any inadmissible
or doubtful item which can easily be eliminated, the Treasury Officer shall
disallow it, pay the reminder of the bill, give the person who presented the
bill a memorandum containing details of the disallowance and the reasons for
making it, and attach a copy of the memorandum to the bills. When there is a
change in the office or rate of pay of a gazetted government servant, the
Treasury Officer shall check the bill, in which the new rate of pay is first
claimed with reference to the order directing the change, before he passes it.
When the special authority of the Accountant General is required under rule
175 above for passing an increment, the Treasury Officer shall not pay the
increment, unless an increment certificate approved by the Accountant General
or by an authorised assistant on his behalf is attached to the bill.
174
Treasury Officer shall check the correctness of any deduction made

in a bill with reference to the Indian Civil Service Family Pension Regulations
or the Superior Service (India) Family Pension Fund Rules.
NOTE— Every treasury should keep a register in Form T.R. 72 showing the
names of all gazetted government servants who draw their pay from
it. As soon as each pay slip issued by the Accountant General is
received, the amount stated in it should be entered against the name
of the government servant concerned. Whenever the pay bill of a
gazetted government servant is presented for payment, reference
should be made to this register to see that the rate claimed does
not exceed the sanctioned rate. Whenever last pay certificate is
issued to a gazetted government servant, the word “nil” together
with the date from which payment at the treasury has ceased should
be written in the money column of the register against his name and
the number and date of the last pay certificate should be quoted.
Every entry made in this register should be submitted immediately
to the Treasury Officer for attestation by his dated initials.
$(e) The Treasury Officer shall use a book of counterfoil forms in
Form TR 73 for communicating to drawing officers objections raised in the
course of pre-audit of bills and other claims. Such objections shall not be
written as endorsement on the bills themselves. A list of objections that are
commonly found necessary to be raised in the course of pre-audit of bills and
other claims is furnished in Appendix 27.
When a bill or other claim is to be objected, the relevant item of
objection in Appendix 27 should be fully written up in the original and
counterfoil of Form TR. 73 in the blank space above the space for signature of
the Treasury Officer. The list in Appendix 27, is not exhaustive. If the objection
to be raised is one not included in Appendix 27 that may also be written fully
with the relevant authority for the objection in the blank space above the
space for the signature of the Treasury Officer.
(f) When checking arrear claims, the Treasury Officer shall pay
special attention to the rules laid down by the Government in regard to
suchclaims (See Articles 61 to 68 of the Kerala Financial Code).
$ Substitution G.O.(P) 385/83/Fin., dated 11th July, 1983]
175
(g) When an endorsement or re-endorsement on a bill is

unauthorised, incomplete or otherwise irregular [See Rule 163 (p), 166, 167 and
clause (c) of this rule] the Treasury Officer shall refuse payment and return
the bill to the person who presented it with a memorandum explaining why
payment is refused.
(h) The Treasury Officer shall on no account pay any abstract bill
for contingent expenditure requiring countersignature after payment, in which
the drawing officer should have furnished the certificate prescribed in the
sentence of rule 187 (d) but has not done so.
(i) When contingent bill endorsed in favour of a private party is
presented at the Treasury for payment, the Treasury Officer shall check the
particulars of the bill with the advice received from the drawing officer before
making payment. When a single claim for an amount of `50 or more is included
in contingent bill for several items, the Treasury Officer may honour the bill
provided the drawing officer has recorded in the bill the special and exceptional
reasons for doing so. If the bill is in order and is paid, he shall make a note
accordingly on the advice and return the slip in Form T.R. 45 accompanying
the bill duly filled in.
The same procedure will apply in the case of bills for grants-in-aid,
scholarships, stipends and book allowances referred to in rule 188 (viii). After
payments is made, the Treasury Officer should return the duplicate copy of
the advice to the drawing officer noting therein the date of payment.
An endorsement on a contingent bill shall lapse three months after
the date of the endorsement, or at the end of the financial year, whichever is
earlier, and the Treasury Officer shall not pay an endorsed contingent bill if
the endorsement has lapsed.
(j) The Treasury Officer shall not pay any contingent bill for an
amount less than one rupee, except on the last working day of the month or
when the drawing officer is about to hand over charge.
(k) Before paying a bill for overtime fees payable out of fees
recovered from private parties, the Treasury Officer shall verify that the
prescribed fees have been realised and credited into the treasury and certify
to that effect on the bill, stating the amount of the fees realised and the item or
items in the accounts in which they were included.
(l) The Treasury Officer shall not pay any bill relating to
scholarships or stipends, unless the sanctioning authority has communicated
to him the necessary sanction for the payment.
176
(m) The Treasury Officer shall not pay a bill for a loan or interest
bearing advances to gazetted and non-gazetted government servants unless
the claim is drawn or countersigned by the officer specified in the sanction
order and a certified copy of such sanction order is attached to the bill. The
signature of the departmental officer should be verified at the treasury before
the bill is passed for payment.
The Treasury Officer shall not pay a bill for a loan to fully owned
Government Company/Corporation unless the countersigning authority has
furnished a certificate on the bill to the effect that a written undertaking in
the form prescribed by the Government for the purpose has been obtained
from the loanee, or in cases where the bill is not required to be countersigned
by a departmental authority, unless the sanctioning authority has furnished
the above certificate separately to the Treasury Officer as required in Rule
201. However, if the bill for such a loan is presented at the Treasury on the
basis of an authorisation from the Accountant General, the furnishing of this
certificate need not be insisted by the Treasury Officer as in such cases, the
certificate is to be furnished to the Accountant General direct and the
authorisation will be issued by the Accountant General only on receipt of the
certificate.
(n) Before paying a Survey Department bill referred to Rule 202 the
Treasury Officer shall satisfy himself with reference to the statement attached
to the bill that the amount applied for can be met from the balance of the
advance standing to the credit of the survey party.
(o) The Treasury Officer shall make payment on a refund bill only
after verifying the credit for the original receipt by means of the particulars in
columns (4) and (5) of the bill (Form T.R. 65) affixing his signature in column (6)
in token of his having done so and certifying on the bill that the items included
in it have not been refunded previously.
(p) A deposit shall only be repaid under an order of the authority
which originally ordered the acceptance of the deposit and ordinarily, only on
the appearance of the person entitled to it and on his furnishing a proper
receipt. A deposit not exceeding ` 100 may however, be repaid by money
order under the rules applicable to refunds of revenue (See also Rule 216
below) on receipt of the order of the competent authority. The Treasury Officer
shall credit to the Government any deposit or balance of a deposit amounting
to less than fifty paise which is due for refund. If a valid claim for repayment is
subsequently received, the repayment shall be treated as a refund of revenue.
177
Exception—The limit of ` 100 prescribed in the above rule for the issue
of money orders shall not apply to refunds of deposits made
under the Co-operative Societies Act and to surcharge on
a stamp duty levied under section 71 of the Kerala Panchayat
Act, 1960 (Act 32 of 1960), section 125 of the Kerala
Municipalities Act, 1960 (Act 14 of 1961), section 133 of the
Calicut City Municipal Act, 1961 (Act 30 of 1961), and the
orders in G.O.(Ms.) 101/62/DD, dated 15th February 1962.
(q) When a claim is presented for repayment of a revenue deposit,
the Treasury Officer shall compare the refund order of the Court or other
authority, which directed the acceptance of the original deposit, with the
entry in the register of receipts. If the amount in deposit is sufficient, he
shall take the payee’s receipt, make the payment and immediately record the
amount and the date of the repayment in the register of payments (Form T.A.
14 of the Kerala Account Code, Volume II) and also in the register of receipts.
If there is not a sufficient balance at the credit of the particular item to meet
the payment ordered, the Treasury Officer shall endorse that fact on the refund
order and return it to the person who presented it.
An earnest money deposit shall never be repaid in part.
(r) *Refund orders under Section 63, 66, 67, 68, 69, 70 or 71 of the
Kerala Court Fees and Suit Valuation Act, 1959 (Act 10 of 1960) shall be issued
to the party either in Form T.R. 65 or in Form No.70 of the Civil Rules of
Practice, Kerala. In all cases in which such refund is made in cash, a deduction
of seven paise for each rupee or fraction thereof shall be made, except in cases
when the refund pertains to any fee paid in pursuance of an order of court
which has been varied and reversed in appeal. The authority ordering the
refund shall specify in the refund order in Form T.R. 65 or Form No. 70 of the
Civil Rules of Practice, Kerala, as the case may be, the amount if any, to be
deducted at seven paise per rupee or fraction thereof and the net amount
payable to the party. The refund order shall also contain the particulars of the
suit and the party should have signed the order in token of having received
payment before presentation of the order at the Treasury. Such orders can be
endorsed to a messenger who shall also receive the payment as aforesaid.
While making any such payment the Treasury Officer shall observe, with
special care, the precautions in rule 214 below in regard to payments to persons
not in Government service.
*Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
178
(s) The Treasury Officer shall not make payment on a refund order
that has lapsed under the rules (See Rules 206 and 207 above).
(t) The procedure in regard to payment of interest on different
forms of Government securities shall be regulated by the rules and orders on
the subject contained in the Government Securities Manual and any other
rules or orders issued by the Government in this behalf.
(u) Letters of credit.—(1) Every payment made on the authority of
any letter of credit must be noted without fail, at the time of payment either in
the appropriate register of payments or on the reverse of the letter of credit.
(3) The Treasury Officer must bear in mind that the letter of credit
shows the maximum amount he has authority to pay or the Departmental
Officer credited has authority to ask for and that any further payment is made
at the Treasury Officer’s own risk, the balance of credit after each payment
must therefore be so recorded that there can be no risk of over payment.
211. (a) The Treasury Officer shall deduct from a bill for the pay,
etc., of a gazetted government servant (or a non-gazetted government servant
who is permitted under Rule 169 above to draw his pay, etc., on bills in the
forms prescribed for gazetted Government servants) any amount attached by
a prohibitory order of a Court of Law. He shall remit to the proper courts, in
accordance with the procedure prescribed below, all amounts deducted from
the pay, etc., bills of government servants on account of court attachment
orders, whether deducted by himself or by the drawing officer. No such amounts
may be remitted to the court by cash order or Government draft.
*NOTE 1—If an order of attachment against a gazetted government servant
(or a non-gazetted government servant who is permitted under
rule 169 above, to draw his pay, etc., on bills in the form prescribed
for gazetted government servants) is received before a previous
order of attachment against the same government servant has
been fully complied with, the recoveries shall be made by the
Treasury Officer so long as the total amount recoverable with
reference to the attachment orders is within the maximum limits
prescribed in Article 102, Kerala Financial Code, Volume I.
*Insertion [G.O.(P) 7/75/Fin., dated 3rd January, 1975]
179
NOTE 2—If the new attachment order has the result of increasing the amount
beyond the maximum limits prescribed, the Treasury Officer shall
return the attachment order to the Court concerned with a statement
showing—
(i) particulars of the existing attachment;
(ii) particulars of the amount withheld and paid into the court
concerned up-to-date in respect of the existing attachment;
and
(iii) (a) the balance amount available to be recovered after
effecting the existing attachment.
(b) the actual attachable amount.
(1) When the court is located at the headquarters of the treasury which
cashes the bills.—The Treasury Officer shall clear the amounts deducted, once a
month, by payment to the court in cash. When making the payment, the Treasury
Officer shall send to the court a covering memorandum together with the original
advice list prepared by the drawing officer [See Rule 163 (j) above] for each
deduction made by a drawing officer and an advice list prepared by the treasury
for each deduction made by the Treasury Officer.
(2) When the court is not located at the headquarters of the treasury
which cashes the bills.—The Treasury Officer shall remit each amount deducted
to the proper court, at once, by postal money order in the manner indicated
below:-
(i) When the Treasury Officer himself makes the deduction from a
bill, he shall prepare a money order form for the amount in favour of the court,
deduct the money order commission as well as the amount to be remitted from the
bill, pass the bill for the net amount and then send the money order form to the
post office for issue, furnishing a certificate that he has credited to the post office
by book transfer the amount of the money order together with the money order
commission due on it.
(ii) When the drawing officer has made the necessary deduction
from a bill under Rule 163 (j) above, the Treasury Officer shall credit the amount
deducted to the post office by transfer and send the money order form to the post
office for issue, furnishing a certificate as prescribed in sub-clause (i) above.
When he receives the receipt furnished by the post office for the money order, he
shall check it with the amount deducted from the bill and then transmit it to the
drawing officer for record.
180
NOTE— A similar procedure shall be adopted in the case of attachment of

salary of a government servant under the provisions of the Revenue
Recovery Act.
(b) It is possible that a government servant whose emoluments have
been attached, may refrain from signing the acquittance roll and intentionally
allow them to remain undisbursed, or if he is a government servant who
draws his pay on a separate bill, may refrain from presenting his bill at the
treasury in order to evade or delay the recovery of an amount attached by a
court. If a Treasury Officer has received a court attachment order relating to
the emoluments of any government servant who draws his pay on a separate
bill and that government servant does not present his bill for pay due for the
previous month by the third working day of the month, the Treasury Officer
shall at once bring the facts to the notice of the government servant
immediately superior to the government servant whose emoluments have been
attached. When he considers it necessary in order to avoid delay in recovering
an amount attached by a court from the emoluments of a government servant
working under him, the head of the office, or, in the case of a government
servant who draws his pay on a separate bill, the administrative government
servants immediately superior to the government servant whose emoluments
have been attached, may draw the emoluments of the government servant
concerned to the extent to which they have been attached, subject to the
prescribed restrictions and apply the amount so drawn in satisfaction of the
attachment order by remitting it to the court. The amount so drawn shall be
charged in the accounts, and the particulars of the attachment order shall be
entered in the acquittance roll or the bill, as the case may be, as an authority
for the charge. The money order receipts received from the courts shall be
filed with the attachment register.
NOTE— The Treasury Officer should maintain a register in Form 4A of Kerala
Financial Code to record the details of prohibitory orders received
from courts and the recoveries effected by him in pursuance thereof.
212. (a) The Treasury Officer shall, subject to the usual checks at
the treasury, make payment of the last pay and allowances of a regular gazetted
government servant governed by the Kerala Service Rules who finally quits
the service of the government on retirement, resignation, removal or dismissal
or is placed under suspension, on the strength of a certificate from the Head
of the Department as follows:
181
# “I certify that there is no outstanding liability/arrangements have been

made *to recover the amount of `………….............…………
(Rupees …….........................................……) towards assessed liabilities
other than compulsory deductions like House Buildings Advance, Motor
Conveyance Advance in the monthly bills, from the arrears of pension and/
or death-cum-retirement gratuity*/to withhold from the
death-cum-retirement gratuity the estimated amount of outstanding liability
plus 25 per cent thereof amounting to `……................………..
(Rupees …………..............................…….) */to accept a cash deposit of
` ………...…(Rupees…………..........…………)/or a surety bond for
` ……………………. (Rupees ……………............………..) towards unassessed
liabilities or to withhold the entire death-cum-retirement
gratuity of ` ……..……… (Rupees……...………………..) when departmental
proceedings have been taken*, from/against Shri………………… employed
as ……………………………… and retired/
…………………………….......…on......……………………
*Delete portion inapplicable.
Signature(withdate)……………....
Station …………… Designation……………………”
The bill claiming the last pay and allowances shall be presented to the
Head of the Department who shall attach to the bill the aforesaid certificate
and transmit the bill to the treasury of payment under intimation to the
government servant.
(b) The disbursement of last pay and/or allowances of those gazetted
officers who are governed by service rules other than the Kerala Service
Rules of those who are not entitled either to pension or death-cum-retirement
gratuity such as contract officers, provisionally appointed persons of non-
officials like Members of the Legislative Assembly, Members of Committees
and Commissions, etc., and of re-employed pensioners whose death-cum-
retirement gratuity has been released, shall be made only after *pre-check of
the claim by the Accountant General. The Treasury Officer should satisfy
himself with reference to the certificate regarding liabilities if any, from the
countersigning authority or the Head of Department as the case may be, the
orders of the Accountant General and the treasury records (including rent
# Substitution [G.O.(P) 547/87/Fin. dated 23rd June, 1987]
* Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]
182
demand statements, advices for recovery for loss of government property

due to the negligence of the government servants, Court attachment orders,
co-operative recoveries, etc.,) that no demands are outstanding against them
to the Government.
*This amendment shall be deemed to have come into force on 17th
day of April, 1986.
(c) The last payment of pay, allowances, etc., to any other
government servant in any of the circumstances mentioned in clause (a)
above, may be made in the same manner as the regular monthly pay, allowance,
etc., without reference to the departmental authorities and the Accountant
General on the responsibility of the Head of the Office.
**Exception.—In the case of officers in the cadre of Personal Assistant
to the District Educational Officers and above, the authority
to countersign the last salary bills shall vest with the Senior
Administrative Officer of the Office of the Director of Public
Instruction and in the case of officers in the cadre of Headmaster/
Assistant Educational Officer/Senior Superintendent and of
those having identical scales of pay in the Department the
authority shall vest with the Deputy Director of Education.
NOTE 1. —The term ‘government servant’ used in clause (c) includes a

non-gazetted officer who draws his pay and allowances on
salary bills countersigned by a gazetted officer in control over
him as mentioned in the exception to Rule 169 (b) and in his
case the responsibility for payment will be that of the gazetted
officer countersigning his salary bill.
NOTE 2. — When an amount found to be due to a government by a government
servant on any of the occasions mentioned in the previous clauses
represents (a) over payment of his pay, allowances or leave salary,
(b) house rent or postal and State Life Insurance premia due by
him, or (c) an outstanding balance in respect of any advance made
to him by the government, it shall be adjusted against the last pay
and allowances or leave salary due to him. If the amount due to the
government exceeds the amount payable to the government servant
* Substitution [G.O.(P) 304/89/Fin. dated 21st June, 1989]

** Insertion [G.O.(P) 187/2005/Fin. dated 25th April, 2005]
183
as aforesaid the excess shall be recovered from his claim for death-
cum-retirement gratuity after giving the officer concerned a
reasonable opportunity to explain [Vide Note 2 and Ruling No.25/
68 below rule (3) of Part III, K.S.R.]. If the amount proposed to
be recovered exceeds the death-cum-retirement gratuity the
excess over the death-cum-retirement gratuity, can be recovered
from the arrears of pension, if any, due to the officer if written
consent is obtained from him as pension (as distinct from death-
cum-retirement gratuity) enjoys the protection of the Pension
Act. A written consent is valid only to the extent it covers the
amount of pension earned by him till the date of such written
consent. If there is balance still to be recovered from the
government servants steps shall be taken to proceed against
him in a Court of Law unless the Executive Authority concerned
considers that it is not worthwhile to adopt that course.
NOTE 3. — The certificate from the Head of Department indicated in sub-
clause (a) above shall be in triplicate. The original copy shall
be sent to the Accountant General for safe custody along with
the pension papers of the gazetted government employee
prepared by him; the duplicate shall be attached to the bill and
the triplicate filed by the Head of Department.
212 A. Claims of deceased government servants.—In the case of
claims of a deceased government servant, on receipt of the claims for the
payment of arrears of pay and allowances from his/her heir/heirs the Head
of Office in which the government servant was last employed should draw
the amount in the appropriate bill form from the Treasury according as the
deceased government servant held a gazetted or non-gazetted post at the
time of his death. The claim should supported by all the relevant certificates
which the Head of the Office is required to furnish in the normal
circumstances. However in respect of the certificates which solely depend
on the personal knowledge of the government servant, but which obviously
cannot be furnished by the Head of the Office, the Head of Office should
record, if he is satisfied about the correctness of the claim, a certificate to the
effect that “the claim is not susceptible of verification; but is considered
reasonable”. Further, as the claim would be the last one in respect the deceased
government servant, the requisite payment in the case of a government servant
whose pay is drawn on a gazetted government servant’s bill form, shall be
184
PART V KERALA TREASURY CODE RULES 212A-213
made only after the Head of the Office has satisfied himself by reference to the
Accountant General, the Departmental authorities concerned if any, and his
own records that there are no demands outstanding against him. In the case
of other government servants, payment may be made without reference to the
Accountant General on the responsibility of the Head of the Office concerned.
The amount so withdrawn should be disbursed to the claimant or claimants
determined with due regard to the provisions of Article 95 of the Kerala Financial
Code, Volume I, after obtaining a formal receipt, stamped wherever necessary,
from the rightful claimant or claimants.
213. *(a) A Treasury Officer may issue either a draft or a cash order
for the purpose of defraying service expenditure from a Sub Treasury in his
district in exchange for properly prepared bills. In the case of non banking
Sub Treasuries, cash orders may also be issued in the following cases, namely:-
(1) for the payment of collections of one court into another;
(2) for the payment of land acquisition charges (land
compensations) originally credited under Revenue Deposit/
Work Deposit into the account of a court in another Sub Treasury
within the same District.
Sub Treasury Officers may accept remittances under the head of “Cash
Orders” under personal deposits, for the purposes mentioned above and grant
to the remitter a receipted chalan in Form T.R. 88A. The Sub Treasury
Officer shall transmit the duplicate chalan to the District Treasury in a
separate cover on the same day (not with the daily accounts) for the
disbursement of cash or for the issue of a cash order, as the case may be.
The District Treasury Officer, on receipt of the original chalans from the payer,
shall debit the item to “Personal Deposits”, “Cash Orders” and pass it for
payment of cash if it is payable at the District Treasury, or issue a cash order
if payable in another Sub Treasury.
The conditions under which a draft can be issued are explained in the
rule in Part VI of these Rules, one of which is that the minimum amount for
which a draft can be issued is `50 except in special circumstances, such as
family remittance in the case of Officers and men of the Police Department. For
amounts below this minimum, cash orders in Form No. T.R. 87 are to be issued
on any desired Sub Treasury within the district.
* Substitution [G.O.(P) 41/77/Fin., dated 31st January, 1977]
185
Exception 1.—Cash orders may be issued even for sums over `*50 in the
case of payments to be made at the Sub Treasuries which
have no currency chest facilities and cannot, therefore, act
as Treasury Agencies of the Reserve Bank of India and issue
drafts.
Exception 2.—Cash orders will be issued, irrespective of the amount and
whether the treasuries drawn on are banking or non-banking
with or without currency chest facilities, for the pay and
allowances for the non-gazetted personnel of the Police
Department.
Exception 3.—A cash order may be issued by a Treasury Officer in exchange
for a cheque drawn on the District Treasury by a Presiding
Officer of a Land Tribunal (in whose name a P.D. account
is maintained at the treasury) if so desired by the Presiding
Officer, irrespective of the amount involved, the nature of
the Sub Treasury on which the cash order is drawn (i.e.
banking or non-banking with or without currency chest
facilities) and the purpose of the remittance.
The following rules shall be observed in connection with the issue of
cash orders:—
(i) When the Treasury Officer passes for payment a bill or other document
which is payable in full at a single Sub Treasury, he shall not issue a cash order,
but shall endorse the bill or other document for payment at the Sub Treasury. An
endorsement of this kind shall remain current, like a cash order for three months
only.
A cheque drawn by the administrator of an estate on his personal ledger
account at a District Treasury for an amount required at a Sub Treasury shall not,
however, be endorsed for payment at the Sub Treasury. The Treasury Officer
shall retain it, treating it as paid at the District Treasury, and issue a cash order on
the Sub Treasury.
(ii) The Treasury Officer shall not issue a cash order for the remittance
of amounts due to private parties, such as decree amounts, costs, sale proceeds
of attached estates and the like. Such remittances are not in the interest of the
public service and shall, therefore, be made by postal money order at the expense
of the parties entitled to receive the amounts.
* Substitution [G.O.(P) 279/73/Fin., dated 17th May, 1973]
186
(iii) The Treasury Officer shall use cash order forms in the order of
the numbers printed on the books, and shall use one book, at a time for
issuing cash orders on all Sub Treasuries. He shall inform all Sub Treasuries
when he begins to use a fresh book. He shall have the orders issued on each
Sub Treasury numbered in separate annual series, and these numbers shall be
noted below the number of the book printed on cash order. Both the numbers
which appear on each cash order shall be quoted in the lists of paid orders
furnished to the Accountant General.
(iv) The directions laid down in Rule 253 below, regarding the custody
of cheque forms supplied for drawing cheques on treasuries shall apply also
to the custody of cash order forms.
(v) When a cash order is issued, the Treasury Officer shall assign
serial number to the order and enter the amount and other particulars in the
appropriate register prescribed in the Kerala Account Code, Volume II. An
advice in Form T.R. 88 shall then be sent by first post to the Sub Treasury
drawn upon and the cash order handed over to the person tendering the
money or the bill against which the order is issued.
(vi) On receipt of the advice of a cash order from the Treasury Officer,
the Sub Treasury Officer shall immediately enter the particulars in register in
Form T.A. VII of the Kerala Account Code, Volume II and when a cash order is
presented the advice register must be consulted before payment; the cash
order with the receipt endorsed will be the voucher for the payment, which
must be noted at the time in the advice register.
NOTE—The adjustment of cash order will be watched at the treasury in
accordance with the directions contained in the Kerala Account Code,
Volume II.
(vii) A cash order shall lapse three months after the date of issue if not
cashed within that time. Payment of a lapsed cash order shall be stopped, and the
charges, which it represent, shall be cancelled and adjusted. If payment is
subsequently claimed, the claimant shall be required to forward the lapsed cash
order to the Treasury Officer, who shall arrange for the payment and make a note
against the relevant entry in the cash order ledger Form T.A. 16 in the Kerala
Account Code, Volume II so as to prevent any possibility of making a second
payment.
187
*NOTE—The following procedure shall be followed in the case of claims for

payment of a lapsed cash order:—
The original cash order shall be presented at the Treasury from which
it was issued by the Head of Office who drew the bill in payment of
which the cash order was issued, duly endorsing on the reverse
“Payment received in cash” or a fresh cash order obtained
on……………….. Treasury as the case may be. The Treasury Officer
shall treat the cash order as voucher and pay the amount to the
officer either in cash or in the form of a fresh cash order as required
by the drawing officer. In both cases, the payment shall be debited in
the treasury accounts under the service head debiting which the
original cash order was issued.
If payment is made in the form of a fresh cash order the amount shall
also be credited simultaneously under “Personal Deposit Cash
Orders”. The original item which appeared in the statement of lapsed
cash orders referred to in Article 115, Kerala Account Code, Volume
II and the month of cash account with which the statement was
forwarded to the Accountant General under Article 120 of Kerala
Account Code shall be quoted on the lapsed cash orders while
effecting payment in the above manner. For payment of a lapsed
cash order sanction of the Accountant General is not ordinarily
required. But, if payment is claimed after the period specified under
clause (a) of Article 53 of the Kerala Financial Code for the payment
of a claim without pre-audit from the date of issue of the cash order,
the claim shall be referred to the Accountant General for audit and
sanction.
(viii) When it is reported that a cash order has been lost or destroyed
within three months from the date of issue, the Treasury Officer shall follow the
procedure indicated in Rules 410 to 412 of Part VI of these Rules for the issue of
duplicate draft. If a duplicate cash order is issued, it shall lapse three months after
the date of issue of the original, if not cashed within that time.
(b) A Sub Treasury Officer shall not issue any cash order unless, for special
reason, he is authorised to issue cash orders in any case by a general or special
order of the Government. If, for special reasons, a Sub Treasury Officer is authorised
to issue cash orders on the District Treasury or any Sub Treasury in the same
district the procedure shall be the same as that prescribed for the District Treasury.
*Addition [G.O.(P) 654/81/Fin., dated 15th October, 1981]
188
NOTE.—Cash orders for co-operative societies remittances may issue from

the District Treasury to the Sub Treasuries and vice versa and from
Sub Treasuries or other Sub Treasuries within the districts.
214. Payments to persons not in Government service.—When a person
not in government service claims payment for a service rendered or supply
made, the Treasury Officer shall observe the following rules:—
(a) He shall refuse payment, if the bill is not drawn or countersigned
by the Head of the Department or other responsible government servant,
under whose immediate order the service was rendered or the supply made
and shall inform the applicant for payment that he may either present a bill so
drawn or countersigned, or apply to the Accountant General for the issue of
an order for payment. If the bill is so drawn or countersigned but the Treasury
Officer considers that the authority of the drawing or countersigning officer is
not sufficient for making the payment he shall refuse payment and inform that
Officer that he may refer the matter to the Accountant General.
(b) He shall invariably take special precautions to satisfy himself as
to the identity of the applicant for payment in respect of any bill drawn by a
person who is not a government servant or drawn by a government servant
and endorsed for payment to a private party.
(c) When a bill endorsed for payment to a contractor or supplier is
re-endorsed by him in favour of a bank, the Treasury Officer shall not pay
the bill, unless the contractor or supplier has receipted the bill and also
signed a separate endorsement in favour of the bank.
NOTE— Payments due to contractors may, if so desired by them, be made to
their Banks instead of direct to contractors provided that, the
department concerned obtains;
(1) an authorisation from the contractors in the form of a legally
valid document such as a power of attorney or transfer deed
conferring authority on the Bank to receive payment, and
(2) the contractor’s own acceptance of the correctness of the
account made out as being due to him by Government or his
signature on the bill or other claim preferred against Government
before the settlement of the account or claim by payment to the
said Bank. While the receipt given by the Bank will constitute a
full and sufficient discharge for the payment, contractor should,
wherever possible, be induced to present their bill duly receipted
and charged through their Bankers.
189
Nothing herein contained should operate to create in favour of the bank

any right or equity vis-à-vis the Government.
215. Payment of pensions.—The procedure to be followed by treasuries
in paying pensions is detailed in the rules in Section IV of this part.
216. (a) Payment of endorsed bills.—When a bill is endorsed or
endorsed and re-endorsed strictly in accordance with the provisions of Rule
163 (q) above, and the payment is duly made to the person specified in the
endorsement or re-endorsement and his signature duly taken in
acknowledgment of the payment, the drawing officer’s signature on the bill is
a valid discharge.
(b) Payment by postal money order.—When the drawing officer
desires that the whole or part of the amount of a bill, other than a bill relating
to the claims of Government servants be sent to some other person by postal
money order and has made the necessary deductions in the bill, the Treasury
Officer should pass the bill for the net amount, credit the deductions by
transfer to the Post Office and send the money order form to the Post Office
with a certificate stating that he has credited the amount of the money order
with the commission due on it to the Post Office by book transfer. He should
obtain an individual receipt from the Post Office in respect of each such
money order, check it with the amount deducted from the bill and transmit it
to the drawing officer for record.
217. When the Government have authorised the head of an office to
send bills of specified kind to the treasury by post the Treasury Officer should
remit to the drawing officer by postal money order the amount passed for
payment (less the money order commission) in respect of each such bill duly
sent to the treasury, and should treat the money order commission as a
contingent charge of the drawing officer.
218. Refunds of revenue and deposits.—The Treasury Officer or
other disbursing officer concerned should observe the following directions in
regard to amounts not exceeding `100 due for refund from revenue or from
deposits:-
(i) Subject to the exceptions described in direction (ii) below, the
Treasury Officer or other disbursing officer concerned should remit to the
person entitled to the refund any amount not exceeding `100 that is due for
refund by postal money order at the expense of the payee on receipt of a
refund order passed by the competent authority, without any avoidable delay,
190
and, in any case, within one month from the date of the refund order, without
waiting for an application from the payee.
In rare cases, where he feels that it would be risky to send the amount
straight away to the person entitled to it by postal money order, the Treasury
Officer or other disbursing officer may issue a notice inviting the payee to
appear and receive payment in person at the treasury or other office concerned,
and inform him that, if he fails to appear within one month (or such longer
period as may, when necessary, be specified), the amount to be refunded will
be remitted to him by postal money order at his expense.
(ii) Any amount not exceeding 12 P. which is due for refund and any
amount exceeding 12 P. which is due for refund and is payable to several
parties in sums not exceeding 12 P. each should be credited to the Government.
Any amount exceeding 12 P. but not exceeding 50 P. which is due for refund
and any amount exceeding 50 P. which is due for refund and is payable to
several parties in sums not exceeding 50 P. each (and not all below 12 P.)
should remain credited to the Government unless a claim is preferred by the
person entitled to the refund, in which case the amount to be refunded to him
should be sent to him by postal money order at his expense unless he appears
in person to make his claim and takes payment in person.
(iii) When the Treasury Officer sends an amount by postal money
order with reference to these directions, he should follow the procedure laid
down in Rule 216 (b) above for sending money orders. He should state briefly
the purpose of the remittance in the acknowledgment portion of the money
order form in continuation of the printed entry “ Received the sum specified
on the reverse on ………………………………….” leaving sufficient space
below this manuscript entry for the payees’ signature or thumb impression.
When he receives the money order acknowledgment duly signed by the payee,
he should attach it to the usual form of receipt (Form T.R. 67) in which he
should show clearly the full amount of the refund and the deduction made
from it on account of the money order commission and then dispose of it as a
paid voucher in the usual way.
(iv) The Treasury Officer should issue postal money orders with
reference to these directions only in the first half of the month, so that he may
be able to send complete vouchers for the payments with the monthly treasury
account.
191
219. Repayment of civil courts deposits.—Before the Treasury Officer

pays an order of a civil court for the repayment of deposit, he should require
the person who presents the order to acknowledge receipt on the reverse of
the order. If that person is not the person named in the court’s order, he should
be required to satisfy the Treasury Officer that the signature purporting to be
that of the person named in the court’s order is authentic and that he is
authorised to receive payment.
220. Receipt stamps.—The Treasury Officer should take special care
to see that all receipt stamps on vouchers are so defaced that they cannot be
used again, so that no one may be tempted to steal vouchers for the sake of
the stamps on them.
221. Transfer payments.—
(a) When a bill, or other document is paid wholly by “transfer”, that
is, by entry of the amount in the accounts as a receipt under some head of
account, no cash is paid out and the Treasurer should neither enter the item in
his cash book nor stamp “Paid” on the bill, or other document. When the
entries in the accounts in respect of a payment by transfer are complete, the
Section Head in the Accounts Department should stamp “Paid by transfer”
on the bill, or other document.
Exception.—*(1) Deleted.
* This amendment shall be deemed to have come into force on the 1st
#Exception.—(2) In respect of inter departmental adjustment involving
manufacturing, production or supply of articles or repair
operations the following procedure shall be followed.
No adjustment is required if the cost of supplies/services is ` 250 or less
in each case except in respect of issues of stores of stock or material on
account of the work within a Public Works Division or between two such
divisions or between one Public Works Division and another service department
which shall be settled by adjustment irrespective of the amount involved.
* Exception renumbered vide G.O.(P) 39/88/Fin. dated 13th January, 1988.

Exception-1 deleted vide G.O.(P) 82/88/Fin dated 3rd February, 1988.
#Insertion vide G.O.(P) 39/88/Fin. dated 13th January, 1988.
192
(b) When a payment is to be made by transfer to a revenue or receipt

head for which a subsidiary register is maintained (e.g., Land Revenue) the Treasury
Officer’s payment order should indicate the major and detailed heads affected as
in the following example:—
*Pay `…….....by transfer to credit of 029. Land Revenue (a) Land Tax”.
(c) When a bill is presented for an amount to be paid in the form of
service postage stamps required by the drawing officer, the Treasury Officer
should pass it for “payment by transfer”, issue the stamps, enter the amount in
the list of payments and credit the amount of the bill to the appropriate head. He
should refuse payment if the certificate as to the disposal of the previous supply
of such stamps, referred to in Rule 192 (a) above, is not furnished with the bill.
(d) When the amount of a bill or other document is payable partly in
cash and partly by transfer credit to some head of account, an entry should be
made in the number book for the transfer credit and the Treasury Officer
should show separately in his payment order the amounts payable in cash
and by transfer respectively. The Treasurer should stamp “paid” on the bill or
other document in respect of the cash payment, and the Section Head in the
Accounts Department should, after completing the necessary entries in the
accounts, stamp “Paid by transfer” on it in respect of the payment by transfer.
(e) When the amount of a bill or other document is to be paid partly at
the district treasury and partly by one or more cash orders payment at sub treasuries,
the Treasury Officer’s payment order should be in the following form:-
“Pay `…… in cash and `……… by transfer credit to personal deposits.”
222. Duplicate “not payable” copies of bills.—A duplicate unreceipted
copy prepared on coloured paper and headed “Not payable at the treasury”
should be presented at the treasury along with every bill relating to charges of
any of the following kinds:—
(1) Grants-in-aid to local bodies, private institutions, etc., (except grants
to universities and grants to local bodies for water supply and drainage schemes).
193
(2) Scholarships and stipends.

(3) Contributions (except those accounted for under the head “71—
Miscellaneous”).
(4) Pay of Accountants under local bodies who are not Government
servants.
(5) Leave salaries of gazetted government servants.
(6) Pay and allowances of government servants whose services have
been lent to local bodies when charged direct to the Government in the first
instance.
The Treasury Officer’s pay order should appear only on the original bill
payable at the treasury. He should endorse a certificate of payment on the
“Not payable” duplicate bill and transmit it to the prescribed departmental
controlling officer.
NOTE— Bills relating to charges referred to in item (1) of the list in this rule
should be transmitted by the Treasury Officers to the departmental
officers at the same time as each bi-monthly list of payments is
forwarded to the Accountant General.
223. *Treasury Bill Book.—Every officer shall enter particulars of all
bills in a book called the “Treasury Bill Book” in Form T.R. 74 which shall be
presented at the treasury along with each bill. Treasury Officers shall not pass
any such bill for payment unless the treasury bill book is presented with it.
The drawing officer shall be held personally responsible for entries in columns
1 to 6 and columns 12 and 13 of the book and omissions to make the entries
required in respect of any bill and similarly the Treasury Officers shall be
responsible for the entries or omission to make entries in columns 7 to 11
except in respect of the bills endorsed to private parties. Column 14 shall be
filled in and attested by the Drawing Officer/Treasury Officer as required by
the nature of the entry therein.
Exception 1.—Bills for personal claims of gazetted government servants
and of non-gazetted government servants who are specially
authorised to draw their claims on Gazetted Officers’ Salary
or T.A. bill Forms under Rule 169 for pay etc., need not
be entered in the Treasury Bill Book.
194
Exception 2.—The Treasury Bill Book need not be presented along with
any contingent bill endorsed in favour of a private party
or with police department’s bill relating to bus owners claim
or with travelling allowance bills of the Railway Police and
Criminal Investigation department which may be paid at
Sub Treasuries without pre-audit by the Treasury Officer.
NOTE 1.— Bills for personal claims of gazetted government servants and of
non-gazetted government servants who are specially authorised
to draw their claims on Gazetted Officers’ bill forms under Rule
169 for pay, etc., if they are drawn by superior officers under
Rule 211 (b) shall be entered in the Treasury Bill Book pertaining
to the office of the Superior officer which should be presented
at the treasury along with such bills and in such cases the
restriction in Note (4) below shall not be applicable.
NOTE 2.— In respect of contingent bills endorsed to private parties, the
particulars of the bill shall be entered in columns 1 to 3 the
details of the party in column 5 and the word “Endorsed” shall
be entered in column 14, under the signature of the officer signing
the bill in column 13. As the proceeds of these bills are not to be
entered in the Cash Book, columns 7 to 11 to be filled in by the
Treasury Officer may be left blank.
NOTE 3.— The Treasury Bill Book shall be supplied by the Treasuries at the
rate of one book for each institution maintaining independent
sets of accounts and cash book, on requisition from the drawing
officer concerned. The Treasury Officer shall fill up, attest and
sign the first fly leaf of the Bill book before it is made over to the
drawing officer. The drawing officer concerned shall be
responsible for the proper maintenance of each of the Bill Books
so obtained by him. An officer drawing bills on more than one
treasury or sub treasury shall obtain separate Treasury Bill Books
from the respective Treasuries. He shall enter the bills to be
presented in each treasury or sub treasury in the Bill Book
issued by the concerned Treasury.
195
NOTE 4.— A Treasury or Sub Treasury Officer shall refuse to accept any bill
if it is presented along with a Bill Book which has been used for
presentation of bills on another Treasury.
NOTE 5.— A Treasury Bill Book shall be used till all the pages in the Book
are exhausted or till the end of the financial year, whichever is
earlier or till the Bill Book in use is irrecoverably lost. A fresh Bill
Book shall be issued by the Treasury or Sub Treasury on
presentation of the requisition in the printed form appended to
the Bill Book, except for the issue of a Bill Book for a new
financial year or in continuation of a lost one all requisitions for
Bill Book shall be accompanied by the Bill Book in use, so as to
enable the Treasury or Sub Treasury Officer to satisfy that the
book has been completely used up and the blank columns have
been cancelled by the drawing officer.
NOTE 6.—A fresh Treasury Bill Book shall be brought into use at the
beginning of each financial year (i.e. entering the particulars of
bills to be encashed from the 1st April onwards) and a second
or subsequent volume shall not be brought into use in the same
financial year unless the pages of the previous volume are
completely used up or when the Bill Book in use is irrecoverably
lost and a certificate to that effect is recorded by the drawing
officer above the 1st entry in the new volume.
NOTE 7.— (a) When a Treasury Bill Book is found missing the drawing
officer concerned shall intimate the details to the
concerned Treasury Officer. The latter shall thereupon take
necessary precautionary measures to ensure that bills, if
any, presented along with the Bill Book, alleged to be lost
are not honoured by the Treasury.
(b) The drawing officer shall initiate an enquiry into the loss of
the Bill Book and fix up the responsibility for its loss and
take such further action as is deemed necessary.
(c) If the drawing officer is convinced that the Bill Book is
irrecoverably lost, he may send a requisition with office
seal duly affixed to the Treasury concerned stating that
fact and requesting for the issue of a new Treasury Bill
Book. The Treasury/Sub Treasury Officer shall there upon
196
issue a new Bill Book to the drawing officer concerned

recording the fact that it is issued in lieu of the lost Bill
Book on the first page of the book. The treasury officer
shall simultaneously intimate the fact of issue of the new
Bill Book in place of the lost one, to the controlling officer
of the concerned drawing officer.
(d) The drawing officer shall also reconstruct the lost Bill Book,
with reference to the entries in the cash book, contingent
registers, etc., of his office and verify the entries in the
reconstructed book with reference to the subsidiary
registers in the Treasury/Sub Treasury. The reconstructed
Bill Book with the certificate reconstruction and verification
with the Treasury/Sub Treasury figures recorded by the
drawing office shall be made available to the inspecting
officers for scrutiny.
(e) In case, a lost Bill Book is found out subsequently the
drawing officer shall immediately cancel the blank pages
and the requisition slip attached to the Bill Book under
proper attestation. He shall also take steps to keep the
same under safe custody, along with other used-up Bill
Books. The fact of recovery of lost Bill Book shall also be
reported to the Treasury/Sub Treasury Officer concerned.
NOTE 8.— The Treasury/Sub Treasury Officer shall not honour the bills
presented for encashment, if he notices erasures or unattested
corrections in a Bill Book, without reference to the Drawing
Officer. It shall be the duty of the Drawing Officer to ensure that
there are no erasures or unattested corrections in the Bill Book.
NOTE 9.— If columns 1 to 6 and 12 and 13 in respect of bill already encashed

are not properly filled up by the Drawing Officers, the bills are
liable to be objected to by the Treasury or Sub Treasury.
NOTE 10.— The Drawing Officers are personally responsible for the correct
maintenance and safe preservation of the Bill Book.
197
NOTE 11.—A stock-cum-issue register of blank Bill Books shall be maintained

at the Treasuries in Form 74 B and the stock shall be subjected
to verification by the Inspecting Officers and audit parties. The
serial number of the books received and issued shall be noted
in the register together with the invoice/letter number of
Government Press for receipt and requisition letter number and
date of issue. The blank Treasury Bill Book shall be kept under
double lock under the joint responsibility of the Treasury Officer
and the Treasurer. Bill Book shall be issued according to serial
number (first in first out method.)
224. Memorandum of deductions from bills.—When the Treasury
Officer pays a bill drawn by a Survey Officer or other Drawing Officer whose
headquarters is at a distance from the treasury, he should give the messenger,
who brought the bill, a memorandum in (Form T.R. 75) showing clearly the
amount of cash and Government drafts (if any) handed over, to him and
explaining the deductions, or alterations if any, made in the bill or bills
presented. The memorandum should be bi-lingual (i.e., in English and
Malayalam), since it is important that the messenger should satisfy himself
that the amount of cash and drafts (if any) shown in it as handed over to him
is correct; when the messenger is not able to read, the Treasury Officer should
himself explain to him the entries in the memorandum.
225. The Treasury Officer should maintain in Form T.R. 76 a Register of
Bills received for pre-audit before payment at a sub treasury.
226. When making any payment amounting to ` 250 or more to a non-
official on behalf of the Government or any local authority on account of fees,
commission, bonus, remuneration or reward of any kind, the Treasury Officer
should furnish details of the payment and the payee’s address to the Income
Tax Officer concerned, or, if he has any doubt as to which Income Tax Officer
is concerned to the Commissioner of Income Tax.
The minimum limit of ` 250 applies to each single payment made to any
one person and not to the total payments made to him during the year.
B. Sub Treasuries
227. The procedure prescribed in rules 210 to 229 in regard to the
payment of moneys at district treasuries at stations where the treasury does
not transact its cash business through the Bank, shall apply generally mutatis
mutandis also to sub treasuries at such stations and at the headquarters of
198
districts, except that, unless there is a specific order of the Government to the
contrary in regard to any class of payments, no payment shall be made at any
sub treasury except upon a cash order drawn by the Treasury Officer on the
sub treasury or a bill passed by him for payment at the sub treasury. Alterations
and corrections in pass orders on bills payable at sub treasuries should be
attested by the full signature of the Treasury Officer concerned. Bills passed
for payment at sub treasuries should be sent by the Treasury Officers
concerned direct to the sub treasuries where they are payable, intimation
being sent at the same time to the departmental officers concerned asking
them to take payment at the sub treasury on production of the intimation duly
endorsed by them in favour of the person to whom, or to whose authorise
messenger, payment is desired. The intimation should be triplicate in Form
T.R. 77.
*A register in Form T.R. 18 shall be maintained at the Sub Treasuries for
noting details of passed bills for payment before the bills are sent to the
Treasurer for effecting payments. This register is to be maintained by the
Sub Treasury Officers, duly initialling each entry simultaneously with the
signing of the Pay Order, and before they are entrusted to the Treasurers for
making payment. At the end of the day, if any bill is returned by the Treasurer
without actual payment, the corresponding entry in Form T.R. 18 along with
the related entries in the subsidiary and other registers should be cancelled
under his initials.
228. (a) A sub treasury shall pay valid claims of the classes specified
in Appendix 13 without the Treasury Officer’s express pay order. A district
treasury shall not, except under special arrangements or on particular
occasions, pay claims which fall into any of those classes.
(b) When the office of the Accountant General issues an order to
make a payment at a sub treasury, it shall ordinarily send the order to the Sub
Treasury Officer through the Treasury Officer. If, on account of urgency, it is
sent direct, the Accountant General shall inform the Treasury Officer to the
fact and furnish the Sub Treasury Officer direct, if it has not already been
done, with a specimen signature of the Audit Officer who has signed the
order.
(c) Items placed in deposit by the Sub Treasury Officer himself
without the authority of the Treasury Officer may be repaid on his own
authority but amounts credited in other Sub Treasuries can be paid only on
* Insertion [G.O.(P) 77/78/Fin., dated 16th January, 1978]
199
the orders of the Treasury Officer. The Director may, however, issue orders
that, before repayment, all deposit repayment orders shall be forwarded to the
district treasury for being passed for payment.
If any class of deposit is repayable at the sub treasury, it shall not be
payable at the District Treasury also.
*NOTE [Deleted]
*This amendment shall be deemed to have come into force on the 1st
229. (a) Payment of land cess and fishery rentals to panchayats.—
For paying fishery rentals or half-yearly or final instalments of land cess
due to panchayats the Treasury Officer or Sub Treasury Officer should prepare
a consolidated bill in triplicate, including the amounts payable by book
adjustment as well as by cash, with full details as to the amount due to each
panchayat which should be obtained from the Collector and draw the total
amount only on the date fixed and notified to the President of panchayats to
appear at the treasury to receive payment. The Presidents should be given 15
clear days’ notice of the day so fixed. The three copies of the bill should be
disposed of as follows:-
(i) Original to the treasury as a voucher with the list of payments.
(ii) Duplicate to be kept in the treasury or sub treasury.
(iii) Triplicate to be sent to the District Panchayat Officer.
The Treasury Officer or the Sub Treasury Officer concerned should
disburse the amounts in the following manner:—
If a panchayat has a banking account with the Sub Treasury, the panchayat
should be effected by book adjustment. The Treasury Officer or the Sub Treasury
Officer concerned should certify that such amounts have been credited to the
accounts of the respective panchayats. When the Presidents appear in person
the officer-in-charge of the treasury should disburse the amounts due to them and
obtain their acknowledgments in the special register prescribed for the purpose.
The amounts due to those panchayats, whose Presidents fail to appeal at the Sub
Treasury on the day fixed, should be remitted to them at their expense either on
* Deletion [G.O.(P) 82/88/Fin. dated 3rd February, 1988]
200
PART V KERALA TREASURY CODE RULE 229-230
that date, if convenient, or on the next days and the postal money order receipts
and the payee’s acknowledgment; should be filed with the duplicate of the
bill.If the disbursement is made by a Sub Treasury Officer he should after
disbursing the amounts in the above manner, furnish a certificate of
disbursement to the Treasury Officer retaining the special register. The
Treasury Officer will arrange to receive individual certificates from each sub
treasury, and on the strength of the same and on the strength of the records of
disbursement made at the District Treasury furnish to the Accountant General
along with the treasury account, a consolidated certificate of disbursement
for purposes of audit. A certificate of payment should also be endorsed on the
triplicate bill sent to the District Panchayat Officer concerned who is
responsible for auditing the accounts of the class II panchayats.
(b) Payment of surcharge on stamp duty.—The procedure laid down
in sub rule (a) above namely, preparation by the treasury of bills in triplicate
and sending the triplicate copy to the District Panchayat Officer shall be
followed for payment of surcharge on stamp duty.
CHAPTER II
TREASURIES WHICH TRANSACT THEIR CASH BUSINESS
THROUGH THE BANKS
230. At places where the treasury transacts its cash business through
the Bank, all payments shall be made at the Bank unless the Government have
specially ordered, in regard to any class of payments, that they shall be made
elsewhere. At district headquarters stations where the district treasury transacts
its cash business through the Bank the sub treasury payments shall
nevertheless be made at the sub treasury.
NOTE 1.—In treasuries where cash business is transacted through the Bank,
all pension claims will be paid at the treasuries themselves
irrespective of any monetary limit. The amounts required for the
payment of the pensions will be drawn from the Bank as an imprest.
Exception—As an exception to Note I above, pensions which are collected
through the State Bank of India or the State Bank of
Travancore, through their branches conducting Government
business, will be paid at the Bank counters instead of a
treasury counters.
201
NOTE 2.—All cash transactions relating to Treasury Savings Bank will be

done at the treasury. *The procedure prescribed in Note 2 to sub
rule (1) of rule 210, will be followed in Bank Treasuries as well.
231. (a) Except for bank drafts and cheques which shall be presented
at the Bank for payment direct, all bills and other documents shall first be
presented at the treasury. The Officer-in-charge of the treasury shall examine
the bill or other document and if he approves and passes the charge, he shall
enface on it an order to pay a specified amount. The order shall be numbered,
dated and signed and the particulars of it shall be entered in the register of
payment orders issued. The treasury shall then send the bill or other documents
together with a list in duplicate of such bills or other documents to the Bank in
a box through a special messenger who should be an employee of the treasury.
The box should be properly locked and sealed in the presence of the Officer-
in-charge of the treasury who should keep one of the two keys of the lock in
his personal custody. The duplicate key should be in the personal custody of
the agent of the Bank. On receipt of the box the agent will after verifying the
seal to ascertain that there has been no tampering on the way, open the box
with his key, verify the contents with entries in the list of bills or other
documents and return one copy of the list with his acknowledgment of the
bills and other documents and the box to the treasury through the messenger.
Payment will be made by the Bank when the payee presents the token received
by him from the treasury at the Bank. In passing bills and other documents for
payment at the Bank, the Treasury or Sub Treasury Officer shall observe
generally, rules 210 to 229 above.
**NOTE 1.—Bills sent through messengers to the Treasury and the Bank
should be endorsed by the drawing officer in the name of the
messenger. The messenger’s signature should be taken on the
bill itself,—
(i) in the drawing office, when it is endorsed in the messengers
name, duly identified and attested by the drawing officer;
(ii) at the Bank, when the bill amount is actually paid to him;
(iii) the messenger should acknowledge receipt of the bill amount
and discharge the claim before token is obtained from the Treasury.
*Addition [G.O.(P) 303/73/Fin., dated 23rd July, 1973]

**Substitution [G.O.(P) 626/81/Fin., dated 29th September, 1981]
202
**NOTE 2—Requisition by the Accountant General or an Officer of the Indian

Audit and Accounts Department authorised by the Accountant
General in this behalf for obtaining Reserve Bank of India drafts
for effecting monetary settlement of inter Governmental and
other miscellaneous transactions need not be presented at the
treasury, but may be presented at the bank direct without the
express pay order from the Treasury.
(b) The above procedure should be followed mutatis mutandis in
cases where bills are sent to the Treasury or the Bank by Government servants
other than drawing officers. When the amount of a bill is to be paid partly at
the Bank at the district headquarters and partly at sub treasuries, the Treasury
Officer shall authorise payment of the bill partly in cash for the amount required
for disbursement at headquarters and partly in drafts or cash orders for which
formal applications should be attached to the bills.
(c) The Bank shall make payment strictly in accordance with the pay
order of the officer-in-charge of the treasury, after obtaining on the bill or
other documents a proper discharge from the payee in addition to the signature
at the foot of the bill. All bills, cheques and other documents, passed by
Treasury Officers and the 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 be made to an endorsee (other than a banker)
or a messenger, the provisions of rule 188 (viii) or the rule in the Note under (a)
above, 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 payments as
attested by the drawing officer in accordance with rule 188 (viii) or Note under
(a) above, 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.
Payment of cheque including Public Debt Office interest warrants
which are governed by the Negotiable Instruments Act shall be made in
accordance with the provisions of that Act and any generally recognised
practice established among bankers by custom.
**Addition [G.O.(P) 613/81/Fin., dated 23rd September, 1981]
203
A bill *pre-checked by the Accountant General and enfaced for

payment at a Treasury or an authorisation issued by the Accountant General
for non-recurring payments due to a gazetted government servant such as
fees, honoraria, etc., should not be paid if it is presented at the Treasury three
months after the date of enfacement or authorisation as the case may be. Such
bills or authorisations for payments debitable to travelling allowance,
contingencies, grant-in-aid, scholarships, stipend, etc., passed for payment
and issued in one financial year shall not be paid after the close of that year
even if three months have not elapsed since the date of enfacement/
authorisation. In all such cases where the period of validity is over, the bills/
authorisations should be returned to the Accountant General by the Treasury
Officer with a non-payment certificate for cancellation of the enfacement/
authorisation, if fresh sanction or allotment of funds is necessary or for
revalidation of the *pre-checked enfacement/authorisation as the case may
be, by the Accountant General.
*This amendment shall be deemed to have come into force on the
17th day of April, 1986.
(d) Payment orders issued by the Treasury shall be valid only for a
period not exceeding ten days to be fixed by the Collector. If the payee does
not turn up to receive payment at the Bank before the expiry of the fixed time,
the Bank shall return the bill to the Treasury Officer for revalidation on further
application of the party.
NOTE—T.A. Contingent, Grants-in-aid, Scholarship and Stipend bills which
have been passed for payment by the Treasury Officer during a
financial year will not be paid at the Bank in the next financial year.
In such cases the passed bills which remain unpaid at the close of
the 1st working day of the financial year should be returned by the
Bank to the Treasury Officers concerned who shall cancel the ‘Pay
Order’ and sent back the bills to the parties concerned. This restriction
will also apply to other types of bills which are payable from the
allotment of a specified year only.
232. When the drawing officer desires payment of a bill or other
document to be made wholly or partly in drafts, he shall submit a formal
application with the bill and indicate the manner in which he desires payment
to be made in his receipt on the bill. If the Officer-in-charge of the treasury is
satisfied that the issue of drafts is permissible he shall specify accordingly in
the pay order the manner in which payment shall be made.
204
233. When the holder of a Government promissory note registered for

payment of interest at a Treasury which transacts its cash business through
the Bank desires to claim interest, he shall present it to the Treasury or Sub
Treasury Officer concerned, who shall examine it make the necessary record
in the manner prescribed in the Government Securities Manual and, if interest
is payable to the holder under the rules, give him an order on the Bank for
payment of the amount due.
234. The treasury shall prepare all advices or certificates of payment
which have to be sent to any public officer or department under any rule since
the point to be advised or certified is not that the moneys have been, paid out
by the bank but that the payment has been duly entered in the treasury
accounts.
235. Treasury Bill Book.—The Treasury Bill Book need not be
presented at the bank along with any bill passed for payment at the Bank. The
Treasury should fill up columns 7 to 11 of the book even when the payment is
made at the bank and the government servant in the Treasury who initials the
entries in the Treasury Bill Book should make a note of the objection or
disallowances in the relevant columns and remark columns as the case may be
over his initials.
236. [Omitted][G.O.(P) 386/80/Fin., dated 18th June, 1980]
237. Special to Judicial Department.—Repayment of Civil Court’s and
Criminal Court’s deposits.-
(1) High Court.—The repayment of deposits in the High Court is
governed by the original and appellate side rules of the High Court contained
in the “Civil Rules of Practice”.
(2) Other Civil Courts.—When any person presents an order of a
civil court for repayment of a deposit in whole or in part, the Bank should
require him to acknowledge receipt of the amount on the reverse of the
order. If he is not the person named in the court’s payment order, the Bank
should require him to satisfy it that the person named in the court’s order has
signed an acknowledgment of receipt on the reverse of the order and has
authorized him to receive the payment.
Every order of a civil court for repayment of a deposit should be taken
to the Treasury Officer for countersignature before it is presented at the Bank,
205
unless the Bank keeps a personal ledger account for the deposits of each
court. Each civil court for which the Bank maintains such an account should
intimate the Bank, from time to time the amount of the lapsed deposits which
should be deducted from the balance shown in the account and the pass
book.
The Bank should not make payment on any order for the repayment
of a civil court deposit which is presented after the end of the account month
in which it was issued (c.f. Rule 206 above).
NOTE—The personal ledger accounts for the deposits of civil courts dealing
with treasuries which transact their cash business through the Bank
are maintained by the Bank.
(3) Repayment of Revenue and Criminal Courts’ deposits.—A
deposit standing at a person’s credit in a Treasury Officer’s Judge’s or
Magistrate’s accounts should be repaid only on the order of the government
servants who maintain the registers in which it is entered. A person who
claims the repayment of any such deposit should apply to the government
servant who received it. If the claim is in order, the government servant should,
after examining the check register and making the necessary entry regarding
the repayment, give the applicant an order for payment at the Bank. A
repayment order signed by a Judge or Magistrate should be taken to the
Treasury Officer for countersignature before it is presented at the Bank, unless
the Bank keeps a personal ledger account for the deposits of each court. Each
Magistrate’s Court for which the Bank maintains such an account should
intimate to the Bank, from time to time, the account of the lapsed deposits
which should be deducted from the balance shown in the account and the
pass book.
The bank should not make payment on any order for the repayment of
a revenue deposit or a criminal court deposit, unless it is presented before the
expiry of three months from the date of issue or before the close of the financial
year in which it is issued, whichever is earlier (c.f. Rule 207 above).
238. Special to Local Funds.—In cases where the banking accounts
of the local funds are kept at the bank (See Instruction III in Chapter V in Part
VIII below) all adjustments made to the debit/credit of such account, either by
the treasury or by the Accountant General, should without delay, be
communicated by the treasury to the bank.
206
SECTION III
Cheques
CHAPTER I
GENERAL
A. Applicable to Departments generally

239. (a) Save as expressly provided in these rules, no person is
authorized to draw on a treasury by means of cheques without the special
order of the Government and before he has been placed in account with the
Treasury by the Accountant General.
(b) Cheques shall ordinarily be drawn on the district treasury but
certain government servants of certain departments are authorized to draw
cheques on sub treasuries also. [See Rule 260 (b) * in regard to Public Works
Officers]. When the Collector considers it desirable, he may give permission
to a drawing officer to draw cheques on the sub treasuries in his district.
Cheques from a cheque book obtained from a particular district
treasury (See Rule 252) shall not be drawn on any treasury outside that district.
A drawing officer shall use a different cheque book for the district treasury
and for each sub treasury on which he draws and enter a distinguished letter
and a separate series of numbers on the cheques from each book.
240. Whenever a cheque is presented, the treasury shall carefully examine
the number printed on it in order to ascertain that it was really taken from the book
notified as in use by the drawing officer whose signature it purports to bear. If the
payee is not known at the treasury the Treasury Officer shall carefully consider
the date, serial number and amount of the cheque as well as the handwriting and
make any enquiries that he considers necessary; if he then feels any doubt as to
the genuineness of the cheque or the identity of the payee, he shall defer payment
and refer to the drawing officer.
A cheque drawn on a treasury may be crossed in accordance with the
provisions of Chapter XIV of the Negotiable Instruments Act, 1881 (Indian Act
XXVI of 1881), and such crossing is no bar to its being paid at the treasury on
which it is drawn.
241. Whenever a government servant draws cheque (other than a
cheque the amount of which is typed in words with perforated letters by a
* Omitted [G.O.(P) 386/80/Fin., dated 18th June, 1980]
207
special cheque-writing machine), he shall see that it has written across it at

right angle to the type the word “under” followed by an amount a little larger
than that for which he draws the cheque. For example, “under rupees thirty
only” means that the cheque is for an amount less than ` 30 but not less than
` 20, whilst “under rupees eight hundred only” means that it is for an amount
less than ` 800 but not less than ` 700. No abbreviation such as “eleven
hundred” for “one thousand one hundred” may be used. The amount of a
cheque shall be written in the manner prescribed for bills in Rule 163 (c) above.
A common form of fraud in regard to cheques consists in altering the
word “one” into “four” by prefixing an ‘ f ‘ and changing the ‘e’ into ‘r’ as the
figure can easily be altered correspondingly to 4. The word “twenty” when
written carelessly., has also sometimes been changed into “seventy”. A
government servant who draws a cheque in which the word ‘one’ or ‘twenty’
occurs shall therefore write the word very carefully in order to make such a
fraud impossible. The Treasury Officer shall examine the words “four” and
“seventy” and the corresponding figures in cheques with special care.
All cheques shall be written and signed in indelibile (unwashable) ink
only, which can be obtained from the Controller of Stationery, Trivandrum.
Exception—*The protective endorsement “under” followed by amount
a little larger than that for which the cheque is drawn need
not be insisted in respect of Treasury Savings Bank cheque
and fixed deposit certificates presented at the treasuries for
encashment.
242. (a) Cheques drawn in favour of Government Officers or
departments for payment on account of interdepartmental or intergovernmental
dues shall always be crossed “Account Payee” if drawn on the Bank and in
other cases superscribed with the words “Account Government-not payable
in cash” without any crossing.
(b) Cheques, the amounts of which are payable to officers of
the Government to enable them to make disbursement of pay and allowances
of non-gazetted staff, contingent expenditure etc., on behalf of Government
shall be issued in favour of the government official concerned by designation,
the word “only” being added after the designation of the payee officer on the
cheque. Such cheques shall not be crossed but shall bear the superscription
‘Not transferable’.
208
(c) (i) Subject to the provisions of the sub-clause (b) all cheques
in payment of personal claims of government servants and pensioners shall
invariably be to the “order” of the payee.
(ii) Cheques coming within the purview of sub-clause (a), if drawn
on the bank, shall be crossed generally with the words “………………….. and
Co.” but without the superscription “Account payee only” wherever the
amount exceeds ` 1,000. Such cheques for amounts not exceeding ` 1,000
also shal normally be crossed, unless the payee specifically asks for an “Open”
cheque in which case it need not be crossed.
(d) In all other cases, cheques if drawn on the bank, shall invariably
be crossed with the superscription “Account Payee only” added between the
lines on crossing. Where the payee is believed to have a banking account,
further precaution shall be adopted, wherever possible, by crossing the cheque
specially (instead of by the general crossing) “…………………………. and
Co.” by quoting the name of the bank through which the payee will receive
payment and by adding the words “Account Payee only-not negotiable”.
Such cheques for amount not exceeding ` 1,000 may, however, be issued as
“open” cheques if so desired by the payee, but only as “order “ cheques.
NOTE—Cheques drawn on a Treasury should not be crossed and in cases in
which any such cheque has been crossed inadvertently such crossing
will have no significance in making payment.
The Treasury Officer may decline to make any payment on a cheque
endorsed as payable to “order” or to any person if he is unable to satisfy
himself as to the identity of the person claiming payment.
243. [Deleted]
244. As a general rule, the Treasury Officer shall not pay a cheque payable
to order, unless it is receipted by the payee himself or another person in whose
favour it has been regularly endorsed for payment. If, in special circumstances,
the head of an office is unable himself to receive cheques payable to his order
owing to absence on our or some other sufficient cause and considers that strict
compliance with the ordinary rule would cause undue inconvenience, he may by
a written order specially authorize a gazetted government servant to endorse
“for” him cheques drawn in his favour by his official designation. The head of the
office shall send a copy of any such order at once to the Treasury Officer, and the
Treasury Officer shall then treat an endorsement by the duly authorized
government servant as though it were an endorsement by the head of the office.
209
245. (a) As a general rule, no cheque shall be issued for a sum less
than `10, except when it is done in order to comply with the provisions of a
law or a rule having the force of law.
Exception—(1) Government servants who are permitted to draw cheque
for the pay and allowances of their staff (such as
officers of Public Works Department who draw cheques
for payment to work establishment staff) may draw
cheques for a sum less than `10 for remitting the
insurance premia or the contribution to a Provident
Fund.
Exception—(2) Cheques for sums less than `10 may be drawn in
respect of withdrawals from Personal Deposit Accounts.
Exception—(3) *Cheques for sums less than `10 may be drawn in

respect of withdrawals from Treasury Savings Bank
Accounts.
(b) A cheque shall remain current only for three months from the
date of issue.
246. When a government servant issues a cheque in payment of any
amount due by the Government and the cheque is honoured on presentation,
payment shall be deemed to be made on the date on which the cheque is
handed over to the payee or his authorized messenger or on which the cover
containing it is put into the post. If, however, the cheque is marked as “not
payable before a certain date” which is later than the date mentioned in the
previous sentence, payment shall be deemed to be made on the date on which
the cheque becomes payable. Such a cheque shall not be charged in the
accounts until the date on which it becomes payable.
247. When a government servant pays an endorsed bill by cheque, he
shall not disregard the endorsement and issue the cheque in favour of drawer
of the bill.
248. Local fund Cheque.—The Treasury or Sub Treasury Officer shall
not permit the withdrawal of any moneys relating to a local fund from the
treasury otherwise than on cheques taken from a cheque book issued by the
treasury and signed by the duly authorized officer of each fund, e.g., the
210
president of a local board and the executive authority of a municipal council.

No local fund cheque shall be paid, unless the balance at the credit of the fund
is sufficient to cover the payment.
NOTE 1—The account of a local fund at the treasury is Purely a banking
account, and the nature of the disbursement need not be
specified on any local fund cheque.
NOTE 2—When the executive authority or other officer of a municipal council
who is authorized to draw cheques against the funds of the
municipal council lodged with the Government, makes over
charge of his office either temporarily or permanently, he should
send a specimen of the relieving officer’s signature together
with a certificate in Form T.R. 78 to the Treasury Officer.
NOTE 3—When the president or other officer of a local body who is
authorized to draw cheques against the funds of the local body
lodged with the Government makes over charge of his office
either temporarily or permanently he should send a specimen of
the relieving officer’s signature together with a certificate in
Form T.R. 78 to the Treasury Officer:
Provided that when the functions of the president devolve on
the vice-president under the provisions of any enactment under
which the local body is constituted, it shall not be necessary
for the president to send the specimen of the relieving officer’s
signature and the certificate mentioned in his rule if they have
been sent to the Treasury Officer on a previous occasion, but
the president shall, in every such case report the fact of such
devolution of powers on the vice-president, mentioning the
latter by name.
249. Time expired cheques.—If a cheque, the currency of which has
expired owing to its not being presented at the treasury for payment within
three months from the date of issue, is returned to the drawing officer, he shall
destroy it and may then draw a new cheque in place of it, if necessary. He shall
record on the counterfoil of the old cheque the fact that the cheque has been
destroyed and the number and date of the new cheque and shall enter on the
counterfoil of the new cheque the number and date of the old one.
211
250. Lost cheques.—When a drawing officer receives a report that a

cheque drawn by him has been lost, he shall at once report the fact to the
Treasury Officer and request him to stop payment of the cheques. The Treasury
Officer shall at once examine the lists of paid cheque and, if he finds that the
cheque has not been paid take steps to stop payment. A board showing the
particulars of all “stopped” cheques shall be hungs up before the clerk
concerned. The Treasury Officer shall also send the drawing officer a
certificate in the accompanying form, when a cheque reported as lost has not
been paid and he has stopped payment:—
“Certified that cheque No……………..…… dated…………… for
`……………………… reported by the ……………….. (drawing officer) to have
been drawn by him on this treasury in favour of
………………………………………… has not been paid and will not be paid, if
presented hereafter...............................treasury,….......................………
The……………………………20……………. Treasury Officer”.
On receipt of the certificate duly signed by the Treasury Officer the
drawing officer shall cancel the original cheque and make the necessary entries
in his accounts and may then issue another in its place.
If any “stopped” cheque is presented at the treasury for payment the
clerk concerned shall at once bring the fact to the notice of the Treasury
Officer and the latter shall refuse payment and return the cheque to the person
who presented it with the words “payment stopped” written across it.
NOTE— *If the currency of a cheque expires on Saturday, the Treasury Officer
shall also verify the list of cheques paid for the subsequent working
day of the Bank before the issue of non-payment certificate, wherever
necessary.
251. Cancelled cheques.—The drawing officer shall cancel any cheque
which has remained unpaid for twelve months from the date of issue. When a
cheque is cancelled for any reason, the fact shall be recorded on its counterfoil
and the cheque, if in the drawing officer’s possession, shall be destroyed. If
the cheque is not in his possession and payment has not already been stopped
under the preceding rule, he shall at once request the Treasury Officer to stop
payment of the cheque. If the Treasury Officer then finds that the cheque has
not been paid, he shall stop payment and send the drawing officer a certificate
in the manner prescribed in the preceding rule.
*Addition [G.O.(P) 563/75/Fin., dated 20th December, 1975]
212
252. (a) Cheque books required by the officers of Government and

administrators of the personal deposit accounts, local fund accounts or any
other fund are printed by the Superintendent, Government Presses. All supplies
of cheque book forms should be made by Treasury Officers who will receive
their supply from the Government Press. The Treasury Officers should examine
the cheque book forms carefully on receipt and count the number of forms in
each book. They should keep the cheque books in their stock and issue them
one by one as books are used up. Every Treasury Officer should ascertain the
requirements in his district and send a consolidated indent to the
Superintendent, Government Presses, Trivandrum.
NOTE 1—The Treasury Officers should examine carefully, on receipt the
unused cheque books or blank cheque forms returned to them
by drawing officers, count the number of forms in each book,
check them with reference to the advice of return sent by the
drawing officers (See note under Rule 253) and keep them
safely in stock.
NOTE 2—The stock of cheque books which have become obsolete and
used and unused cheque books returned to the Treasury by
the drawing officers shall be destroyed under the orders of the
Director of Treasuries. The period prescribed in Article 358,
Kerala Financial Code shall also be satisfied in the matter of
destruction of counterfoils of used cheque books. The
destruction shall be done by incineration in the presence of the
Deputy Director duly authorised by the Director of Treasuries.
The fact of destruction shall also be recorded in the concerned
stock register under the attestation of the Treasury Officer and
the Deputy Director in whose presence the destruction is
conducted.
(b) A drawing officer who requires a fresh cheque book should sign
and send to the Treasury Officer the printed requisition form inserted towards
the end of each cheque books. The Treasury Officer should then supply a
cheque book if the request is in order, but he should never supply more than
one cheque book on a single requisition form. He should examine every cheque
book again at the time of issue and should be careful to see that it is duly and
promptly acknowledged. *He should issue the cheque book only after signing
an endorsement on the following lines on the requisition slip presented by the
drawing officer, namely:—
*Addition [G.O.(P) 599/84/Fin. dated 17th October, 1984]
213
Cheque book with leaves bearing numbers

from………….………to…………………issued to………………… on …………..
(Dated Signature)
District/Sub Treasury Officer
Place……………………..
253. A drawing officer should invariably keep the cheque book supplied
to him in his personal custody under lock and key. Whenever a drawing officer
hands over charge of his office, a note should be recorded over the signature of
both the relieved and the relieving government servants showing the number of
cheque books and unused cheques handed over. The note should be made in the
cash book or other permanent register in which the expenditure for which cheques
are drawn is recorded.
If a cheque book or a blank cheque form is lost, the drawing officer should,
at once, inform the Treasury Officer, furnishing the numbers of the lost cheque
forms. The Treasury Officer should then stop payment of all cheques drawn on
forms bearing any of those numbers.
NOTE—If a drawing officer has to return to the Treasury Officer unused cheque
books or blank cheque forms, he should examine them carefully, before
sending them by registered post to the Treasury Officer by name and
should take care to see that they are duly and promptly acknowledged.
A separate advice of despatch of the cheque books or forms giving full
details of numbers of the cheque books and cheque forms should also
be sent to the Treasury Officer simultaneously.
254. Whenever a Government servant sends a cheque to the treasury for
payment, not in cash, but by transfer credit in the treasury accounts, he should
endorse on it the words “Received payment by transfer credit to ………………..”
and sign below them. Failure to do this would facilitate criminal misappropriation
of the amount. The treasury should enter in the number book every cheque that is
to be paid by transfer in whole or in part.
NOTE— *When cheques are presented by Departmental Officers for adjustment
in Treasury accounts or for collection, they shall present the cheques
with a covering list in duplicate and the Treasury Officer, in turn, shall
return one copy to the Departmental Officer as acknowledgment.
*Addition [G.O.(P) 291/77/Fin., dated 5th August, 1977]
214
255. When a pass book or list of cheques cashed (Form T.R. 79) is
maintained for any banking or drawing account at the treasury, it should
remain in the custody of the drawing officer, except when it is sent periodically
to the Treasury Officer to be written up. Ordinarily the drawing officer should
send it to be written up at least once a month. On receipt of the pass book, the
Treasury Officer should have the amount of each paid cheque recorded in it
with reference to the registers maintained in the treasury and (in regard to
cheques paid at the Bank or at a sub-treasury) the daily sheets. The cheque
book number and distinguishing letter, if any, as well as the individual cheque
number should be shown for each cheque entered in the pass book. The
Treasury Officer should ordinarily return the pass book to the drawing officer
the same day.
256. When a cheque is drawn on a treasury or sub treasury for a refund
of revenue and the amount is to be remitted by money order, the payment to
the Post Office should be made by a separate cheque drawn on the treasury or
sub treasury in favour of the Postmaster.
257. A Land Acquisition Officer may, under the orders of the
Government make all or any of his payments by issuing cheques on the treasury,
provided that the property is not so far from the treasury that this method of
payment would cause undue inconvenience to the payees. The rules
prescribing the procedure for the payment of compensation for land acquired
under the Land Acquisition Act should be strictly adhered to in respect of
such payments.
257 A. Letters of credit.—(1) When under the provision of this rule or
under any special order of Government a letter of credit is issued in favour of
a drawing officer, such letter of credit shall specify the maximum amount upto
which the officer credited shall have authority to draw on the particular Treasury
on which the letter of credit has been issued.
(2) A drawing officer in whose favour a letter of credit has been issued is
not permitted to draw the whole amount and place it in a separate drawing
account at the Treasury or the Bank or in a private account.
#B. Special to cheque drawing departments mentioned in sub rule
(d) of rule 162,
215
*258 (a) The Treasury Officer shall pay claims relating to # the
department specified in sub-rule (d) of rule 162 including those of pay and
allowances and contingencies, on cheques drawn by an officer of the
Department concerned (or a Government Servant of some other department
acting as disburser of the department) whom the Accountant General has
placed in account with the treasury.
(b) The Accountant General shall ordinarily place each Divisional
Officer in account with one or more District Treasuries within his jurisdiction
for the purpose of drawing cheques and may when necessary, place other
officers of the departments in account with District Treasuries within their
respective jurisdiction for the same purpose.
(c) An Officer who is authorised to draw cheques on one District
Treasury may also, when necessary, draw cheques on any sub treasury
subordinate to it.
(d) A Divisional Officer may authorize any Sub Divisional Officer
working under him to draw cheques against his own account with a District
Treasury (including Sub treasuries under it). No separate accounts shall be
opened for a Sub Divisional Officer so authorised. When the Divisional Officer
has issued the necessary letter of authority, the cheques drawn and paid
under it shall be charged to his account as if drawn by himself.
(e) Letters of credit specifying the monthly limits of drawals on
Treasuries shall be issued by Government in the Finance Department to the
Divisional Officers in # the department specified in sub-rule (d) of rule
162 , and Divisional Officer shall restrict the drawals from the Treasury to
the limits prescribed in the letter of credit. It shall be the responsibility of the
Treasury Officer to ensure that cheques issued in excess of the permitted
limits are not cashed #but are returned uncashed.
(f) The Finance Department shall issue letters of credit of each
Divisional Officer with copies to the Head of the Department, Circle
Officer, Divisional Officer and the District Treasury Officer. Letters of
credit shall be issued at a time for every subsequent three months. The
Divisional Officers shall further distribute their allotments among the
various subordinate officers including himself to the extent necessary
and intimate the concerned sub treasuries of the distribution. The
* Substitution [G.O. (P) 386/80/Fin., dated 18th June, 1980]
216
treasury shall maintain a register in Form T.A 10 to note the credit limits
allowed to each officer and regulate the encashment of cheques on the
basis of letters of credit.
(g) If found necessary the Circle Officer/Divisional Officer shall make
reallocation of the allotments of the divisions in his jurisdiction in a month
subject to the condition that the total allotment for all the divisions in that
circle/sub division in the division in the months is not exceeded. The officers
making reallocation shall promptly intimate the details of such allocations to
the Head of the Departments, Finance Department and the concerned
Treasuries.The total credit of Public Works Department Stores for each quarter
shall be allotted to the Executive Engineer, Public Works Department Stores
and he is authorised to distribute the credits to the various District Stores on
different treasuries according to requirements. He is also empowered to exercise
the powers of circle office so far as the system of letters of credit is concerned.
(h) The Divisional Officers are authorised to carry forward unutilized
amounts under the letters of credit from month to month as well as from
quarter to quarter. However, the Sub Divisional Officers shall carry over the
unutilized balance of the month allotted for a particular treasury in that treasury
itself after giving specific requisition to the Treasury Officer concerned unless
the Divisional Officer concerned has not given any intimation to the contrary.
In such cases the Sub Divisional Officer shall intimate such carrying over to
his Divisional Officer promptly. If for any unavoidable reasons the limit allowed
for a month has to be exceeded, the Divisional Officers are permitted to make
excess drawals upto 20 per cent of the credit limit for that month, provided
such excess is adjusted in the remaining months of that quarter. In case of
Divisional Officer is exceeding the monthly limit in the above manner, he shall
promptly report the fact to the superior officers in the Department to the
Finance Department and to the concerned treasury simultaneously, indicating
how he proposes to adjust the excess.
(i) If a Divisional Officer is authorised to draw from more than one
District Treasury, credit limits to the drawing on each District Treasury shall
be proposed and fixed separately.
217
(j) The following items shall be kept outside the purview of the letters
of the credit for the Present, namely:—
(i) salaries and wages;
(ii) refund of deposits (earnest money, security and retention
money);
(iii) cheques issued to works relating to National Highways
debited to Central allocations, etc;
(iv) disbursement on Provident Fund Accounts, payment of
scholarships and Life Insurance Premia; and
(v) wages to the N.M.R. workers.
(k) The items specified in sub-rule (j) shall be distinguished by
affixing rubber stamps on the cheques drawn under each of the items under
the attestation of the Drawing Officer. The requirements of the funds for other
purposes shall be aggregated and the limit fixed for the total. Encashment of
all cheques representing non-exempted items shall be watched against the
credit limit, by the concerned departmental authorities.
(l) Cheques issued on or before the last day of March which are
cashed in April and subsequent months shall not be taken against the credit
limit for the months of encashment since the expenditure relates to the
appropriation for the previous financial year. The Director of Treasuries shall
obtain from the treasuries, statement of cheques issued in the previous year
but paid in the subsequent financial year and furnish it to the Finance
Department on or before 31st July of each financial year.
NOTE—The cheques drawn under letters of credit system shall be presented
at the treasury concerned even if such treasury conducts its cash
transactions through the Banks and the Treasury Officer shall verify
the availability of credit and enface on them an order to Bank to pay
the amount, if any, which he finds to be properly payable.
Rules 259 to 262 [Omitted]
218
263. Before a drawing officer of # any of the departments mentioned in

sub-rule (d) of rule 162 brings a cheque book into use, he should mark all the
cheque forms in it with distinguishing letter. The letter marked on the cheques
in a cheque book which is to be used by a particular drawing officer for
drawing cheques on a particular treasury should be different from the letters
marked on cheques drawn by other drawing officers of the division on that
treasury and also from those marked on cheques drawn by himself on other
treasuries.
264. A drawing officer should ordinarily send the advice to a sub

treasury regarding a cheque book to be brought into use for drawing cheques
on it (See Rule 24 of part I) through the district treasury; if it needs to be sent
urgently, he may send it direct to the sub treasury and forward a copy
simultaneously to the district treasury.
265. The Treasury Officer should send quarterly to each Divisional

Officer a statement showing the numbers and dates of all public works cheque
books issued on requisitions received from Divisional Officers.
266. When the headquarters of all the subdivisions are at the

headquarters of the division, the Divisional Officer should send his pass
book to the treasury to be written up at the end of each month. When that
condition is not fulfilled, he should send it twice a month, namely, on the 10th
and at the end of each month. A Divisional Officer who has banking accounts
with more than one district treasury should have a separate pass book for the
account with each of them. The identity and the amount of the cheques entered
as cashed should be examined at the earliest opportunity, the pass book being
initialled, (and dated) by the Divisional Accountant in token of the check.
219
CHAPTER II
SPECIAL RULES FOR DRAWAL OF CHEQUES WHEN THE TREASURY

TRANSACTS ITS CASH BUSINESS
THROUGH THE BANK
Rules applicable to Departments generally

267. Cheques.—The rules contained in rules 239 to 251 shall apply
mutatis mutandis to cheques drawn by government servants on the Bank
where the treasury transacts its cash business through it except that every
correction or alteration in a cheque drawn on the Bank shall be attested by the
full signature of the government servant who signs it. When such cheques
are presented at the Bank direct in accordance with the rules without the pay
order of the officer-in-charge of the treasury the Bank shall see that the relevant
rules are duly observed. When a cheque drawn by a government servant on
the Bank is, in accordance with the rules, first presented at the treasury before
it is presented for payment at the Bank, the Treasury Officer shall examine it
and enface on it an order to the Bank to pay the amount, if any, which he finds
to be properly payable.
Explanation.—*Cheques drawn by Government Servants in #the departments
mentioned in sub-rule (d) of rule 162 in respect of item
kept outside the purview of the letters of credit referred
to in sub-rule(j) of rule 258, may be presented at the bank
direct for payment and no pay order of the Treasury or
Sub Treasury Officer is necessary. Similarly cheques drawn
on the personal deposit accounts and the banking accounts
of local funds which, are maintained by the Bank, may be
presented at the Bank direct for payment without the pay
order of the Treasury or Sub Treasury Officer. Rules 208
and 248 should be observed mutatis mutandis in regard
to withdrawals from these accounts. All other cheques drawn
by government servants shall first be presented at the
treasury and Bank shall make payment only on the pay
order of the officer-in-charge of the treasury.
* According to G.O.(P) 386/80/Fin., dtd. 18th June, 1980 the first sentence of
the explanation is deleted and revised.
220
NOTE 1.— Cheques.—Rules 248 to 266 above apply mutatis mutandis to

cheques drawn by government servants on the Bank where the
treasury business is transacted through it. The specimen
signature and certificates mentioned in notes 2 and 3 under rule
248 should be sent to the Bank, when the cheques are drawn on
the Bank.
NOTE 2.— Lost cheques.—The provisions of rules 250 and 253 should be
observed mutatis mutandis in regard to cheques drawn by
departmental officer on the Bank direct. When such a cheque
is lost, the loss of the cheque will be reported by the drawing
officer to the officer of the Bank who will issue an
acknowledgment to him. This acknowledgment would imply that
the Bank will take the necessary precautions against payment
of the cheque if presented thereafter. The drawing officer will
then advise the Treasury Officer that the acknowledgment has
been received by him from the Bank. On the basis of the receipt
on such advice, the Treasury Officer, will verify his records and
if no payment has been made, he will issue the certificate on
non-payment to the drawing officer.
*267A. Letters of credit.—If the Drawing Officer in whose favour a

letter of credit is issued requires funds both at the headquarters and at a sub-
treasury, the Treasury Officer shall provide funds at the sub treasury also.
268. [Deleted]
[G.O.(P) 386/80/Fin., dated 18th June, 1980
269. [Deleted]
[G.O.(P) 386/80/Fin., dated 18th June, 1980
221
SECTION IV
Payment of Pensions
CHAPTER I
GENERAL
270. Subject as hereinafter provided, the rules in this section shall

regulate the procedure with regard to the payment of pensions from the
treasuries of this State, provided that,—
(1) in the case of pensions debitable to the Central Revenues, the
rules in the Central Treasury Rules shall be followed;
(2) nothing contained in these rules shall be taken as affecting the
provisions of the Indian Pensions Act (Act XXIII of 1871) or any of the Rules
made thereunder and the provisions of the Kerala Service Rules or any other
rules or departmental regulations issued by the Government prescribing the
procedure for payment of any pension payable by or out of the general revenues
of the Government;
(3) othing contained in these rules shall apply to the payment of
allowances to the members of the Ruling Family of Travancore and of the
Ruling Family of Cochin or to the Payment of Jenmibhogam, Karathilchilavu,
Arthapalisa, etc., in so far as they are repugnant to the special rules given in
Appendices 14 to 16.
*(4) Nothing contained in this rule shall be taken as affecting the
procedure and conditions prescribed in special orders issued by the
Government from time to time for payment of pension by authorized Public
Sector Banks on behalf of the Government, payable out of the Consolidated
Fund of the State.
271. In this section except where it is expressly otherwise provided or
the context otherwise requires.—
“Service pension” means a pension payable to, or in respect of a person in
consideration of past employment under the Government of India of any of the
States and includes a gratuity or family pension so payable.”Political pension”
means a pension, not being a service pension granted or customarily payable to
or in respect of a person on political consideration or compassionate grounds, or
in consideration of distinguished or meritorious services, or of the surrender of
rights of emoluments and includes assignment or compensations when payable
in the form of fixed allowances or grants.
* Insertion [G.O.(P) 542/87/Fin. dated 23rd June, 1987]
222
CHAPTER II
MANNER OF PAYMENT OF PENSIONS AND IDENTIFICATION OF
PENSIONERS
A. Pension Payment Orders

272. $(a) All Service Pensions and Service Family Pensions debitable
to the consolidated fund of the State shall become due for payment from the
first day of the month to which the pension relates. All other pensions shall be
paid from the first working day after the month succeeding to which they
relate
This amendment shall come into force w.e.f. 31-8-1981 as per G.O.(P) 562/
81/Fin. dated 31-8-1981 and G.O. (P) 155/83/Fin. dated 26-3-1983.
**(aa) Except in the case of military pensions which are payable on
pension certificate or other authorities, issued by the Controller of Defence
Accounts and pension, or unless the Government order otherwise in the case
of any particular class of pensions, payment of pensions can be made only
upon pension payment orders issued by an Accountant-General. Each Pension
Payment order will be in two halves of which one, known as the disburser’s
half will be kept in the treasury at which payment is to be made and the other
delivered to the pensioner in person when he appears to receive payment of
his pension for the first time.
•NOTE 1.—*In cases where pension is drawn through authorised agents
(who have indemnified Government against overpayments)
personal appearance of the Pensioner is not necessary even on
the first occasion.
†NOTE 2.—Pension to State Government Pensioners and All India Service
Pensioners who retired from a post under the State Government
and pensions to those who were borne on the State Cadre and
retired from posts under the State Government are also payable
through authorized Public Sector Banks.
$ Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]

** Relettered [G.O.(P) 177/84/Fin., dated 26th March, 1984]
• Note renumbered vide G.O.(P) 542/87/Fin. dated 23rd June, 1987.
* Insertion [G.O.(P) 176/77/Fin., dated 6th June, 1977]
† Insertion [G.O.(P) 542/87/Fin. dated 23rd June, 1987]
223
#NOTE 3.—A Register in Form 83 (a) should be maintained in Treasuries for

noting the details of pensions transferred to Public Sector Banks.
In the case of all pensioners whose pensions are paid from the
Consolidated Fund of the State** and whose pensions are payable by money
order the pensioner’s half of the Pension Payment Order need not be handed
over to the pensioner.
(b) In issuing a Pension Payment Order, the Accountant General
will—
(i) attach to each half of the order a specimen signature of the
pensioner if he can sign his name and thumb and finger
impressions of the left hand of the pensioner, if he cannot sign
his name or where this is not possible due to physical
incapacity, the thumb and finger impressions of his right hand,
failing which his toe impressions the specimen signature or
thumb, finger or toe impressions being duly attested by the
head of office concerned or by some other responsible person;
and
(ii) paste a certified copy of the pensioner’s photograph in passport
size on the disburser’s half of the Pension Payment Order
provided that this requirement (pasting of a photograph) will
not apply to Indian women who do not appear in public,
European women, persons who hold Government titles, persons
who are in receipt of family pensions under the wound
extraordinary pension rules or to any other person specially
exempted by the Government from the operation of this rule.
NOTE 1.—A pensioner shall be required to pay for the photographs required
for this purpose.
NOTE 2.—The photographs should be renewed whenever the disbursing
officer considers it necessary. The cost of the renewal should
also be met by the pensioner.
(c) A pensioner drawing pension direct from the treasury shall
produce his half of the Pension Payment Order before the disbursing officer
whenever he claims payment of his pension, and no payment shall be made if
he fails to produce it.
# Insertion [G.O.(P) 542/87/Fin. dated 23rd June, 1987]
**Omitted [G.O.(P) 142/81/Fin., dated 25th February, 1981]
224
(d) *In commutation cases, the Accountant General shall issue the
authority for payment of the commuted value of the portion of pension
commuted, along with a communication, intimating the date of commutation
and the reduced amount of pension to be payable with effect from the date of
commutation. The reduced rate of pension payable after commutation and the
date from which it is payable shall be noted in both halves of the Pension
Payment Order by the Disbursing Officer under his attestation, quoting
Accountant General’s letter as authority, under intimation to the Accountant
General. After the commuted money is paid, the voucher for the commuted
value shall be sent to the Accountant General in a separate schedule. Payments
of pension from the date of commutation shall be made at the reduced rates,
based on the amended Pension Payment Order.
In case where an anticipatory pension payment order has been issued
by the Accountant General, the final pension, when intimated by the
Accountant General, shall be noted in both halves of the Pension Payment
Order by the Disbursing Officer under his attestation, quoting Accountant
General’s letter as authority. An intimation to this effect shall be sent to the
Accountant General simultaneously. Future payments shall be made to the
pensioner at the revised rates, based on the amended pension payment order.
The voucher for the first payment of the final pension shall also be sent to
the Accountant General in a separate schedule.
Whenever there is an occasion for revision of pension, the Accountant
General shall issue only an amendment letter to the Disbursing Officer for
making necessary amendments on both halves of the Pension Payment Order
under his attestation and effect payments thereof.
**The Treasury Officers shall make payment of Dearness Relief to
Pensioners on receipt of the orders from the Government without specific
authorization from the Accountant General. In regard to payment of Dearness
Relief to Pensioners drawing pension outside the State issuance of special
seal authorization by the Accountant General shall continue.
(e) The payment in rupees of pensions fixed in sterling or any other
external currency shall be regulated by such general or special instructions
as may be issued by the Government in this behalf. In issuing Pension
Payment Orders for such pensions, the Accountant General shall either mention
the exact amount to be paid in rupees or indicate the rate at which the amount
stated in sterling or any other external currency shall be paid.
* Substitution [G.O.(P) 161/77/Fin., dated 27th May, 1977]
** Addition [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
225
(f) The disburser’s halves of the Pension Payment Orders should be

filed in serial order in separate files, one for each class of pensions. The
Disbursing Officer should keep the files locked up and should keep the key
always in his personal custody and see that no one has any access to the files
except under his authority and supervision and on his responsibility.
B. Register of Pension Payment Orders
273. (a) Service pensions paid at a district treasury.—The Treasury Officer

should keep a register in Form T.R. 80 of the Pension Payment Orders issued on
his treasury. This register will serve as an index to the files of Pension Payment
Orders referred to in Rule 272 (f) above. Whenever a new order is received, the
Treasury Officer should see that it is correctly entered in this register with a red ink
line ruled across the page below the entry, and should then write his initials
against the entry in the column headed “Name of pensioner”. The column headed
“Remarks” should be left blank so long as the Pension Payment order is in force.
When both halves of the order are returned to the Accountant General on account
of the pensioner’s death or are sent out of the office as a result of an application
for transfer of payment out of the district, the order should be removed permanently
from the register and the file; the Treasury Officer should have the date and
reason for sending away both halves of the order entered at once in the column
headed “Remarks” and initial the entry.
(b) On receipt of an intimation about the death of a pensioner, prompt
action should be taken to record the fact in the register referred to in clause (a)
above and on the disburser’s half of the Pension Payment Order.
In the case of pensioners whose pensions are paid by money order
under the provisions of Rule 286 the necessary note should be made on both
halves of the Pension Payment Order.
(c) Service pensions paid at a sub treasury.—The registers should be
maintained at a sub treasury in the same manner as at a district treasury - See
clause (a) above.
(d) Political pensions.—The provisions of clauses (a) and (b) above
should be followed, mutatis mutandis in regard to political pensions also. There
should be a separate register for political pensions.
226
C. General Rules of Payment

274. (a) As a rule, a pensioner shall take payment of his pension in
person and the Disbursing Officer shall identify him with reference to the
details available in the Pension Payment Order before making any payment.
When claiming his pension for the first time, a pensioner shall also be required
to produce his copy of the letter of the Accountant General forwarding his
Pension Payment Order to the Treasury Officer.
Whenever a pensioner appears to take payment of his pension the
Disbursing Officer shall check his personal marks with those recorded on the
disburser’s half of the Pension Payment Order and compare his signature on
the receipt with that pasted on the disburser’s half of the Pension Payment
Order. If a pensioner cannot sign his name, the Disbursing Officer shall compare
his thumb-great-toe impression on the receipt with the original thumb-great-
toe impression previously taken on the disburser’s half of the Pension Payment
Order.
(b) Pensions payable at a treasury which transacts its cash business
through the Bank shall be actually disbursed at the Bank or at the treasury in
accordance with the general or special orders of the Government applicable to
each case - See also note under Rule 230 above. When such a pension is to be
disbursed at the Bank, the officer-in-charge of the treasury shall be the
Disbursing Officer for the purpose of these rules except in regard to the actual
disbursement of cash on the bill passed for payment by him.
275. (a) Pensioners specially exempted from personal appearance by
the Government (See Rule 126, Part III of the Kerala Service Rules, V Edition),
women who are not accustomed to appear in public and pensioners who
produce satisfactory evidence that they are unable to appear because of
bodily illness or infirmity, need not appear at the treasury in person to claim
payment of their pensions.
(b) The pension due to any pensioner belonging to one of the
classes mentioned in clause (a) may be disbursed to a messenger who presents
the pensioner’s half of the Pension Payment Order along with (1) a proper bill
signed and receipted by the pensioner and bearing an endorsement also duly
signed by him authorizing payment to such messenger and (2) a life certificate
in respect of the pensioner signed by a responsible officer of the Government
or some other well known trustworthy person (Vide note to Rule 126 of Part III
of the Kerala Service Rules, V Edition).
227
276. The pension due to any pensioner may be disbursed to a

messenger who presents the pensioner’s half of the Pension Payment Order
along with (1) a proper bill signed and receipted by the pensioner and bearing
an endorsement also duly signed by him authorizing payment to such
messenger, and (2) a life certificate in respect of the pensioner signed by
any of the person mentioned in Rule 126 of Part III of the Kerala Service Rules,
V Edition.
277. A disbursing officer shall not pay a pension for any month to a
messenger under Rule 275 or 276 if the date of the life certificate is earlier
than the *date on which it is due for payment of that month. He shall also
invariably take the signature of the messenger in whose favour the pensioner
has endorsed the bill in token of the receipt of the amount specified in it.
When the messenger is illiterate, his signature shall be taken in the form of
his thumb impression, duly attested by a witness. The disbursing officer is
personally responsible for any payment wrongly made. Whenever he feels a
doubt as to the proper course of action he should consult the Accountant
General.
*This amendment shall come into force w.e.f. 31-8-1981.
278. (a) A pensioner of any description who is resident in India may
claim and draw his pension admissible to him by giving a legally valid power
of attorney in favour of another person in India. A pensioner desiring to
receive his pension through another person to whom he has given a valid
power of attorney should endorse a copy of the deed conferring the power of
attorney to his disbursing officer and the audit officer. The person holding the
power of attorney will then prepare and present the bills, making a claim on
behalf of the pensioner and receive the payment on his (the person holding
the power of attorney) giving the quittance. If the person holding the power
of attorney is an agent (including a bank) who has also executed an indemnity
bond agreeing to refund over payments, he can draw the pension for a period
of not more than a year after the date of the life certificate furnished by him
in respect of the pensioner in accordance with the provision of Rule 167. If,
however, the person holding the power of attorney is not an agent (including
a bank) who has executed a bond to refund over payments, he will either
receive the payment in person from the disbursing officer after giving his
quittance, or if he desires to draw the pension through an agent or representative
*Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
228
nominated by him, he may receive payment through him but in either case of
receiving payment in person or through an agent or representative he will append
to the bills for pension for each month a life certificate in respect of the pensioner
duly signed by any of the authorities stated in Rule 167 ibid and also furnish
certificate signed by the pensioner required under the provisions of Rule 283
*below.
When a pensioner draws his pension through an agent who is authorised to
do so by conferring on him a power of attorney, and who has executed a bond of
indemnity under Rule 167 ibid (e.g. a scheduled bank) the certificate regarding re-
employment and acceptance of commercial employment, modified suitably can be
signed by the agent and the pensioner himself should furnish once a year, a
certificate concerning the period for which the pension has been drawn on the
basis of the agent’s certificate.
The pension disbursing officer shall maintain a register of power of attorney
in the form prescribed in the Government Securities Manual and all cases in which
the power of attorney has been granted shall be recorded therein.
b) A pensioner not resident in India may, with the permission of the
(
Reserve Bank of India, draw his pension in India through a duly authorised agent,
possessing a legally valid power of attorney, who must produce a life certificate as
referred to in Rule 129 of Part III of the Kerala Service Rules, V Edition on each
occasion, unless the duly authorised agent has executed an indemnity bond to
refund overpayments, in which case he has to produce the life certificate as
aforesaid at least once a year.
When a pension is drawn from a treasury outside the state and the
procedure duly authorised for that treasury differs from thaprescribed above, the
procedure authorised for that treasury shall be followed.
Explanation.—The agent should have adequate financial stability capable

of safeguarding the interests of Government.
NOTE—In cases where the life certificate is furnished annually the Treasury
Officer will require the Bank/Agent to furnish the life certificates of the
pensioners whose pensions are drawn through them, in a separate
statement either to be attached to the bills for pension for December
drawn in January or to be furnished in January. He will note the date of
the certificate in the disbursing officer’s half of the Pension Payment
Order and file the certificate in a separate file in chronological order.
* Omitted [G.O.(P) 568/79/Fin., dated 28th June, 1979]
229
279. Leper pensioners.—A leper pensioner shall ordinarily appear before

the disbursing officer to claim his pension without preparing a bill. The disbursing
officer shall then direct one of his clerks or assistants to fill up a pension bill form
on behalf of the pensioner. Payment shall be made at once to the pensioner on this
bill, and the disbursing officer shall mark the bill by means of a stamp as having
been paid in his presence and record the fact of payment in both halves of the
Pension Payment Order under his initials. Both halves of the Pension Payment
Order shall be retained in the treasury in these cases.
When a leper pensioner is unable to appear before the disbursing officer
due to bodily infirmity, he shall send a life certificate under Rule 275 but not a
bill. The disbursing officer shall prepare the bill and remit the pension,
irrespective of any money limit, by postal money order.
280. (a) The disbursing officer shall take adequate precaution to prevent
the payment of any fraudulent claims, on account of the pension of a pensioner
who does not appear in person to take payment. When a pensioner draws his
pension in accordance with the provisions of Rules 275, 276 or 279 the disbursing
officer shall require proof of his continued existence; independent of that
furnished by the life certificate in the monthly pension bill to be furnished at
least once a year. For this purpose he shall require each such pensioner either
to attend in person at the treasury for due indentification at least once a year
or to produce an annual life certificate from persons other than those who
usually furnish life certificate for receiving monthly pension. The annual life
certificate from any Gazetted Officer, Village Officer, Sub Registrar, Sub
Inspector of Police and the Executive Officer of the Panchayat wherein the
pensioner resides, with the respective office seal affixed to the certificate shall
be accepted by the Treasury Officers as independent proof of the existence of
the pensioner. The annual life certificate shall be issued by the officers
concerned in the following form:—
“I….…………………………………..(name and address)
hereby certify that Sri/Smt…..………………………….holder of
P.P.O.No…………………………for `…………whose signature thumb/great-toe-
impression is given below is alive on this date and that I have not issued any life
certificate to this pensioner during the last twelve months.
....................................................
Signature (with date)
(Office seal) Designation ........................................
230
Such annual certificate shall be produced in the month of December every

year, failing which the payment of pension for * January, as also the pensions
for subsequent months shall be held up until the certificate is received.
The Treasury Officer shall also send through the messenger receiving
payment of pension for November a call in Form T.R. 84 or
T.R. 85 for the purpose.
(b) The Treasury Officer shall see that the Sub Treasury Officers
furnish certificates showing that they have obtained at least once a year the
necessary independent proof of the continued existence, etc., of pensioners
exempted from personal appearance whose pensions are paid at the sub
treasuries.
(c) A pensioner of rank may be identified privately by the disbursing
officer and need not be required to appear at a public office.
(d) The disbursing officer shall take special care in regard to the
payment of the pension of any woman not accustomed to appear in public,
since such payments involve a special risk of fraud. No payment shall be
made except on a life certificate as prescribed in Rule 275 (b), which shall be
attested on each occasion, as an additional precaution, by two or more
respectable persons of the pensioner’s town or village. The disbursing officer
shall also arrange to have every such pensioner examined at least once a year
by two non-pardah female pensioners who shall check her personal marks
with these recorded on the disburser’s half of the Pension Payment Order, and
shall compare her signature, or if she is illiterate her thumb/great-toe-impression
or the receipt with that already taken on the disburser’s half of the Pension
Payment Order. These examination shall be conducted as far as possible without
any extra expenditure by the Government. Extra expenditure may be incurred
in special cases when it is unavoidable.
**(e) The disbursing officer, may at his discretion and for reason to
be recorded privately identify and verify the continued existence of a
pensioner, and dispense with his personal appearance prescribed in this rule
but this power shall be exercised only in special cases such as of those who
held high office before retirement.
* Omitted vide G.O.(P) 177/84/Fin. dated 26th March, 1984.
** Substitution [G.O.(P) 410/79/Fin., dated 16th April, 1979]
231
281. (a) The pensioner’s receipt for each payment shall be taken on a
separate bill in Form “T.R. 81”, “T. R. 81-A” or “T.R. 81-B”, as the case may be,
and attached to the respective schedule of payments of pensions of each
kind.
(b) Every payment of a pension shall be entered on the reverse of
both halves of the Pension Payment Order and attested by the initial of the
disbursing officer.
(c) When the pension of a government servant who was transferred
to the service of the Reserve Bank of India is paid at a treasury, the disbursing
officer shall take the pensioner’s receipt for each payment in the special receipt
form prescribed for the purpose. The Reserve Bank will supply the copies of
this form required by the treasury on receipt of a requisition from the Treasury
Officer.
282. When a pension is debitable partly to a local fund and partly to
state Revenues, the amount debitable to a local fund in any bill and the name
of that local fund shall be separately enfaced on the bill in red ink, and the
amount shall be debited in the first instance to a suspense head. The suspense
head shall be cleared by monthly recoveries from the local funds concerned.
283. [Omitted]
284. (a) When a pension is granted on condition that it shall be paid
only so long as a specified event other than the pensioner’s debt has not
taken place, no payment shall be made unless the pensioner furnishes a
certificate in the form given in the bill for pension [Form T.R. 81 A] that event
has not taken place.
(b) A person whose pension is terminable on marriage or remarriage
or on attaining majority shall furnish a declaration in the form given in the bill
for pension ‘Form T.R. 81 A’ for the month of December every year that the
specified event has not taken place till the last date for which pension is
claimed in the bill.
(bb) *Notwithstanding anything contained in sub rule (a) or sub
rule (b), in the case of payment of Family Pension to a widow it shall be
sufficient if she gives an undertaking that she would report to the pension
disbursing officer, the event of her remarriage.
* Addition [G.O.(P) 568/79/Fin., dated 28th June, 1979]
232
NOTE—In cases where a declaration under this sub rule is required be

furnished in the bill for pension for December the certificate referred
to in sub rule (a) above need not be furnished in the bill for that
month.
(c) Every pension disbursing officer, shall, in the month of January,
submit to the Accountant General a statement showing particulars and date
of last payment of pensions in respect of the cases of failure to furnish the
declaration mentioned in sub rule (b) above.
Explanation.—If the pension is payable to a minor child through his/
her guardian, the certificate mentioned in sub rule (a) and/
or the declaration mentioned in sub rule (b) should be
furnished by the guardian to whom the pension is to be
disbursed. In such case the wording of the certificate/
declaration in Form T.R. 81 A may be modified suitably.
(d) A father/mother of a deceased government employee in receipt
of family pension should attach in the following form an annual certificate
form the Tahsildar or a Gazetted Officer of the locality to the bill for pension,
presented after one year of drawal of pension.
“On conducting proper enquiries I hereby certify that the financial
position of Sri/Smt………………………….………….(Name and
address)……….…………… father/mother of …………………… (H.E. name and
designation of the deceased officer) to whom a family pension of
`………………. a month has been sanctioned in G.O. No…….
dated ………….. has not improved and that he/she is eligible to get the family
pension for another year from ………………… (H.E. the date
………………………)
Place…………………
Date…………………. Signature and designation”
285. The pension of an insane person may be paid to a guardian

appointed under the Indian Lunacy Act, 1912 (India Act IV of 1912) or to any
person authorised by the Government (or the authority which sanctioned the
pension) to receive it. Such guardian or person shall be required to furnish
with each claim a life certificate as prescribed in Rule 275 (b) stating that the
pensioner was alive *on the first day of the month for which the pension is
claimed.
* Substitution [G.O.(P) 177/84/Fin. dated 26th March, 1984]
233
C HAPTER III
PAYMENT OF PENSIONS BY POSTAL MONEY ORDER
286. * The pension paid from the consolidated fund of the State shall,
at the option of the pensioner, be sent to him/her by postal money order at
Government cost, except for the first time. The payment of pension for the first
time should be made to the pensioner on his appearing at the treasury. The
disbursing officer shall observe the following rules in regard to the payments
of subsequent pensions by money orders.
(i) The disbursing officer shall identify the pensioner when he
appears to receive payment for the first time in the manner prescribed in
Rule 274 (a) and record the correct address of the pensioner with the name
of the post office on the disburser’s half of the Pension Payment Order and
instruct the pensioner to communicate any change in his address. The
pensioner’s half of the Pension Payment Order will be made available to the
pensioner for his scrutiny, if necessary and received back and kept under
safe custody in the treasury.
NOTE 1.— In the case of pensioners who are already drawing their pensions
otherwise and who wish to avail themselves of the facility of
pension payment by money order may surrender the pensioners
half of the pension payment order in person at the treasury and
get an acknowledgment from the Treasury Officer.
NOTE 2.— Those pensioners who find it easier and convenient to get their
pension direct may, however, be allowed to do so.
NOTE 3.— **The first sentence in the opening paragraph shall be deemed
to have come into force with effect from the 1st day of
November, 1978.
(ii) The necessary entries shall then be made in the ‘Register of
pensions payable by money order’ in Form T.R. 82 and both halves of the
Pension Payment Order shall be filed in a separate file headed ‘Pension Payable
by Money Order’.
* Substitution [G.O.(P) 170/80/Fin., dated 4th March, 1980]

* *Addition [G.O.(P) 401/81/Fin., dated 22nd June, 1981]
234
(iii) The Treasury Officers should arrange for the money order forms
being written up sufficiently early, and presented to the Post Office from
**10th of the month onwards. When the number of money order forms to be
booked in Post Offices is very large, the Treasury Officers should contact the
Post Masters concerned and decide how many filled-up forms should be
presented on each day. The presentation of the forms should be completed
however, by the last working day of the month to which the pension relates.
The forms for a day will be arranged to be delivered in a lot to the Post Office
in a cover addressed to the Post Master. The forms from a treasury should be
presented to the same Post Office on all occasions to facilitate future references,
if any, required. Normally the forms should be presented at the Post Office
nearest to the treasury where the routine transactions of the treasury are
carried out. But in cases where the nearest Post Office may not be having
enough number of hands to handle the money order forms in bulk, another
convenient Post Office with the concurrence of the Postal Department may be
fixed for the purpose. He should see that the words “Pension money order not
to be paid before the 1st of ……..” (Here enter the name of the month of
disbursement) are inscribed on the top of each money order form presented in
advance by a rubber stamp.
(iv) †Whenever a pension is to be sent by money order at the cost
of the State Government, the relevant service head may be debited with the
amount of pension and transfer credited to the Money Order Personal Deposit
Account in the name of Treasury Officer. The Money Order Commission due
thereon shall be debited under the head of account 2071 and simultaneously
transfer credited to Money Order Personal Deposit Account. In respect of
Pension other than State Pension sent at the cost of the Government or authority
to whom such pensions relate, the Money Order Commission as well as the
amount payable to the pensioners shall be debited to the concerned
Government (Central, Inter-State-Suspense, Tamil nadu etc.) and transfer
credited to the Money Order Personal Deposit Account. In respect of pensions
of other Governments paid at the cost of pensioners, the net amount due to
the pensioner after debiting Money Order Commission as well as the amount
of Commission shall be debited to the concerned Government and transfer
credited to the Money Order Personal Deposit Account. The Money Order
Forms in such cases shall be prepared only for the net amount due to the
pensioners. The Money Order forms duly prepared along with a covering
**Substitution [G.O.(P) 97/89/Fin. dated 24th February, 1989]
†Substitution [G.O.(P) 97/89/Fin., dated 24th February, 1989]
235
schedule and a Personal Deposit Cheque drawn by the Treasury Officer in

favour of the concerned Post Master for the total amount due, inclusive of
Commission as per the schedule may be tendered at the Post Office. ‡The
Money Orders returned unpaid should be credited under Revenue Deposits
except in the case of Central and other State Pensions. The unpaid Central
Money Order Pensions should be credited back to Central Government as
minus debit (R.O.P.) under the Major Head “2071-Pensions and other
Retirement Benefits in the Central Section of Accounts of the Treasury after
noting sufficient, details in the Pension Payment Order concerned. Similarly,
the unpaid Money Order Pensions in respect of other State Government should
be credited back to the Inter State Suspense Account of the State concerned.
(v) Separate pension bills need not be prepared for each pensioner.
The payments shall be shown in a separate schedule in Form T.R. 83. The
total amounts of the payments shown in the schedule shall be written both in
figures and in words. The disbursing officer shall satisfy himself that all the
amounts shown as paid in the schedule have actually been remitted by money
order and certify accordingly on it. The disbursing officer shall write his pay
order on the schedule; it shall then be stamped “Paid by transfer” and
forwarded to the Accountant General or the Treasury Officer as the case may
be, with the corresponding list of payments as a voucher supporting the debit
in the treasury accounts.
(vi) The disbursing officer shall also see that the payees’ money
order receipts are duly received for all the remittances shown in the register.
He shall compare the signature (or thumb impression) on each such receipt
every month with the pensioners’ signature (or thumb impression) on the
Pension Payment Order and satisfy himself that it is genuine. The receipts
shall then be filed in the treasury. In the next month’s schedule of pension
payments the disbursing officer shall certify as follows:—
“I certify that I have satisfied myself that all pension payments shown
in the schedule for the previous month have been paid to the proper persons
and that I have obtained the payee’s money order receipts in support of all
these payments and filed them in my office.”
‡Substitution [G.O.(P) 358/93/Fin. dated 15th June, 1993]
236
(vii) *The disbursing officer shall satisfy himself once in three years
about the continued existence of the pensioner either by personal appearance
of the pensioner before the disbursing officer or by obtaining a certificate
of continued existence of the pensioner, issued by any of the authorities
specified in sub-rule (a) of Rule 280, with his office seal affixed on the certificate.
#Such life certificate shall be produced in the month of December once in
every three years failing which the payment of pension for the month of
January , as also the pension for the subsequent months shall be held up until
the certificate is received; In token of having satisfied himself of the continued
existence of the pensioner, the disbursing officer shall endorse on the schedule
of payment for the month of January once in every three years or in respect of
pension for ^January paid subsequently against the relevant entry of the
schedule of the month concerned, a certificate to the effect that he has satisfied
himself that the pensioners were actually alive on the dates on which the
pensions were remitted to them. The disbursing officer shall also note the fact
of personal mustering or the receipt of life certificate, as the case may be, in
both halves of the pension payment order, under his dated signature.
^ This amendment shall come into force w.e.f. 31-8-1981.
(viii) **The disbursing officer shall obtain from each woman whose
pension would terminate on her marriage and whose pension is remitted by
money order, an annual declaration in the form prescribed in Rule 284 (b) for
the year ending on the 31st December.
(ix) The certificates mentioned in clauses (iii), (vi), (vii) and (viii)
shall be given by the Treasury Officer for payments made at the District
Treasury. So far as payments made at sub treasuries are concerned the
Treasury Officer need only certify that he has received the necessary
certificates from the respective Sub Treasury Officers.
(x) Where, owing to old age or infirmity or in consequence of some
physical disability, it is not possible for a pensioner to present in person to the
Treasury Officer, a declaration electing to have his pension paid by money
order the Treasury Officer may accept, instead, a written declaration signed
by the pensioner, which is duly verified by a Gazetted Officer, a Magistrate or
a Justice of Peace. The Officer verifying declaration shall specify the
*Substitution [G.O.(P) 284/82/Fin., dated 8th June, 1982]
#Substitution [G.O.(P) 177/84/Fin. dated 26th March, 1984]
^Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
**Substitution [G.O.(P) 568/79/Fin., dated 28th June, 1979]
237
PART V KERALA TREASURY CODE RULES 286-286B
circumstances in which he holds that it is not possible for the pensioner to

present the declaration in person to the Treasury Officer.
(xi) Should the pensioner be physically incapable of signing the
declaration, the Treasury Officer may authorize payment to the pensioner
on production of a certificate from the Civil Surgeon of the district or a
registered medical practitioner to the effect that the pensioner is alive but
is unable to sign the required declaration. In such a case, the pension may be
paid to the heir, not being a minor, who would receive payment of the arrears
of pension in the event of the pensioners death, provided it is certified by
the Tahsildar in whose jurisdiction the pensioner lives that the person claiming
to be the heir is in fact a heir and continues to be the heir throughout the
period for which he draws the pension.
286 A. [Deleted]
[G.O.(P) 360/76/Fin., dated 23rd November, 1976]
C HAPTER III A
PAYMENT OF PENSION THROUGH TREASURY SAVINGS BANK
ACCOUNT
*286B 1. The Pensions paid from the Consolidated fund of the State
shall, at the option of the pensioner automatically be credited to the Treasury
Savings Bank Accounts of the pensioners opened exclusively for crediting
pension except for the first time, following the procedure detailed below. The
payment of pension for the first time should be made to the pensioner after
proper identification in the manner prescribed in rule 274(a).
2. The Pensioner may open Treasury Savings Bank Account
exclusively for crediting pension and submit a written request to the pension
Disbursing Officer for payment of pension through Treasury Savings Bank,
with the pensioners half of the pension payment order and a letter of
undertaking in Form T.R.83B. On receipt of the written request of the pensioner
the pension disbursing officer, shall make necessary entries in the registers of
pension payable through Treasury Saving Bank Account (Form T.R. 82A)
furnishing of the details of Pension Payment Orders, Number, Name of the
pensioner, amount of Pension and the number of Treasury Savings Bank
Account in which the amount shall be credited. In order to distinguish the
*Insertion [G.O.(P) 733/93/Fin. dated 20th October, 1993]
238
PART V KERALA TREASURY CODE RULE 286B
Pensioner’s Treasury Savings Bank Accounts from other Treasury Savings

Bank accounts separate ledger for Pensioners with separate serial number for
such Savings Bank Accounts should be maintained. Treasury Savings Bank
accounts of pensioners may be distinguished as Pensioner’s Treasury Savings
Bank (Pensioners Treasury Savings Bank).
Both halves of the Pension Payment Order shall be filed in a separate
file superscribed Pension “Payable through Pensioners Treasury Savings
Bank” and the Treasury Savings Bank account should be noted at the top of
the front cover of the Pension Payment order, and in the front page of the
disburser’s half on the top portion.
3. After 20th of every month a schedule in triplicate in the prescribed
form T.R. 83A should be prepared category wise. The amount will be totalled
and a transfer pay-in-slip attached for the total amount. Necessary entries
regarding the date of Payment (Ist of the next month) should be made in both
halves of the Pension Payment order.
4. After the preparation of the pension schedule as above, the
pension disbursing officer shall sign the pay order in the original of the schedule
for the total amount of each category of pension for transfer credit to each
pensioners Treasury Savings Bank account noted in the Schedule and also
sign the pay-in-slips attached for the total amount by transfer adjustment.
5. The original, duplicate and triplicate copies of the schedule duly

signed by the Pension Disbursing Officer will be handed over to the concerned
Savings Bank Section. The Savings Bank Accountant will enter amount of each
pensioner in his/her respective Pensioners Treasury Savings Bank account on
the basis of the signed schedule. Necessary certificates to the effect that all the
amount of pension furnished in the schedule has been credited in the respective
Pensioners Treasury Savings Bank account of the pensioners should be signed
by the savings Bank Passing Officer on the first working day of every month in
the triplicate copy and the same returned to the pension section for record purpose.
The Original (Voucher) shall be handed over to the section concerned for
incorporation to the Treasury Accounts and the duplicate copy along with the
transfer pay-in-slip should be kept by the Savings Bank Accountant.
239
PART V KERALA TREASURY CODE RULES 286B-287
6. The Disbursing Officer shall satisfy himself once in a year about the
continued existence of the pensioner either by personal appearance of the
pensioner before the Disbursing Officer or through life certificates. The Disbursing
Officer shall also note the fact of personal mustering or the receipt of life certificates
as the case may be in both halves of the Pension Payment Order under his dated
signature.
CHAPTER IV
PERIODICAL APPEARANCE OF PENSIONERS FOR IDENTIFICATION
287. (a) On the first appearance of a pensioner the disbursing officer

shall take an impression of the pensioner’s left hand thumb and fingers or where
this is not possible due to physical incapacity, right hand thumb and fingers or the
impressions of the toe, on the pension bill.
He shall then identify the pensioner with reference to the particulars given in
the disburser’s half of the pension payment order and by comparison of the
thumb and finger impressions with those pasted on the Pension Payment Order.
Once in the course of every year thereafter, the continued existence of the
pensioner shall be ensured by obtaining the above impressions in the pension bill
and an annual life certificate as contemplated under sub rule (a) of Rule 280.
(b) A woman who is exempt from personal appearance under Rule 275
(a) because she is not accustomed to appear in public should affix an impression
of her left thumb/right thumb/great toe on each bill in the presence of the person
who signs the life certificate and the latter should attest it. An illiterate pensioner
should similarly affix an impression of his left thumb/right thumb/great toe on
each bill in the presence of the person who signs the life certificate, or whom he
attends at the paying office in person to receive payment, before the disbursing
officer, and the person who signs the life certificate or the disbursing officer, as the
case may be, should attest it. In the case of an illiterate pensioner or a woman who
is not accustomed to appear in public, quittance by a seal mark attested by some
known and respectable person may be accepted in lieu of thumb/great toe
impressions.
(c) When a Pension Payment Order is renewed, the original signature of
thumb and finger/toe impressions shall be cut off from the old order and attached
to the new order.
240
(d) If the disbursing officer entertains any doubt as to the identity of

any person claiming to be a pensioner who has served in the Police Department,
he may require the local Inspector of Police to identify him, and the latter shall
then be responsible for the correct identification of the pensioner.
(e) The procedure laid down in sub-rule (vii) of Rule 286 applies
mutatis mutandis to pensioners receiving pension direct from the treasury
also.
288. (a) In order to ensure that annual mustering/periodical verification
of the pensioners has been done, the disbursing officer shall note the date of
mustering or the date of the life certificate produced at the space provided for
it in both halves of the Pension Payment Order. Similarly he shall write the
letter “L.C.” with his initials against each monthly pension payment whenever
disbursement is made on the strength of life certificate. He shall also send
through the messenger who receives payment of the pension in November a
call in Form T.R. 84 or T.R. 85 for the purpose.
In the case of re-employed pensioners it will be sufficient if a certificate
from the head of the office or department in which they are re-employed to the
effect that the pensioner is re-employed in his office or department is produced
before the pension disbursing officers.
(b) When a pensioner draws his pension through an agent who
has executed a bond to refund overpayments, the pension shall not be paid
on account of a period of more than a year after the date of the life certificate
last received. The Accountant General and the disbursing officer shall watch
carefully for authentic information of the death of any such pensioner and see
that no further payment is made after such information is received.
289. Place of payment:—A pension payable in India may be paid at
any treasury in India.
*Explanation 1—Treasury in India means any treasury maintained by
the Kerala Government, the Government of India or any other
State Government.
**Explanation 2—Civil Pensions debitable to the Consolidated Fund
of the State shall also be paid through Public Sector Banks
nominated for the purpose.
*Explanation renumbered vide G.O.(P) 542/87/Fin. dated 23rd June, 1987.
**Insertion [G.O.(P) 542/87/Fin. dated 23rd June, 1987]
241
CHAPTER V
TRANSFER OF PENSIONS
290. (a) Transfer of service pensions:—

(i) The Accountant General may, on application made by a pensioner,
transfer the payment of his pension from any treasury in India to another.
(ii)A Treasury Officer may, on application made by a pensioner,
transfer the payment of his pension from the district treasury to a sub treasury
subordinate to it or vice versa or from one sub treasury to another in the same
district. A Treasury Officer may, on application made by a pensioner, also
transfer the payment of his pension to another treasury within the State without
the intervention of the Accountant General. He shall, however intimate the
Accountant General, the details of such transfer as soon as the transfer is
effected.
(iii) When a pensioner has applied for transfer of payment of his
pension to a treasury outside the State, either to the Accountant General or to
the Treasury Officer the Treasury Officer shall, and in cases where the
pensioner has so applied to the Accountant General on receipt of an authority
from him, forward both halves of the pension payment order to the Accountant
General with the application for transfer of pension made by the pensioner.
Two slips containing specimen signature or thumb or great toe impression, as
the case may be, of the pensioner shall also be sent to the Accountant General
along with the pension payment order. The Accountant General will either
issue an authority for making payment to the Treasury Officer where the
payment is desired by the pensioner, if the latter is situated within his audit
circle or move Accountant General of the State in which such treasury is
located to arrange for the payment.
(b) Transfer of political pensions:—The Government or the
Accountant General may permit the transfer of the payment of a political
pension from one treasury in India to another, provided that the Accountant
General should, before ordering any transfer of a political pension, obtain the
concurrence of the authority empowered to permit a change of residence by
the political pensioner.
291. (a) A copy of any order issued by the Government or any
subordinate authority under the preceding rule shall be forwarded to the
Accountant General.
242
(b) The following procedure shall be observed in regard to the

transfer of payment of a pension from one district to another in the State:—
The Treasury Officer shall forward both halves of the Pension Payment
Order to the Treasury Officer of the new district with information as to the
date upto which payment was made in the old district, and shall simultaneously
forward a copy of the communication to the Accountant General. On receipt
of both the halves of the Pension Payment Order, the Treasury Officer-in-
charge of the new district shall note the particulars in his Register of Pension
Payment Orders in Form T.R. 80 and arrange for payment of pension.
If at the time of transfer, the Pension Payment Order is renewed an
account of the pensioner’s half having been lost, the Treasury Officer of the
new district shall be informed of the loss and renewal.
292. [Deleted]
CHAPTER VI
RENEWAL OF PENSION PAYMENT ORDERS
293. (a) The District Treasury Officer is authorised to renew Pension

Payment Order without reference to the Accountant General when the entries
on the reverse of either the pensioner’s or the disburser’s half are completely
filled up or the pensioner’s half is lost, worn or torn. When the renewal is due
to the loss of the original Pension Payment Order, the circumstances of its
loss should be investigated and a fee of *` 5 should be levied on the
pensioner before the duplicate Pension Payment Order is issued, provided
that, if the loss of the original Pension Payment Order is due to accident or
causes beyond the pensioner’s control, or if the pensioner is too poor to pay
the fee the Director of Treasuries may exempt him from payment of the fee.
(See also Note under Rule 134, Part III of the Kerala Service Rules, V Edition.)
The Old Pension Payment Orders, if available, shall be retained by the
disbursing officers for three years and then destroyed.
NOTE 1—The receipted chalan for the fee realized for renewal of Pension
Payment Order should be filed along with the disburser’s half.
NOTE 2—In the case of pensions paid at sub treasuries the Pension Payment
Orders shall be returned to the District Treasury for renewal.
*Substitution [G.O.(P) 544/87/Fin. dated 23rd June, 1987]
243
Instruction 1—*If a pensioner alleges, loss of his half of the Pension
Payment Order, he should make an application with the
prescribed fee of † `5 to the officer-in-charge of the
District/Sub Treasury from which he is receiving his
pension, for a duplicate copy thereof. The Sub Treasury
Officer will then forward the application received by him
to the District Treasury Officer along with the Treasury
half of the Pension Payment Order after duly furnishing
his remarks on the application. The District Treasury
Officer will then conduct such further enquiries as are
deemed necessary on such applications and thereafter,
issue a duplicate of the pensioners half, prominently
marked ‘Duplicate’ in red ink.
Instruction 2—If the disburser’s half of the Pension Payment Order which
should be kept under the safe custody of the Treasury
Officer is missing, the District Treasury Officer/Sub
Treasury Officer should institute a thorough search to
trace out the Pension Payment Order. If after such thorough
search, the Treasury Officer is satisfied that the
disburser’s half of the Pension Payment Order is
irrecoverably lost, the matter should be reported to the
Accountant General, through the District Treasury Officer
in case of Sub Treasury. The District Treasury Officer
should send the report to the Accountant General detailing
the circumstances in which the disburser’s half was lost
and request the Accountant General to issue a duplicate.
The Accountant General will then arrange for the issue
of a duplicate prominently marked “Duplicate” in red ink.
Simultaneously, with the sending of the report to the
Accountant General, the District Treasury Officer should
fix up the responsibility for the loss and also stop payment
of the pension on the Pension Payment Order till the
disburser’s half is received in the treasury. The penalty
of †`5 should be recovered from the person responsible
for the loss. Instances of such losses should be reported
to the Director of Treasuries also.
*Substitution [G.O.(P) 833/81/Fin., dated 11th December, 1981]
†Substitution [G.O.(P) 544/87/Fin. dated 23rd June, 1987]
244
(b) When a Treasury Officer has issued a new Pension

Payment Order in place of a lost one, he shall, by strict observance of
Rule 281 (b), see that no payment is made on the Pension Payment Order
alleged to have been lost.
CHAPTER VII
LAPSE OF PENSIONS
A. Service Pensions
294. (a) If a pension payable in India remains undrawn for more
than one year, the pension shall cease to be payable (Rule 135, Part III of the
Kerala Service Rules, V Edition).
(b) If the pensioner afterwards appears, the disbursing officer
may renew his payments. He shall not, however, pay the arrears without the
orders of the Accountant General and, if the pension in arrears is to be paid or
the first time or if the amount of the arrears exceeds ` 5,000, without obtaining
through the Accountant General the previous sanction of the Government
(Rule 136, Part III of the Kerala Service Rules, V Edition). If, however the
Accountant General considers that the suspension of payment was due to
error or neglect on the part of any public officer, he may direct that the arrears
be paid without the orders of the Government. (Rule 137, Part III of the Kerala
Service Rules, V Edition).
295. (a) A pension chargeable under the head ”2071 Pension and
Other Retirement Benefits” not drawn for three years shall cease to be payable
without the previous sanction of the Accountant General.
(b) The arrears of pension due on account of a deceased
pensioner shall cease to be payable if they are not claimed within one
year of the pensioner’s death. It cannot be paid thereafter without the
sanction of the authority by whom the pension was sanctioned to be
obtained through the Accountant General (See also Rule 138, Part III of
the Kerala Service Rules, V Edition).
**Provided that in cases where the pensioner’s nominee/nominees
or heir/heirs apply for payment of any arrears of pension consequent on any
Government orders for revision of pension for dearness allowance, such arrears
may, subject to the rules relating to such arrear payments, be paid in case the
**Insertion [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
245
applications were preferred before the disbursing officer within a period of

three years from the date of issue of such orders. Reference to the Accountant
General or the pension sanctioning authority shall not be required in such
cases.
(c) The Treasury or Sub Treasury Officer shall examine the files of
Pension Payment Orders carefully every month and remove all the Pension
Payment Orders relating to cases of the kinds mentioned in clauses (a) and (b)
above. He shall return the disburser’s halves the Pension Payment Orders
concerned to the Accountant General with a half yearly statement of such
cases. The statement shall be prepared in two parts; the first part should
show the names of all service pensioners entitled to pensions adjustable
under the head “2071. Pension and Other Retirement Benefits” who have not
drawn their pensions for three years and the second part should show the
names of service pensioners other than those included in the former part who
have not drawn their pensions for more than one year. The reason for the non-
drawal, if known, shall be stated against each name.
(d) When a pension ceases to be payable during the life time of a
pensioner both portions of the Pension Payment Order shall be returned by
the disbursing officer to the Accountant General after making the last payment
and with a note recording the reasons for the cessation of the pension.
296. When a pensioner has failed to appear to receive his pension for
three months, the disbursing officer should make inquiries through the Village
Officer as to the cause of his non-appearance (See also Article 359 of the
Kerala Financial Code).
B. Political Pensions
297.(a) A pension chargeable under the minor head “Political Pension”
under the Major head “2071 or 2075 or 2235, as the case may be” not drawn for
six years ceases to be payable without the previous sanction of the Accountant
General.
(b) A similar procedure to that prescribed in clause (c) of Rule 295
should be followed mutatis mutandis in regard to pensions chargeable to the
heads mentioned in clause (a) above but the half yearly statement relating to
them should show the names of only those pensioners who have not drawn
their pensions for six years.
246
CHAPTER VIII
DECEASED PENSIONERS
298. †A pension shall be payable for the whole of the month in which
the pensioner dies, irrespective of the date on which the death takes place.
Payment of family pension, if any, in such cases shall commence from the first
day of the month following the month in which the death of pensioners takes
place.
†This amendment shall come into force w.e.f. 31-8-1981.
299. (a) ‡In cases where pension could not be drawn as specified in
Sub rule (a) of rule 272 above, and the pensioner dies leaving arrears, the
disbursing officer may pay any arrears including commuted value of pension
if any, actually due to the nominee or nominees, if the pensioner has filed a
nomination as per the Payment of Arrears of Pension (Nomination) Rules,
1984 and if he has not filed any such nomination, the arrears including
commuted value of pension, if any, due shall be paid to the pensioner’s heir or
heirs provided that they apply within one year of the date of death.
[See rule 295 (b) above and rule 138 (a) of Part III of the Kerala Service
Rules, V Edition:)]
If the application is made later, the arrears shall not be paid without obtaining
through the Accountant General the previous sanction of the authority which
sanctioned the pension [See Rule 138(a) of Part III of the Kerala Service Rules, V
Edition]. If, however, the arrear of pension do not exceed #` 75,000 and the case
presents no peculiar features, the Accountant General may direct that the arrears
be paid on his own authority [See Rule 138 (b) of Part III of the Kerala Service
Rules, V Edition]. • Provided that in cases where the pensioners nominee/nominees
or heir/heirs apply for payment of any arrears of pension consequent on any
Government Orders for revision of pension or dearness allowance on pension
such arrears can subject to the rules relating to such arrear payments be paid in
case the applications were preferred before the disbursing officer within a period
of three years from the date of issue of such orders. Reference to the Accountant
General or the Pension sanctioning authority shall not be required in such cases.
†Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
‡Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
#‡Substitution [G.O.(P) 196/2008/Fin. dated 5th May, 2008]
•Addition [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
247
^(aa) Notwithstanding anything contained in Sub-Rule (a), where the

person eligible to receive family pension dies before receiving the same or
family pension for any period remains undrawn at the time of that person’s
death, arrears if any, due to such person shall be paid to the next person/
persons eligible to receive family pension and on the death of that person/
persons before receiving the arrears, the arrears shall be paid to the next person/
persons eligible to receive family pension and so on, eligibility to receive the
arrears shall be determined with reference to the position existing as on the date
on which family pension has originally sanctioned:
Provided that such arrears shall be payable to judicially separated husband/
wife:
Provided further that if there is no person living and entitled to receive the
arrears as aforesaid, the arrears due to the original family pensioner shall be
paid to his/ her legal heirs, those due to the next family pensioner shall be paid
to his/ her legal heirs and so on and if there be no legal heirs for any particular
deceased family pensioner, the arrear due in respect of such family pensioner
shall be paid to the legal heirs of the other family pensioner in equal shares.
(b) After paying arrears of pension due on account of a deceased

pensioner, the disbursing officer shall return both halves of the Pension Payment
Order to the Accountant General with a note of the date of the pensioner’s death,
except in the case of pensioner’s governed by the Liberalized Family Pension
Scheme, in which case the pensioner’s portion of the Pension Payment Order will
be returned to the person nominated to receive the family pension and the
disburser’s portion retained by the Treasury Officer.
NOTE—(i) The fact of the death of the pensioner who is governed by the
Liberalised Family Pension Scheme and the fact of Payment of
Family Pension should be reported to the Accountant General
quoting the relevant Pension Payment Order Number as soon as
the information is brought to the notice of the treasury.
NOTE—(ii) *Deleted.
300. (a) **The rule regarding the last payment of pay, etc., to a Government
servant (See Rule 212) applies to the payment of arrears of pension, including
commuted value of pension to the nominee/nominees of heir/ heirs of a deceased
^Insertion [G.O.(P) 543/87/Fin. dated 23rd June, 1987]
*Deletion [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
** Substitution vide [G.O.(P) 1065/92/Fin. dated 14th December, 1992
248
pensioner.
(i) †Arrears of pension due to a deceased pensioner who has filed
nomination under the payment of Arrears of Pension
(Nomination) Rules, 1984 shall be paid to the nominee/
nominees irrespective of the amount of arrears on proper
identification provided the persons concerned produces
necessary death certificate and pensioners half of the Pension
Payment Order unless such half is kept by the treasury. The
limitation prescribed in sub-rule (b) of Rule 295 shall also
apply for payment in such cases.
•(ii) A person who claims payment of arrears of pension as heir of a
deceased pensioner shall be required to produce the pensioner’s
half of the Pension Payment Order or if no Pension Payment
Order has been issued the copy of the order in which sanction
to the pension was communicated to the pensioner or his heir.
He shall also be required to produce a death certificate regarding
the death of the pensioner and sufficient evidence to establish
his relationship to the deceased.
(c) When the amount of arrears due to a deceased pensioner does
not exceed # ` 75,000, **and if the pensioner has not filed nomination under
the Payment of Arrears of Pension (Nomination) Rules, 1984, payment may,
subject to the provisions of ^Rule 139 of Part III of the Kerala Service Rules, V
Edition and Rule 299 (a) above, be made to the heirs of the deceased on
production of an heirship certificate issued by a Tahsildar (under the State
Government) in whose jurisdiction the pensioner lived and died or was drawing
his pension or in whose jurisdiction the heirs of the deceased live. In that case
the disbursing officer need not insist on the production of letters of
administration or similar legal authority.
December, 2004.
(d) *When the amount of arrears due to deceased pensioner
exceeds # ` 75,000 and if the pensioner has not filed a nomination under
the payment of arrears of Pension (Nomination) Rules, 1984, payment to
the extent of # ` 75,000 may be made by the disbursing officer as set
•Renumbered vide G.O.(P) 1065/92/Fin. dated 14th December, 1992.
# Substitution [G.O.(P) 196/2008/Fin dated 5th May, 2008]
**Insertion, *, ^Substitution vide [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
249
forth in sub rule (c) above. The excess over # ` 75,000 should be paid
only under the orders of the Government on the execution of an indemnity
bond in K.S.R. Form No.8 with sureties of proved financial ability to
meet the obligations undertaken, provided that the Government are
satisfied as to the claimant’s right and title and consider that undue
delay and hardship would be caused by insisting on the production of
letters of administration (See **Rule 139 of Part III of the Kerala Service
Rules, V Edition).
December, 2004.
(e) Whenever there is any doubt as to the claimant’s right and title,
payment shall be made only to the person producing legal authority.
NOTE— Any person claiming to be a legal heir of a deceased pensioner shall
produce or cause to be produced the pensioner’s half of the Pension
Payment Order or if no Pension Payment Order has been issued the
copy of the order in which sanction to the pension was communicated
to the pensioner or his heir at the treasury along with the heirship
certificate or letters of administration or other legal authority to prove
his title to the arrears. If there are more than one legal heir, the heirship
certificate or letters of administration or other legal authority (whichever
is produced) shall clearly show the extent of the title of each person (i.e.
the share to which each person is entitled) clearly. It shall also contain
the personal marks of identification and specimen signatures of the
heirs attested by the authority who issued the heirship certificate or
other legal authority (in the case of heirs who are literate) or the thumb
and finger impressions attested by that authority (in the case of illiterate
heirs) with reference to which the Treasury Officer can identify the legal
heirs. If such details necessary for identification of the heirs are not
furnished in the heirship certificate or other documents produced to
prove the title, the person who claims the arrears of pension as heir of
the deceased pensioner shall be introduced to the Treasury by a Gazetted
Officer or by some other well-known and trustworthy person i.e. he shall
produce a specimen of his signature (if literate) or thumb and impression
(if illiterate) which is certified by a Gazetted Officer or some other well
# Substitution [G.O.(P) 196/2008/Fin dated 5th May, 2008]
** Substitution [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
250
known and trustworthy person to be the signature or thumb and

finger impressions of the person specified in the heirship certificate
or other documents.
If the entire amount of arrears is due to one legal heir a claim in the
proper form shall be obtained from him and the amount disbursed to
him. If the amount of arrears is to be disbursed in parts to two or
more persons the full amount of arrears of pension shall be drawn on
a simple receipt by the Treasury Officer (bill form No. T.R. 42) and the
shares due to the persons present on the day may be disbursed
obtaining proper acknowledgments which shall be attached to the
vouchers and sent to the Accountant General and the balance shall
be kept under Revenue Deposit so that it can be withdrawn and paid
as a refund of Revenue Deposit as and when the other heirs claim
their shares. A certificate to the effect that the undisbursed balance
has been kept under “Revenue Deposit” shall also be furnished by
the Treasury Officer in the voucher sent to the Accountant General.
The arrears of pension or any share thereof can be disbursed to a
heir by postal money order at the cost of the claimant and at his
written request. In that case the signature of the applicant on the
requisition shall be attested by a Gazetted Officer or some other well-
known and trustworthy person. The maximum limit of ` 200 fixed in
Rule 286 (A) for the payment of pension by money order is applicable
to this cases.
301. (a) Every disbursing officer who pays any civil pension shall
report promptly to the Accountant General the death of any civil pensioner
whose pension he was paying (See also Article 369 of Kerala Financial Code.
(b) Each Treasury or Sub Treasury Officer shall send to the
Accountant General annually on the 1st December, a list of all retired
Gazetted Government servants who were drawing their pensions from the
treasury or sub treasury and whose deaths have come to his notice during the
preceding year.
The list shall give the following information:
(1) Name
251
(2) Service or appointment

(3) Date of death
(4) Honours and distinctions, if any, held by the deceased.
301A. (a) Arrears of pension due to a deceased pensioner shall be
paid in the case of Political, Malikhana and Revenue Pensioners also. But
payment in such cases shall be made to the claimants only on production of a
succession certificate from the authority who sanctioned the pension to the
effect that the arrears may be paid to him.
(b) The authority who issues the succession certificate mentioned
in para (a) above shall do so only after enquiring into in detail the right of
the claimant for succession to the family right or sthanam and other relevant
aspects. If there are more than one claimant, the names of the persons and the
share of the amount to which each is entitled shall be specified in the certificate.
(c) The provisions contained in Rule 299 (a) and (b) shall be applicable
in the case of Political, Malikhana and Revenue Pensioners also.
302. [Deleted]
CHAPTER IX
GRATUITIES
303. (a) The Treasury Officer shall not pay any gratuity except on
an authority received from the Accountant General, to whom, under Rule 152
of Part III of the Kerala Service Rules the sanction is communicated by the
sanctioning authority or by another Audit Officer. The payment can be claimed
on the letter of authority itself and no separate bill is necessary in such cases.
(b) (i) When at the option of the gratuitant, the gratuity is drawn
by the head of an office for disbursement, he shall furnish to the Accountant
General within a month of the date of drawal, a certificate of disbursement.
(ii) At the option of the gratuitant, the gratuity may be drawn by the
head of an office and the full amount or a part thereof, may be adjusted against
the dues payable by the gratuitant. In such cases, the details of adjustment
shall be certified by the disbursing officer within one month from the date of
252
drawal, to the Accountant General with receipts and vouchers wherever

possible. If only a part of the amount is adjusted and the balance paid in case
to the gratuitant, the certificate of disbursement shall be forwarded, as
mentioned in sub-rule (i) above, over and above the certificate of adjustment.
(c) If a gratuity remains undrawn for more than twelve months, the
payment order shall be returned to the Accountant General, mentioning the
cause, if known, of the non-appearance of the person entitled to the gratuity.
304. The Government will, while sanctioning a gratuity, communicate
such order to the officer submitting the gratuity application who should
promptly communicate the sanction to the gratuitant by furnishing him with
a copy of the said order and direct him to apply in person to the treasury at
which the payment of the gratuity is desired. The Accountant General will
separately issue, to the treasury concerned, a letter of authority to pay in
which particulars required for identifying the gratuitant will be furnished. On
the identification being established and on the gratuitant producing his
personal copy of the letter of the Accountant General to the Treasury Officer
authorising payment of the gratuity payment shall be made to him or if the
gratuitant is dead at the time of payment, upon the receipt of the person
legally entitled to receive the gratuity:
*Provided that the payment of gratuity may be made, without the personal
appearance of the gratuitant through an authorised agent, including a bank,
who shall be required to give the Government, separately in respect of each
payment, a Bond of Indemnity, which shall be duly stamped, in the following
form:—
In consideration of our being authorised to draw the gratuity
…………………………………(name of the gratuitant)in accordance with
gratuity payment order No………………dated …………………..issued by the
Accountant General..........……………….we, the……………… (name of the bank
or agent) hereby engage to refund to the Government of Kerala on demand,
any overpayment that may be made to us on this account.
NOTE—The payment can be claimed on the letter of authority issued by the
Accountant General and no separate bill is necessary in such cases.
*Insertion [G.O.(P) 11/78/Fin., dated 3rd January, 1978]
253
CHAPTER X
COMMUTATION OF PENSIONS
305. (a) Service Pensions.—(i) The amount payable in commutation of

a civil pension under the Kerala Pensions (Commutation) Rules is payable at
the treasury at which the pension is being, or is to be drawn.
(ii) When a portion only of a civil pension is commuted, the amount of
the unreduced pension due upto the day preceding that on which the
commutation takes effect, shall be paid along with the commuted value of the
portion commuted.
NOTE—The above rule applies to the amount payable in commutation of a
civil pension under the Madras Civil Pensions (Commutation) Rules
also.
(b) Revenue Pensions.—When a revenue pension is capitalized and
paid off, the pensioner shall be paid his or her pension upto the date of payment
of the commuted value. If in any case the commuted value is not paid to the
pensioner before he or she attains the age next birthday, or if the rate of interest on
deposits in the General Provident Fund, etc., adopted for purposes of calculating
the commuted value is varied before the commuted value is paid to the pensioner,
the amount of the commuted value shall be revised. Commutation shall invariably
become absolute on the date of payment of the commuted value.
(c) Political Pensions.—The provisions of rule (a) should be
followed, mutatis mutandis, in regard to political pension also.
305A. * (i) Medical Allowance to Pensioners.—All State Service
Pensioners who have completed the age of 65 years shall be paid a medical
allowance at the rate as is ordered by the Government from time to time.
The allowance shall be paid from the first of the month in which the Pensioner
completes the age of 65 years by the District Treasury Officer/Sub Treasury
Officer based on the details regarding date of birth furnished in the Pension
Payments Order and necessary entries thereof made in both halves of Pension
Payment Orders.
(ii) The Medical Allowance shall be drawn alongwith regular pension
bill for each month. In the bill form and other records of the treasury Medical
Allowance shall be indicated separately. If in any case the date of birth of the
pensioner is not available in the Pension Payment Order, the Treasury Officer
*Insertion [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
254
PART V KERALA TREASURY CODE RULES 305A-306
shall gather the details from the Accountant General. If the Accountant
General’s records are not helpful to intimate the date of birth of the pensioner,
an affidavit filed by the Pensioner duly attested by a Magistrate or certified by
two gazetted officers shall be accepted by the Treasury as proof of age.
*This amendment shall come into force with effect from 1st July, 1988.
SECTION V
Special Instructions to the Treasury Officers
AUTHORITY OF THE TREASURY OFFICER TO MAKE PAYEMNT
306. (a) (1) A Treasury Officer should not refuse to pay a bill merely
on the ground that the drawing officer has not complied with the financial
rule requiring that the particulars of the order sanctioning a charge of a certain
kind should be quoted on the bill [See Rule 163 (i)]. If the drawing officer
fails to obtain sanction before incurring a charge when the rules require him
to obtain sanction, he alone is responsible.
(2) When the Government sanction a grant-in-aid to a local body
or a private institution, etc., or a contribution towards the cost of a public
exhibition of fair or compensation to a Government servant for accidental
loss, etc., the Treasury Officer shall not pass the claim for payment unless the
claim is drawn and countersigned by the departmental officer who has been
authorised to draw a countersign the bill in Form T.R. 108. The departmental
officer shall attach to the bill a certified copy of the Government sanction.
When an authority subordinate to the Government sanctions any such
expenditure under the powers delegated to it by the Government, the Treasury
Officer should disburse the amount on the authority of the order according
sanction. Before making payment, the Treasury Officer should verify the
signature or countersignature of the departmental officer with the specimen
already available with him.
(3) (i) Advances from General and other Provident Funds if permissible
under the rules of the fund, may be drawn by gazetted government servants in the
form of bill prescribed in the General Provident Fund (Kerala) Rules, the bill being
supported by a duly certified copy of the order sanctioning the advance. In the
case of non-gazetted government servants the advance, if admissible, be drawn
in the form of bill prescribed in the General Provident Fund (Kerala) Rules the bill
being supported by a copy of the sanction duly attested by the head of the office.
*Insertion [G.O.(P) 1065/92/Fin. dated 14th December, 1992]
255
Payments may be made by the Treasury Officer on the authority and

responsibility of the officer sanctioning the advance without the previous
authority of the Accountant General, provided that the bill is supported by
the certificates appended to the prescribed form of the General Provident
Fund (Kerala) Rules.
(ii) Withdrawals from the fund, when permissible under the rules of
the fund, to meet payments towards policies of Life Insurance may be made in
the same form as and when required, in a similar manner and under similar
conditions. The particulars of the policy or policies on which premia are to be
paid shall be noted on the bill. The bill in which the first withdrawal for payment
of a premium is made shall contain the certificate that the details of the policy
have been communicated to and accepted by the Accountant General.
(iii) Save as provided above, no payment on account of any Provident
Fund, whether as a refund of subscription or as a repayment of the whole or
part of the amount accumulated at credit of a subscriber can be made without
the express authority of the Accountant General.
(iv) *When the final payment of the balance at the credit of a
subscriber (other than Class IV government servant) to a Provident Fund is
to be made outside the jurisdiction of the Accountant General who maintains
Provident Fund Account of the subscriber that Accountant General shall make
payment to the payee by a crossed bank draft. For this purpose the Accountant
General will intimate the amount payable to the payee, and also send a form of
receipt to be filled in by him which is given below. On return of the form of
receipt duly signed by the payee, a bank draft shall be purchased by the
Accountant General and sent to the payee by registered post.
Received payment of `………… (Rupees……………….. only) being
the accumulation in my …………………... Provident Fund Account
No..……….
Station: Signature
Date: Address
Please pay by bank draft.
Signature
Address
*Insertion [G.O.(P) 364/76/Fin., dated 25th November, 1976]
256
DOUBTFUL CLAIMS
(b) A Treasury Officer should not undertake on behalf of the claimant

any correspondence with any authority in regard to a claim which he considers
to be disputable. When he is doubtful whether a claim should be paid or not,
he should take the orders of the **Director of Treasuries who is in general
charge of the treasury. When such a case is referred to the **Director of
Treasuries he may in his discretion authorize the payment if he is satisfied as
to the validity of the claim after careful examination of all the circumstances of
the case. Whenever the **Director of Treasuries authorizes payment of a
claim referred to him by the Treasury Officer as being a doubtful claim, he
should immediately report the facts to the Accountant General.
PAYMENTS UNDER SPECIAL AUTHORISATIONS REFERRED TO IN
RULE 23 OF PART I
307. When the Collector is absent on tour from headquarters or is

incapacitated, the headquarters Sub Collector or the Divisional Officer or
any other gazetted officer performing the duties of the Collector may
exercise the powers specified in Rule 23, when money is very urgently
required for expenditure connected with defence or other emergent purposes.
If no such officer is on the spot, the Treasury Officer himself may make
such payment.
** According to G.O. (P) 141/81/Fin., dated 25th February, 1981 the word
“Collector” is changed to “Director of Treasuries”.
257
PART VI KERALA TREASURY CODE RULES 308-309
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. (See Rules 312* and 313 below).
The detailed procedure to be followed in regard to transfers of funds
of the kinds mentioned above is indicated below:
1. Resource
309. 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.
*Rule 312 Deleted
258
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. Such transfers from and to
the currency chests should be reported to the Director so as to enable him
to verify whether the Treasury Officers are promptly transferring surpluses
of cash to the currency chests. When a surplus of small coin accumulates in
any treasury in his district, the Treasury Officer should, if possible, order
that it be remitted within the district to another treasury which needs it or to
the Bank; when that is not possible he should request the Currency Officer,
Madras to order the remittance of the surplus to some place outside the
district (See Rules 317 to 319 and 327 to 334 below).
310. Weekly cash balance reports.—The Treasury Officers of the non-
banking district and sub treasuries should forward a weekly cash balance report
in Form No. T.R. 89 to the Director of Treasuries every Saturday after the close of
business giving the balances for each day of the week. If Saturday happens to be
a holiday, the report should be despatched on the last working day of the week.
In the report, the reason for retention of cash, if any, in excess of the limits prescribed
and the steps taken to bring down immediately the cash balance within permissible
limits should be clearly stated. Whenever, cases of retention of excess cash are
noticed, the Director of Treasuries will, after investigation report such cases, to
Government for appropriate action. While reporting such cases, the Director should
clearly record his opinion, whether the retention of excess cash was inevitable.
311. Monthly cash balance report.—On the third working day of each
month except April, the Treasury Officer should send a cash balance report
in Form T.R. 35 to the Government in the Finance Department. The report
for March should be despatched not later than the sixth working day of April.
The total balance should be stated in the report in words and its distribution
between the district treasury and the sub treasuries should be exhibited; the
report should show separately the amounts held in each of them in each
denomination of notes/coins. In the case of the balance in the district treasury, the
report should show also the amount under double locks and that under the
Treasurer's single lock. The figures entered in the report should be punctuated
and should exhibit units under units, tens under tens and so on, since any
misplacement of the figures causes great inconvenience when the addition is
checked.
259
In a district where any treasury transacts its cash business through the
Bank, the report should show only the details of the balances at places at
which the treasury does not transact its cash business through the Bank, but
a separate memorandum should be attached showing the amount of small
coin of each denomination and the amount of uncurrent coin of each class
held by the Bank as reported by the Agent or Agents on the last day of each
month.
The memorandum on the reverse of Form T.R. 35 should show—
(i) The remittances to other district despatched in the past month,
and those, if any, despatched in previous months for which first
acknowledgments have not been received, with date of despatch
of each remittance; and
(ii) the remittances received from other districts in the past month
with the dates of despatch and receipt of each remittance and
of the despatch of the first and the final acknowledgments.
This memorandum should show only remittances which have been
debited or credited in the treasury accounts, and should not include
transactions of the following kinds:-
(i) Currency remittance, i.e., remittances between two currency
chests or between a currency chest and the Issue Department
of the Reserve Bank of India, Madras which do not affect the
treasury account.
(ii) Remittances not brought to account in the month to which the
report relates, unless they are remittances despatched in
previous months for which first acknowledgments have not
been received.
(iii) Exchanges of one kind of money held in the treasury balance for
another kind taken from the currency chest. (The deposit of
money into and withdrawal of money from the currency chest
on account of any such exchange should be done on the same
day, and should not be shown in the treasury account.)
The Director is responsible for seeing that the cash balance report is
submitted punctually; and delay in submitting it will be treated as a serious
treasury irregularity.
312. [Deleted]
260
SUPPLY OF FUNDS TO TREASURIES AND SUB TREASURIES
General
313. The currency chests maintained at treasuries contain rupees and

notes which belong to the Reserve Bank of India.
A permanent currency chest is maintained at each district treasury and
at each sub treasury where the transactions are of such a magnitude that the
additional facility for the transfer of funds thus afforded will make it possible
to avoid locking up money unnecessarily in the treasury balance or to reduce
the frequency of remittances of coin and notes. When however, the treasury
transacts its cash business through a branch of State Bank of India (acting as
the agent of the Reserve Bank) or a branch of State Bank of Travancore
(acting as the agent of the State Bank of India), the currency chest is kept in
the sole custody of the State Bank of India or the State Bank of Travancore,
as the case may be, and the Government are in no way concerned with the
operations on it.
When a sub treasury has no permanent currency chest, a temporary
currency chest should, ordinarily be opened during the land revenue
collecting season in order that money received in excess of requirements
may be transferred immediately to the Government's account with the Reserve
Bank by making deposits in the currency chest. Temporary currency chests
for purposes other than meeting the requirements of the revenue collecting
season may also be opened at sub treasuries for periods not exceeding six
months. The District Treasury Officer has power to order the opening of a
temporary currency chest at a sub treasury in his district when necessary.
He should report the opening of a temporary chest and the amount of the
first deposit into it by telegram to the Currency Officer.
314. Under the provisions of the Reserve Bank of India Act, 1934 (India
Act II of 1934), the total amount of the currency and Bank notes in circulation,
which constitute the liabilities of the Issue Department of the Bank, should
not exceed the assets held by the Issue Department in gold, sterling securities,
rupee coin and rupee securities. A part of these assets is held in the currency
chests in the various treasuries in the form of rupee coin. The notes held in the
currency chests are not notes in circulation and pass into circulation only
when they are transferred to the treasury balances. The deposit of notes into
261
a currency chest decreases the amount of notes in circulation i.e., the liabilities
of the Issue Department of the Bank, and the deposit of rupees into a currency
chest increases the assets of the Issue Department of the Bank. A deposit of
notes and/or rupees into a currency chest thus enables the Bank to issue
notes and/or rupees from a currency chest elsewhere upto the amount
deposited without affecting the adequacy of the assets of the Issue Department
of the Bank in relation to its liabilities. Similarly, the effect of a withdrawal from
a currency chest may be cancelled by an equal deposit into another currency
chest.
In a district in which there is no treasury which transacts its cash business
through the Bank, every operation on a currency chest is balanced by an
"opposite transfer" carried out in another currency chest situated either at the
headquarters of the district or within the district.
In a district in which there is at least one treasury which transacts its
cash business through the Bank, every operation on a currency chest which
is in the sole custody of the Government is balanced by an "opposite transfer"
carried out under the instructions of the Currency Officer at the Madras Office
of the Reserve Bank between its currency chest and the Government's account
with the Banking Department of the Bank. The effect of an operation on such
a currency chest together with the "opposite transfer" in Madras is from the
Government's point of view, a remittance from the treasury balance to the
Government's account with the Reserve Bank or vice versa.
315. Treasuries which do not transact their cash business through
the Bank.—The Treasury Officer is responsible for keeping sufficient funds
to meet disbursements at each treasury in his district which does not transact
its cash business through the Bank, and for seeing that the treasury balance
at each such treasury is kept as low as possible at all times, so that no money
is locked up unnecessarily and the Government's balance with the Reserve
Bank is always as high as possible.
NOTE—The Currency Officer will be responsible for maintaining the required
form of currency chests. It is the duty of the Treasury Officer to see
that currency chests at district and sub treasuries are adequately
stocked with notes and rupees to meet all reasonable demands for
change.
262
As far as possible, all transfers of funds from and to the treasury balance
at a treasury which has a currency chest should be made only through the
currency chest and actual remittances should be limited to remittances of
small coin and uncurrent coin (See Rules 327 to 331 below).
316. Treasuries which transact their cash business through the
Bank.—At a district treasury which transacts its cash business through the
Bank the Manager or Agent of the Bank, as the case may be, is responsible
for the provision of funds to meet disbursements on account of Government
transactions. In order to enable him to make the necessary provision, the
Treasury Officer should send him on each Saturday a statement showing as
accurately as possible for each of the following two weeks:-
1. the probable receipts and disbursements on Government account
at the district treasury; and
2. the probable receipts from or remittances to sub treasuries at
the district treasury.
The Treasury Officer should also inform the Bank at once of any
expected payment exceeding ` 20,000 in amount, as soon as he receives
information that the payment will have to be made.
This instruction applies mutatis mutandis to sub treasuries which transact
their cash business through the Bank.
II. Remittances
317. Transfers and remittances of moneys standing in the Government

account are of the following kinds, namely:—
A. TRANSFERS THROUGH CURRENCY
A transfer through currency is a transfer of money between the treasury

balance and the currency chest at one place in consideration of an opposite
transfer of the same amount at another place, e.g., a transfer at a district
treasury against an opposite transaction at a sub treasury in the same district
and a transfer at a treasury against an opposite transaction at the Reserve
Bank in Madras under the instruction of the Currency Officer.
263
PART VI KERALA TREASURY CODE RULE 317
B. REMITTANCES OF COIN, NOTES
These comprise—
(i) Bank remittances, i.e., remittances from the Bank to a treasury

which does not transact its cash business through the Bank or vice versa.
(ii) Remittances between treasuries, i.e., remittances from the

treasury balance at one treasury to the treasury balance at another treasury.
NOTE—This method of remittance applies only to remittances to and from

sub treasuries where there is no currency chest and to the
remittances of small coin, uncurrent coin and foreign notes and
coin between treasuries.
(iii) Small coin depot remittances, i.e., remittances of small coin

from a small coin depot to a treasury or vice versa.
NOTE—Remittances from one small coin depot to another are purely central
transactions and the procedure prescribed in the Central Treasury
Rules should be followed in regard to such remittances.
(iv) Mint remittances i.e., remittances of uncurrent coin, or coin

withdrawn from circulation, from a treasury to a Mint.
NOTE—Currency remittances i.e., remittances of notes or rupees from one

currency chest to another or between a currency chest and the Issue
Department of the Reserve Bank of India, Madras, do not affect
the Government account since the contents of the currency chests
are property of the Reserve Bank of India. A remittance of this
kind does not involve locking up any Government funds, and
remittances of notes or rupees should therefore be sent wherever
possible, as currency remittances. Subject to any general or special
instructions that may be issued in this behalf by the Currency Officer,
Madras, the provisions of Rules 324 to 368 below regarding
remittances of coin and notes should be followed in regard to
currency remittances also.
264
A. TRANSFERS THROUGH CURRENCY
(a) In a district where there is no treasury which transacts its cash

business through the Bank
318. Transfers of funds between the treasury balance and the currency
chest at a District Treasury.—The Treasury Officer may, at any time, deposit
surplus funds into the currency chest, and shall so deposit the surplus notes
and rupees whenever the treasury balance is larger than is necessary.
Whenever net receipts cause the treasury balance to exceed the maximum
normal balance prescribed for it (See Rule 309 above), the Treasury Officer
shall deposit the amount in excess of immediate requirements into the currency
chest. When additional funds are required to meet net disbursements, the
Treasury Officer shall withdraw from the currency chest the funds needed to
replenish the treasury balance.
The Treasury Officer shall report every transfer of funds from the treasury
balance to the currency chest or vice versa at once to the Currency Officer by
telegram or by letter if a letter will reach Madras within 24 hours, and shall also
send the necessary chest slip in Form T.R. 38 [See Rule 152 (v)].
chest at a sub treasury.—
(i) The Sub Treasury Officer may, at any time deposit surplus funds into
the currency chest, and shall so deposit the surplus notes and rupees whenever
the sub treasury balance is larger than is necessary. Whenever net receipts cause
the sub treasury balance to exceed the maximum normal balance prescribed for it
(See rule 309 above), the Sub Treasury Officer shall deposit the amount in excess
of immediate requirements into the currency chest, unless he expects that heavy
net disbursements will absorb it within the next two or three days.
(ii) The Sub Treasury Officer shall, at once, send a report in Form
T.R. 38 of each deposit into the currency chest to the Treasury Officer. On
receipt, of the report the Treasury Officer shall make the corresponding
transfers from the currency chest to the district treasury balance.
(iii) When the Sub Treasury Officer requires funds to replenish the sub
treasury balance, he shall apply to the Treasury Officer for sanction to a transfer
from the currency chest in the sub treasury. If the Treasury Officer is satisfied that
the transfer of funds is necessary he shall transfer the amount required from the
treasury balance to the, currency chest at the district treasury and authorize the
Sub Treasury Officer to make a corresponding transfer from the currency chest to
the treasury balance at the sub treasury.
265
Exception—The Currency Officer of the Reserve Bank of India may, on the

recommendation of the Treasury Officer, permit a Sub Treasury
Officer to transfer funds from the currency chest to the treasury
balance without the sanction of the Treasury Officer subject
to such conditions as he may impose regarding the amount
of each transfer and the period during which the sanction will
remain in force. The Sub Treasury Officer shall send a report
in Form T.R. 38 of each withdrawal from the currency chest
made under the Currency Officer’s general sanction to the
Treasury Officer, who shall on receipt of the report, make the
corresponding transfer from the treasury balance to the currency
chest.
(b) In a district where there is at least one treasury which
transacts its cash business through the Bank
320. Transfers of funds from and to a currency chest in custody of the
Bank.—The currency chest pertaining to a treasury which transacts its cash
business through the Bank is kept in the sole custody of the Bank. All transfers
from and to such a currency chest shall be effected by the Bank in accordance
with the instructions issued by the Currency Officer, Madras. Such transfers do
not affect the Government’s cash balance and do not pass through the Government
account.
Subject to any special directions contained in Chapters II and III in Part VIII
all transfers from and to a currency chest shall be in whole rupees and/or notes
(currency and bank notes).
chest at a treasury (i.e., a treasury which does not transact its cash business
through the Bank).—At a district treasury the Treasury Officer shall follow the
procedure prescribed in Rule 318.
At sub treasury the following procedure shall be observed:—
(i) In regard to deposits into the currency chest the Sub Treasury Officer
shall follow the procedure prescribed in Rule 319 (i).
(ii) The Sub Treasury Officer may transfer funds from the currency
chest to the treasury balance, subject to the following limitations:—
(1) that the withdrawal is necessary to meet the requirements of the
sub treasury, and
(2) that the maximum normal balance fixed for the sub treasury is not
exceeded as a result of the withdrawal from the sub-chest.
266
(iii) The Sub Treasury Officer shall report every transfer of funds
from the treasury balance to the currency chest or vice versa at once to the
Currency Officer by telegram, or by letter if a letter will reach Madras within 24
hours, and shall also send the necessary chest slip in Form T.R. 38 [See Rule
152 (v)].
B. REMITTANCES OF COIN AND NOTES
322. Transfers of funds from and to a sub treasury where there is no

currency chest.—Funds shall be transferred from and to a sub treasury which
has no currency chest by the actual remittance of coin and notes. The Treasury
Officer is authorised to order such remittances within the district from and to
such sub treasuries, if any, no such remittance within the district shall be
made without his sanction.
323. General.—The provisions of Rules 324 to 369 shall apply primarily
to remittances to and from treasuries which do not transact their cash business
through the Bank. At places where the treasury transacts its cash business
through the Bank, these rules shall be subject to the provisions of Rule 369 to
374 and such other instructions as may be issued by the Reserve Bank.
Despatch of Remittances
324. (a) No remittance of coin or notes shall be made from any treasury
to a treasury in another district or to the Issue Department of the Reserve
Bank, except in accordance with special or general orders of the Currency
Officer. When the Treasury Officer considers that any such remittance not
covered by the existing orders is necessary, he shall report the particulars to
the Currency Officer and obtain his orders. Uncurrent coin and notes unfit for
issue shall be dealt with in accordance with the procedure prescribed in Rules
331 and 332 below.
(b) The Treasury Officer shall be responsible for remittances within
the district i.e., between the district treasury and a sub treasury subordinate
to it or between two sub treasuries in the district. He shall order such remittances
to be made when necessary, and need not obtain the sanction of any higher
authority for them. He shall not however, order any remittance between two
treasuries both of which transact their cash business through the Bank.
267
325. (a) All remittances despatched by rail, river or road shall be

escorted by a police guard, except remittances by a rail of nickel, bronze or
copper coin at railway risk.
(b) Immediately on receipt of a remittance order from the Currency
Officer or as soon as the Treasury Officer decides to order a remittance
within the districts the Police Department shall be informed of the kind and
amount of the treasure to be remitted and asked for a sufficient escort. The
Police Department shall supply the necessary escort according to the scale
laid down by the Government. The officer despatching the remittance shall
send an intimation to any office from which assistance will be required
en route.
(c) The officer dispatching the remittance shall inform the receiving
office in advance in Form T.R. 90 of the remittance to be despatched in
order that arrangements may be made for receiving it. A remittance shall not
be sent at such a time that it will be in transit at the end of a month or will
reach its destination on a Sunday or other authorised holiday. The attention
of the government servant in charge of the escort shall be specially drawn to
paragraph 3 of the instruction in Appendix 18.
326. (a) As soon as a remittance is despatched, it should be entered in
the currency chest register if it is a currency remittance to a place within the
same currency circle. If it is currency remittance to a place outside the circle,
the amount should be shown as in transit in the currency chest register and
charged off the account on receipt of advice of arrival at the receiving office.
(b) The Treasury Officer should advise the Currency Officer of

every despatch of a remittance to place outside the district on the same day
on which it is despatched. If the treasury is so situated that an advice sent by
post would not reach the Currency Officer within 24 hours, the Treasury
Officer should send the advice by telegram. The advice should state whether
the remittance is a treasury or a currency remittance and should give the name
of the district treasury, sub treasury or branch of the Bank to which it has been
despatched.
268
Remittance of Coin
327. (a) Coin shall be packed for remittance in stout bags. A slip in Form
T.R. 30 shall be placed in each bag, and it shall then be tied and sealed. The
Treasury or Sub Treasury Officer shall satisfy himself generally as to the contents
of the bags. When a remittance is to be sent without a Treasurer or Assistant
Treasurer the dispatching officer shall examine a percentage of the contents himself
and place a private mark upon the slips placed in the bags so examined, and shall
also request the receiving officer to take special care to guard the interests of the
remitting officer. For journeys by rail or boat, and also for journeys by road if
convenient, the bags shall be packed in stout boxes capable of containing ` 4,000
to ` 6,000 each, nailed down and bound with iron, without gunny covering or
ropes, and the hoops shall be riveted or nailed together where they cross. Every
box shall bear the name of the despatching treasury cut into it, or painted on it,
with a number. For journeys by road for which the above method of packing is not
convenient, the bags may be packed in treasure tumbrels or in large chests placed
in carts at the door of the treasury in the presence of the Treasury Officer.
In the case of remittances within a district, coin may be packed in padlocked

boxes in accordance with such detailed instructions as may be issued by the
Currency Officer in consultation with the Government.
(b) * When a coin is remitted to the Mint at Calcutta, or Bombay, it

shall be packed in separate bags for each denomination of coin, and the contents
of the bags shall be as shown below:
Denomination Value per bag Tale per bag pieces
` `
1 Rupee 2,000 2,000
½ Rupee 2,000 4,000
¼ Rupee 500 2,000
50 paise 2,000 4,000
25 paise 500 2,000
20 paise 400 2,000
10 paise 200 2,000
5 paise 100 2,000
3 paise 75 2,500
2 paise 50 2,500
1 paise 20 2,000
*Substitution [G.O.(P) 14/75/Fin., dated 6th January, 1975]
269
328. A buoy made of a piece of unsplit bamboo or other floating

materials shall be fastened to each box which is to be conveyed on a rivercraft
or taken across an unfordable stream on a ferry. The rope of the buoy shall be
at least ten yards long. The officer-in-charge of the escort shall see that the
rope is never detached from the box and that it is not knotted or entangled in
any way so long as the box is on board a boat. When the treasure is shipped
on a sea going vessel, the despatching officer shall remove the buoys after
the boxes are shipped and the receiving officer shall attach the buoys when
landing the treasure. If the receiving officer is not the Treasury Officer, he
shall obtain the buoys from the Treasury Officer.
Exception—The above precautions need not be taken when the remittance
is covered by insurance.
329. The remitting officer shall prepare an invoice in triplicate in Form
T.R. 91 for every remittance (other than a remittance of uncurrent coin),
taking great care to see that it is prepared correctly. He shall retain one
copy of the invoice for record despatch another by post on the same day to
the receiving officer, and hand over the third to the officer-in-charge of the
escort. The weights of the boxes containing the remittances shall be
ascertained by weighing them in the presence of the officer-in-charge of
the escort, and the weights so ascertained shall be entered in the invoice
separately for each box. The officer-in-charge of the escort shall sign a
receipt on each copy of the invoice stating that he has received the boxes of
the marks and weights detailed therein.
NOTE—Separate invoices shall be prepared for treasury and currency
remittances, the words “Treasury Remittance” or “Currency
Remittances”, as the case may be, being written on the top. In the
case of treasury remittances, the invoices shall show separately
uncurrent (1) silver, (2) nickel and (3) copper or bronze coins, giving
separate totals for each group of coins.
330. Remittances of coin from the Issue Department of the Reserve
Bank of India are usually sent in patent remittance boxes. The receiving officer
shall follow the special instructions regarding the method of dealing with
such boxes given by the remitting officer.
331. Remittance of uncurrent coin.—Coin withdrawn from circulation
shall be remitted to the Mint in accordance with the following rules:—
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(i) Broken and cut coin shall ordinarily not be remitted until a sum of
at least ` 20 has accumulated.
(ii) The remitting officer shall prepare an invoice for each remittance
in Form T.R. 92 taking great care to see that it is prepared correctly.
(iii) The Mint Master shall prepare a valuation statement of the
remittance received and forward it to the remitting treasury or branch of the
Bank.
(iv) Any deficiency in tale found by the Mint Master shall be made
good by the Treasurer of the remitting treasury or the Bank, as the case may
be, and any excess in tale shall be returned to the remitting treasury or the
Bank. Any excess in value found by the Mint Master shall be credited to the
Central Government.
(v) When the proportion of current weight rupees fit for circulation
found in each a remittance, whether or not cut or broken, exceeds five per
cent of the whole, the Mint Master shall make a special report to the
Collector concerned or the Madras Local Head Office of the State Bank,
according as the remittance is received from a treasury or a branch of the
State Bank, for such disciplinary action as may be considered necessary to
improve the quality of shroffing in the remitting office.
Remittance of Notes
332. All notes unfit for issue which have accumulated at a treasury
shall be sent to the Madras Office of the Issue Department of the Reserve
Bank of India (or to a treasury, named by the Currency Officer) on each occasion
on which a remittance of notes or coin is sent to or received from that office.
The note should not be cut for remittance. The remitting officer shall send an
advice of the remittance, giving details of the denominations and value of the
notes to the Currency Officer by post.
333. New notes and notes fit for reissue should never be cut for
remittance. When the value of the notes to be remitted does not exceed `
2,000 and the notes cannot conveniently be sent along with a specific
remittance, they should be sent by post insured for their full value. When the
value exceeds ` 2,000 the notes should be sent in charge of a Treasurer or
Assistant Treasurer and a police guard.
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334. Notes of each denomination shall be arranged in separate bundles

stitched by one edge into books of 100 each, any part of 100 in excess of a
multiple of 100 being made into a separate book. A slip in Form T.R. 31
shall be attached to each bundle of books, specifying the number of pieces
it contains and bearing the full signature of the government servant who has
counted them and made up the bundle before despatch. When the remittance
is sent in the charge of a police guard the bundles shall be packed in parcels
of ten bundles each and the parcel shall be placed in strong wooden boxes,
which shall be securely fastened and sealed. The procedure prescribed in
Rule 329 shall also be followed in regard to every remittance of notes sent
in charge of a police guard.
NOTE 1—A ‘private’ seal should not be used for sealing the wooden boxes
containing the remittance to be sent in the charge of a police
guard. Only the official seal should be used for the purpose.
NOTE 2—Fresh notes of the denominations of ` 5 and ` 10 are remitted
from the Issue Department of the Reserve Bank of India to
currency chests in the original bundles received from the
Security Printing Press.
335. Duties of the Officer-in-charge of the escort for a remittance.—
(a) The escort officer shall be present when the boxes of notes and
coin are weighed. In the case of chests or tumbrels containing bags of coin
the escort officer shall count the number of bags. He shall sign the receipt
at the foot of each copy of the invoice. The blanks shall be filled up in words
and, if the escort officer does not know English, he shall be required to write
the numbers of the bags or boxes which he has received in an Indian language
used in the district on the copy of the invoice to be retained by the remitting
officer.
(b) A copy of the memorandum of instructions contained in Appendix
18 shall be given to the escort officer, and he shall carefully carry out all the
instructions given in it.
(c) If the escort officer is relieved in the course of the journey, he
shall obtain a receipt in the form prescribed in paragraph 8 of Appendix 18 for
the tumbrels, boxes, etc., handed over to the relieving officer.
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Treasurers Accompanying Remittances
336. (a) Subject to any general or special instructions issued by the

Currency Officer, Madras, in that behalf, the remitting officer may send a
remittance of silver coin or notes in charge of a Treasurer or Treasurers in
accordance with the following scale:-
(i) For coin remittances—One Treasurer upto `10 lakhs
One Treasurer for every additional `10 lakhs or fraction of that
amount, upto a maximum of 3 Treasurers in all.
(ii) For note remittances—One Treasurer
When only one Treasurer is admissible according to the above scale for
a remittance of coin or notes, a second Treasurer may also be deputed with
the sanction of the Currency Officer if the journey will occupy such a long
time that one man cannot be expected to exercise the necessary supervision.
(b) A Treasurer or Treasurers sent in charge of a remittance shall
remain in charge whilst it is being examined at the receiving office.
(c) When a remittance of coin or notes or both is especially heavy,
the remitting officer may with the sanction of the Currency Officer, depute
one or more clerks to accompany it in addition to the usual escort of
Treasurers.
(d) The remitting officer may, with the sanction of the Collector,
engage any extra Treasurers required for accompanying remittance or to take
the place of permanent Treasurers deputed to accompany remittances. When
it is not possible to engage men within the district for service as temporary
Treasurers, he may engage men from outside the district.
NOTE— The term “Treasurer” occurring in this rule and in rules 337 to 375
includes an Assistant Treasurer also.
337. If any chest, tumbril or wagon containing a remittance or part of
one is secured by double-locks, one key shall be held by the Treasurer and
the other by the escort officer. If there is only one lock, the key shall be held by
the Treasurer, but the escort officer shall be responsible for not allowing the
chest or wagon to be opened before arrival at the destination, save in the case
of a breakdown when the treasure shall be removed to another chest or wagon
in his presence. When a remittance is sent in charge of a police guard but
273
without a Treasurer, single locks shall be used and the keys shall be entrusted
to the escort officer in a sealed cover, which he shall not open except when
absolutely necessary, e.g., in the case of a breakdown en route.
NOTE—A ‘Private’ seal should not be used for sealing the cover containing
the keys to be entrusted to the escort officer. Only the official seal
should be used for the purpose.
338. (i) A Treasurer shall on no account be sent either to accompany
a remittance of nickel, bronze or copper coin or to watch the examination
of such coin at the receiving office;
(ii) Treasurers accompanying remittances of withdrawn silver coin
and remittances for special examination to the Mints shall be released by
the Mint authorities as soon as the numbers of sealed boxes in the remittances
have been checked with the relative invoices and found satisfactory and
correct; and on no account, shall they be detained to watch the examination
of any remittance at the Mints.
339. Receipt of remittance.—
(a) Immediately on receipt of a remittance from outside the district,
the Treasury Officer should send an advice to the Currency Officer stating
the name of the remitting office and whether it is currency or treasury
remittance. If a postal advice will not reach the Currency Officer within
twenty-four hours, a telegraphic advice should be sent.
(b) On receipt of a remittance, each box contained in it shall be
weighed in the presence of the escort officer and the Treasury Officer and
the weight so ascertained shall be compared with that shown in the invoice. If
the two weights tally for each box a receipt in the form prescribed in paragraph
7 of Appendix 18 shall be given to the escort officer and he shall be allowed to
return at once. A copy of the receipt shall be sent by post on the same day to
the despatching office.
If the weight of each box is not stated separately in the invoice, the
boxes shall be opened and the contents examined in the presence of the escort
officer, and the breach of the rule requiring the weights of the boxes to be
stated separately shall be brought to the notice of the remitting officer. If the
weight of any box does not tally with that stated in the invoice or if any box
shows signs of having been tampered with, it shall be opened in the presence
of the escort officer and its contents examined before the escort officer is
released. If any box is so opened, the facts shall be entered on the receipt
together with particulars of the contents of the box as ascertained by counting.
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340. After the preliminary examination of the particulars given in the
invoices has been completed, the boxes shall all be opened (if they have not
already been opened) whether, the remittance is accompanied by a Treasurer
or not. When a Treasurer has accompanied the remittance, the boxes shall
be opened in his presence. If the detailed examination of the whole
remittance is not to be proceeded with immediately, the bags of coin or
parcels of notes shall be deposited in the strongroom under double locks
care being taken, as far as practicable, to place them apart from other treasure.
When a remittance is expected to remain unexamined in a strongroom for
sometime and it cannot be separately secured in a chest, or chests steps
shall be taken to guard against any abstraction of coin from the remittance.
In such a case, if the amount of the remittance does not exceed ` 5 lakhs and
the procedure will not cause practical inconvenience, the entire contents of
each bag shall be weighed under the supervision of the Treasury Officer
before the remittance is deposited in the strongroom. It may not be possible
to weigh the contents of each bag when the amount of such a remittance
exceed ` 5 lakhs. When a remittance remains unexamined for sometime and
the contents of each bag not weighed the Treasury Officer shall satisfy himself
that the remittance has not been tampered with by picking out a number of
boxes and bags from time to time and having their contents weighed under his
supervision. In such cases care shall also be taken to cover completely with
tarpaulins all bags forming part of the remittance, and to secure any notes
which have been unpacked in a chest or chests or replace them in the original
boxes and fasten the lids securely.
Exception—1 When coin or notes contained in remittance are to be
despatched to another treasury within a few days of
the receipt of the remittance, the boxes need not be
opened but may be deposited in the strongroom as they
are, provided that they are in good order and are in
the charge of a Treasurer who will be available to
accompany them to their final destination.
Exception—2 New nickel or bronze coin received either directly from
the Mint or from any other treasury in the original Mint
boxes may be accepted as correct without opening the
boxes, provided that the boxes are numbered and the
seals bear a distinct impression and that both boxes
and seals are intact at the time of receipt.
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341. The detailed examination of the contents of the remittance shall
be conducted in the presence of the treasurer who accompanied the
remittance, and under the supervision of the Treasurer of the receiving
treasury or some responsible person acting on his behalf. If, however, no
Treasurer has accompanied the remittance from the remitting treasury, the
detailed examination shall be conducted in the immediate presence and under
the personal supervision of the Treasurer of the receiving treasury, who shall
see that the interests of the remitting treasury are adequately safeguarded.
342. (a) Every facility shall be given to the Treasurer of the
remitting office to watch the examination of the remittance. Any complaint
which he makes shall be reported at once to the Treasury Officer. If any
fraud is suspected, the treasurer or treasurers who are examining the
remittance shall be searched in the presence of the Treasurer of the remitting
office.
(b) Only such portion of the remittance shall be taken out of the
strongroom as can be examined during the course of the day. When a portion
of the remittance remains unexamined, the Treasurer of the remitting treasury
may, if he so desires, be allowed at the time of the closing of the strongroom
to place a lock of his own on the chest containing the unexamined portion,
or, if that is not possible, on the outside door of the strongroom.
343. The notes and coin contained in a remittance shall be counted
and examined in detail, so as to ensure not only that they are all genuine but
also that each bundle of notes or bag of coin contains the alleged number. In
the case of remittances of fresh notes send from the Issue Department of the
Reserve Bank of India in bundles of 1,000 pieces, the bundles shall be split up
into packets of 100 notes each. Any light weight or other uncurrent or defective
coin found in the course of the detailed examination of a remittance of current
coin shall be separated and dealt with in accordance with the rules in Chapter
II of Part VIII. Deficiencies, whether in numbers or due to counterfeit notes or
coin, shall be dealt with according to the procedure laid down in Rule 347.
344. As the examination of each bundle or bag is completed, the slip in
Form T.R. 30 or T.R. 31, as the case may be, contained in it shall be taken out
and replaced by a fresh slip prepared by the receiving treasury. The slips from
those bags and bundles the contents of which have been found correct shall
be handed over to the Treasury Officer and immediately destroyed by him;
the remaining slips shall be attached to the report to be sent to the remitting
treasury (See Rule 349). When, however, a remittance of coin is received from
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the Issue Department of the Reserve Bank of India, the Treasury Officer shall
return all the slips to the Currency Officer after the remittance has been
examined.
345. The Treasury Officer shall supervise the examination of the
remittance generally and see that adequate safeguards are taken by the
Treasurer during the examination to prevent any malpractices by the Treasurer
of the remitting office or the treasurers who examine the remittance. The
Treasury Officer shall put away the notes and coin which have been examined
under double-locks in the treasury or in the currency chest, as the case may
be, following the procedure laid down in Rules 144 and 151. When the
detailed examination of the remittance has been completed, the Treasury
Officer shall send a formal report to the remitting officer showing the result
of the examination.
346. The examination of a remittance shall be conducted as
expeditiously as possible in order that the Treasurer who accompanied the
remittance may be relieved as early as possible and unnecessary expenditure
on his daily allowance avoided, and also in order that any deficiency may be
recovered from the Treasurer of the remitting treasury. For the examination
of heavy remittances of coin additional treasurers may be engaged with the
special sanction of the Director. The minimum amount of coin or notes of
any one denomination to be examined by a Treasurer in a day is specified in
Appendix 19.
347. (a) If a deficiency discovered at a treasury on a detailed
examination of a remittance received from another treasury is not immediately
made good by the Treasurer of the remitting treasury, it shall be charged in the
accounts as a distinct item with full particulars; these full particulars shall also
be intimated to the Treasury Officer of the remitting treasury, and he shall
recover the amount and credit it in his own treasury.
(b) A deficiency discovered at the Bank (including the Issue
Department of the Reserve Bank of India) in a remittance received from a
treasury shall be made good from the cash balance of the receiving office and
shown as expenditure on Government account under advice to the remitting
treasury for recovery and credit in its accounts. Similarly a deficiency
discovered at a treasury in a remittance from the Bank (including the Issue
Department of the Reserve Bank of India) shall be made good from the treasury
balance under advice to the remitting office, which shall credit the amount to
Government account.
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(c) The remitting treasury shall be responsible for any shortage

discovered at the Mint or at a small coin depot in a remittance from a treasury.
(d) The Accountant General shall watch the recovery of all
deficiencies discovered in remittances.
348. All excesses found in a remittance shall be returned to the
remitting treasury through the attending treasurer, or, if this is not possible,
by registered post or by money order, the cost being borne by the remitting
treasury.
349. Every defect or deficiency discovered during the examination of a
remittance shall be entered in the slip pertaining to the bag of coin (Rule 327) or
bundle of notes (Rule 334) concerned and shall be specially reported to the
remitting officer direct. The report shall be sent to the remitting officer together
with the slip or slips concerned immediately on the close of the examination (or, if
it is a prolonged, one, at the close of the day) so that the remitting officer may be
able to fix the responsibility for the deficiency. If a Treasurer of the remitting office
is present to witness the examination, he shall attest the entries on the slip as they
are made, and shall be allowed, if he so desires, to make good any deficiency, if he
makes good any deficiency, the fact shall be noted on the slip and in the report. If
no Treasurer of the remitting office is present at the examination, the report shall
state the name and rank of the officer who personally supervised the examination.
When any bad coin or notes have to be returned to the remitting office, they shall
be made over to the Treasurer of that office or, if that is not possible, sent by
insured post at the cost of the remitting treasury. If any bag of coin or bundle of
notes is received without a slip or is defective in any other way, a special report
shall be sent immediately to the remitting officer.
350. When the number of rupee or half rupee coins which have lost
more than 2 per cent in weight but not more than 6¼ per cent or 12½ per cent
respectively (See Instructions in Chapter II of Part VIII) detected in any bag
during examination of a remittance exceeds half a per cent of its contents, the
number of such coins found in the bag shall be noted on the slip relating to it,
and the slip shall be sent to the remitting office with a report in the manner laid
down in Rule 349.
351. When new copper, nickel or bronze coin is received either directly
from Mint or from another treasury in the original mint boxes, any excess or
deficiency found on the examination of any box shall be immediately reported
and the printed slip of contents shall be forwarded to the Mint Master
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concerned. The report shall state the number of the box in which the excess or
deficiency was found and the condition of the box on delivery.
352. When the detailed examination of a remittance has been completed,
the Treasurer who accompanied it should take back to the remitting office the
locks, and if convenient, the bags also. If the police guard which escorted the
treasure returns to the station from which the remittance was despatched, the
tumbrels of chests should be sent back to the remitting treasury under its
charge; otherwise the Treasurer of the remitting treasury should take these
back too.
353. All charges incurred in connection with remittance of coin and
notes to and from treasuries, whether as currency remittances or as treasury
remittances, are borne by the Reserve Bank, subject to the conditions and
exceptions mentioned in Rules 354 to 356.
354. Charges relating to remittances between two treasuries neither
which has a currency chest should be borne by the Government. Charges
relating to the remittance of uncurrent coin between such treasuries, when
sent separately, should, however, be borne by the Reserve Bank.
355. The pay of permanent treasurers and of extra treasurers engaged
on a temporary basis to deal with heavy receipts of remittances should be
met by the receiving treasury and not debited to the Reserve Bank. All
temporary treasurers should be paid at the rates fixed by the Government.
The pay of temporary treasurers engaged under Rule 336 (d) to accompany
remittances or to take the place of permanent treasurers, who are deputed to
accompany remittances should be debited to the Reserve Bank. The traveling
allowance of all treasurers, whether permanent or temporary, who accompany
any remittance other than one between two treasuries where there is no
currency chest should be debited to the Reserve Bank.
356. Travelling allowances of Treasurers, Clerks, etc., who accompany
remittance.—
(a) When treasurers or clerks are sent with treasure or currency
remittances, the remitting Treasury Officer should furnish them with a certificate
in Form T.R. 93 with columns (1) to (8) filled in. The officer receiving the
remittance should estimate with reference to the amount and kind of the
remittance received and the number of men available at his office for examining
it, the period for which the treasurers or clerks accompanying it are likely to be
279
detained at the receiving office, and intimate it to them in writing so as to

enable them to make suitable arrangements for their stay in the station. After
finishing the examination of the remittance, the receiving officer should
complete the certificate in Form T.R. 93 and return it to the remitting treasury.
If the halt has exceeded ten days, he should state in column (12) the daily
allowance which he recommends for the period in excess of ten days and
explain the reasons for his recommendation on the reverse of the certificate. A
certificate in Form T.R. 93 should be attached to every bill for the traveling and
other allowances of treasurers or clerks deputed to accompany a remittance.
(b) When a halt exceeds ten days, the Officer of the Reserve Bank of
India authorised for the purpose, or when the charges are debited to the
Government, the Treasury Officer will decide whether full daily allowance
should be granted for the period in excess of ten days or whether a reduced
rate should be allowed. In the case of charges debitable to the Bank, the
Currency Officer will deal with claims relating to a halt exceeding ten days
but not exceeding one month, and the Chief Accountant of the Reserve Bank
will deal with claims relating to a halt exceeding one month. On receipt of
the certificate (Form T.R. 93) from the receiving officer, the Treasury Officer
should forward it to the Currency Officer for necessary action if there has
been a halt in excess of ten days and the charges are debitable to the Reserve
Bank. The authority competent to deal with the claim should indicate in
column 13 of the certificate the rate at which daily allowance may be drawn
for the period in excess of ten days comprised in any one halt.
(c) When a person from outside the district is engaged as a temporary
treasurer under Rule 336 (d), traveling allowance should be paid at the
ordinary rates for his journey from his residence to the place of appointment.
357. The Treasury Officer who despatches a remittance may grant to a
Treasurer or other treasury official who is to accompany it an advance of
travelling allowance upto the amount likely to be incurred for his journey. If, in
any case the amount advanced proves insufficient, the receiving treasury
may, on the application of the treasurer or other treasury official concerned,
pay him such further advance as may be necessary. An advance made by the
receiving treasury should not be met from the Treasury Officer’s permanent
advance but should be drawn from the treasury and charged in the accounts
and the particulars should be reported to the remitting treasury at once, so
that the latter may recover the amount from the travelling allowance bill to
which relates.
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A Treasury Officer is not authorised to make any advance of travelling
allowance to a clerk or shroff of the Reserve Bank who accompanies a remittance.
If a Currency Officer receiving a remittance from a treasury grants an advance
of travelling allowance to a treasury official accompanying the remittance, the
amount of the advance will be noted on the treasury official’s certificate with the
Currency Officer’s signature. The remitting treasury should deduct this amount
from the travelling allowance bill of the government servant concerned. Such
advances will only be made by a Currency Officer in exceptional circumstances.
358. All contingent charges incurred at the station where a remittance
is received, such as labour charges, cart or boat hire should be paid by the
receiving officer and charged in his accounts. The remitting officer should not
meet such charges.
Additional Rules for Remittances by Railway

359. When a large remittance is to be despatched by railway, notice
shall be given before hand to the railway authorities at the station of despatch,
so that a wagon or wagons of convenient size may be made available at the
right time.
360. When treasure is loaded for despatch by railway, the doors on one
side of the wagon shall, if possible, be secured from inside and all doors that
can be opened from outside shall be secured by good padlocks. The Treasury
Officer shall supply the padlocks and take an acknowledgment from the escort
officer for them. A sufficient stock of padlocks shall be maintained in each
treasury from which remittances are sent by railway.
361. Small remittances need not be sent by wagon, but may be sent in
the same compartment in which the escort in charge of the remittance travels.
An escort traveling in charge of currency or Bank notes not sent by wagon
shall have the box in the same carriage and shall sit in the end compartment of
the carriage with the box under the seat against the outer planking. If the box is
too large to go under the seat, the use of a whole compartment shall be reserved
on the usual terms.
362. The Treasury Officer (or a responsible government servant deputed
by him for the purpose) shall, jointly with the Police Officer deputed to travel in
charge of the escort by railway, superintend the loading of the wagons. He
shall also hand over to that officer a copy of the memorandum of instructions
printed in Appendix 18 and as many blank receipts as there will be reliefs en
route and shall take his receipt for these documents.
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363. The strength of the escort deputed to accompany a remittance to

the railway station of despatch and to protect the loading shall be determined
in accordance with the general or special orders of the Government regarding
the escorting of such a sum by road. The receiving officer shall arrange for a
fresh escort of a strength determined in the same way to meet the remittance
at the railway station where it is to leave the railway. During the railway
journey the treasure shall be protected by a guard of reduced strength fixed
in accordance with the general or special orders of the government. The
guard shall be accommodated in an adjoining brake van if the remittance is
carried by goods train, and otherwise in the end compartment of the carriage
next and adjoining the wagon containing the treasure. Neither door of the
compartment occupied by the escort shall be locked. The general principle
to be observed in fixing the strength of the guard for a railway journey is
that ordinarily it shall never be less than a Petty Officer with two men and
that, when the remittance is loaded in more than one wagon, two men shall
be allowed to each wagon. When a wagon containing treasure is to be detached
from the train for any reason, the Station Master or the Guard in charge of
the train will warn the Police guard in charge of the treasure in order that the
necessary arrangements may be made to guard it.
364. As the members of the Police guard in charge of a remittance have
to be constantly on duty, the Police Department shall arrange to relieve them
at convenient points on the journey, allotting to each party a stage of about
twelve hours with due regard to any general or special instructions that have
been issued as to the exact length of particular stages. When an escort officer
starts a railway journey in charge of a remittance, he shall telegraph to his
relieving officer the probable times of his arrival at the station where he is to
be relieved.
365. (a) The receiving officer should make the necessary
arrangements for the transport of the treasure at destination so as to avoid
delay at the railway station and inconvenience to the Police Department.
(b) The receiving officer should return the padlocks which were
used on the doors of the railway wagons to the remitting treasury through the
escort officer if he is returning to the station where the remitting treasury is
situated. Otherwise, the receiving officer should give the escort officer a receipt
for these padlocks and return them as soon as possible through the treasurer
of the remitting treasury or, if no treasurer accompanied the remittance, by
parcel post or railway parcel.
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366. (1) The railway fares and freight may be paid in cash or by
warrent or credit note according to local practice. In the case of cash payment,
the police or other officer may obtain from the treasury a sufficient amount as
an advance to be accounted for afterwards. The remitting officer or the officer
arranging the remittance will ascertain the nature and extent of accommodation
required for the purpose without unnecessarily increasing the cost of
remittance, and send the following requisition to the railway authorities.
“To the Station Master……………….…..Conveyance by railway
to……....………is required for treasure belonging to the Government/Reserve
Bank of India to the value of ……………………lakhs of rupees loaded for
……………………………..and contained in ………………………wagons.”
(2) The Station Master will give the officer commanding the guard a
paper notifying that he is in charge of treasure loaded in so many wagons.
NOTE 1—The requisition mentioned above must not be confounded with
the notice to be sent beforehand to the railway authorities, in
order that the necessary wagons may be provided.
NOTE 2—Treasure should always be booked through to the final station,
and the officer who makes the requisition should inform the
railway authorities that he has provided reliefs for the guard at
specified stations.
367. Remittances of nickel, bronze or copper coin shall be booked at
railway risk, provided they do not exceed the limits prescribed under the
Indian Railway Coaching Tarrif Rules. Consignments exceeding the prescribed
limits are required to be escorted-Vide Rule 359.
368. (a) A remittances of currency or Bank notes by sea shall be
sent in the charge of an escort, if freight is paid at cargo rates; in that case, the
value of the notes shall not be entered in the bill of lading but only the number
of pieces. If it is cheaper to pay freight at the rate for specie and the steamer
company will then accept responsibility for the face value of the notes, the
freight shall be paid at the rate for specie and no escort need be sent. If,
however, in any case the steamer company will not accept responsibility for
the face value of the notes even if freight is paid at the rate for specie, the
remittance shall be sent as ordinary cargo at cargo rates in charge of an escort,
although this course may entail some additional expense.
283
(b) Remittances of coin by sea shall ordinarily be sent insured or at

the shipping company’s risk without an escort.
(c) Remittances of notes or of silver coin of any description by
inland steamer shall be sent uninsured under the protection of an adequate
escort.
(d) The consignee shall arrange to take delivery of the treasure on
arrival at the station to which it is booked; otherwise it will be carried on to
the next station at the consignee’s risk and the consignee will have to pay
the demurrage charges.
Remittances to and from Branches of the State Bank of India and its
subsidiary the State Bank of Travancore
369. Rules 324 to 368 apply mutatis mutandis to remittances to and
from a Branch of the State Bank of India including its subsidiary, the State
Bank of Travancore, transacting the cash business of a treasury, subject to
the modifications indicated in the following rules, (rules 370 to 374) and to
any instructions issued by the Reserve Bank.
370. When the Agent of a branch of the State Bank wishes to remit
surplus notes or coin from the currency chest or surplus small coin from his
balance, or desires that a remittance of notes or coin be sent to his branch, he
will report the particulars to the Madras Local Head Office of the State Bank.
The Local Head Office will communicate with the Currency Officer and issue
orders to the Agent regarding the remittance; if the remittance concerns the
Treasury Officer, the Currency Officer will issue orders to him simultaneously.
371. The agent of a branch of the State Bank will supply the Treasury
Officer of the district, on request, with any coin and notes required for remittance
to a sub treasury in the district (whether as a treasury or a currency remittance),
except when the Currency Officer has decided that it is more convenient to
supply coin and notes direct to a sub treasury from the Issue Department of
the Reserve Bank of India or from a treasury or a branch of the State Bank in
another district.
372. All charges incurred in connection with remittances of coin and

notes to and from branches of the State Bank are met by the Reserve Bank.
373. The procedure prescribed in Rules 324 to 334 for the packing and
despatch of remittances should be observed by the branches of the Bank, but
284
in the absence of special arrangements to the contrary made with the Agent,
the Treasury Officer should arrange for the actual conveyance and, when
necessary, for the escorting of the remittance. The State Bank should bear the
cost of any treasures (shroffs) engaged to deal with heavy receipts, but may
engage temporary shroffs to accompany remittances at the cost of the Reserve
Bank in accordance with the provisions of Rule 336 (a) after obtaining the
sanction of the Currency Officer when it is required under that rule. The power
vested in the Collector by Rule 336 (d) to employ additional treasurers does
not apply to treasuries which transact their cash business through the Bank.
The provisions of Rule 356 regarding halts by treasurers of the treasury do
not apply to shroffs, employed by the State Bank; their daily allowance is
regulated by the Bank’s rules.
NOTE 1—The charges for remittance of the following kinds shall be borne
by the Government:—
(i) remittances to/from currency chests from/to sub treasuries
having no currency chest;
(ii) remittances between sub treasuries without currency chests at
both ends;
(iii) when not sent separately, remittances of uncurrent coins between
treasuries and sub treasuries without currency chests at both
ends; and
(iv) remittances of small coins between regular small coin depots
and treasuries or sub treasuries with no currency chests.
NOTE 2—In the following cases, the charges for remittances of treasure
(including cost of police escorts) shall be borne by the Reserve
Bank.
(i) remittances to/from currency chests from/to treasuries or sub
treasuries having currency chests,:
(ii) remittances of small coins between regular small coin depots
and treasuries or sub treasuries having currency chests.
(iii) remittances of uncurrent coins between treasuries and sub
treasuries whether within or outside the district, when sent
separately; and
285
(iv) all remittances made under the orders of the Currency Officer
provided such remittances are between treasuries and sub
treasuries having currency chests or between small coin depots
and such treasuries and sub treasuries.
NOTE 3—The Officers-in-charge of the Bank conducting despatch of
Government treasure are competent to place requisitions for
police escorts directly to police authorities. *The charges for
police escorts shall be paid directly by the bank to the police
authorities.
374. The following rules should be observed in the examination of a
remittance of coin or notes made to the Bank from a treasury. They should be
fully explained to every treasurer who accompanies a remittance made to the
Bank:—
(a) All boxes should be weighed on receipt of a remittance. The result
of the weighment should be entered on the receipt given to the officer or
treasurer in charge of the remittance.
(b) The remittance should be examined in a room separate from the
general business of the Bank, or, if a separate room cannot be made available,
at some distance away from the place where the ordinary banking transactions
are taking place.
(c) The contents of each bag of coin should be emptied into another
and passed through the scales. The treasurer should see that the index of the
scales is steady before the contents are thrown out.
(d) The treasure should then be secured in separate chests and kept
distinct from other treasure under the joint keys of the Manager or Agent of the
Bank and of the treasurer of the remitting treasury until regularly examined and
brought to account.
(e) Nothing should intervene between the treasurer of the remitting
treasury and the Bank’s examining shroffs, so that an uninterrupted view may be
obtained by the former of the examination of the treasure. The treasurer of the
remitting treasury should sit within the railed enclosures along with the Bank’s
examining shroffs.
(f) As soon as the detailed examination of the remittance is completed,
light-weight coin should be weighed against full weight coin and a certificate
of the result granted on the spot to the treasurer of the remitting treasury.
*Addition [G.O. (P) 56/82/Fin., dated 4th February 1982]
286
(g) The weighment and the detailed examination of a remittance

should be conducted separately, not simultaneously; the weighment should
be completed before the detailed examination is begun.
(h) If the work of weighment or detailed examination be not finished

within the day, the bags of coin or bundles of notes not finally taken over by
the Bank should be placed in chests under double locks; the key of one of
the locks should be retained by the treasurer of the remitting treasury and
the key of the other by the Bank authorities.
(i) The Bank’s shroffs who begin the weighment and examination of
a remittance should continue at the same duty until they have completed the
examination of the remittance, or such portion of it as has been taken over
for examination, they should not be replaced by others except when that is
unavoidable owing to sickness.
(j) When the remittance is not accompanied by a treasurer, the

Manager or Agent of the Bank should proceed with the examination only after
asking the local Treasury Officer to depute a subordinate to be present at the
examination and see that it is carried out by the Bank with sufficient precautions.
The Treasury Officer should depute for the purpose a subordinate of some
standing. The charges actually incurred in connection with the deputation of
such a subordinate should be debited to the Reserve Bank.
(k) The Treasurer or Treasurers accompanying the remittance should,

before finally leaving the Bank, sign in a book kept for the purpose a
memorandum of the uncurrent and spurious coins and of any deficiency found
in the remittance.
(l) If a Treasurer accompanying a remittance finds that any of the

above rules is not complied with or that impediments of any kind are placed
upon a free and open scrutiny of the proceedings during the examination by
the Bank’s officers or shroffs, he should immediately report the facts to the
Manager or Agent of the Bank.
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C. RESERVE BANK OF INDIA REMITTANCES
(i) Introductory
375. Rules 376 to 423 below are designed primarily for the guidance of
Treasury Officers in dealing with the payments into and withdrawals from
treasuries in connection with the facilities afforded by the Reserve Bank to
Government Officers and others for the remittances of moneys from one place
to another. These remittances are arranged for by the issue of Telegraphic
Transfers, Drafts, etc., on the Reserve Bank Account.
376. Remittances between places where the Reserve Bank has its own
offices or is represented by its State Bank of India agencies having full currency
chest facilities, will not pass through the Government Account. At places
where the Reserve Bank is not so represented, all treasuries and sub treasuries
in India with currency chest facilities and such other treasuries or sub treasuries
as may be nominated by the Reserve Bank in this behalf, will be regarded as
‘Treasury Agencies’ of the Reserve Bank for the issue and payment of
Telegraphic Transfers and Drafts drawn by or upon them. The connected
debits and credits in the treasury accounts which will be carried initially against
the balance of the Government owning the treasury or the sub treasury, as the
case may be, will be cleared by the Accountant General by daily adjustments
advised to the Central Account Office of the Reserve Bank in accordance with
such directions as may be given by the Comptroller and Auditor General with
the approval of the President.
NOTE 1—At places where the cash business of the treasury is conducted
by sub offices of the State Bank of India having limited currency
chest facilities (i.e., Treasury Pay Offices) Reserve Bank
remittances will be drawn by or upon the treasury or sub
treasury at such places acting as Treasury Agencies of the
Reserve Bank and not the Treasury Pay Office of the State
Bank, through the cash and clerical work in connection therewith
will be transacted by the latter on the orders of the Treasury or
the Sub Treasury Officer, as the case may be.
The names of treasuries and sub treasuries which, for the
purpose of this rule, are regarded as Treasury Agencies of the
Reserve Bank, will be found in the separate publication ‘List of
Treasuries and Sub Treasuries in India’ issued by the
Government of India.
288
NOTE 2—For the purpose of the rules in this section, the term ‘Draft’
includes also Reserve Bank dividend payment orders referred
to in Rule 377 below.
377. The various types of remittances between one ‘Treasury Agency’
and another or between treasury agencies and places where the Reserve Bank
is represented, will consist of—
(1) For Government Department, Local Funds Scheduled Banks,
approved Non-Scheduled Banks, Indigenous Bankers, Co-operative Banks
and Societies and for the general public— (i) Telegraphic Transfers, (ii)
Reserve Bank Drafts.
(2) For the Reserve Bank’s domestic purposes-(i) Security Deposit
Interest Drafts.(ii) Dividend Warrant Payment Orders.
The rates at which and the conditions and limitations under which
Telegraphic Transfers and Drafts on the several accounts can be issued by
Treasury Agencies will be regulated by such general or special instructions
as may be issued by the Reserve Bank with the approval of the President.
NOTE— Drafts at par will be granted within prescribed limits to Government
Officers and others at and on all offices and agencies (including
Treasury Agencies) of the Reserve Bank for remittances on behalf of
the Government and for other quasi-public purposes set forth in
Appendix 20. These remittances at par will be granted only for
transfers of funds within the State. Extra-State transfers will be
subject to exchange charges at the rates prescribed by the Reserve
Bank.
378. The procedure to be observed by Treasury Officers in respect of
the issue and payment of Telegraphic Transfers and Drafts on the Reserve
Bank account will be governed by the following rules, but the Treasury Officers
shall comply with any general or special instructions that may be issued to
them in this behalf by the Currency Officer.
379. Subject as hereinafter provided, the various forms to be used in
connection with drawings on or by Treasury Agencies will be designed by
the Reserve Bank.
The form of initial accounts to be kept by Treasury Agencies in respect
of remittances drawn and encashed by them and the methods by which
accounts of such remittances are to be rendered by them to the Accountant
General, will be governed by such directions as may be given by the Comptroller
and Auditor General with the approval of the President. (See Articles 78 to 85
of the Kerala Account Code, Vol. II.)
289
(ii) Telegraphic Transfers, Issues and Encashments
380. A person applying for a Telegraphic Transfer must pay the amount
of such transfer together with the prescribed charges, including the cost of
telegram, before the Telegraphic Transfer is issued.
The application must be made in the form prescribed by the Reserve
Bank, which may be obtained from the Treasury.The application form duly
filled in will serve as a chalan for the money tendered. The Treasury Officer
shall retain the application for transmission to the Accountant General along
with the daily “Schedule of Reserve Bank of India Remittances Drawn” (Rule
407 below) and grant the remitter a receipt in the form prescribed by the
Reserve Bank for the purpose.
381. In issuing a Telegraphic Transfer, the following rules shall be
observed by the Treasury Officer:—
(i) The telegram to the office making payment of the transfer should
be sent in Reserve Bank Cypher Code authenticated by the Reserve Bank of
India Treasury Agencies Private Check Signal.
(ii) A post copy of the telegram and an advice in Form R.B.R. 6-C
should be despatched to the paying office at the same time as the telegram is
issued.
382. In paying a Telegraphic Transfer, the following precautions shall
be observed:—
(i) The person claiming payment should be required to produce the
telegraphic advice from the place where the transfer has been issued.
(ii) If the person to whom the transfer is payable is not known to
him, the Treasury Officer should require identification by a well known and
responsible person who should certify that the payee is known to him.
(iii) The payment of the transfer should be reported at once by a
letter to the issuing officer.
(iv) If the Treasury Officer has any reason, to doubt whether any
person claiming payment is entitled to it, he should telegraph to the issuing
office for confirmation.
(v) If the post copy of the telegram authorizing payment is not
received within three days of the date on which it should arrive, the Treasury
Officer should communicate with the issuing officer and ask for his
confirmation of the telegram.
290
NOTE—A schedule bank applying for payment of the amount of a Telegraphic

Transfer may not produce the telegram received from the remitter,
but, instead, a mere letter from the Agent/Manager of the branch
concerned advising receipt of intimation of the Telegraphic Transfer
and demanding payment should be considered adequate for the
purpose of clause (i) of this rule.
383. Remittances will be payable in legal tender currency, i.e., notes
or coins, at the convenience of the officer making payment. In other words,
the payee will have no right to demand payment in any particular form of
currency though in practice, his requirements will be met as far as possible.
384. The provisions of Rule 404 below apply mutatis mutandis to
payments of Telegraphic Transfers as they apply to payments of Drafts.
(iii) Drafts, Drawings and Encashments
385. Explanations.—The person or office that draws (i.e., issues or

grants) a Draft is called the drawer, the person or office on which it is drawn
and by which it is payable is caller the drawee, the person or party to whom a
draft is granted is called the remitter and the person or party to whom it is
payable is the payee.
386. All Drafts, unless the contrary intention appears from the form
itself are transferable, the original payee being entitled to transfer his right
by endorsement. This he may do by simply signing his name on the back, in
which case it becomes payable to bearer, or he may write above his signature,
“Pay to C.D.” or “Pay to C.D. or order” in which case C.D. stands in the same
position as the original payee did originally and has the same power of transfer.
The writing by which such a right is transferred is called an endorsement, the
endorsement to “C.D. or order” is a Special endorsement, and the persons to
whom a Draft is successively transferred are endorsees, and the person in
rightful possession of a draft is the holder.
In obtaining drafts for remittance of moneys on Government account,
the following instructions should be observed by all officers of the
Government:-
(a) Payments on accounts of inter-departmental or inter-
governmental dues:—All such drafts should be crossed if drawn on an office
of the Reserve Bank or any of its agencies other than a treasury agency, with
291
the words “account payee” between the crossing and, if drawn on a treasury
agency, the drafts should be superscribed with the words “account
Government-not payable in cash” without any crossing.
(b) When the amounts of the drafts are required by officers of
the Government to enable them to make disbursements in cash, on behalf
of Government, e.g., pay and allowances of non-gazetted staff, contingent
expenditure, permanent advance, etc.—Drafts, the amounts of which are
payable to officers of the Government to enable them to make disbursement
of pay and allowances of non-gazetted staff, contingent expenditure, etc.,
on behalf of Government, shall not be crossed but shall bear the
superscription “not transferable” and shall be issued in favour of the
Government officer concerned, by designation, the word “only” being added
after the designation of the payee officer on the draft. For this purpose,
every Government Officer, when applying for a Draft, must add the word
“only” after the name of the payee in the application for the draft, so that the
Issuing Officer may prepare the draft accordingly. It shall not, however, be
permissible for any Government Officer himself to add the word “only” after
the name of the payee of the Draft in any case in which the Issuing Officer, for
any reason, fails to add the word “themselves”.
(c) Payments of personal claims of an individual (whether a
Government servant or not), a firm or a company, a statutory body, etc.—
All drafts in payment of such claims shall be issued invariably with the addition
of the words “or order” after the name of the payee on the Draft. Such drafts,
if drawn on an office of the Reserve Bank of India or any of its agencies other
than a treasury agency, shall be crossed with the words
“……………………………..& Co.” between the crossing unless the payee
specifically asks for an open Draft in which case it need not be crossed.
Form of Drafts
387. Drafts shall be issued in special forms to be obtained from the
Currency Officer under Rule 420 below.
388. Immediately on receipt of a parcel of forms of Drafts, they shall be
carefully examined by the Treasury Officer and a proper acknowledgment
sent to the Currency Officer. The acknowledgment shall certify that the forms
have been counted and found correct.
292
389. The forms of Drafts and of advices (Rule 393 below) shall be
placed in store under the key of the Treasury Officer who should each
morning issue for book or books containing Draft Forms and the Advice
Forms, for the day’s use. He must be careful not to issue a book of a later
serial number before an earlier, and therefore should see that the store is so
arranged as to prevent mistakes. Every evening the unused forms will be
returned to him, and he should see that this series is unbroken, that no form
is kept back unissued unless it be spoilt and that the number of Draft Forms
expended in the day agrees with the total number listed in the “Schedule of
the Reserve Bank of India Remittance Drawn” for the day. (Rule 407 below)
Officers signing drafts shall destroy spoilt Draft Forms after noting in
the remarks column of the Issue-cum—Drawing Schedule Register (Form T.A.
18 or 18A in the Kerala Account Code, Vol. II) under their full signature the
printed numbers of the forms destroyed and certifying that the forms have
been cancelled and destroyed.
Issue of Drafts
390. A person requiring a Draft shall tender with the money a formal
application in prescribed form, which may be obtained from the treasury. The
application form duly filled in will serve as a chalan for the money tendered.
The application shall be retained by the Treasury Officer for transmission to
the Accountant General along with the daily “Schedule of Reserve Bank of
India Remittances Drawn”. (Rule 407 below)
NOTE 1—A person applying for a Draft on behalf of the Government or a Local
Fund should certify on the application that the Draft is wanted for
bona fide public purposes and describe the object of the remittance.
If the Treasury Officer doubts whether the object is really public,
he should state his doubt to the applicant or take the orders of the
Collector. Questionable grants should be reported to the Currency
Officer with a view to the issue of instructions for future guidance.
NOTE 2—When the purchaser of the Draft demands a receipt for the amount
of the Draft and the exchange charges thereon, the Treasury
Officer may grant the purchaser a receipt in the form prescribed
by the Reserve Bank for the purpose.
293
391. Drafts shall be prepared and signed from time to time as they are
applied for, immediately on the receipt of cash or its equivalent; the business
of signing them must not be postponed till the close of office, and on no
account may the office be closed till all Drafts applied for have been issued.
Each must be signed legibly with the full signature of the Treasury Officer.
392. At the time of signature of a Draft, the Register (Form T.A. 18A in
the Kerala Account Code, Volume II), together with the application for the
Draft, the advice (Rule 393 below) and the book of forms shall be laid together
before the Treasury Officer. The Treasury Officer shall initial each entry in the
Advice and the corresponding entry in the register at the same time as he
signs the Drafts after he has satisfied himself that-
(i) the several documents agree,
(ii) the authority for issue is sufficient,
(iii) the date and office of issue and the name of the payee are legibly
and distinctly entered in the body of the Draft,
(iv) in addition to the amount being entered in figures, the amount
of whole rupees is entered as second time in words and fractions
of a rupee in words or figures, that words are written continuously
without lifting the pen and that when the amount consists of
rupees only and does not contain fractions of a rupee, the words
end with the word “only”, and
(v) a sum a little in excess of that for which the draft is granted is
entered in words across the Draft at right angles to the type.
NOTE 1—“Under thirty rupees” will mean that the Draft is for a sum not less
than `. 20 but less than ` 30, and similarly, “under eight hundred
rupees” will mean that it is for less than ` 800, but not less than
`. 700.
NOTE 2—The cross entry is not necessary if the amount in words is typed
perforated by a special cheque writing machine.
Advice of Remittances drawn
393. An advice of all drawings effected on a particular treasury or the
Bank on any particular date shall be sent to the treasury or the office drawn upon
in the special form prescribed by the Reserve Bank. The Advices shall be completed,
signed and despatched by the Treasury Officer before the treasury closes on the
day of issue.
Advices of drafts drawn on the Bank shall be sent direct to the
Manager or Agent as the case may be, of the Bank.
294
NOTE—Whenever two or more sheets are used for advising the issue of
Drafts, each such sheet should be signed by the Treasury Officer.
394. If alterations be made in a Draft prior to issue, the corrections
shall be noted in the Advice and each alteration, both in Draft and Advice,
shall be authenticated by the drawer’s full signature in order to prevent
hesitation, on the part of the drawee. If the drawer should enter the amount
so carelessly as to enable a stranger to alter it and fraudulently to obtain
payment of a larger amount, the drawer, and not the drawee, must bear the
loss. But the Treasury Officer drawn on must remember and apply the
numerous defensive checks provided for him by these rules.
Regularity of Signature
395. Variation in the signature of the drawer often entails much trouble
on the paying office, and the drawer will be held responsible for inconvenience
or delay which may be caused to individuals in consequence of change in, or
illegibility of, his signature, or other serious irregularity on the face of the
draft, as the drawee would be justified in suspending payment in cases of
doubt arising from such cases. An officer in charge of a treasury shall sign his
name in English, or have it written in English characters below the signature in
any Indian script.
396. When any change of Treasury Officer occurs, a specimen of the
signature of the relieving officer shall be forwarded by the outgoing officer to
all officers usually drawn on. The following form will be convenient
“ The undersigned writes to notify to ……………………………… that
he has on this day been relieved of the executive charge of the
treasury at ………………………. by …………………………… a specimen of
whose signature is annexed. …………...……
.....................................
Relieved Officer
.....................................
The…………..20….. Relieving Officer.”
NOTE 1—If it should be necessary for a Treasury Officer to draw on a treasury

or an office not usually drawn upon, to which a specimen of his
signature has not been sent under the provisions of this rule, he
295
should, at the time of issue of a draft, also forward a specimen of

his signature under a special forwarding letter duly stamped with
the seal of the treasury, which should be posted on the same day
in a separate cover and not in the cover containing the Advice.
NOTE 2—In the case of an officer who signs in any Indian script, his name
should also be written in English characters in the notice, as
well as after his signature.
NOTE 3—When an officer who was formerly in charge of a treasury
resumes charge of it after a lapse of time, his signature need not
again be circulated among treasury and other offices.
Encashment of Drafts
397. The Advices received from the issuing treasuries of the Bank
shall be opened in the presence of the Treasury Officer, and each dated and
initialled by him after he has satisfied himself of its genuineness by examining
the signature of the drawer and, if necessary, the post mark. They shall then
be sorted and arranged accordingly to the offices from which they are received
and pasted chronologically in guard files in such a way that advices received
from each drawing office may be kept together. These files shall be kept under
lock and key.
NOTE 1—The Treasury Officers should particularly guard against the
possibility of the fraud of altering after signature the amount
shown in the Advice, by a comparison of the total amount
reported in words in the heading with the real total of the figured
amounts of an Advice. Any alteration of any entry, whether of
names of figures, in an Advice requires the drawer’s full
signature, so that it is scarcely possible that any fraud should
be attempted by altering the Advice before he has signed it,
since at the time of signing he would notice any uncertified
correction.
NOTE 2—All covers containing “Advices of remittances sold” received
from the issuing treasuries or the Bank shall be superscribed
with the words “Remittance Advice”.
398. The Advices arranged in the manner prescribed in the last
preceding rule will facilitate the examination and identification of Drafts, etc.,
296
presented for payment. The entries made in an Advice should be such as to

place sufficient obstacle to the encashment of Drafts forged or fraudulently
altered, and their sequence should effectually bar the use, a second time, of a
particular serial number, and suggest suspicion even of the Advice where a
high number follows a low one.
Necessary notes of references touching irregularities of cancellation,
issue of certificates of non-payment, Advices of seconds or thirds, and of any
other points of importance shall be made on the Advice.
399. (a) On a Draft being presented for encashment, the Treasury
Officer shall compare it with the Advice, and satisfy himself carefully that it is
in order and that it is receipted on the back by a person able to give a legal
quittance. It must be borne in mind that in the case of a Draft on Government
account the liability to the payee named in the Draft can only be discharged
by payment to—
(1) the payee or his lawful agent on identification, or
(2) The payee’s banker who should certify that the amount has
been placed to the payee’s credit, or
(3) a person holding a letter of authority from the payee, whose
signature must be known to the Treasury Officer and if the
letter directs to the Treasury Officer to pay the money to a
certain named person, that person must be identified to the
Treasury Officer before payment can be made. The only
endorsement on such a Draft should be payee’s receipt or that
of his lawful agent.
(b) In all other cases where payment is not made on an endorsement in
favour of a recognized bank, the Treasury Officer shall not only satisfy himself of
the genuineness of the claimant’s signature to the receipt on the back of a Draft
but, if the claimant himself is not in attendance, he must assure himself that the
presenter of the Draft is the agent or messenger of the legal holder, duly authorized
to receive the payment. If the presenter is unknown to the treasury officials, or, if
known, should there be reasonable grounds for questioning his being in lawful
possession of the Draft, the Treasury Officer shall demand a letter from the legal
holder, authorizing the presenter to receive payment on his behalf. Similarly, in
cases where payment is made on an endorsement to a recognized bank, the Treasury
Officer must assure himself that the presenter of the Draft is the authorized agent
or messenger of the Bank.
297
NOTE 1— The term “recognized bank” referred to in this Rule includes a

scheduled bank under the Reserve Bank of India Act, 1934, or
a bank or firm mentioned in Appendix 9.
NOTE 2— The letter of authority for receiving payment at the treasury
referred to in this rule in not liable to stamp duty.
400. Drafts payable at the District Treasury cannot be endorsed for
payment at a Sub Treasury. But if the money payable on a Draft is required at
a Sub Treasury and the remittance cannot be effected in accordance with the
procedure laid down in Rule 416 below, a cash order may be issued to the
payee for presentation at the Sub Treasury. In such a case the payee must
receipt the Draft as “Received payment by a cash order on …………………
Sub Treasury”, and the Treasury Officer at the District Treasury shall finally
deal with the Draft and take the same precautions regarding the delivery of the
cash order as are prescribed in Rule 401 below for payment in cash.
401. Before issuing pay orders on a Draft the Treasury Officer shall
satisfy himself that the Draft has been advised; that it corresponds in all
particulars with the Advice; that it bears the genuine signature of the drawer;
that it has not been tampered with; and that it is not a cancelled or lapsed Draft
or one of which a duplicate has been paid. A Draft may be paid—
(i) without Advice, if there is no reason whatsoever to doubt its
genuineness, and if sufficient security is offered. In the case of well known
and reliable holders, this security may be dispensed with at the discretion of
the Treasury Officer. The Treasury Officer shall in all such cases apply for the
necessary Advice without delay.
(ii) even though differing from the Advice, at the discretion of the
Treasury Officer, provided there is no suspicion of fraudulent alteration, nor
any possible doubt of the genuineness of the Draft. Special caution shall be
exercised before paying on a Draft an amount larger than that named in the
Advice.
402. As each Draft or Telegraphic Transfer drawn by the Treasury is
paid, it must be stamped “paid”, the date of payment being at the same time
noted in the Advice under the initials of the Treasury Officer.
403. Doubtful drawings.—In case of erasure, alteration or other serious
cause for suspicion, the Treasury Officer shall, before payment, refer to the
drawer, the post office, or the Currency Officer, as the case may require. Any
298
material alteration of a Draft, after it has been drawn or endorsed effecting the
date, sum, or time or place of payment, will invalidate it; but the mere correction
of a mistake, such as by inserting the words “or order” in the endorsement of
a Draft will have no such effect.
404. Form of receipt.—For the sufficiency of the receipt, it is necessary

to see that it is not for a part only of the Draft, and that it is given by the legal
holder. On no account may a Draft be paid by instalment; receipt for the full
amount must be given on the reverse, and the full amount must be paid—
(a) if the legal holder be dead, payment can be made only to his legal
representative; a Draft for less than ` 100 may, however, be paid without a
certificate of administration.
(b) if the receipt be signed by an agent or attorney, note of the

existence, and of the record in the treasury, of the power of attorney, should
be made on the Draft.
(c) if more than one person be named in a Draft, all must join in order
to give a valid endorsement or receipt.
(d) Draft payable to A.B. cannot be cashed on the receipt of his partner
C.D. without production of a formal power of attorney; a bill payable to A.B. and
Co. can be paid on the receipt as A.B. and Co. of any member of the firm.
(e) Drafts payable to an incorporated company of any other corporate

body may be paid on the receipt of the official authorized, generally or specially,
by it regulations or by power of attorney to receive moneys payable to such
company or body.
In the case of Draft payable to an unincorporated body, payment may

be made to a person holding authority to receive moneys payable to such
body, but the Treasury Officer shall first satisfy himself that the authority has
been duly conferred.
(f) A government officer when he sends a Draft to a treasury not for

cash payment, but for credit of its amount in the treasury accounts, must,
before he signs the receipt, add to the words “Received payment” the further
words “by transfer credit to……….”. Omission to do this facilitates
fraudulent appropriation of the money.
299
(iv) Record of Drawings and Encashments
405. A record of Telegraphic Transfers and Drafts drawn by the treasury

will be kept in a register (Form T.A. 18 or 18A) in accordance with the
directions contained in this behalf in the Kerala Account Code, Volume II.
406. As each Draft or Telegraphic Transfer is paid, entry must be made

in the Register of Reserve Bank of India Remittances Encashed (Form T.A.
19 in the Kerala Account Code, Volume II).
407. At the close of each day, separate schedules for drawings and
encashments during the day will be prepared in special forms prescribed by
the Reserve Bank for submission to the Accountant General in accordance
with the directions contained in the Kerala Account Code, Volume II. The
application forms for remittances drawn and also the receipted Drafts and the
payees’ receipts in respect of Telegraphic transfers encashed shall accompany
the schedules mentioned above.
408. The following are the cross-checks which the Treasury Officer
shall, each evening, apply to the several documents connected with remittances
drawn and encashed. The registers of remittances drawn and encashed and
the connected schedules check one another directly; the total of each schedule
must agree with total receipts or total payments for the day as booked under
the head “Reserve Bank of India Remittances” in the cash book, after allowing
for receipts and payments, if any Sub Treasuries which will be entered under
a separate sub head. The total of the several Advices for the day must also
agree with the total in the column “Amount” in the schedule of drawings, and
this agreement shall be, at times, checked by the Treasury Officer himself.
409. Where the name of the payee and/or endorsee appears on the
instrument in English and the signature is made in English, the Treasury
Officer should, in addition to the precautions prescribed in the Rules for
making payment to the proper person on identification, see that the signature
tallies letter for letter with the name as spelt on the instrument. Where the
name of the payee or endorsee is spelt incorrectly, the spelling of the
endorsement must correspond with that of the mis-spelt name, but if the
payee wishes, he may add his correct name in brackets.
300
(v) Other Rules
410. Issue of duplicates.—When satisfactory evidence has been given

that a draft has been either lost or destroyed, and application is made within a
reasonable period after issue but before it has lapsed (Rule 419 below) a
duplicate may, without reference to the Currency Officer, be granted to the
party who obtained the original, or to the payee, or to the legal representative
of either but to no other person. If the draft could not have been presented for
payment within three months, it will be necessary for the applicant to produce
a certificate of non-payment from the drawee; but the issue of this certificate
will be no bar to the payment of the lost Draft, if presented before duplicate is
paid.
In the event of the loss of both original and duplicate, a triplicate may be
issued on the same terms as the duplicate, the nonpayment of the others
being certified. Neither duplicate nor triplicate can be issued without reference
to the Currency Officer, if the Draft has lapsed (Rule 419 below). Issue of
duplicate or triplicate shall be promptly advised to the drawee, in order that
proper note may be made on the advice originally received.
411. The duplicate and triplicate shall be drawn in exactly the same
terms as the original instrument with the same date, the same number, the
same amount, and the name of the same payee, so that, if a lost Draft has been
endorsed, the endorsee must apply for a duplicate through the original payee.
It will be issued under the signature of the officer in charge of the treasury at
the time, although he be not the person who signed the original Draft.
NOTE 1—Where the remitter is a department of the Government or a Local

Fund, the issue of a duplicate against an unstamped Letter of
Undertaking as given below, will be permissible.
301
LETTER OF UNDERTAKING
Place……………….…………
Dated………………………….
To ……………….......……..
……………………..........
Dear Sir,
In co.nsideration of your agreeing to issue a duplicate of Reserve Bank
of India draft bearing No………….and dated ……………….for `……………
(Rupees …………………..) which has been lost, I hereby undertake that, in
the event of payment being obtained from the Reserve Bank on the original
draft or of the Bank incurring any expense and/or loss by reason of the issue
of the duplicate, I shall reimburse the Reserve Bank to the extent of the amount
paid on the original draft and any expense and/or loss incurred as aforesaid.
Yours faithfully,
(……………..……….) Signature
(…………………..…………)
Office Seal Name and designation of the
Officer executing the letter.
NOTE 2—When it is necessary to issue duplicates, the word “duplicate”

should be prominently written in red ink on the face of ordinary
draft forms and the relative advice forms. The duplicate should
be issued only after the issuing officer has satisfied himself
that the original has not been paid.
412. No duplicate or triplicate older than six months shall be paid without
previous reference to the Currency Officer.
413. Cancellation and Refund.—No Draft can be cancelled without
surrender of the whole set. Thus, if a duplicate or a triplicate has been issued
the Draft can be cancelled only if the original together with the duplicate (and
the triplicate if issued) be surrendered. Consequently, no refund can be made
on a lost Draft; a duplicate must be obtained and payment taken at the treasury
or office drawn on.
302
414. All parts being surrendered, a Draft may be cancelled and its
amount refunded at the discretion of the Treasury Officer, on the application
and receipt of the remitter in the case of a Draft on Government account and of
the payee in the case of other Drafts. If, in the latter case, the receipt of the
payee cannot be obtained, the remitter’s application for cancellation, with
explanation of the reasons for his request, and of the difficulty in the way of
obtaining the payee’s signature, shall be submitted for orders of the Currency
Officer. Although no difficulty should be made about cancellation of Drafts
on Government account, it must be clearly understood that other classes of
Drafts can be cancelled only as an indulgence, and for sufficient cause shown.
No exchange which has been levied can be refunded.
NOTE— If alteration of the name only of the payee is required by remitter, it
will suffice for the drawer to alter the name in the Draft under his full
signature and send advice to the drawee.
415. When a Draft is cancelled, the fact of cancellation shall be
conspicuously noted across the face of the Draft; at the same time an intimation
shall be sent to the office drawn on, in order that the fact may be recorded in
the advice originally received and necessary precautions taken against the
payment of the cancelled Draft. The cancelled Drafts shall be duly receipted
by the remitter or the payee, as the case may be.
NOTE— The amount refunded will be entered in the “Register of Reserve
Bank of India Remittances Encashed” and also in the proper columns
of the schedule of such encashments for the day on which the
cancellation takes place, in accordance with the directions contained
in this behalf in the Kerala Account Code, Volume II.
416. A Treasury Officer may issue a Draft in exchange for one drawn
on him only if the holder has been removed to the neighbourhood of another
treasury or of an office or agency of the Bank.
NOTE— A Draft is said to be exchanged when the holder being unable to
appear and take payment in cash, applies for a new one endorsing
the original “Received payment by Draft on …………….”.
If he can appear and take payment in cash, his obtaining a new Draft
with the cash paid on the old one is a matter to be disposed of under
ordinary rules.
417. When a Draft is exchanged for another, the original Draft will be
treated and entered as a Draft presented for encashment and the amount
again credited as received for the issue of a new Draft.
303
418. Unpaid Drafts.—Drafts which are outstanding for more than six
months can be paid only after obtaining the necessary confirmation from the
drawing office.
419. Lapse of Drafts.—Drafts which are not paid before the end of the
third account year after that in which they are issued, shall be treated as
lapsed and shall be so marked in the Advice. Should any one apply for payment
of a lapsed Draft, he should be directed to address the Currency Officer for
orders.
420. Supply of forms.—Forms of Drafts and all other forms prescribed
by the Reserve Bank for use in connection with the remittances dealt with in
this section will be supplied to the Treasury Officer by the Currency Officer
under whose jurisdiction the treasury is situated. Indents for such supplies
will be in Form T.R. 94 or in such other forms as the Reserve Bank may prescribe
and will ordinarily be for twelve months’ supply.
421. Special Rules for remittances of policemen.—In the case of
policemen’s remittances, the Superintendent of Police concerned shall forward
the Drafts to the payees direct. There is no objection, if such a course is
preferred, or is required by departmental regulations, to his sending the Draft
to the Superintendent of Police of the district in which the payee resides, who
will deliver it to the payee after satisfying himself as to his identity. Descriptive
rolls of the payees duly filled in and signed shall, at the same time, be sent to
the Treasury Officers concerned.
422. The Drafts are payable to the parties described in the roll. In cases
of doubtful identity, payment may be made on security at the discretion of the
Treasury Officer.
423. These drafts, if not, presented for payment at the expiration of six
months from the date of issue, shall be considered as cancelled and if they are
presented after that period, payments shall be refused. A draft which has
become uncurrent may be returned by the payee to the drawer for the issue of
a fresh draft or for the refund of the amount, as may be required.
Should such a draft, whether original or duplicate, be lost in transit, the
Superintendent of Police will report the loss to the Currency Officer, who will
decide the case specially on its merits, sanctioning refund to the person
indicated if it appears right. When the draft is six months old and therefore
void, there need be no hesitation in permitting refund on production of a non-
payment certificate from the treasury or office on which it was drawn.
NOTE— These drafts may also be cancelled as provided for in Rule 414 above.
304
PART VII KERALA TREASURY CODE RULES 424-425
PART VII
RESPONSIBILITY FOR MONEYS WITHDRAWN
SECTION I
Responsibility of Treasury Officer in recovering amounts
disallowed by the Accountant-General
424. When the Accountant General disallows a payment as
unauthorized, the Treasury Officer should promptly recover the amount
disallowed, without regard to any representation or protest and if the item is a
recurring one, should also refuse to make similar payments in future until the
Accountant General authorize him to do so. The Treasury Officer should not
enter into any correspondence regarding any such recovery.
If a Treasury Officer receives an order to make a recovery from a
government servant who has been transferred to another district, he should
immediately forward it to the Treasury Officer of that other district.
NOTE— A recovery should, when necessary, be made in instalments as
prescribed in Article 71 of the Kerala Financial Code.
425. (a) The Treasury Officer should invariably recover from the next
contingent bill of the office concerned any amount which the Accountant
General orders him to recover on account of contingencies.
(b) The Treasury Officer should ordinarily recover from the next
pay bill of the government servant concerned any amount which the
Accountant General orders him to recover on account of pay and similarly
from the next travelling allowance bill any recovery ordered on account of
travelling allowance. When, however, a recovery has to be made on account
of travelling allowance and the government servant concerned does not
present a travelling allowance bill within a month he should be requested to
refund the amount at once in cash and if he fails to do so, it should be recovered
from his next pay bill.
(c) If a recovery has to be made but no bill from which it can be
made is likely to be submitted in the near future and the government servant
who has to make good the amount does not refund it promptly in cash when
requested to do so, the Treasury Officer should report the circumstances to
Accountant General and ask for his orders.
305
(d) A recovery should be shown distinctly at the foot of the bill

(not on a sub-voucher) and the number and the date of the objection statement
or other authority should be distinctly quoted.
426. Objections and orders which arise out of the examination by the
Accountant General of the treasury accounts are communicated to the
Treasury Officer by letters, audit memoranda, or periodical objection
statements. To these, the earliest attention should be given and it is most
important that these objection statements should be returned punctually within
a fortnight of receipt and also that the replies in them should be such as will
enable the Accountant General to adjust the items under objection without
further correspondence. When it is necessary to communicate objections to
other officers as in the case of officers subordinate to the Collector, it should
be done immediately on receipt of the objection statements and early replies
should be asked for. If these are not received in time for the return of the
objection statement to the Accountant General, the fact should be noted in
the reply column of the statement and the receipt of the reply and its
transmission to the Accountant General should be carefully watched. A copy
of the objection statement should be kept in the treasury.
427. Register of Recoveries.—Every treasury should maintain a register

of recoveries, in which separate pages should be set apart, as may be
convenient, for each government servant or department entitled to draw bills,
etc., on the treasury. As soon as any order to make a recovery is received,
whether through an objection statement or a separate slip, an entry should be
made in the register. Before any bill is passed for payment, the register should
be consulted to see whether any recovery has to be made. When any amount
is recovered, it should be duly noted in the register along with the number and
date of the voucher.
306
SECTION II
General rules applicable to all Drawing Officers
(a) RESPONSIBILITY IN CLEARING AUDIT OBJECTIONS
428. Every government servant must attend promptly to all objections

and orders communicated to him by the Accountant General in the manner
prescribed in Article 69 to 74 of the Kerala Financial Code.
(b) GENERAL RULES REGARDING THE FORM OF VOUCHERS

FOR DISBURSEMENTS MADE, ETC.
429. A government servant is responsible for the safe custody of

moneys received by him from the treasury for expenditure on behalf of the
Government and shall maintain the prescribed accounts for watching the correct
disposal of the money (e.g., by disbursement of pay, allowances, etc., among
the staff) and for checking the cash balance in the office.
430. (a) Subject to the provisions of clause (b) below a government
servant shall obtain, for every disbursement which he makes on behalf of the
Government including every repayment of moneys which have been deposited
with the Government, a voucher setting forth full and clear particulars of the
claim, using as far as possible the particular form, if any, prescribed for the
purpose and shall obtain at the time of making payment, either on the voucher
or on a separate paper to be attached to it, an acknowledgment of the payment
signed by the payee by hand and in ink. In doing so, he shall observe carefully
the directions in Rule 163 in regard to the preparation of vouchers and the
stamping of receipts. When possible, he shall require the payee to note the
actual date of payment in his acknowledgment. When it is not possible for the
payee to note the actual date of payment either because he is illiterate or
because he is required to present a signed receipt before payment is made, the
disbursing officer shall enter the actual date of payment on the relevant voucher
with his initials either separately for each payment or for groups of payments
as may be found convenient.
NOTE— As adjustment bills for ‘Nil’ amounts involve no payment, it is not
necessary to insist upon any acknowledgment of payment in respect
of such bills.
307
PART VII KERALA TREASURY CODE RULE 430
If a payee is not able to write, his signature on the acknowledgment

shall be taken in the form of his mark or preferably his thumb
impression, attested invariably by some known person [See Rule
163 (g) of Part V].
If a payee signs his acknowledgment in a language other than English,
he shall be required to write also the amount acknowledged in words
in that language in his own handwriting. His acknowledgment,
including the amount acknowledged and any remark made by him,
shall be translated into English and his signature shall be
transliterated in Roman characters. If a payee cannot sign his name
in script known to the disbursing officer or a member of his staff or if
he can sign in a script known to one of them but cannot write the
amount acknowledged in words in it, the procedure applicable when
a payee is not able to write shall be followed.
A cash memorandum shall not be treated as a proper voucher (or a
valid receipt), unless it contains a specific signed acknowledgment
of the receipt of the moneys by the signatory from the government
servant concerned, and is duly stamped* with a revenue stamp as
required by section 3 of the Indian Stamp Act, 1899 (Central Act 2 of
1899) read with article 53 of schedule I thereof if the amount paid
exceeds ` 20.
Exception 1—A special procedure is prescribed for obtaining the payee’s
acknowledgments of payments on account of the pay and
allowances of government servants (See Rule 432 below).
Exception 2—The facsimile signature of the executive authority or a
municipality may be accepted as the payee’s signature on
an acknowledgment of the payment of a municipal tax on
a government building.
(b) If, in very exceptional circumstances, it is quite impossible to
furnish a proper voucher with the payee’s acknowledgment in support of a
payment, a certificate of payment showing the particulars of the claim signed
by the disbursing officer and endorsed by his immediate superiors shall be
placed on record.
(c) If a disbursing officer anticipates any difficulty in obtaining an
acknowledgment in the proper form from a person to whom any moneys are
* Substitution [G.O.(P) 434/81/Fin., dated 7th July, 1981]
308
due, he shall decline to deliver the cheque or cash to him or to make a remittance
to him, as the case may be, until he receives a proper acknowledgment of the
payment with all the necessary particulars.
Whenever a payment is made by remittance, a note of the date and mode
of remittance shall be made on the bill or voucher at the time of remittance.
When a remittance is made by postal money order, its purpose shall be briefly
stated in the acknowledgment portion of the money order form in continuation
of the entry “Received the sum specified above on ………………”, and
sufficient space shall be left below the manuscript addition for the signature
or thumb impression of the payee.
Whenever a disbursing officer of the Public Works or Forest Department
tenders money orders to the Post Office for issue with a cheque in lieu of cash,
he shall demand an individual receipt for each such money order.
(d) When an article is obtained by value payable post, the value
payable cover, together with the invoice or bill showing full details of the
items paid for, shall be treated as a voucher, and the disbursing officer shall
note on the cover that the payment was made through the Post Office and
includes the postal commission.
(e) A disbursing officer may retain a certified copy marked
‘Duplicate’ of a receipted voucher, when this is necessary in order to complete
the record in his office, but the payee shall not be required to sign any such
copy or to give a duplicate acknowledgment of the payment.
NOTE— Whenever copies of invoice are required to be furnished by the
suppliers such number should be restricted to the minimum and the
number required should be indicated in the supply order. The copy
should be distinctly marked as ‘Duplicate’; ‘Triplicate’ etc. (See also
Note 6 of the Form of the Supply Order in Appendix XIII of the Stores
Purchase Manual specifying the number as triplicate).
431. No voucher shall be treated as a valid voucher unless it bears a
distinct pay order, specifying the amount payable both in words and in figures
separately and signed and dated by hand and in ink by the responsible
disbursing officer. Cashiers and other government servants who are authorized
to make payments on passed voucher shall not make any payment on a voucher
unless it bears pay order satisfying the requirements. The fact of payment
with date, the manner in which payment is made (whether by cash or cheque)
and the details of the bill in which the amount was drawn should also be
recorded on the voucher and attested by the dated signature of the disbursing
officer.
309
NOTE 1—The pay order on the voucher shall be in the following form, viz.,
“Pay `....................(Rupees……………..) to (name of

payee)………………………………by cash/cheque……………..
Signature,
Station…………......……… Name and Designation of the
Date……………………. Disbursing Officer.”
The facts of payment should be recorded on the voucher in the following

form viz.,
“Paid by cash/cheque No……………….. date…………….on ………………

No…………. Date ………………….and amount of bill…………………
Entered as item No………………… in the …………………………………

(contingent or other register.)
Head of debit ………
Station…………......……… Signature, Name and Designation
Date…………………… of the Disbursing Officer.”
The pay order and the details of payment may be recorded on the reverse
of the payee’s receipt, preferably by means of rubber stamps. But the signature
and dates should invariably be by hand and in ink.
NOTE 2— The pay order should always be on the invoice marked ‘original’.
When the ‘original’ is lost the pass order should not be recorded
in the copies marked ‘duplicate’ etc., instead an authenticated
true copy should be obtained and passed. In the ‘duplicate’ or
‘triplicate’ copies of the invoices a certificate of the payment
should, however, be recorded as below:—
“Certified that the original of the invoice/bill has been passed and
paid-Vide item No…………in……………………(contingent or other register).”
310
(c) DISBURSEMENT OF PAY AND ALLOWANCES OF

GOVERNMENT SERVANTS
432. (a) The head of an office is personally responsible for all moneys
drawn as pay, leave salary, allowances, etc., on an establishment bill signed
by him or on his behalf until he has paid them to the persons who are entitled
to receive them and has obtained their dated acknowledgments, duly stamped
when necessary. These acknowledgments shall be taken as a rule on the
office copy of the bill. When the head of the office concerned considers that
an establishment is so large or scattered that the payee’s acknowledgments
cannot, without undue inconvenience, be obtained on the office copy of the
bill, he shall maintain a separate acquittance roll in Form T.R. 95 and obtain the
payees’ acknowledgments in it.
The leave salary of a non-gazetted government servant who is on leave
in India shall be drawn in the district in which he was last on duty and he must
make his own arrangements for having it remitted to him, when necessary. As
an exception to the procedure prescribed in the preceding paragraph, when a
government servant is on casual leave or other leave, any moneys due to him
may be remitted by postal money order at his expense, if he has made a written
request for this to be done, in that case, the receipt given by the Post Office
and the payees’ receipt shall be attached to the office copy of the bill or to the
acquittance roll, as the case may be. Alternatively, a government servant who
is on casual or other leave may make a written request that any money due to
him be paid to a specified government servant belonging to the same office;
payment shall then be made accordingly, provided that the Government servant
nominated produces an acknowledgment signed by the absentee (and stamped
when the amount exceeds ` 20) and that the disbursing officer is satisfied that
the absentee’s written request and acknowledgment of the payment may be
accepted. *The government servant who receives the moneys shall sign on
the back of the absentee’s acknowledgment in token of his having received
the moneys on the absentee’s behalf. The acknowledgment shall be attached
to the office copy of the bill or to the acquittance roll, as the case may be, and
the remark “Separate receipt attached” shall be entered in the appropriate
place in the office copy of the bill or in the receipt column of the roll. Any such
payment is made entirely at the risk of the government servant to whom the
amount is due, and no claim shall lie against the Government under any
circumstances on account of any loss which he may suffer in connection with
it.
*Omitted [G.O.(P) 380/81/Fin., dated 10th June, 1981]
311
**For the disbursement of the pay and allowances etc. due to non-
gazetted Government Servants on tour or on camp or working at out of the
way places other than the headquarters of the drawing officer, any one of the
following methods may be adopted at the written request of such Government
Servants, namely:-
(i) remittance to the camp by postal money order at the cost of the
Government;
(ii) remittance to the camp by a Reserve Bank of India draft (to be sent by
registered post) provided the Government Servant gives an
acknowledgment signed by him (and duly stamped when necessary)
along with the request to make such remittance to camp; and
(iii) payment to another employee of the same office as specified in the
request provided that the employee produces an acknowledgment
signed by the absentee (and stamped when necessary).
NOTE—In case of remittances made by draft under the method (ii) above an
acknowledgment of the draft should be obtained from the payee and
filed in serial order.
If a government servant who is entitled to receive any moneys drawn
from the treasury on his behalf fails to claim payment in person or in accordance
with preceding paragraph before the end of the month in which they are so
drawn the moneys drawn for him shall ordinarily be refunded by short drawal
in the next bill, and drawn afresh when he claims them, if the rules regarding
arrear claims permit it. When the drawing officer considers that the earlier
refunding of any such moneys would cause undue inconvenience, he may
retain them for any period not exceeding three months, but he will continue to
be held personally responsible for them and must make satisfactory
arrangements for keeping them safely. Undisbursed pay, allowances and leave
salary shall not, under any circumstances, be placed in deposit.
NOTE—Notwithstanding anything contained in this rule, Government may,
in special circumstances authorize payment of such part of the claim
of a government servant, who does not draw his own bills, to be
made to a person and to the extend, as may specifically be so asked
for, in writing, in this behalf by the government servant concerned.
In such a case, the receipt given by the person so authorized to
receive the sum specified, shall constitute a valid acquittance for the
amount paid to him and the receipt for the balance only, if any, when
paid shall be obtained from the government servant concerned.
**Addition [G.O.(P) 380/81/Fin., dated 10th June, 1981]
312
(b) As far as possible, a clerk who has helped to prepare a bill for
establishment pay, etc., shall not be allowed to have anything to do with the
disbursement of the pay, etc.
(c) A large office in which it would be inconvenient to watch the
disposal of undisbursed pay and allowances through the office copies of bills
or the acquittance roll shall maintain a register in Form T.R. 22 for the purpose.
The same register shall also be used, when necessary, for watching the disposal
of the undisbursed balances, if any, of amounts drawn on contingent bills in
excess of the permanent advance.
(d) The drawing officer shall either check each acquittance roll himself
by adding up the items, comparing the total of the corresponding establishment
bill and the money received from the treasury, and seeing that any difference
between the totals is properly accounted for, or have it so checked by a
responsible government servant. The government servant who checks an
acquittance roll shall sign a statement at the foot of it as follows:—
“Checked in accordance with Rule 432 (d) of the Kerala Treasury Code.”
(e) A disbursing officer shall not make the last payment of pay,
allowances, etc., to a government servant who is finally leaving the service of
the government on retirement, resignation or dismissal or is placed under
suspension, until he has satisfied himself that no amount is due to the
Government from the government servant. In regard to the recovery of
overpayments, etc., from any such government servant, he shall follow the
detailed procedure laid down in Rule 212. A disbursing officer shall also not
pay, any pay, allowances, etc., due to a deceased government servant to the
heirs of the government servant after his death until he has satisfied himself
that no amount is due to the government from the government servant.
NOTE—For amounts recovered at the time of disbursement of salary from
officials in cash such as recoveries on account of attachment order
issued from a co-operative society, a receipt should be given as
required in Rule 90 (a).
(d) DISBURSEMENTS OUT OF THE PERMANENT ADVANCE
433. Every government servant who has been granted a permanent

advance shall regularly check the correctness of the balance with the help of
his contingent registers or, if the advance is used for other purposes besides
meeting contingent expenditure, with the help of a register in Form T.R. 96
which he shall maintain for the purpose.
313
(e) CUSTODY OF VOUCHERS AND ACQUITTANCES
434. All vouchers and acquittances are important documents and should
be filed and preserved carefully in the office concerned, when they are not sent
elsewhere for audit in accordance with the rules.
(f) CANCELLATION AND DESTRUCTION OF SUB-VOUCHERS
435. (a) Sub-vouchers to contingent bills should be ‘cancelled’ in such

a manner that they cannot subsequently be used fraudulently to claim or support
a further payment.
(b) *Whenever a drawing officer signs a fully vouched contingent bill
for presentation at the Treasury for payment or a detailed contingent bill for
submission to the controlling authority, he should at the same time cancel all the
sub-vouchers which relate to the bill. He should endorse the word “cancelled”
across each sub-voucher in red ink or by a rubber stamp, and initial it with date. He
should certify on the bill that all the sub-vouchers relating to it have been so
cancelled that they cannot be used again. When the amount of a sub-voucher
exceeds the permanent advance it should be cancelled as soon as the payment
has been made and entered in the contingent Register.
(c) [Omitted]
[G.O.(P) 653/81/Fin., dated 15th October, 1981]
(d) No sub-voucher should be destroyed until three years have elapsed
from the date of the payment—See Article 358 of the Kerala Financial Code.
SECTION III
Special rules for drawing officers of certain departments
(A) SPECIAL TO PUBLIC WORKS DEPARTMENT
436. In the case of the Public Works Department, every voucher should
be enfaced with the word “checked” over the dated initials of the Divisional
Accountant, as well as of any clerk who may have applied a preliminary check.
Vouchers not submitted to audit (See Article 232 of the Kerala Account Code,
Volume III) should be cancelled by means of perforating or endorsing stamp and
kept carefully, to be made available for test audit whenever demanded by the
Accountant General
*Substitution [G.O.(P) 653/81/Fin., dated 15th October, 1981]
314
Stamps affixed to vouchers should be so cancelled that they cannot be used

again, and, if with this object they are punched through, care should be taken that
the acknowledgment of the payee is not destroyed thereby.
Vouchers relating to new supplies of tools and plant should be completed by
noting on them the name of the month in the accounts of which the articles
acquired were brought on the Tools and Plant Received Sheet, Form 12 of Book of
Forms (Public Works Accounts).
437. Government servants should encourage contractors, suppliers of
stores and other persons making claims against the Government to submit their
bills and claims on the proper departmental forms. A disbursing officer should not,
however, reject a bill prepared in another form if it contains all the necessary
details of the claim, but should add any additional particulars that are required.
438. When a contractor or supplier endorses in favour of a bank a bill
payable by the Government, payment should be made to the bank only if he has
also receipted the bill and after verifying the genuineness of the signature in both
the receipt and the request to pay the amount to the bank. For this purpose the
disbursing officer should require the contractor or supplier to furnish a specimen
signature in his presence. If the contractor or supplier has authorized an agent to
draw bills or receive payment on his behalf, the disbursing officer should require
the agent to furnish a specimen signature in his presence and the contractor or
supplier to attest it in his presence. Before paying the amount to the bank, the
disbursing officer should compare the signature on the receipt and the request to
pay the amount to the bank with the specimen signature furnished separately in
his presence and satisfy himself that they are genuine. The disbursing officer
should keep a file of the specimen signature of contractors or suppliers and their
agents for reference.
439. The disbursing officer should see that in every voucher relating to
charge for works, the following particulars are prominently specified:—
(1) the full name of the work as given in the estimate,
(2) the name of the component part (or sub-head) of it, if separate
accounts are kept for the several component parts,
(3) the charges, if any, which are of the nature of recoverable payments
and the name, of the contractors or others from whom they are recoverable, and
(4) the head of account to which the charges are to be debited and that
to which any deduction made in the voucher is to be credited.
315
440. When a voucher or account exhibits any expenditure from which

revenue may prima facie be expected to accrue, e.g., when a bill includes a charge
for removing material from a building or other work which is being dismantled or
is undergoing repairs or for clearing jungle or cutting trees in the compound of a
building or on the bank of the canal, the account or voucher should show how the
old materials removed or the trees cut have been disposed of, and, if they have
been sold, the approximate date when the sale proceeds will be credited in the
accounts. The Divisional Officer should make a note on each voucher which
includes a charge of this kind as to whether the timber, etc., has any sale value and
if so, by what approximate date the value realized by sale in auction or otherwise
will be credited in the accounts.
441. The disbursing officer should deal with bills received from firms for
the supply of stores in original and submit them to the Accountant General as
vouchers. He should not keep a copy of any such bill in his office, except as
provided for under Rule 430 (e).
*#(B) SPECIAL TO CHEQUE DRAWING DEPARTMENTS MENTIONED
IN SUB-RULE (D) OF RULE 162
442. When any moneys due by the Government to any person** any
payable by means of a departmental cheque are attached by a prohibitory order of
a court of law, the disbursing officer should give effect to the court’s order unless
he has reason to think that the amount payable is exempt from attachments, in
which case he should report the matter to the Government for orders before
making the payment. In giving effect to the court’s order, he should deduct the
attached amount from the bill and pass it for the net amount only; if the prohibitory
order was issued by a court not situated at his headquarters, he should also
deduct from the bill the money order commission required for remitting the amount
to the court. If the court which issued the prohibitory order is situated at his
headquarters, he should remit the attached amount deducted from the bill to the
court by drawing a cheque in its favour on the treasury and sending it to the court
if the court is not situated at his headquarters, he should draw the amount from
the treasury on a cheque and send it (less the money order commission) to the
court by money order. He should invariably obtain a receipt for the attached
amount from the court either before or after remitting the amount to the court. The
receipt should show that the payment is on account of an attached debt and
should set forth inter alia the name and capacity of the actual creditor to whom
** Omitted [G.O.(P) 386/80/Fin., dated 18th June, 1980]
# Substituion [G..O (P) No. 175/84/Fin., dated 26-03-1984]
316
amount is due from the Government and on what account it is due and the
number and date of the court’s attachment order in accordance with which the
amount is paid to the court. If the attached amount relates to a disbursement in
respect of which the rules require that sub-vouchers for amounts in excess of
$ ` 1000 should be sent to the Accountant General, the court’s receipt should,
if it is for an amount of $ ` 1000 or more, be attached to the relevant bill in which
the particulars of the creditor’s claim are recorded (or sent to the Accountant
General later on to be attached to that bill), and a reference to that bill should be
enfaced on it in red ink. A reference to the court’s receipt should be similarly
enfaced on the bill, if possible.
When the attachment relates to an amount for which a bill has to be drawn
on the treasury, the procedure laid down in Rule 211 should be followed. (See
also Articles 102 and 103 of the Kerala Financial Code).
443. Payments due to contractor may be made direct to a financing bank
provided that the department concerned has obtained (1) a legally valid document,
such as a power of attorney or transfer deed signed by the contractor and
authorizing the bank to receive the payments due to him by the Government, and
(2) the contractor’s written acceptance of the correctness of the account prepared
to show what is due to him by the Government or his signature on the bill or other
claim preferred against the Government on his behalf, before settlement of the
account or claim by payment to the bank. A receipt given by a bank in favour of
which a contractor has executed a power of attorney or transfer deed authorizing
it to receive payments due to him by the Government constitutes a valid discharge
for the payment due to him, but contractors should, as far as possible, be induced
to present their bills duly receipted and discharged through their bankers.
(C) BUDGETARY CONTROL
444. *Appropriation control by the Treasuries- (1)The system of

appropriation control by the treasuries laid down hereinafter in this rule shall
be applicable to the following departments, namely:
(i) Health Services.
(ii) General Education.
(iii) Collegiate Education.
(iv) Technical Education.
* Insertion [G.O.(P) 39/77/Fin., dated 31st January, 1977]
317
(v) Industries and Commerce.

(vi) Agriculture.
(vii) Medical Colleges.
(viii) Indigenous Medicines.
(ix) Community Development.
(x) Animal Husbandry.
(xi) Dairy.
(xii) Co-operation.
(xiii) Harijan Welfare.
(xiv) Land Revenue.
(xv) Police.
(xvi) Any other department which may be specified by the Government
for the purpose.
(2) (a) The heads of the departments and other chief controlling
authorities shall, within the time limits prescribed in the Budget Manual distribute
the provision to the extent necessary under each unit of appropriation mentioned
below among their subordinate officers each of whom shall further distribute the
same among the disbursing officers subordinate to him.
(i) Travel expenses.
(ii) Office expenses.
(iii) Payments for professional and special services.
(iv) Rent, rates and taxes/royalty.
(v) Publications.
(vi) Advertising, sales and publicity expenses.
(vii) Grant-in-aid/contribution/subsidies.
(viii) Scholarships and stipends.
(ix) Hospitality expenses/Sumptuary allowances etc.
(x) Machinery and equipments / tools and plants.
(xi) Motor Vehicles.
(xii) Maintenance.
(xiii) Investments/loans.
(xiv) Materials and supplies.
(xv) Other charges.
318
*Explanation 1— For the purposes of this sub rule—

(a) Travel expenses shall cover all expenses on account of travel
on duty including conveyance and fixed travelling allowances
but excluding leave travel concessions if any.
* This amendment shall be deemed to have come into force on 23rd
day of September, 1985.
**Explanation 2—Wherever no sub head/detailed head is provided in
the Budget estimates under a particular minor head/
sub head, such minor head/sub head should be treated
as the unit of appropriation. The Controlling Officers
concerned should in such cases distribute the provision
under the minor head/sub head among the subordinate
controlling officers/drawing and disbursing officers.
The appropriation control by Treasuries should be
exercised with reference to such minor heads/sub heads
concerned.
**This amendment shall be deemed to have come into force on 23rd
day of September, 1985.
(b) Office expenses shall include all contingent expenditure for
running an office, such as furniture, postage, purchase and maintenance of
office machines and equipments, liveries, hot and cold weather charge
(excluding wages of staff paid from contingencies) telephones, electricity and
water charges, stationery, printing of forms, purchase and maintenance of
staff cars and other vehicles for office use as distinct from vehicles for functional
purposes like ambulance vans etc.
(c) Payment for professional and special services shall include
charges for legal services, consultancy fees, remuneration to examiners,
invigilators, etc., for conducting examination remuneration to casual artists
by the All India Radio and other types of remuneration for professional services.
It will also include payment for services rendered, supplies made by other
departments such as Railway, Police, etc., a distinction being made in
respect of supplies made of services rendered for the running of an office in
which case the expenditure will be recorded under “Office Expenses”.
* Explanation renumbered vide G.O.(P) 81/88 dated 3rd February, 1988.

** Insertion vide G.O.(P) 81/88 dated 3rd February, 1988.
319
(d) Rent, rates and taxes/royalty shall include payment of rent for
hired building, municipal rates and taxes, etc and lease charge for land.
(e) Publications shall include expenditure on printing of Office
Codes and Manuals and other documents, whether priced or non-priced and
discount to agents on sales but will not include expenditure on printing of
publicity materials.
(f) Advertising, sales and publicity expenses shall include
commission to agents and printing of publicity materials.
(g) Hospitality expenses, sumptuary allowances, etc., shall include
entertainment allowance of high dignitaries, etc. Expenditure on refreshments
served in inter departmental meetings, conference etc., will however, be
recorded under “Office Expenses”.
(h) Machinery and equipments/tools and plants shall include
machinery, equipment, apparatus, etc., other than those required for the running
of an office and special tools and plant acquired for specific works.
(i) Motor vehicles shall include purchase and maintenance of
transport vehicles used for functional activities as distinct from those used
for running an office, e.g. ambulance vans.
(j) Maintenance shall cover expenditure on maintenance of works,
machinery and equipment and repairs incidental to maintenance.
(k) Other charges shall constitute residuary head and shall include
rewards and prizes;
(3) The controlling officer immediately superior to each disbursing
officer shall communicate direct to the treasury with which the respective
disbursing officer has got transactions, the allotments under each unit of
appropriation placed at the disposal of that disbursing officer, in Form T.R. 109.
If one disbursing officer has got transactions with more than one
treasury, separate allotments for operation at each treasury shall be made by
the concerned superior officers under intimation to the treasuries.
(4) The budget allotments at the disposal of the Head of the
Department or the Chief Controlling Officer and operated directly by him shall
also be intimated by him separately to the concerned Treasury for the purpose
of verification by the Treasuries and admitting the bills drawn by him.
320
(5) Appropriation Control Registers in Form T.R. 110 shall be

maintained in all Treasuries separately for each financial year. The Registers
shall be maintained disbursing officer-wise, allotting sufficient number of pages
consecutively for each disbursing officer. Separate volumes of the register
shall be maintained for each major or sub-major head of account or groups of
major heads according to the number of disbursing officers.
(6) Each Treasury shall maintain a Register of disbursing officers
with the names of their controlling officers in Form T.R. 111. To enable the
Treasuries to maintain the Appropriation Control Register correctly the Chief
Controlling Officer shall furnish a list of sub controlling officers to the
respective District/Sub Treasuries at which the latters are authorized to draw
bills. The Sub Controlling Officers shall similarly furnish a list of drawing
officers under their control to the Treasury Officer concerned. Any change in
the lists once given shall be promptly intimated.
(7) As and when the allotment order is received in the treasury
necessary entries shall be made in the appropriation control register under the
attestation of a responsible supervisory officer. When a bill is presented for
payment at the treasury, the availability of budget provision to cover the
payment shall be checked with reference to the entries in the above register.
The progressive total of the expenditure shall be struck after each transaction.
In case the balance provision according to the Register is not adequate to
cover the payment the bill shall be returned nothing the facts.
(8) Since the distribution of budget provision among the various
drawing officers in the departments down to the lowest level will be completed
only by the 20th April, the treasuries are authorized to make payments during
the month of April pending receipt of allotment orders. *Such payments shall
not however exceed 1/12 of the previous year’s allotment for the purpose and
shall be so certified by the drawing officer on the bill. The amounts so paid
shall be promptly entered in the relevant columns in the Appropriation Control
Register:
Provided that no payment shall be made in respect of items that are
covered by this scheme to any disbursing officer after the first May unless
the allotment order from his superior officer is received in the treasury.
*This amendment shall be deemed to have come into force on the
25th day of August, 1986.
* Insertion [G.O.(P) 85/89/Fin. dated 18th February, 1989]
321
(9) If for any reason the allotment letter is lost or destroyed, a

duplicate may be issued indicating boldly in red ink “Duplicate”. In such
cases, the Treasury Officers will take special precaution to avoid duplicate
entries in the Appropriation Control Register.
(10) Disbursements relating to salaries, wages and pensions shall be
exempted from the purview of the above rules. For the purpose of this rule
salary includes all emoluments paid to government employees other than
traveling allowance and permanent conveyance allowance and wages includes
pay of menials and other contingent staff.
(11) The expenditure on permanent travelling allowance and
permanent conveyance allowance shall be debited to the detailed head “Travel
expenses”. The disbursing officers shall ensure the correct debit of expenditure
relating to permanent travelling allowance and permanent conveyance
allowance under ‘Travel Expenses’ separately by attaching abstract to each
bill in which the above two items are also claimed. The authorities who distribute
the budget appropriation shall indicate separately against the provision for
‘Travel Expenses’ the amount required for payment of permanent travelling
allowance and permanent conveyance allowance for the entire period. The
treasuries shall note in the Register maintained by them the provision for each
item and drawals regulated accordingly.
(12) The Disbursing Officer shall prefer the claims relating to each
unit of appropriation mentioned in sub-rule (1) above separately show that
the treasuries shall check up the availability of provision before making
payments.
(13) If a disbursing officer has to separate funds provided under
different major heads and or controlled by different controlling officers,
separate allotment orders relating to the provisions under each major head
shall be issued by the respective controlling authorities
(14) *The following items of expenditure in respect of the Collegiate
Education Department shall be exempted from the purview of the above Rule
* Insertion vide G.O.(P) 215/83/Fin. Dated 27th April 1983
322
1. Unified concessions
2. Harness fee concessions.
3. Concession to the children of disabled persons.
4. Concession to the children/grand children of political sufferers.
5. Concession to the dependants of defence personnel who are

killed in action on front.
6. State Scholarships.
7. Sports Scholarships.
8. Sanskrit scholarships
9. Cultural Scholarship awarded to the winners of the University

Youth Festivals and State Youth Festivals.
10. Scholarships sponsored by Government of India
(a) National loan scholarships
(b) National Merit Scholarships
(c) Merit Scholarships to the children of School teachers

sponsored by the Government of India
(d) Grant-in-aid scheme of scholarship to the student from non-

Hindi speaking states for post-metric studies in Hindi.
11. Scholarships newly Sanctioned by State Government.
(a) District- wise merit scholarships.
(b) State Scholarships to Muslim and Nadar girl students.
323
PART VIII KERALA TREASURY CODE
PART VIII
MISCELLANEOUS STATUTORY RULES AND EXECUTIVE
INSTRUCTIONS
CHAPTER I
*THE INDIAN COINAGE RULES
(Deleted)
CHAPTER II
COIN
A Statement of denomination-wise coins under circulation with

desccription of size, weight, composition, etc., is given below:
*Under revision by the Union Government
324
Denomination-wise coins under circulation with description of size, weight, composition, etc..
Denomination Gross weight Composition (proportion Diameter Edge Shape

of metals)
PART VIII
(1) (2) (3) (4) (5) (6)
Quarternary Alloy
Seventy Five Silver -50%
Rupees .. Copper - 40% 44 millimeters .. Circular
Nickel - 5%
Outer Ring
Copper -92%
Ten Rupees .. Aluminium- 6% 27 millimeter .. Circular
Nickel -2%
325
Centre Piece
(Cupro Nickel)
Copper - 75%
Nickel - 25%
Five Rupees 6.00 gms Ferratic Stailess Steel 23mm .. Circular
Five Rupees (Old) 9.00 gms Cupro-Nickel 23 mm .. Circular

(1) (2) (3) (4) (5) (6)
Two Rupees 5.62gms. Ferratic Stainless Steel 27mm .. Circular

(New)
PART VIII
326
Two Rupees(Old) 6.00 gms. Cupro-Nickel 27 mm .. Eleven Sided
One Rupees(Old) 4.85 gms Ferratic Stainless Steel 25 mm .. Circular
Fifty Paise 3.79 gms Ferratic Stainless Steel 22 mm .. Circular
Twenty Five Paise 2.83 gms Ferratic Stainless Steel 19 mm .. Circular
326
Ten Paise 2.00 gms Ferratic Stainless Steel 16 mm .. Circular
Nickel Coins 180 gms Nickel 100 per cent Milled and Round
Rupee* 1.1`` security coin
edged
Half Rupees 90 ,, ,, 0.95`` Milled ,,

Quarter Rupee* 45 ,, ,, 0.75`` ,, ,,
* The issue of these coins has been discontinued
Decimal Coins
SIVER COIN
(1) (2) (3) (4) (5) (6)
PART VIII
Mahatma Gandhi 15.00 grams 80 percent Silver and 20 Milled with Round
Centenary Ten per cent Copper 34 Millimeter serrations coin
Rupee numbering
155
World Food and 15.00 ,, ,, ,, ,, ,,
327
NICKEL COINS
Mahatma Gandhi 10.00 ,, Nickel 100 per cent Milled and ,,

Centenary One 28 Millimeter security

Rupee serrations
numbering
200
(1) (2) (3) (4) (5) (6)
Decimal Rupee 10.00 Nickel 100 per cent 28 Millimetres Milled and Round Coins
grams Security
PART VIII
edged
Jawaharlal Nehru 10.00 ,, ,, ,, Milled with ,,
Commemorative a serated or
Decimal Rupee upright
milling the
serrations
numbering
200
Mahatma Gandhi 5.00 ,, ,, 24 millimetres Milled with ,,
328
Centenary Fifty serrations
Paise numbering 150
Fifty Paise/Naye 5.00 ,, ,, ,, Milled ,,

Paise
Jawaharlal Nehru 5.00 ,, ,, ,, Milled with ,,

Commemorative serrations
Fifty Paise numering
150
Twenty-fve 2.50 ,, ,, 19 Millimetres Milled ,,
Paise/Naye Paise
ALUMINIUM BRONZE COINS
PART VIII
(1) (2) (3) (4) (5) (6)
Mahatma Gandhi 4.50 ,, 92 per cent Copper, 6 per 22 Millimetres Milled with ,,
Centenary Twenty cent Aluminium and 2 serration
Paise per cent Nickel numbering
212
World Food and 4.50 ,, ,, ,, ,, ,,

Agricultural
329
Organisation
Commemorative
Twenty Paise
Twenty Paise 4.50 ,, ,, Milled with

serration
numbering
212
Ten Paise 4.25 ,, 23 Millimetres Plain Scalloped Coin

across scallops
COPPER-NICKEL COINS
(1) (2) (3) (4) (5) (6)
PART VIII
Fifty Paise 5.00 ,, 75 per cent Copper and 24 Millimetres Milled with Round coin
25 per cent Nickel serrations
numbering
150
Twenty-five Paise 2.50 ,, ,, 19 Millilmetres Milled with ,,

serrations
numbering
100
330
Ten Paise/Naye 5.00 ,, ,, 23 Millimetres Plain Scalloped coin
Paise*
Five Paise/Naye 4.00 ,, ,, 22 Millimetres ,, Suare coin

Pase† across corners, with rounded
19 Millimetres corners
across flats
* Issue and reissue of these coins have been discontinued.
† The issue of these coins has been discontinued.
Two Paise/Naye 3.00 gram 75 per cent Copper and 18 Millimetres Plai Scalloped coin
Paise* 5 per cent Nickel (Outer)
ALUMINIUM M AGNESIUM COINS
(1) (2) (3) (4) (5) (6)
PART VIII
Ten Paise 2.30 ,, 96.5 per cent Aluminum 26 Millimetres 12 ,,

and 3.5 per cent Scapped
Magnesium with
unlimitted
rim
Five Paise 1.50 ,, Aluminium with 3.5 to 4 22Millimetres Unlimited Suare coin
per cent Magnesium across corners rim with rounded
331
19 Millimetres corners
across flats
Three Paise 1.25 ,, 19.55 Plain Hexagonal

Millimetres shape with
across flats rounded corners
22 Millimetres
across corners
Two Paise 0.75 Aluminium with 3.5 to 4 20 Millimetres ,, Scalloped

per cent Magnesium
PART VIII
(1) (2) (3) (4) (5) (6)

One Paisa 1.00 ,, ,, 17 Millimetres ,, Suare coin
between with rounded
opposite corners
corners, 14.70
Millimetres
across flats
BRONZE COINS
332
One Naya Paisa 1.50 ,, 97 per cent Copper, 2 1/2 16 Millimetres ,, Round coin
per cent Zinc and 1/2 per
cent Tin
NICKEL- BRASS COIN

One Paisa/Naya 1.50 ,, 78 to 83 per cent Copper, ,, ,, ,,
Paisa 17 to 20 per cent Zinc
and 9/10th to 14/10th per
cent Nickel
*The issue of these coins has been discontinued.
PART VIII KERALA TREASURY CODE Instructions 1-4
CHAPTER III
CURRENCY AND BANK NOTES
Instructions issued by the Reserve Bank of India
1. Denominations of Notes.—Under the provisions of the Reserve Bank of

India Act (India Act II of 1934) the sole right to issue bank notes in India has been
vested in the Reserve Bank with effect from the 1st April 1935 and the Government
of India have ceased to issue, currency notes. The Reserve Bank has taken over
the liability for the currency notes issued by the Government of India.
2. Currency notes of the denominational values of one rupee, five rupees,
ten rupees, twenty rupees, fifty rupees, one hundred rupees, five hundred
rupees, one thousand rupees and ten thousand rupees have been issued by
the Government. Under the provisions of the Reserve Bank of India Act, these
notes are now legal tender throughout India. The issue of currency notes of
the denominational value of one rupee, and twenty rupees has been
discontinued and currency notes of the other denominational values supplied
by the Government have been issued by the Reserve Bank in addition to its
own notes.
3. Bank notes issued by the Reserve Bank will be of the denominational
values of two rupees, five rupees, ten rupees, one hundred rupees, one thousand
rupees, five thousand rupees and ten thousand rupees unless otherwise
directed by the Government on the recommendations of the Central Board of
the Bank. Bank notes and currency notes issued by the Bank are legal tender
throughout India.
NOTE— Bank notes and currency notes of the denominational values of five
hundred rupees, one thousand rupees, and ten thousand rupees prior
to 13th January 1946 were demonetized with effect from that date and
are no longer legal tender. Bank notes of the denominational values
of one thousand rupees, five thousand rupees and ten thousand
rupees in the Asoka Pillar design have been issued with effect from
1st April 1954 and are legal tender.
RECEIPT AND ISSUE OF NOTES
4. One rupee notes issued by the Central Government are unlimited
legal tender, and although these notes are treated as rupee coin for all purposes
of the Reserve Bank of India Act, the instructions contained in the following
333
paragraphs will, save where the contrary intention appears, apply to these
notes as they apply to currency and bank notes.
5. No restrictions are imposed on the issue of notes at treasuries in
exchange for coin or for notes of other denominations.
6. Although no person has a legal claim to obtain coin for notes
presented at treasury, this accommodation should be given whenever possible,
and all applications for exchange should be granted, provided that the coins
or notes applied for are available, subject to any general or special limitations
which the Reserve Bank or the Government of India may find it necessary to
impose from time to time.
7. Subject to any limitations which may be imposed in particular cases
the Treasury Officer should, whenever he is satisfied that no inconvenience
will be caused to the treasury, exhibit in some conspicuous place a placard in
English and the Indian language in local use notifying that he is prepared to
give coin for notes.
NOTE 1—Notes to limited extent may be cashed for the convenience to
travellers when the treasury is unable to cash them for the general
public.
NOTE 2—Facilities should be given as far as possible for encashment of
notes at sub treasuries.
8. Whenever there are reasons to believe that notes are selling in the
local market at a discount or a premium in large amounts, the Treasury Officer
should at once bring the fact to the notice of the Currency Officer.
9. The ordinary exchange with the public mentioned in Instructions 5 to
7 should be made from the treasury balance. When, however, the amount of
rupees or notes of any denomination in the treasury balance is insufficient to
meet the demand for exchanges, rupees or notes of the required denominations
may be obtained from the currency chest in accordance with Rule 152 (iv) of
the Kerala Treasury Code.
10. It is desirable from the point of view of the popularity of the note
issue that clean notes only should be put into circulation. This has, at the
same time, the advantage of making it more difficult for forged notes to escape
detection, as these are frequently intentionally soiled or smudged in order to
conceal their defects. In the case of district treasuries, however it is not feasible
entirely to discontinue reissue, but Currency Officer will arrange to keep the
334
treasuries in their jurisdiction supplied with sufficient stocks of clean notes in

order to meet all probable demands. Notes much soiled, defaced or torn should
not in any case be reissued to the public and cut notes should not ordinarily
be reissued. Notes unfit for reissue should be sent to the Issue Department of
the Reserve Bank (or the treasury named by the Currency Officer for the
purpose) in the first remittance sent thither in accordance with rule 332 of the
Kerala Treasury Code.
11. Subject to the remarks in the preceding instruction, all notes, if fit for
issue may be issued to the public irrespective of the circle from which they were
issued, or deposited in the currency chests under the relevant orders.
Currency notes of the denominational values of one rupee, and twenty
rupees should not be issued to the public, but should be remitted to the Currency
Officer (or the treasury named by the Currency Officer for the purpose)—See rule
332 of the Kerala Treasury Code.
12. In order to prevent the older issues of notes being stored for an
indefinite period in a treasury, notes fit for reissue should be arranged in the
double lock treasury balances and the currency chest balances in the order of
receipt and should be reissued from these balances in the same order. Notes
received across the counter in the course of daily transactions may be reissued
at once provided that they are in good condition.
13. Notes unfit for issue should be kept separately in the currency
chest balance pending remittance to an Issue Department of the Reserve
Bank in accordance with rule 332 of the Kerala Treasury Code.
FORGED, DEFECTIVE AND LOST NOTES
14. (a) In the event of a forged note being presented, the note and the
presenter should be made over to the Police, if the Treasury Officer considers it
advisable to do so. If, however, the Treasury Officer is convinced that the presenter
has presented the forged note in good faith, believing that it was genuine he
should impound the note and take the name and address of the presenter and his
statement regarding the person from whom he received the note. The forged note
and presenter’s statement should be sent to the Police for further enquiry. After
the enquiry has been completed, the Police will forward the forged note to the
Issue Department of the Reserve Bank along with a report.
NOTE— When a forged note is impounded, it should be stamped with the word
‘Forged’ or the word “Forged” should be written on it in red in large
letters before it is sent to the Police for enquiry.
335
(b) Notes disfigured by oil or other substances should be scrutinized

with special care, as forged notes are sometimes intentionally thus disfigured
to render detection difficult.
(c) The managers of certain joint stock banks and exchange banks
have instructions to send forged notes presented to them to the nearest
treasury for impounding. When a Treasury Officer receives a forged note
from a bank he should take action in accordance with clause (a) above.
(d) The Reserve Bank has authorized the Head Offices and other
offices, branches, sub-branches and Treasury Pay Offices of the State Bank
of India and the branches of its subsidiary banks conducting Government
business to impound forged notes.
(e) At places where there is neither an Issue Department of the Reserve
Bank nor a branch, sub-branch or Treasury Pay Office of the agency bank, treasury
and sub treasury officers are authorized to accept, for disposal in the usual manner,
suspected currency or bank notes tendered by Post and Telegraph Office.
When suspected notes sent to treasuries by Post Offices or managers
of joint stock banks for adjudication are adjudged by Treasury Officers as
genuine their value will be accounted for under the head “Civil Deposits—
Revenue Deposits”, pending repayment of the amount to the parties
concerned. If these deposits remain unclaimed for one whole account year,
they lapse to the credit of the Central Government.
NOTE— These instructions apply mutatis mutandis to coins send by Post
Offices to Treasury Officers.
15. No person is of right entitled to recover the value of any lost, stolen,
mutilated or imperfect currency or bank notes, but rules have been framed
under the Reserve Bank of India Act prescribing the circumstances, conditions
and limitations under which the value of such notes may be refunded as of
grace. The rules are contained in Appendix 24.
16. Half mutilated, mismatched or altered notes and notes disfigured by oil
or other substances in such manner as to render their identification doubtful,
should never be received in payment of Government dues or cashed. The holder
should be advised to apply to the Currency Officer competent to deal with the
matter in accordance with the rules in Appendix 24 for instructions regarding the
procedure under which the value of such notes can in some cases be recovered.
336
NOTE 1—Notes with only a slight mutilation which does not interfere with
identification or suggest fraud may be received at the treasury and dealt with
under Rule 332. The features necessary for the identification of a note are,
besides the number, which must, including the serial letters be all intact, the
denomination, the place of issue where indicated, the signature and the
watermark.
NOTE 2—Defective notes should be stamped with “Half note-Payment
refused”, “Mutilated-Payment refused”, “Mismatched-Payment
refused”, or “Altered-Payment refused” as the case may be, or
such words should be written in red ink in large letters before
they are returned to the presenter.
17. The value of lost, stolen or wholly destroyed notes of the
denomination of ` 100 and below will not be refunded. Persons applying to a
Treasury Officer for a refund of the value of lost, stolen or wholly destroyed notes
of the denomination above ` 100 should be referred to the Currency Officer of any
office of issue.
18. Procedure in treasuries the cash business of which is conducted
by the Bank.—The provisions in Instructions 1-17 apply mutatis mutandis to
treasuries the cash business of which is conducted by the Bank.
INDENTS FOR NOTES
19. The Treasury Officer is responsible for keeping the currency chest
and treasury balances sufficiently stocked with all denominations of notes to
provide for issue to the public in payments on behalf of the Government and
in exchange for coins. He should, as far as possible, submit to the Currency
Officer his requisitions for the supply of notes with the Cash Balance Report.
Ordinarily, remittances of notes will be sent to the district treasury and
distributed to sub treasuries by the Treasury Officer, but in certain cases, e.g.,
when a sub treasury is on a Railway, it may be more economical to send
remittances to a sub treasury for distribution.
20. At places where the cash business of the treasury is conducted
by the Bank, the Manager or Agent of the Bank is responsible for keeping in
the currency chest a sufficient stock of notes to meet all demands from the
public at the district treasury and also demands from the Treasury Officer for
supply to sub treasuries. When the Treasury Officer wishes to replenish the
stock of notes in a sub treasury, he will obtain the necessary supply of notes
337
from the bank unless the sub treasury requirements are large and it is more
economical and convenient to obtain a direct remittance from an Issue
Department of the Reserve Bank. In the case of treasuries the cash business
of which is conducted by the branches of the agency Bank, the Agent of the
Bank will submit his indents for supply of notes to his Local Head Office or
Link Branch which will arrange with the Currency Officer for the necessary
remittance.
CHAPTER IV
RESERVE BANK OF INDIA
Cypher Code and Treasury Agencies

Private Check Signal Book
1. The Currency Officer of the Reserve Bank of India, Delhi, supplies
Cypher Code and Treasury agencies Private Check Signal Book of the Reserve
Bank of India to each Treasury Officer and to the Sub Treasury Officer of each
sub treasury which has a currency chest. The Cypher Code contains a list of
phrases and expressions ordinarily required in telegraphic communications
on matters concerning resource, currency and transactions under the Reserve
Bank of India’s scheme of remittance facilities and as such it should be used
for telegrams relating to such matters. The Check Signal Book should be used
for authenticating all telegrams relating to telegraphic transfers.
2. Safe custody of Code and Check Signal Books.—The Code and
Check Signal Books are confidential and shall be kept locked up carefully
overnight, and during the day when they are not in actual use, in a safe or in
the strong room. The keys of the safe or the receptacle in which the books are
kept shall remain in the personal custody of the Officer-in-charge of the Treasury
or sub treasury or of any other government servant duly authorized in this
behalf. If the books are kept in box or other receptacle as provided above, the
latter must be kept in a safe or in the strong room overnight. When the books
are taken out for use during day, they must invariably remain in the personal
custody of the government servants mentioned above, and must, on no account,
be allowed out of their possession. All spare copies of the Code and Check Signal
Book must invariably remain in a safe or in the strong room. Negligence in the
observance of these instructions may involve Government and Reserve Bank in
considerable loss before protective measures could be adopted. Holders shall,
therefore, exercise extreme care in regard to the custody and handling of these
books.
338
3. Procedure to be followed in connection with the distribution and

acknowledgement of amendment slips.—Amendments to the Code and Check
Signal Book will be distributed by the Currency Officer, Delhi, in the form of
confidential circular letters with acknowledgement forms appended to them. The
covers will be despatched by Registered Post Acknowledgement due, direct to all
holders. Immediately on receipt of the confidential circular the acknowledgement
form appended to it shall be duly completed by the holders, and returned by
Ordinary Post to the Currency Officer.
4. Procedure to be followed in dealing with amendment slips.—
Immediately on receipt of an amendment slip, the reference number and date
appearing thereon shall be serially recorded on the fly leaf at the beginning of the
Cypher Code or Check Signal Book, as the case may be, under the signature of the
Officer-in-charge. No correction shall , however, be made at the appropriate place
in the books until the date from which the amendment takes effect. For this purpose,
a careful diary note shall be taken of the date from which the amendment comes
into force which will be stated in the covering letter and/or each slip and thereafter
the amendment slip shall be carefully filed along with the covering letter, if any, on
a special file expressly opened for the purpose. On the day the amendment becomes
effective the relative slip shall be removed from the special file, cut out and pasted
at the appropriate place in the books, a suitable note of the amendment being
made in the proper place. Should it be found more convenient to carry out the
amendments in manuscript in the body of the books instead of pasting the relative
slips therein, there is no objection to that course being adopted, but in that event
it is imperative that the amendment slips shall be carefully retained on the separate
file referred to above. On the date on which each amendment becomes effective
the fact that the amendment has been carried out shall be noted in a separate
column, under the signature of the Officer-in-charge against the entry already
made on the flyleaf when the amendment slip was received.
Where files are used for recording amendment slip or the covering letters of
both, the above instructions for the safe custody of the Code Books shall apply
mutatis mutandis to such files. All spare copies of amendment slips must also be
kept in a safe or in the strong room.
5. Procedure to be followed in the event of the Cypher Code, Check

Signal or amendment thereto being lost or falling into unauthorized hands.—
Should the Cypher or the Check Signal Book get lost or fall into unauthorized
hands at any time the fact shall immediately be reported by telegrams to the
Chief Accountant of the Reserve Bank of India at Bombay (telegraphic address
339
“Reserve Bank” Bombay) for necessary action. The telegraphic message shall
also be repeated to the Currency Officer for his information. A detailed report
regarding the circumstances attending the incident, the steps taken to trace
the Code or the Check Signal Book in the case of a loss, and the precautions
taken to prevent a recurrence, shall be submitted to the Currency Officer as
soon as possible thereafter. In the event of amendment slips being lost or
falling into unauthorized hands, an immediate report by letter, and not by
telegram, shall be made to the Currency Officer. This report shall be followed
by a detailed report similar to that prescribed above for the Cypher Code, and
the Check Signal Book.
6. Procedure to be followed in the event of transfer of charge.- When a
government servant who holds copies of the Code and Signal Book is relieved of
his charge he shall hand over the copies in his custody to the relieving government
servant and the latter shall certify as follows in the certificate of transfer of charge:-
“I hereby certify that I have received and hold in my personal custody
…………………… copy/copies of the Cypher Code of the Reserve Bank of India
which has/have been corrected up-to-date. The last amendment slip received is
No……………..,dated the ……………………………., for the Code.
“I also certify that I have received and held in my personal custody

…………………… copy/copies of the ‘Treasury Agencies Private Check Signal
Book’ of the Reserve Bank of India which has/have been corrected up-to-
date. The last amendment slip received is No………………………..,dated the
…………………………. for the Check Signal Book.”
“I further certify that I have received and held in my personal custody
…………………… copy/copies of the ‘Secret Memorandum on differences
likely to be found between forged and genuine notes’ of the Reserve Bank of
India which has/have been corrected up-to-date. The last amendment slip
received is No……………., dated ………………… for the Secret
Memorandum”.
7. Annual Possession Certificate.—On the 1st day of April each year
all holders of the Code and Check Signal Book shall send direct to the Currency
Officer a certificate in the following form—
“I hereby certify that I hold in my personal custody …………………………
copy/copies of the Cypher Code of the Reserve Bank of India which has/have
been corrected up-to-date. The last amendment slip received is
No………………., dated the ………………………. for the Code.”
340
PART VIII KERALA TREASURY CODE Instruction 7
“I also certify that I hold in my personal custody copy/copies of ‘Treasury

Agencies Private Check Signal Book’ of the Reserve Bank of India which has/
have been corrected up-to-date. The last amendment slip received is
No………….., dated the …………………… for the Check Signal Book.”
“I further certify that I hold in my personal custody copy/copies of the
‘Secret Memorandum on differences likely to be found between forged and
genuine notes’ of the Reserve Bank of India which has/have been corrected
up-to-date. The last amendment slip received is No………………., dated the
…………………….. for the Secret Memorandum”.
Signature:
Designation:
Date………20…. Place:
Sub Treasury Officers shall also send a copy of the certificate to their
respective District Treasury Officers. In order to obviate unnecessary reminders,
a careful diary note of this shall be maintained by all holders.
C HAPTER V
INSTRUCTIONS ON MISCELLANEOUS SUBJECTS
A. Local Funds
I. The expression ‘local funds’ covers*—
(1) The moneys received and administered by a body which though
not part of the Government’s departmental organization, has been placed
under the control of the Government by a law or a rule having the force of law,
whether in regard to its proceedings generally or to specific matters, e.g., its
budget, creation of particular posts in its service and appointments to such
posts, and the leave, pension and other rules applicable to its servant;
(2) the moneys received and administered by any other specified
body when the Government have published a special notification to the effect
that they constitute a local fund; and
(3) the moneys recovered from District Boards for any specific
purpose and constituted into a separate fund under any law or rule having the
force of law, provided that the fund is specially notified by the Government as
a ‘local fund’.
*See Article 7, Kerala Financial Code.
341
PART VIII KERALA TREASURY CODE Instructions I-IV
*The transactions of local funds are not included as such in the

Government Account except in so far as their cash balances are deposited with
the Government under the rules and accounted for under the deposit head
“Deposits of local funds” within the Public Account. The Government’s
function in regard to such deposits is that of a banker.
II. Some of the important classes of local funds are:—
(1) District funds.
(2) Municipal Funds (i.e., the moneys of Municipal Councils and City
Corporations governed by the District ‘Municipalities Acts and
City Municipal acts’ respectively).
(3) Panchayat Funds, i.e., the moneys of Panchayats governed by the
Kerala Panchayat Act, 1960 (Act 32 of 1960).
(4) The Kerala State Road Transport Corporation Working Fund.
(5) The Kerala State Electricity Board Working Fund.
(6) Market Committee Funds.
(7) Library Funds.
III. The administrators of the local funds should generally follow the
principles and procedure prescribed in the Acts Constituting the funds or the
rules and orders issued under those Acts, in the matter of receipts, custody,
withdrawal, payment and investment of their moneys. But when according to
those rules any money is to be paid into or withdrawn from their banking
accounts with the Treasury, the procedure for such remittance and withdrawal
prescribed in this code should be followed. Any money payable by the
Government to a local fund which has a banking account with a treasury, shall
ordinarily be paid by adjustment to the credit of that account and not in cash.
IV. The balance at a credit of each local fund should be verified by the
Treasury Officer in consultation with the Accountant General and the authority
administering the fund. The Treasury Officer should obtain from the latter
authority a certificate of balance as worked out in the administrative accounts
and forward it to the Accountant General so as to reach him not later than the
10th July, explaining the differences, if any, between that balance and the balance
appearing in the treasury accounts as corrected by adjustments in the accounts
for March Final. The balance as shown in the books of the Accountant General
should be followed by the Treasury Officer and not that shown in the
administrative accounts.
*See Article 324 and 325 of the Kerala Financial Code.
342
PART VIII KERALA TREASURY CODE Instructions V-IX
B. Public debt
1. PERMANENT AND TEMPORARY LOANS
V. When, under the terms of a Loan Notification by the Government,

subscriptions to any new loan under the terms of the notification are receivable
at the treasury the procedure to be observed by Treasury and Sub Treasury
Office in receiving such subscriptions and crediting them into the Government
account will be regulated by the provisions of Chapter VII of the Government
Securities Manual and by such supplementary instructions, if any, as may be
issued by the Government in this behalf.
VI. The procedure to be followed by the Treasury and Sub Treasury
Officers and the Public Debt Offices in making payments in respect of the
principal of any loan when it falls due, will be governed by the rules contained
in Chapter VIII of the Government Securities Manual and supplementary
instructions, if any, issued by the Government in this behalf.
2. FLOATING DEBT
(a) Treasury Bills

VII. Unless the Government direct otherwise, Treasury Bills will be issued
from and repaid at the offices of the Reserve Bank at Madras, Bombay and Calcutta.
Subject as hereinafter provided, the procedure to be observed by the
Bank in connection with the sale and discharge of such bills will be governed
by such instructions as may be issued by the Government to the Bank.
VIII. Treasury bills can be paid on maturity only at the office or branch
of the Reserve Bank from which they were issued. After payment, the
discharged bill should be transmitted to the Accountant General in the same
way as other paid vouchers.
(b) Ways and Means Advances
IX. When Ways and Means Advances are taken by the Government
from the Bank, the request to the Bank will be accompanied by a demand
promissory note for the amount on behalf of the Governor. At the same time,
343
PART VIII KERALA TREASURY CODE Instructions IX-XIV
the particulars of the advance, that is, the amount and the interest payable
thereon, should be communicated by the Government to the Accountant
General.
X. When notifying a repayment, a copy of the instructions to the

Bank should be endorsed to the Accountant General concerned. The Bank
will cancel the promissory note for the advance repaid and make a note on the
promissory note if it is a part payment. The note on final cancellation will be
returned to the Government.
XI. Interest on a Ways and Means Advance will be debited against

the Government account by the Bank at the time of repayment.
C. Transactions relating to Government of other countries
XII. Unless the Government by any general or specific order direct

otherwise, a Treasury Officer may not receive or authorize the Bank to receive
moneys tendered on behalf of Government of other countries, nor make or
authorize payment of any claims against such Governments that may be
presented to him, except under the authority of the Accountant General.
XIII. In receiving or authorizing the Bank to receive such moneys and

in making or authorizing such payments as aforesaid, the Treasury Officer be
guided generally by the provisions of the relevant rules in Parts III and V of
the Kerala Treasury Code except in so far as they may be supplemented or
modified by any general or special instructions issued by the Accountant
General. In all cases of doubt, the Treasury Officer should take the orders of
the Accountant General.
XIV. Moneys received into or paid out of the State Government account
in respect of transactions with the Governments of other countries, will be
adjusted by payment to, or recovery from the Governments concerned, by the
Accountant General.
344
PART VIII KERALA TREASURY CODE Instructions XV-XVI
D. Destruction of Accounts Records

XV. The general rules regarding the destruction of records appertaining
to the accounts audited by the Indian Audit Department are contained in
Article 358 of the Kerala Financial Code. The preservation and destruction of
treasury records are regulated by those rules and such other rules as may be
prescribed by the Director of Treasuries in consultation with the Accountant
General. (See Appendix 25, Kerala Treasury Code, Volume II).
E. Rounding off of paise in Government Accounts

XVI. (1) The following transactions of Government involving
fractions of a rupee shall be brought to account in multiples of 5 paise, portion
not below 2½ paise being rounded off to 5 paise and those below that amount
being ignored.
(i) Personal claims of government servants and pensioners, provided
that—(a) in the case of bills for pay, including leave salary, and pension, the
amount in respect of pay or leave salary or pension, and no other item of
payment or recovery, shall be so increased or reduced by the addition of an
amount not exceeding 2½ paise or subtraction of an amount below 2½ paise
as the case may be, as will make the net amount payable to an individual on
any bill a multiple of 5 paise.
Example—1
Claim Bill to be
Rs. made
Rs.
Pay .. 300.00 300.02
D.A.
.. 40.00 40.00
C.C.A.
.. 24.00 24.00
Gross Total
.. 364.00 364.02
345
PART VIII KERALA TREASURY CODE Instruction XVI
Deductions
P.F. .. 30.00 30.00
H.R. .. 19.12 19.12
I.T. .. 2.06 2.06
P.L.I. .. 8.19 8.19
C.H.S. .. 2.50 2.50
Total deductions .. 61.87 61.87

Net amount .. 302.13 302.15
*Example—
II
Claim Bill to be
Rs. made
Rs.
Pay .. 300.00 299.99
D.A. .. 60.00 60.00
H.R.A .. 40.00 40.00
400.00 399.99
Deductions
P.F. .. 40.00 40.00
H.R.A. .. 19.12 19.12
P.L.I. .. 8.19 8.19
Total deduction .. 67.31 67.31
Net amount .. 332.69 332.68
Less L.I.C. .. 10.03 10.03
322.66 322.65
*Insertion [G.O.(P) 747/82/Fin., dated 8th December, 1982]
346
PART VIII KERALA TREASURY CODE Instructions XVI
NOTE 1—In the case of bills exclusively for allowances, other than traveling
allowance, involving fractions of a rupee, any one part of the
claim of an individual may be rounded off by addition of an
amount not exceeding 2½ paise, or by subtraction of an amount
below 2½ paise, as the case may be, as will make the net amount
payable to the individual on a bill a multiple of 5 paise.
NOTE 2—**In respect of personal claims of Government servants involving
deduction towards Life Insurance Corporation premium, the
rounding shall be made with reference to the net cash payable
from the Treasury/Bank as per the endorsement;
(b) in the case of Travelling Allowance bills, the rounding shall be
done only at the last stage and not in respect of each item, e.g., railway fare,
mileage, daily allowance, etc., comprising the claim of an individual;
(c) transactions which do not involve cash payment shall not be
rounded off; and
(d) in the case of emoluments fixed by law, amounts which are not an
exact multiple of 5 paise shall always be rounded off to the next higher multiple
of 5 paise.
(ii) Transactions between one Government and another of between
two departments of the same Government, unless it is possible
to eliminate from the original transactions, fraction of a rupee
which is not an exact multiple of 5 paise.
(iii) Amounts converted into Indian currency from Sterling or other
foreign currencies.
(iv) *In the case of payments for claims in respect of contingent and
other charges, the rounding off of the fraction of a rupee to a
multiple of 5 paise shall be done only in respect of the net amount
payable on a bill and not in respect of the individual items of
claims or adjustments in the bill.
(v) Reserve Bank remittances, other than those of sum representing
dues fixed by or under any law or under any contractual
obligation of the Government.
**Insertion [G.O.(P) 747/82/Fin., dated 8th December, 1982]

*Substitution [G.O.(P) 747/82/Fin., dated 8th December, 1982]
347
PART VIII KERALA TREASURY CODE Instructions. XVI-XVII
(vi) Deposits and receipts other than those which are fixed by or
under any law or are specially exempted by the Government
from the operation of this rule.
(2) In the case of payments of water charges in the Public Health
Engineering Department, the rounding off shall be done as follows:-In the
case of all payments up to a bill amount of ` 10 the odd paise will be eliminated
and the bills rounded off to the higher even paise. But where the bill amount
exceeds ` 10 the bill should be rounded off to the multiple of 5 paise.
F. Remittance of moneys due by Government to payees
concerned at their cost
PAYMENT BY POSTAGE STAMPS
XVII. (1) In cases where moneys due by Government to a payee are

to be remitted to him by Money Order at his cost and the exact amount cannot
be paid by Money Order after deducting Money Order Commission, postage
stamps of equal value may be sent to him by ordinary post, for the amount
less than one rupee left over after remitting the maximum amount by Money
Order. The acknowledgement of the payee on the money order receipt shall,
as usual, be watched by the disbursing officer, but it is not necessary to call
for a formal receipt from the payee concerned on the value of the postage
stamps and it would suffice if only a certificate to this effect is recorded by the
disbursing officer against the entry recording the payment.**
**Omitted [G.O.(P) 347/81/Fin., dated 28th May, 1981]
348
Abstract
DISBURSEMENT OF PERSONAL ENTITLEMENTS OF EMPLOYEES INCLUDING SELF
DRAWING OFFICERS OF ALL GOVERNMENT DEPARTMENTS THROUGH BANKS-
SANCTIONED—ORDERS ISSUED
FINANCE (STREAMLINING) DEPARTMENT

G. O. (P) No. 402/11/Fin. Dated, Thiruvananthapuram, 23-9-2011
Read:— 1. G. O. (P) No. 439/09/Fin dated 12-10-2009.

2. G. O. (P) No. 476/09/Fin dated 2-11-2009.
3. Circular No. 14/2011/Fin dated 17-2-2011
4. G. O. (P) No. 658/10/Fin dated 3-12-2010.
ORDER
As per Government Order 1st read above, sanction was accorded to

operationalise the system of disbursement of salaries and personal entitlements
except retirement benefits of Non-Gazetted employees of all Government
Departments, through nationalised banks on optional basis. This order was
cancelled vide reference 2nd cited in the wake of proposal to introduce ATM
in Treasuries. Accordingly, instructions were issued to follow the procedure
prescribed in the Kerala Treasury Code for salary disbursement vide circular
read 3rd above. As per G.O read 4th above, Government have ordered that
disbursement of salaries and entitlement of all Self Drawing Officers in the
State should be made through their Treasury Savings Banks accounts with
effect from 1.1.2011.
2. The full computerization of treasuries to facilitate introduction of
ATM in Treasuries has not materialised so far. Now, major Head of Departments
like State Police Chief, Transport Commissioner, etc. have pointed out difficulties
in handling huge amount of physical cash, especially in respect of those
349
employees who are deployed for field duty and requested for sanction by the
Government for disbursement of pay and allowance of their employees through
their bank accounts. Those Departments, which had earlier switched over to
the system of salary payments through banks, also expressed their difficulties
in moving away from that system. Reserve Bank of India has also suggested
the State Government to consider switching over to e-mode of transactions
by using Electronic Clearance Service (ECS), National Electronic Fund Transfer
(NEFT), etc. Further, Government also consider that fruits of advanced
technology in banking system like ATM, mobile banking, etc. should not be
denied to its employees.
3. In the above backdrop, Government have reviewed the position in
its entirety and are pleased to reintroduce the system of disbursement of
personal entitlements except retirement benefits of all government employees
including Self Drawing Officers in the State through Public Sector Bank account
of the employee concerned on an optional basis in supersession of all orders
issued in this regard. The heads of offices should obtain willingness of their
employees before switching over to the new system of payment.
4. In order to implement the system of disbursement of entitlements
except retirement benefits of non-Gazetted employees through an authorised
bank, the following procedures shall be followed.
(i) The Drawing and Disbursing Officer concerned shall present the
bills relating to the personal claims of Non-Gazetted employees through the
bill book to the Treasury Officer for passing the bills after exercising the
prescribed checks, together with the authorisation in favour of the Bank
Manager to encash and credit the proceeds of the bill in accordance with the
statement attached. Together with the bill, the Drawing and Disbursing Officer
will present a statement containing the details relating to each employee such
as full name with initials, designation, Savings Bank account number, Net
amount due to the individual as per the bill, details of amount to be deducted
from the net amount (such as Co-operative recoveries, Profession tax, etc.),
the name and address of those to whom these amounts are payable and the
mode of payment (DD/account transfer, etc.) and the final amount to be credited
to the savings bank account of the persons concerned. If required by the
bank, these details shall be made available in a floppy disk/CD also.
(ii) Self Drawing Officers shall present their bills to the treasury
350
with a request to credit the proceeds of the bill to the bank account of their
choice along with the details mentioned above. The Treasury officer after
exercising proper checks, shall pass the bill and send credit advice to the
bank concerned, showing the net amount to be credited to the bank account
of the officer concerned and the amount to be transfer-credited such as co-
operative dues, profession tax, etc. with the required details.
(iii) The Drawing and Disbursing Officers shall ensure that the net
amount, after co-operative recoveries and other recoveries, due to the
employees is credited to the individual account concerned and also that
recoveries effected from the net amount of the bill are remitted by the bank to
the societies or other agencies concerned under proper acknowledgement.
(iv) The procedure now followed by Treasury will continue and will
issue Pay Order Cheque to the Bank. In the Pay Order Cheque “Pay
` …………… in cash” shall be replaced by “Pay `. ……………..by crediting to
SB account and `…………………..by DD/account transfer.”
(v) After effecting the deductions from the net amount towards dues
to the Societies or other agencies in accordance with the statement furnished
by the Drawing and Disbursing Officer, the bank will credit the amount to the
Savings Bank account of the employees concerned in any bank/branch where
the employee has a live bank account. The Bank will ensure, in the case of pay
and allowances that credit is allowed only on the date due for disbursement of
salary. The bank shall also intimate the employee concerned about the amount
credited to the account through SMS alerts.
(vi) The bank will furnish to the Drawing and Disbursing Officer, a
certified statement containing the details of credit particulars and remittances
of deductions made as per the statement in respect of each employee after
remitting the deductions made from the ‘net amount’ to the institutions
concerned, in the format in which the details were furnished by the Drawing
and Disbursing Officer.
(vii) The services rendered by the banks will be free of service charges.
(viii) The Drawing and Disbursing Officer and the authorised
signatory of the bank will enter into a comprehensive agreement incorporating
the above conditions before introducing the system.
5. The following modifications to the provisions in the Kerala Treasury
351
Code are ordered to facilitate the new dispensation.

(i) The existing Rule 163 (k) Kerala Treasury Code Volume I shall be
modified as follows:
“Recoveries from the salary of government servants on account of dues
to co-operative societies registered under the various Co-operative Societies
Acts where such Acts impose a statutory obligation on the Government to
make such deductions shall be made by the drawing and disbursing officers
or the authorized banks in the case of Non-Gazetted Government servants
who do not draw their own bills, and in other cases by the Treasury Officers
or the authorized banks/other disbursing officers concerned, as the case may
be, in accordance with such procedure as may be laid down by Government
from time to time”.
(ii) First paragraph of Rule 432(a) Kerala Treasury Code Volume I
shall be modified as follows:
“The head of an office is personally responsible for all moneys drawn
as pay, leave salary, allowances, etc. on an establishment bill signed by him or
on his behalf until he has paid them to the persons who are entitled to receive
them or credited them to the bank account of the persons who are entitled to
receive them and has obtained their acknowledgement, duly stamped when
necessary. If disbursement of the amount drawn in the bill is through the
authorised bank by crediting the amount to the savings bank account of the
persons who are entitled to receive them, the Drawing and Disbursing Officer
shall be personally responsible for obtaining the details of amount credited
to the savings bank account of the employees concerned. These
acknowledgements shall be taken as a rule on the office copy of the bill.
When the head of the office concerned considers than an establishment is so
large, or scattered that the payees acknowledgements cannot, without undue
inconvenience, be obtained on the office copy of the bill, he shall maintain a
separate aquittance roll in Form TR 95 and obtain the payees’
acknowledgements therein. In offices where the entitlements are disbursed
through banks, acknowledgements shall be obtained on the office copy of
the bill or on the aquittance roll in Form TR 95 after getting the credit
details from the Bank”.
352
6. The orders issued in Government order 2nd & 3rd read above stand
modified to the above extent.
7. Suitable amendments to the relevant rules in Kerala Treasury Code
will be issued separately.
BY ORDER OF THE GOVERNOR,

Dr. A. K. DUBEY,
PRINCIPAL SECRETARY (FINANCE).
353
INDEX
INDEX
(N.B.—This index deals only with the rules in the several chapters of this
Volume and does not cover the appendices or the forms. It has been
compiled solely for the purpose of assisting references and no
expression used in it should be considered as in any way interpreting
the rules.)
Rules
Absentee statements-
Consolidated .. 173
No leave certificate to be furnished in lieu of -, .. 173
if there are no absentees
Should accompany establishment pay bill .. 173
Account-
See “Government Account”
Accountant-
See “Head Accountant”
Account’s Department .. 53
Accountant General-
Definition of .. 2(a)
Audit objections of-should be promptly replied .. 425
to
To furnish Treasury Officers with specimen .. 210(2)(b)
signatures of audit officers authorizing payment
Powers of - in respect of withdrawal .. 12
354
Accounts
Destruction of - records .. Part VIII
Chapter V,
Instrn.XV
Closing for the day .. 75
Acquittance roll-
Acquittance may be taken on bill itself, if .. 432(a)
convenient
Advances-
Bills for .. 201

Survey .. 202
Ways and means .. Part VIII
Chapter V,
Instrn.XI
Advice lists-
Of drafts .. 393
Of Telegraphic transfer
.. 381
Agents-
For drawing pay, allowance and leave salaries .. 167
For drawing pensions .. 278
Alterations-
In bills and other vouchers .. 163(d) and
210(2)(c)
In cheques .. 241
In rates of pay, allowances, leave salary, etc. .. 165(d)
of Gazetted Officers
355
Anamaths-
Anamath receipts .. 114
Balance register .. 114,118 and
127
Money not included in the general treasury .. 114
balance
Money sent by Government servants from a .. 114(c) and
distance or by postal money order received in 117
the treasury when it is not open for transactions
Money in cash chests, etc., deposited for safe .. 114(d)

custody in the treasury
Undisbursed balances of pay, permanent .. 114(e) and
advance, etc. 119
Unshroffed village remittances .. 114(a),115
and 128
Arrear claims-
Procedure for dealing-at the treasury .. 210(2)(f)
Attachments-
Recoveries of-pay, etc., of Gazetted Officers .. 163(j) and
made by the Accountant General 211(a)
Responsibility of treasury and drawing officers .. 163(j) and
for recovery 211(a)
Audit objections-
Of Accountant General to be replied to punctually .. 426
Responsibility in clearing of .. 428
Of Treasury Officer-
See “Pre-audit at treasury”
356
B
Banderols-
Receipts, custody and issue of .. 155
Bank
Definition of
Agreement between the - and the Government .. 3
List of offices of the Reserve Bank and Local .. 3
Head Offices and branches of the State
Bank of India
List of branches of-In the State of Kerala .. 3, Note
Payment of money by the -Payment of bills .. 230 and 231
Payment of interest on public debt .. 233
Payment of cheques drawn by the Forest and .. 268 and 269
Public Works Departments
Repayment of deposits .. 237
Receipt of money by the
Moneys received from government servants .. 126
Moneys received from private persons .. 124
The-, to be kept open for treasury business .. 67

on gazetted holidays, if so required by the
District Treasury Officer of the District
Village remittances .. 128
Bank drafts
Advice of-drawn and encashed .. 393 and 402

Cancellation and refund of .. 413 to 415
Duplicates of .. 410-412
357
Encashment of .. 397-401
Exchange of .. 416 and 417

Form of .. 387-389
Issue of .. 390-392
Lapse of .. 419
Supply of forms of .. 420
Unpaid .. 41
Bills
Abstract-for contingencies .. 187(d)
Amount payable in cash and amount payable .. 221(d)
by transfer should be separately entered in
payment order
Arithmetical computation should be checked .. 22 and 210(2)(d)
by the Treasury Officer
Arrear-Procedure for dealing with .. 210(2)(f)
Coloured-”not payable at the treasury” should .. 222
be forwarded to departmental officers with
certificates of payment
Copies of orders regarding promotions, etc. .. 163(m)
should not be attached to-sent to the
Accountant General
Detailed-for contingencies .. 187(d)
Doubtful .. 16
Duplicates of .. 163(r)
Endorsement of .. 163(q) and
210(2)(g)
Form and preparation of-for-Advances for .. 203
replacing missing boundary marks
358
Advance to cultivators .. 201
Claims of Government servants who may draw- .. 164-170
Contingencies countersigned before payment .. 187(c)
Contingencies countersigned after payment .. 187(d)
Miscellaneous expenditure .. 163(f)
Payments to contractors for demarcation and .. 202
for other charges recoverable from ryots
Refunds of revenue .. 200
Repayment of deposits .. 204
Works assigned to Civil Departments .. 190
Of department to be included in the Treasury .. 223,235
Bill Book
Payable at Sub Treasuries not to be paid at .. 228
the District Treasury also
Payment of-at Sub Treasuries .. 227 and 228
Payment of-at Sub Treasury without pre-audit .. 227
at the District Treasury not permissible
Payment of-partly at the District Treasury and .. 221(e)
partly at Sub Treasuries
Payment of - Wholly or partly in drafts .. 232
Payment of-at the Bank, the Bank’s .. 231(c) and (d)
responsibility
Payment of-passed, should be made the .. 210(1)

same day
Procedure for Payment of-presented by .. 214
persons not in Government service
Procedure for payment of-sent by post .. 163 (p) and 217
359
Procedure for payment of -in the Public .. 162 and 194
Works Department
Procedure for payment of-of Survey Officers .. 224

or other officers at a distance from the
Treasury
Recoveries adjusted to be shown clearly at .. 425(d)
foot, quoting the number and date of
objection statement, etc.,
Register of-received for pre-audit .. 225
Rules regarding-completion of .. 210(2)(a)

Stamping of-”Paid” by Treasurer .. 210(1)
Treasury objection to be separately .. 210(2)(e)
communicated and not written on
Allocation of charges in-relating to service in .. 183

more than one post
Bond
Agents who have executed indemnity-for .. 167
drawing leave salary, etc.
Security of treasury officials .. 80-81
C
Cash (Departmental)-
Custody of .. 130
Verification of-balance-
General .. 46,131
By Forest Officers .. 133
By Public Works Officers .. 134
360
Cash (Treasury)
Bag of coin or bundle of notes to contain slip .. 139(h)
Methods of storage of-in strong-room .. 138
Normal-balance .. 309
Verification of-balance by Collector or other .. 144
Government servant-Procedure
Verification of -balance in the Sub Treasury- .. 144 and 148
Procedure
Cash Balance Report-
Monthly-Form and preparation .. 311
To be submitted to the Accountant General .. 4(4) and 147
on change of Treasury Officer
Daily-Form and preparation .. 310
Cash Book-
Departmental .. 92
Treasurer’s .. 69,106 and 107
Cash orders-
Custody and use of forms .. 213(a)(iii) and
(iv)
Duplicates, issue of .. 213(a)(viii)
General procedure .. 213
Lapse of .. 213(a)(vii)
Not to be issued for remittance of moneys of .. 213(a)(ii)
private parties
Not to be issued by Sub Treasuries .. 213(b)
Payment of lapsed-procedure .. 213(a)(vii)
Chalans-
Forest revenue remitted by Forest Officers .. 103(2)
into the treasury, signing of-by Head Clerk
for Officers absent from head quarters
Form and preparation of-
361
For payments made into the Treasury … 102
For payments made into the Bank-
By Government servants .. 126
By private persons .. 124
Not required for forest revenue remitted to the .. 103(1)
Treasury by money order
Numbering of .. 112
Office copy to be initialled only .. 120(h) Note 1
Presentation in duplicate .. 102(e)
Presentation in triplicate .. 102(e) and (g)
Procedure for the checking of-in-District .. 106
Treasuries
Sub Treasuries .. 107
Public Works Deposits, particulars to be .. 104
shown in
Register of-Issued to the Bank .. 124 para 3, Note
2
Repayment of loans and advances, .. 102(h), Note 3
particulars to be shown in
Village Remittances-
Payments into the treasury .. 113 and 115
Payments into the Bank .. 128
Charitable Endowments-
Interest, etc.- Payment into and withdrawal .. 93(d) Note
from the Government Account
Cheques-
Acceptance of-in payment of Government dues .. 95
Acceptance of on private banks, conditions for .. 89 and 99
Cancelled .. 251
Crossed .. 240 and 242
362
Drawal on Sub Treasuries .. 239
Lost .. 250
Minimum amount for which-may be issued .. 245
Payments to unknown persons, precautions .. 240
to be taken
Intimation by drawing officer of Cheque .. 264
Book No.
Procedure for payment of- .. 258,259,267
Forest Department .. Note and 268
Public Works Department .. 260-262,267
Note and 269
Quarterly statement of -supplied .. 265
Register of-received .. 106(b) and 124
Supply of-to drawing officers .. 252
Time-expired .. 249
Chief Treasurer-Responsibilities of .. 51
Remittance of-in adjustment of departmental .. 100
receipts appropriated for departmental
payments
Collector-
Definition of .. 2(d)
Examination of all locks and keys in the .. 137(g)
treasury and certifying in the register on
taking charge
Verification of monthly cash balance and .. 42
signing of monthly accounts to be made by
when at headquarters
Commutation-
Of Revenue pensions .. 305(b)
Of Service pensions .. 305(a)
Contingencies-
Abstract bills for- .. 187(b)
363
Bills for-Instructions for the preparation of .. 187-188
Bills for-paid by post, rules of procedure .. 163(p) and 217
Cancellation of sub-vouchers for .. 435
Certificates to be furnished in certain specific .. 188(iv) and (x)
cases or classes of cases of and 191
Countersigned before and after payment .. 187(c) and (d)
Detailed bill for .. 187(d) and (e)
Non-countersigned-form of bills and record .. 187(d) and (e)
of expenditure
Pay and allowances not to be drawn on .. 188(vi)
contingent bill except in specified cases
Permanent advance .. 188(vii)
Petty bills for-not to be cashed by Treasury .. 210(2)(j)
Officers except in certain cases
Recovery of-overdrawn to be made from the .. 425(a)
next contingent bill
Currency Chest(s)
At branches of the State Bank of India .. 149 Note 1
At treasuries .. 150
Custody of .. 135(b), Note 1,
141 and 150
Exchange between treasury balance and .. 313,314 and 318-
321
Notes held in-not in circulation .. 135(b), Note1
and 314
Report of-transactions of .. 318-321
Safe custody of balances in .. 135(b),Notes 1
and 2 and
149Note 1 and
150
Transfer of funds through .. 318-321
Verification of-balance .. 153
Currency chest balance-
Nature of .. 321
364
Currency remittances-
Nature of .. 317
Proving of-Currency Chest Book .. 152
Custody-
Of currency chest balance- .. 135(b)
Note1,149 Note
1 and 150
Of cash chest, valuables, etc. .. 157-160
Of duplicate keys of strong-room, chests, etc. .. 137(f)
Of banderols at treasuries .. 155
Of opium at District Treasury and Sub Treasury .. 156
Of stamps at District Treasury and Sub Treasury .. 154
Of treasure in District Treasury and Sub .. 130-149
Treasury
D
Death Certificate-
To accompany claim for arrears due to .. 300(b)
deceased pensioners
Debt
Permanent and temporary loans .. Part VIII, Chapter
IV B, Instructions
V-VI
Floating-Treasury Bills and ways and .. Part VIII, Chapter
means advances IV B, Instructions
VII-XI
Definition(s)-
Cheque .. 2(c)
Collector .. 2(d)
Government Account .. 2(g)
365
Government servant .. 2(i)
Indian Audit Department .. 2(j)

The Accountant General .. 2(a)
The Bank .. 2(b)
The Constitution .. 2(e)

The Government .. 2(h)
The Governor .. 2(h)
The State .. 2(h)

Treasury .. 2(k)
Departmental payments-
At the Bank .. 162,258-262, 268

and 269
Deposits (Civil and Criminal)
Repayment of-At a non-Banking Treasury .. 206(a), 219
Repayment of-At a banking treasury .. 205(b) and 237

Repayment order to be presented at the .. 207
treasury within three months of issue or
before close of financial year
Deposits (Personal)-
Withdrawal by administrators to be made .. 208

only on cheques
Opening of-Account .. 93(b)
Deposits (Revenue)-
Form of voucher for repayment .. 204
366
Payment by transfer .. 205(c)
Refund of lapsed .. 204 and 210(2)(q)

Repayment at a treasury .. 204-205
Repayment at the Bank .. 237(3)
Repayment to be made only on the order .. 210(2)(p)

of the authority who originally ordered the
acceptance of the deposit
Director-
Responsibilities of .. 30,39(a)
Not relieved of because of inspection by .. 4(5)

Indian Audit Department
Disallowances-
Recovery of .. 424
Disbursers-
Procedure for obtaining funds required by .. 162(d)
Forest and Public Works
Discount-
On stamps .. 193
Disputable claims-
Not to be honoured by Treasury Officer .. 16 and 306(b)
Drawing Officers-
Government servants who are .. 164 and 169
Instructions to -In using cheques .. 24,239-266
Specimen signatures of .. 25
Drafts .. 385-400
367
Duplicates-
Of Bank Drafts .. 410-412

Of cash orders .. 213(a)(viii)
Of receipts granted or bills and other .. 94,Note1 to
documents paid for, issue of-Prohibited 120(h), and 163(r)
E
Endorsement-
Pay order or other endorsement not to .. 222
be made on coloured bill “Not payable at
treasury”
Erasures-
Bills, documents, registers, etc.-prohibited .. 72,163(d) and
210(2)(c)
Escort-
Escort accompanying remittances by railway .. 363-364
Escort officers accompanying remittances-
Duties of .. 335-338
Establishment-
Absentee statement .. 173
Arrear bills of-Claims .. 176
Distribution of pay of .. 432
Pay bill for-Form and preparation of .. 169-177
Pay bill to be accompanied by increment .. 175
certificate, if increment is drawn
Payment of pay and allowances to non- .. 188 (vi)
pensionable contingent employees
Travelling allowance bills of .. 178
Travelling allowance bills of Public Works .. 180
Undisbursed pay, etc., of .. 432
368
Examination (Government)-
Fees for-Procedure for issue of receipts .. 120(d)
Fees for procedure for refund .. 200, Note 6
F
Fees
Payment of overtime .. 181
Refund of college examination, etc. .. 200, Note 6
Refund of poundage and process service .. 200, Note 3

Fines
Payment of compensation .. 199
Payment of grants in lieu of .. 196
Forest payments
By Forest Officer or a government servant .. 258
of some other department acting as a Forest
disburser
Procedure for obtaining funds for .. 162
Forest receipts-
At outlaying stations may be remitted to .. 103(1)
treasury by money order
Chalans for-Remitted to treasury, signing .. 103(2)
by Head Clerks of Divisional Forest
certain cases
Consolidated receipts for-To be sent .. 122
monthly by the treasury
Sums credited as revenue deposits to be .. 122
assigned numbers in the consolidated
receipts
369
Fund deductions-
Responsibility of Treasury Officer to check .. 210(2)(d)
the correctness of
G
Gazetted Officers-
Alterations in pay of .. 165(d)
Pay of-Absent from India .. 168(b)
Claims of-To be paid only under the .. 18
authority of the Accountant General as to
the rate at which payment is to be made
Form of pay bill for .. 164(a)
Form of travelling allowance bill .. 164(c)
Pay of-To be disbursed on personal receipts .. 165(a)
Payment of leave salaries, etc. of-Through .. 167
banks or other authorised agents
Place of payment of pay bill of .. 17 and 168
Government Account-
Definition of .. 2(g)
Inclusion in-Of quasi-public moneys .. 93
handled by Government servants in
official capacity
Location of moneys standing in .. 3
Payment of revenues of the State into the .. 8
Transfer of moneys in .. 26
Withdrawal of moneys from .. 14
370
Grants-in-aid-
Adjustment of-Towards dues to .. 198
Government by a local body
Educational-To private institutions, .. 197(a)
procedure for drawal
To local bodies, private institutions, etc. .. 306(a)(2)
to be disbursed on bills countersigned by
Departmental Officers/copies of Government
sanction
Gratuities-
Payable only on order communicated by .. 303(a)
the Accountant General
Payable only to gratuitant or other legal .. 303(b)
recipient
Payment order to be returned to the .. 303(c)
Accountant General if undrawn for
more than three months
H
Health Certificates-
To be attached to first pay bills on .. 164(b) and 174
permanent appointment or appointment
on probation, etc.
I
Increment Certificates-
Rules regarding submission with pay bills .. 175
Indemnity bond-
See “Bond”
Inspections-
371
By the Inspection Wing of the Finance .. 132
Department
Of District Treasuries-
By the Director .. 39(a)
By an Officer of the Indian Audit .. 39(b)
Department
Of Sub Treasuries-
By a Deputy Director once in 2 years .. 63
By Treasury Officer once in a year .. 64
By an Officer of the Indian Audit Department .. 65
Interest-
On public debt, procedure for drawal of .. 223

Inter-Government Transactions-
Procedure of accounting-Under directions .. 29(i)
of Comproller and Auditor General
Adjustment by the Accountant General .. 31

Receipts and disbursements on behalf .. 30
of Union Government
Receipts and disbursements in the .. 33
United Kingdom
L
Lapse-
Of deposits, cash orders, cheques,
drafts, etc.-See the relevant separate
headings
Last Pay Certificate-
Form and preparation of .. 19 and 182
372
To be presented with pay bill when pay is .. 19
drawn for the first time, from a treasury
Letters of credit .. 210(2)(u), 257A,
267A
Life Certificate-
Of pensioner-See “Pensioner”
Loans and advances-
Bills for- Should quote the sanction .. 201
Advances, etc., requiring the sanction of .. 210 (2)(m)
the Government to be disbursed only after
the bill is countersigned by the authority
specified in the sanction and attaching a
copy of sanction
Repayment chalan to show particulars to .. 102, Note (3)

enable identification
Local Funds-
Definition of .. Part VIII, Chapter
V, Instructions 1
and 2
Adjustments in the banking accounts of-
Communication by the treasury to the bank .. 238
Investment of moneys .. Part VIII, Chapter
V, Instructions 3
Payment into the treasury of deposits of .. 102(h), Note (4)
Withdrawal on cheques .. 248, Notes 1-3
Monthly Accounts and Returns .. 78,79
Closing of .. 76,77
373
M
Moneys-
All-Received on Government Account to .. 6(1)
be paid in full without undue delay into a
t reasury or the bank
Custody of-In the treasury .. 9(1)

Custody of-In the bank .. 9(2)
Held in Anamath, rules of procedure .. 114 and 127
Investment of-Withdrawn from the
Government Account .. 7
Location of-Standing in the Government .. 3
Account
Procedure for payment of-Into the treasury .. 8

Procedure for payment of-Into the bank .. 8
Quasi-public-Inclusion in Government .. 93
Account
Receipt of-Into and issue of-From double .. 139

locks
Received after the treasury has closed for .. 117

transactions, to be entered in the register
of valuables
Responsibility for-Withdrawn from the .. 27-28

Government Account
Special rules regarding receipt of-By .. 96-97
officers of the Judicial and Public Works
Departments
374
Transfer of-Standing in the Government .. 26,308
Account
Tendered not to pass through the .. 88

Departmental Officer not authorised to
collect
N
Normal balances-
Fixation of-At treasuries and sub treasuries .. 309

Notes-
Altered-Treatment of .. Part VIII, Chapter
III, Instruction 16
Denominations of .. Part VIII, Chapter

III, Instructions 1 -
3
Discount on, report regarding .. ,, Instruction 8

Exchange of, for coin and vice versa .. ,, Instructions
5-7
Forged-
Precautions regarding .. ,, Instruction

14(b)
Received from bank .. ,, Instruction
14(c)
Treasury -Procedure on presentation of .. ,, Instruction
14(a)
Half-notes-Treatment of .. ,, Instruction 16
Issue of-From double locks .. ,, Instructions 12
and 139
375
Lost or destroyed-Procedure for recovery .. ,, Instruction 17
of value of
Mismatched-Treatment of .. ,, Instruction 16
Mutilated-Treatment of .. ,, Instruction 16
Receipt of-Into double locks .. 139

Remittance of-See “Remittance”
Storage of-In strong-room .. 138
Supply of-
To branches of the bank .. Part VIII, Chapter
III, Instruction 20
Conducting treasury business-
To treasuries .. ,, Instruction 19
Withdrawal of soiled or worn .. ,, Instruction 10
Notices-
Exhibition in Treasury of-Regarding hour .. 50,58 and 120(g)

of closing, officers competent to sign
receipts, etc.
Number book-
Form and use of .. 106 (a)
O
Objections-
Of the Accountant General-Duties .. 424-426
of Treasury Officer with regard to
376
Of Treasury and Sub Treasury .. 210(2)(e)
Objection statement-
Accountant General’s-Copy to be kept in .. 426
Treasury
Procedure in Treasury on receipt of-From .. 424-426
the Accountant General
Opium-
Receipt, custody and issue of, at Distrit .. 156
Treasury and Sub Treasury
P
Pass Book-
Of departmental officers to be written up .. 255
by Treasury and returned the same day
Of Public Works Department Officers .. 286

Pay, allowances, etc.-
Bill for-Of Gazetted Officers .. 164-167
Bill for-Of Non-Gazetted Officers .. 169-178
Bill for-Public Works establishments, .. 180
special rules
Bill for-Over-time fees .. 181

Bill for - To be accompanied by .. 175
increment certificates
Bill for-To be accompanied by absentee .. 173

statement
Classes of Government servants whose .. 171

names may be omitted from bill for
377
Deductions from bills on account of .. 163(j) and 211
attachments by courts
Distribution of-Of establishments .. 432

Efficiency bar, declaration of crossing to .. 175
be attached to bills for
Fund deductions from bills for .. 210(2)(d)

First payment of .. 19,164(b) and 174
Last payment of-To Government servants .. 212 and 432(e)
to be made after obtaining certificates
f rom the Head of Department or satisfying
that no amount is due to the Government
Of deceased Government servants .. 212A

Not to be paid to an officer to whom last .. 182
pay certificate has been granted
Of officers to be passed after reference to .. 427

register of recoveries
Place of payment of bills for .. 17,18 and 168

Record and check of undisbursed .. 432(c)
Recoveries of overdrawn .. 425
To officers out of India .. 168(b)
Undisbursed of establishments .. 432(c)
Payments-
Arithmetical errors, etc., in bills for .. 22
At Treasury, not to be made except .. 210
under orders of Treasury Officer
At Sub Treasury without pre-audit at .. 227
District Treasury
378
At the Bank .. 230-234
Authority of Treasury Officer to make .. 13 and 15
By transfer bill to be stamped “paid by .. 221(a)
transfer” by the Accountant
By transfer-Form of pay order .. 221(b) and (d)

By postal money order .. 216(b), 217
Certificate of-Of original bill to be given .. 222
on duplicate coloured bill “Not payable at
Treasury”
Deposit repayments-See “Deposits”

Doubtful claims for .. 306(b)
Emergency .. 23
Final-To officers quitting service .. 212 and 432(e)
First-Of Pay, allowances, etc., to .. 19
Government servants
For works .. 190
General procedure at Treasuries .. 210-214
General procedure at Sub Treasuries .. 227 and 228
Nature of-To be recorded formally in .. 163(a) 1 and
every voucher 210(2)(a)
Of arrear claims .. 210(2)(f)

Of cheques .. 239-251,258-
262,267 and 269(a)
Of grants-in-aid, contributions, etc., to be .. 306(a)(2)
made on bills countersigned by the
departmental officer with copies of
sanction of Government
Of pensions-See ‘Pension Payment’
379
Of pay and allowances to non- .. 188 (vi)
pensionable contingent employees
On account of the Forest Department .. 258-259

On account of Local Funds .. 248
On account of Public Works Department .. 260-266
To non-officials-Intimation to income tax .. 226
authorities
Place of-Of Government servant’s claims-

Preparation and presentation of claims for .. 163-209
Rules for-At the Bank .. 230-231
Rules for-To persons not in Government .. 214
service
Pay office-See Treasury Pay Office

Pay order-
Form of-On bill payable partly at District .. 221(e)
Treasury an partly at Sub Treasury
For interest on public debt .. 233

On bills, to be given by Treasury Officer .. 210(1)
On bills, not to be endorsed on duplicate .. 222

coloured bills “Not payable at the
Treasury”
On cheques and bills, to be paid by transfer .. 221

Period of currency-For payment at the Bank .. 231(d)
Register of-On the Bank .. 231(a)
380
To show amount payable in cash and .. 221(d)
amount payable by transfer separately
Pension-
Can be drawn for day of death .. 215,270,298
Commutation, both halves of Pension
Payment Order should be returned to
Audit Office after payment .. 272(d)

Commutation of Revenue or Political-
Some special rules .. 305(b) and (c)
Lapse of .. 294-297
Payable by money order-Procedure .. 286,286A
Payable in India may be paid in any .. 289
Treasury in India
Payment of arrears of - Due to deceased .. 299-300
pensioner
Transfers in India .. 290

Undrawn for more than one year ceases .. 294
to be payable
Pensioners-
Death of-To be promptly reported to the .. 301
Accountant General
Deceased-Procedure for drawal of arrears .. 298-300

Drawing first pension, to produce copy of .. 274(a)
order sanctioning pension
Exempted from personal appearance to give .. 280(a)

proof to Treasury Officer annually of their
continued existence
381
Exemption from personal appearance to be .. 280(c)
noted on the Pension Payment Order
Identification-
General Rules .. 274 and 287
Special Rules
European ladies .. 287(a)
Ex-Gazetted Officer .. 287(a)
Illiterate persons .. 297(b)
Indian Princes .. 287(a)
Title-holders .. 287(a)
Women not accustomed to appear in public .. 275,287(b)
Life certificate of-Exempted from personal .. 276
appearance
Political-Transfer of place of payment may .. 290(b)

be arranged for by Collectors
Pension Payment-
At Sub Treasuries, both halves to be sent .. 273(c)
to Sub Treasury Officer
Bills and receipts, procedure rules .. 281 and 282

By postal money order .. 286, 286A
Certificates and declaration of pensioner .. 283 and 284
Lapsed orders .. 294-297
Made only on Pension Payment Orders .. 272(a) and (c)
issued by the Accountant General
Manner of-
On life certificate, precautions .. 277 and 280
382
On life certificate, to be made for months .. 274
completed on or before date of certificate
On non-employment certificate .. 283

On certificate of events not taken place .. 284
Place of-In India and transfer .. 289-292
To agents, procedure .. 278 and 288(b)
To an insane person .. 186A, 285
To leper pensioners .. 279
To women who do not appear in public .. 280(d)
precautions to obviate risk of fraud
Transfers within district may be arranged .. 292

by Treasury Officer
Pension Payment Orders-

Both halves should be returned to Audit .. 272(d)
Office on payment of commutation
Entry of payments in .. 281(b)

Must be produced for every payment of .. 272(c)
pension
Pensions paid only on-Issued by .. 272

Accountant General
Registers of .. 272
Renewal of .. 293
For first time on production of Last Pay .. 186
Certificate
Treasury Officer’s halves should be .. 272(f)
pasted in files in his personal custody
383
Pensioners halves to be surrendered to .. 286A
the Treasury Officer in cases of payments
by postal money order
Personal deposits-See “Deposits”

Political pensions-
Change of place of payment of .. 290(b)
Commutation of, some special rules .. 305(c)
Postage stamps-
Procedure for obtaining service .. 192 and 221
Pre-audit at Treasury-
Amount disallowed to be intimated to .. 210(2)(d)
drawing officer
Arithmetical computations in bills to be .. 22 and 210(2)(d)

checked
Objections to be recorded in the .. 210(2)(e)

prescribed book and then communicated to
drawing officer
Objections not to be written on bills .. 210(2)(e)

Of Gazetted Officer’s claim .. 210(2)(d)
Public Debt-
Interest on-Payment order .. 233
Public Works Department-
Bills for pay and allowances, encashment of .. 258
Bills for contingencies, encashment of .. 258
Cheques-
Drawn on Treasuries specified by the .. 260
Accountant General
Letters of credit not necessary .. 265

384
Cheque Books
Returns of books supplied .. 260
Pass Books-Form and upkeep .. 255 and 266
Payments-
At Sub Treasuries .. 260(b)
By cheques .. 260
Methods of drawing money from treasury .. 162
On bills .. 162
Receipts
General procedure .. 97,104 and 105
Monthly verification .. 123
Subordinate Officers-
Funds not to be supplied by Drafts .. 261(d)
Limitation on the drawing of .. 261(b) and (c)
May be empowered to draw against .. 261
Divisional Officer’s Account
Transactions with the Bank .. 269
Anamath .. 114
R
Receipt(s)
To be given .. 90(a)
Departmental-Not to be appropriated for .. 6(2)
departmental expenditure
Departmental-Authorised for .. 6(3)
departmental expenditure
Deposit-See “Deposits”
Receipt(s)-(concld.)
Duplicate-Issue of .. 94 and 120(h)
Note 1
385
For moneys by Civil Courts .. 96(a)
For moneys by Criminal Courts .. 96(b)
For moneys paid into the Treasury .. 120
For payments for service postage stamps .. 120(h) Note (3)
For sums paid by transfer .. do. Note (2)
Grant of temporary and final .. 92(b) and 97
Of cash chests and valuables in .. 157-160
the Treasury
Special procedure for-

Of the Forest Department .. 103 and 122
Local Funds .. 102(h) Note (4)
Public Works and Commercial Services .. 97,104-105 and 123
Stamping of-For sums exceeding `20 163(s)
Records-
Destruction of accounts .. Part VIII, Chapter V,
Instruction 15
Recoveries-
Of contingent charges overdrawn to be .. 425(a)
made from next contingent bill
Of amounts attached by Courts .. 195
Of pay and travelling allowance, .. 424 and 425(b) and
procedure to obviate delays (c)
Ordered by the Accountant General, .. 424-426
Treasury Officer’s duty
Procedure for-Of overdrawals or other .. do.

sums under objection
Rate of-From Government servants .. 424 Note

Register of .. 427
Refunds-
Bills for .. 200
386
By money order .. 218
Refunds-(concld.)
Of college fees .. 200 Note (6)
Of deposit-See “Deposit”
Of examination fees .. 200 Note (6)
Of excess receipts on account of .. 200 Note (5)
advertisement in the Gazette and other
official publication
Of fines .. 200 Note (7)

Of land revenue .. 200 Note (1)
Of poundage and process-service fees .. 200 Note (3)
Of registration fee .. 200 Note (4)
On account of stamps .. 200 Note (2)
Preparation of bills for-of revenue .. 200
Register-
Of anamath balances .. 114
Of bills received for pre-audit .. 225
Of chalans issued for payment of .. 124 para 3, Note (2)
money into the Bank
Of cheques presented at Treasuries .. 106(b) and 124
Of late Treasury or currency remittances .. 114(b) and 116
Of locks and duplicate keys of Treasury .. 137
strong room, chests, etc.
Of objections on bills presented at treasury .. 210(2)(e)
Of orders for payment issued on the Bank .. 231(a)
Of pensions payable by money order .. 286,286A
Of powers of attorney .. 167(a)
Of recoveries ordered by Accountant .. 427
General
Of undisbursed pay, etc. .. 119
Of unshroffed remittances .. 116
Of Reserve Bank of India drafts encashed .. 406
387
Of village remittance .. 115 and 128
See also “Deposits, Pensions, etc.”
Remittance (s) Cash-
General .. 323
Coin - packing of .. 327-331
withdrawn from circulation .. 331
Currency .. 317
Escort officer accompanying-duties of .. 335-338
Invoices of-of coin .. 329
Invoices of- of notes .. 334
Notes-
New and fit for issue .. 333
Packing of .. 334
Unfit for issue .. 332
Police escort .. 335
Receipt of-
Procedure at a Treasury .. 339-352
Procedure at a branch of the State Bank .. 374
of India
Rules for-
By Railway-
Escort .. 363-364
Loading .. 360-361
Payment of freight charges .. 366
Previous notice to Railway authorities .. 359
Special rules .. 359-367
By steamer .. 368
Treasury Officer’s powers regarding .. 324(b)
Remittance(s)-Reserve Bank of India-
Drafts-
General .. 376-426
388
Advice of-drawn .. 393-394
Cancellation and refund of .. 413-415
Drawings and encashments .. 385-388
Doubtful drawings .. 403
Duplicates of .. 410-412
Encashment of .. 397-402
Exchange of .. 416-471
Form of .. 387-389
Form of receipt for payment of .. 404
Issue of .. 390-392
Lapse of .. 419
Of policemen-Rules of procedure .. 421-423
Record of drawings and encashments of .. 405-409
Regularity of signature of drawer of .. 395-396
Schedule of drawings and encashments .. 407-409
Supply of forms of telegraphic transfers, .. 420
drafts, etc.
Telegraphic transfers-Issues and .. 380-384
encashments
Unpaid .. 418
Remittances by postage stamps- .. Part, VIII.F.XVII(1)
Remittance book-
Use of-In the Public Works Department .. 98 and 105
Resource-
Normal balance .. 309
Provision of funds at-
Branches of the Bank .. 316
Treasuries and Sub Treasuries .. 315
Surplus-Transfer of .. 314-315 and 318-322
Transfer of funds through currency chest .. 318,319,320-391
Treasury Officer’s general responsibility for-
At banking treasuries .. 316
389
At non-banking treasuries .. 315
Retrenchments-
Representations and protests against-
Ordered by the Accountant General, .. 424
procedure
To be made without reference to the .. 424

officer concerned
See also “Recoveries”

Report-
Half-yearly-Of non-drawal of pensions .. 295(c) and 297
Revenue-
Deposit-See “Deposits”
Refunds of-See “Refunds of Revenue”
Revenue deposits-
Payment by transfer .. 205(c)
Revenue pensions-
Commutation of, some special rules .. 305
S
Scholarships, stipends, etc.-
Bills for-, to be accompanied by duplicate .. 197
coloured “Not payable” bills for transmission
to departmental controlling office through
the treasury
Securities-
Interest on Government-See “Public debt”
To be furnished by treasury officials, .. 80
rules relating to
390
Section Heads-
Responsibilities of-In the Accounts .. 53-55

Department
Security bonds-
Of treasury official .. 81-82

Service postage stamps-
Cash not to be received from Government .. 109
servants for supply of
Cheques paid in for value of -to be entered .. 221(a)

in Treasurer’s Cash Book on both sides
Drawal on contingent bill .. 192

Payments for .. 109 and 124 para
3, Note (3)
Procedure to be adopted by Government
officials for obtaining .. 192
Will be issued direct from Sub Treasuries .. 228(c) Note
Stamps
Cheques for service, should be entered .. 221(a)
on both sides of Treasurer’s Cash Book
Custody, supply and issue .. 154

Discount on sale of-procedure for payment .. 193
On bill, to be punched by Treasurer .. 210(1), 220
Should not be unnecessarily stocked in .. 43(b) Note and
Treasuries 65
391
Strong rooms-
Double locks and double keys .. 135
Duplicate keys of-at treasuries, rules .. 137
regarding
Iron safes in-how to be kept .. 136(b)

Security of-rules regarding .. 136
Storage of coin in .. 138(a)
Storage of notes in .. 138(b)
Storage of treasure in-of Sub Treasuries .. 138 and 140
Sub Treasuries-
Custody of money at-procedure .. 140
Inspection of-by Deputy Director of .. 63,64 and 65
Treasuries, Treasury Officer and by
officers of the Indian Audit Department
List of treasuries .. 66 Note

Note to issue cash orders .. 213(b)
Payment of moneys at-procedure .. 227 and 228

Receipt of moneys at-procedure .. 107
Rules relating to receipt, custody and .. 156
issue of opium and gunja
Rules relating to receipt, custody and .. 154

issue of stamps
Strong room and storage of treasury .. 138
Technical examination of-By Treasury .. 64

Officers
392
Verification of cash balance and submission .. 60,61 and 62
of monthly account
Sub Treasury Officer-

Definition of .. 57
Division of duties between-And his Head .. 58 and 59

Accountant
Sub Vouchers-
Certificates of cancellation and defacementof .. 435

Defacement of .. 435
See also “Vouchers”
Survey Officers-
At a distance from the Treasury-Bills .. 224
of special instructions
T
Telegram-
Telegraphic transfer .. 380-384
Transfer of-
Government moneys .. 308
Of funds between Treasury Balance and .. 319,320
Currency Chest
Travelling allowance-
Bills for certain Public Works .. 180
Establishments
393
Bill for establishments .. 178
Bill for Gazetted Officers .. 164(c)
Payment of bus fares to Police Constables .. 179
Treasurer-
Amount held in sole custody of .. 135(b)
Cash book of-Cheques in payment of .. 221(a)
service stamps should be entered on both
sides
See also ‘Cash Book’

Cash book of-Note to contain any entry of .. 221(a)
bills paid by transfer
Duties with regard to receipt with and .. 106 and 210

payments
Handling over his keys to Treasurer or .. 138(b) Note

Accountant during casual leave
Responsibility of -And his security .. 51,80,81 and 85

Security bond of - Form, preparation and .. 81-82
other rules
Treasury-
Definition of .. 2(k)
General system of control over .. 4
Inspection of-By the Director .. 43(a)
By an officer of the Indian Audit Department .. 43(b)
Irregularity reported by Accountant General .. 44,48
to be investigated by the Director personally
List of Treasuries and Sub Treasuries .. 66 Note
394
Notice regarding hours of work in the, etc .. 50
Pre audit at - See ‘Pre audit at Treasury’
Treasury balance-
Amount held in Treasurer’s sole custody .. 135(b)
Verification of .. 47-52
Cash balance report-
Monthly .. 311
Weekly .. 310
Distinguished from currency chest balance .. 135(b) Note
Double lock balance-
Issue of coin from .. 139(d)
Issue of notes from .. 139(c)
Receipt of coin into .. 139(a)
Receipt of notes into .. 139(b)
Register of double lock transactions .. 139(g) and 140
To be telegraphed to the Currency Officer .. 312
on the first of each month
Nature of .. 135(b) Note

Verification of-Rules regarding .. 144
Daily report on amount of .. 310
See also “cash”, “cash balance”
Treasury Officer
Duties in regard to recoveries ordered .. 424,425
by the Accountant General
395
Duties of - With regard to objections and .. 424,426
recoveries
Memorandum to be furnished when cashing
bills of Survey Officers and others at a
distance from the Treasury .. 224
Precaution to be observed in payment of .. 240
cheques when payee is unknown
Responsibilities and duties of-In paying .. 16,21

claims
Responsibility of-Regarding fund .. 210(2)(d)

deductions
Responsibility of-To get sufficient .. 21 and 210(2)(a)

information regarding nature of every
payment he makes and to record it on
the voucher
To affix his private seal to both locks .. 135(a)

of strong room in addition to official seal
To verify the signature of authorising .. 210(2)(b)

Audit Officer, if any, before passing
bill for payment
To check arithmetical computations in bills .. 22 and 210(2)(d)

To check gazetted officer’s claims with .. 210(2)(d)
reference to latest orders
To check the receipt, issue and balance of .. 252

cheque forms and see that issues to
officers are promptly acknowledged
To intimate to drawing officers amounts .. 210

disallowed
To keep disburser’s halves of pension .. 272(f)

payment orders in personal custody
396
To make recoveries ordered by the .. 27
Accountant General without entering into
correspondence with the officers concerned
To observe the rules regarding completion .. 210(2)(a)

of vouchers
To obtain orders of Accountant General, if .. 425(c)

recoveries are delayed or appear likely to
be delayed
To obtain annually the Public Works .. 136(c)

Officer’s Certificate of safety of strong room
To examine all locks and keys of treasury .. 137(g)

and certify in the register on taking charge
To see personally that notices regarding .. 50

currency conveniences to the public
are hung up conspicuously
To record on Pension Payment Orderof

pensioner’s continued existence, in the .. 280(e)
case of pensioners exempted from
personal apperance
To report defalcation or loss of money, .. 45
stamps, etc., to the Accountant General
and the Director of Treasuries
To see that moneys (including stamps, .. 135(b)

opium and gunja) in sole charge of
Treasurer at any time does not exceed
his security
397
Transfer of-
Relieving Officer’s specimen signature to .. 396
be sent to other treasuries by outgoing
officer for the purpose of Reserve Bank
Drafts
See also “custody, payment, receipts,

treasury procedure, etc.”
Treasury procedure-
At places where treasury business is
conducted by the Bank-
In the absence of the agent .. 68

Advices and certificates to departmental .. 234
officers
Register of chalans issued .. 124 para 3

Note (2)
Register of orders for payment .. 231(a)

U
Uncurrent coin-
Withdrawal from circulation-See “coin”
Undisbursed pay, etc.-
Of establishments. How treated and .. 432
accounted for
V
Village remittances-
Accounts procedure at sub treasury and at .. 128
the Bank
Advices by the Bank and sub treasury .. 128

to the Currency Officer
398
Entries in Treasurer’s cash book and .. 128
examination by Sub Treasury Officer
Procedure for receipt of-in non banking .. 113 and 115
sub treasuries
Unshroffed .. 115
Vouchers-
Cancelling of .. 435
Cancellation of sub-relating to .. 435
contingencies
Certificate of cancellation and .. 435

defacement of
Completion of .. 163 and 210(2)(a)

See also “Bills”
Delegation by head of office to sign .. 163(g)
Filing of-Not submitted to audit .. 434
For repayment of deposits .. 204
Payment certificate to be recorded in .. 430(b)
absence of
Punching the stamp and stamping ‘Pad’ .. 210-220

Rules for the preparation of .. 163,210 and 430
To be in prescribed forms .. 429,430,431
Special rules for drawing officers of .. 436-440
Forest,P.W.D. etc.
W
Wages
To staff borne on contingency establishments
Drawal of .. 188(vi)
399
Withdrawal of moneys
From Government Account-See “Moneys”
Works
Preparation and payment of bill for .. 190
400
Notes
401
Notes
402
Notes
403
Notes
404

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GOVERNMENT OF KERALA

Issued by the Authority of the Government of Kerala

Under Article (283) (2) of the Constitution of India, the custody

2. Since then the question of unifying these rules so as to bringing

4. With regard to the procedure to be followed by Treasury

5. The rules contained in this Code supersede all existing orders

2. Wherever the Director of Treasuries or any other head of the

The present edition of the Kerala Treasury Code, Volume I

Whenever the Director of Treasuries or any other Head of

Trivandrum, K. V. RABINDRAN NAIR,

The third edition of Kerala Treasury Code Volume I was published

Thiruvananthapuram, DR. V. P. JOY,

No.54282/CR/59/Fin. Dated, Trivandrum, 6th April 1963.

In exercise of the powers conferred by Article 283(2) of the

By order of the Governor,

I Short title and Commencement .. 1

IX Responsibility for moneys withdrawn:

I General Rules— General Instructions for

CUSTODY OF MONEYS RELATING TO OR STANDING IN

I Cash in Departmental chests:—

I Rules applicable to government officers in general:

TRANSFER OF MONEYS STANDING IN THE GOVERNMENT ACCOUNT

I Responsibility of Treasury Officer in .. 305–306

The Indian Coinage Rules .. 324

(d) “Collector” means the head of a district and includes any

(e) The “Constitution” means the Constitution of India.

(f) “Director” means the Head of the Department of Treasuries

(g) “Government Account” means the total of the Consolidated

NOTE.—In this clause the expression “the Consolidated Fund Account”,

(h) “The State”, “the Governor” and “the Government” means

(i) “Government servant” means any person serving in

(j) “Indian Audit Department” means the officers and establishment,

(k) “Treasury” means any treasury of the State and includes a

4. (1) Unless the Government, after consultation with the Accountant

5. If the requirements of the public business make necessary the

6. (1) (i) All moneys received by or deposited with any officer

(iii) The head of account to which such moneys shall be

(v) Other similar items ordered by the High Court.

(e) Cash receipts of Range Officers in the Forest Department

(n) Cash property found on the person of a prisoner at the time

* Insertion [G.O.(P) No.368/73/Fin., dated 29th August, 1973]

7. A Government servant may not, except with the special permission

10. In this section “withdrawal” with its cognate expressions refers to

11. Save as expressly provided by or under these rules, or unless the

POWER OF THE ACCOUNTANT GENERAL

SPECIAL INSTRUCTIONS TO TREASURY OFFICERS

15. A Treasury Officer has no general authority to make payments on

Exceptions.—*(a) for payment of honorarium of an occasional nature

(c) for payment of over-time allowance, where

(vi) for providing practical training to students of

21. The Treasury Officer shall obtain sufficient information as to the

PAYMENTS UNDER SPECIAL AUTHORISATION OF THE

23. A Collector may, in circumstances of urgency, by an order in writing

INSTRUCTIONS TO DRAWING OFFICERS

24. A government servant who is authorised to draw moneys by means

25. *(a) Every government servant who is authorised to draw cheques

(b) (1) Each district treasury will be inspected periodically by an

*NOTE—The Joint Director/Regional Deputy Directors as the case may be,

** [G.O.(P) 147/77/Fin., dated 16th May 1977.] &

† NOTE.—The Joint Director/Regional Deputy Directors as the case may be are