PREFACE
The detailed instructions to be followed by DDOs including the DDOs permitted to draw funds
directly from the local branches of the Bank by means of cheque under the departmentalised system
of payment are scattered at various places in the Rules of GFRs, FRs, SRs, Government Account
{Receipts and Payments} Rules, 1983, Civil Accounts Manual, etc., etc. Thus a manual with the
title ‘Manual for Drawing and Disbursing Officers’ containing the essential and important
instructions with suitable references to the relevant provisions of the above publications was
initially brought out in the year 1981 which was subsequently revised in the year 1988.
2. In the ‘Third Edition’ of this manual, opportunity has been taken, amongst others, to add the
following items :-
(I)
Types of DDOs, their functions, etc.
(ii) Important checks to be exercised by the DDOs in respect of LTC Bills, TA Bills, Medical
Attendance Bills, Conveyance allowance.
(iii) Checks for the drawal and disbursement of advances.
3. In a nutshell this manual has been brought out with the objective of providing easy to
understand guidance to the DDOs. This manual is a guide book for internal use only. Its contents
do not supplement, replace or modify any codal provision.
(C. R. Sundaramurti)
Joint Controller General of Accounts.

1
CHAPTER 1
CASH AND ACCOUNTS
General
1.1. The instructions detailed herein describe the procedure to be
followed in regard to the receipt, custody,and disbursement of money in
Government Offices and maintenance of accounts connected therewith.
These instructions are based on the Central Government Account
(Receipts and Payments) Rules ,1983,and General Financial Rules and
other relevant orders on the subject.
Head of Office
/Drawing &
Disbursing
officer
1.2 The Departments of the Central Government, Heads of Departments
and Administrators have powers (vide Rule 114 of Delegation of
Financial Powers Rules,1978) to declare as the Head of Office any
Gazetted Officer subordinate to them. The Head of Office or any other
Gazetted Officer designated as Disbursing Officer by a Department of
the Central Government, a Head of Department or an Administrator
[vide Rule 2 (xii) of GFRs] functions as the Drawing & Disbursing
Officer for drawing bills and making payments on behalf of the Central
Government and is responsible for all moneys received or disbursed in
his office and the maintenance of accounts thereof. In accordance with
Rule 35(2) of Central Government Account (Receipts and Payments)
Rules the Head of Office may, however, authorise any Gazetted Officer
serving under him to sign a bill or order for him, communicating the
name and specimen signature of the officer to the PAO or cheque-
drawing DDO/Treasury Officer with whom he is in account. This does
not however, confer on the Gazetted Officer so authorised any powers of
the Head of Office nor does it relieve the Head of Office in any way of
his responsibility for the accuracy of the bill or for the disposal of the
money received in payment.
Types of DDOs 1.3 There are three types of DDOs namely :-
(i) Cheque Drawing DDOs
(ii) Non-cheque Drawing DDOs
(iii) Merged DDOs
(i) Cheque
Drawing DDOs
Under the departmentalised accounting system all payments are to
be made by the Pay and Accounts Offices of the
Ministry/Department after pre-check. However, certain Drawing and
Disbursing Officers of Offices which are not located at the
same station as the Pay and Accounts Office have been vested with
cheque drawing powers for arranging payments of specified nature
viz. Pay and Allowances (including T.A.,Wages and Medical
(Para 3.1.1 of
CAM).

2
Claims), Office Contingencies, Advances from Provident Funds for all
categories of staff, part final withdrawal and final withdrawals of
accumlations in the GPF Account of Group D Government servants,
payments arising under the Deposit Linked Insurance Scheme to Group
`D’ Government servants, short term loans and advances to all
Government servants.
Bills for all other kinds of payments like payment of long-term loans and
advances and for withdrawal from provident fund (other than Group `D'
staff),Pension,Gratuity etc. are to be presented by these DDOs to the
PAO concerned for pre-check and payment.
In certain cases Departmental Officers who have been vested with
cheque drawing powers have also been authorised to issue cheques in
payment of certain claims in respect of other non-cheque drawing DDOs
of the same Ministries/Department located at the same station or nearby
stations after exercising necessary checks.
Para 3.1.3 of
CAM)
The Departments working on public works pattern have also been
permitted to draw funds directly from the local branches of the Public
Sector Banks accredited to the concerned Ministry/Department.
Drawal of
funds by the
Departmental
officers &
DDO’s
The cheque drawing DDOs are placed in account with a branch of the
accredited bank of the Department/Ministry. Such DDOs can draw funds
from the concerned bank by issue of Govt. cheques (to be supplied by
the Pr.AO) upto the extent authorised by the Pr.AO/PAO. For the
purpose quarterly letters of credit/assignment based on the budget
allocation of the DDO(s), after taking into account the
recoveries/deductions etc. are issued by Pr.AO/PAO to such DDOs.
(ii) Non-cheque
Drawing DDOs
The DDOs which have not been vested with cheque drawing powers are
known as Non-cheque drawing DDOs. These DDOs prepare and submit
their bills for payments to their accredited PAO/Cheque Drawing DDO.
After obtaining the cheques from the PAO/Cheque Drawing DDO these
DDOs handover the cheques to the concerned party/official or disburse
the amount to the concerned officers after obtaining the cash from banks.
Note:- The difference between a Non-cheque Drawing DDO and Cheque Drawing
DDO is that the former submits the bill to PAO/another Cheque Drawing DDO for
pre-check and payment, whereas the latter draws the payment and then submits the
paid vouchers to PAO for post-check.

3
(iii). Merged
DDOs
In order to avoid duplicity in maintence of accounts records/subsidiary
accounts books in the office of DDO and PAO, merged DDO scheme at
Secretariat level was introduced with effect from 1st April,1986.
Consequently, these DDOs have been placed under the control of Chief
Controller of Accounts/Controller of Accounts/Dy.Controller of
Accounts, as the case may be, under the overall charge of the Financial
Adviser of the Ministry/Department concerned. Under this scheme the
maintenance of various broadsheet of long-term advances, short term
advance and GPF ledgers etc. were done away with. The Bill Register
maintained by merged D.D.O. forms the basic record for all type of
transactions in respect of personal claims. As such, schedules for
provident fund, long-term advances,etc. need not be prepared and
attached with the bills by these DDOs. However, schedules for licence
fees or other deductions for which the credits have to be passed on for
adjustment in other accounting circles will continue to be attached with
the Pay Bill for taking necessary action in Pay and Accounts Offices.
These DDOs will also be responsibile for watching the recoveries of
Leave Salary and Pension Contribution in respect of persons lent on
foreign service. The merged DDOs will also be responsible for
expenditure control in regard to heads of account operated by them.
Under the scheme of merged DDO an Examiner from the Office of PAO
is to scrutinise the bills in the office of DDO and prepare the cheques
thereof which are signed by the Pay & Accounts Officer.
Duties as regards
maintenance &
rendition of
Accounts
1.4 The Drawing & Disbursing Officer is personally responsible for the
correct maintenance and timely rendition of accounts or returns in
respect of public funds or stores handled in his office.
[Rule 8 of GFRs]
Specimen
signatures of
DDO signing
cheques etc.
1.5 Every Government Officer who is authorised to (i) sign or
countersign bills (ii) draw cheques shall send specimen of his signatures
to his Accounts Officer/branch bank concerned duly attested by the
relieving officer or through some superior officer whose specimen
signature is already available with the Accounts Officer/ Bank
concerned.
[ Rule 51 of CGA
(R&P) Rule]
Security
Deposits by
govt. servants
handling
cash/stores
1.6 The Drawing & Disbursing Officer shall see that, subject to the
provision of Rule 271 and 272 of GFRs, every Government servant,
whether gazzetted or non-gazzetted, who is entrusted with the custody of
cash or stores, is required to furnish security, for such amount as may be
prescribed and to execute a security bond setting forth the conditions
under which Government will hold the security and may ultimately
refund or appropriate it.
[GFR270]

4
NOTE 1 - The security to be taken from a Government servant should be in the form of
cash or promissory notes or post office cash certificates or Ten Years Social Security
Certificates or in other forms as mentioned in Rule 274 of GFRs.
NOTE 2 - To safeguard fully the interests of Government the security deposit taken from a
Government servant should be retained for at least six months after the date when he
vacates his post, but a security bond should be retained permanently or until it is certain that
there is no further necessity for its retention.
[GFR 278]
NOTE 3 - Post Office saving bank pass books,deposit receipts of banks, fidelity bonds and
security bonds or agreements should be kept in the safe custody of the departmental
authority authorised to accept security under Rule 275 of GFRs.
[GFR 277]
Instruction for
handling cash
by DDO
1.7 The Drawing & Disbursing Officer shall ensure that, except where
otherwise specifically authorised, Government money is kept in strong
treasure chests secured by two locks of different patterns, and the keys of
one lock shall be kept apart from the keys of the other and in the custody
of a different person wherever practicable. The chest shall not be opened
unless both the custodians of the keys of the two locks are present. (It
would, however be proper that the cash chests are embedded in an inner
wall of the room occupied by the DDO or by the Cashier).
[Note 4 below Rule
13 of CGA(R&P)
Rules
NOTE- Duplicate keys of the departmental treasure chest, and promissory notes, savings
certificates etc. received as securities can be kept for safe custody in the accredited Public
Sector Bank free of charge, subject to the availablity of adequate strong room facilities at
the branch concerned and the observance of the usual banking procedure. Where these
cannot be lodged in the relevant branch of the accredited bank, then they may be pledged
with officers of higher rank than the custodies of the chest.
[Note 4 below Rule
13 of CGA (R&P)
Rules]
Maintenance
Cash Book
1.8 The DDO will ensure that all monetary transactions in his office are
entered in a cash book in the prescribed form. The other important
instructions mentioned in the ensuing paragraphs should be observed in
this regard.
1.9 The cash book should be maintained in form GAR 3/TR 4. It should
be bound and its pages machine-numbered. Before bringing a cash book
into use,the DDO should count the number of pages and record a
certificate of count on the first page of the cash book.
[Rule13(i) and
Note 2 below Rule
13 of CGA (R&P)
Rules].
1.10 All monetary transactions should be entered in the cash book as
soon as they occur and be attested by the DDO in token of such check.
[Rule 13(ii) of
CGA (R&P) Rules]
NOTE - ``Account payee cheques'' issued by the PAOs/Cheque-Drawing DDOs in favour
of Government servants and third parties, being payable only to the parties, need not be
entered in the cash book. The delivery and acknowledgements of such cheques should,
however, be watched through a separate register.
[Exception(a)
below Rule 13(ii)
of CGA (R&P)
Rules]
1.11 The cash book should be closed regularly and completely checked.
The DDO should verify the totalling of the cash book or have this done
[Rule 13(iii) of
CGA Rule (R&P)

5
by some responsible subordinate other than the writer of the cash book
and initial it as correct.
Rules]
1.12 At the end of each month, the DDO should verify the cash balance
in the cash book and record a signed and dated certificate to that effect.
In case, such verification of the balance is not possible on the last
working day due to disbursement of salary, the cash verification may be
done on the first working day of the next month before any transaction
arises on that day.
[Rule 13(iv) of
CGA(R&P) Rules]
NOTE - The monthly verification of cash should be supplemented by a surprise check of
cash by some responsible official to be nominted by the Head of Office.
1.13 When Government moneys in the custody of a Government Officer
are paid into Government account in the accredited bank, the DDO
making such payments should compare the Bank's receipt on the paying-
in-slip/challan with the entry in the Cash Book before attesting it, and
satisfy himself that the amount has been actually credited into the bank.
[Rule 13(v) of
CGA(R&P)Rules]
1.14 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 DDO should initial every such
correction and date his initials invariably.
[Rule 13(vi) of
CGA(R&P) Rules]
1.15 A Government Officer who handles Government money should
not, except with the special sanction of the Head of the office, be
allowed to handle also in his official capacity, money which does not
belong to the Government. Where under any special sanction, a
Government Officer deals with both Government and non-Government
money in his official capacity, the Government money should be kept in
a cash box separate from the non-Government money and the
transactions relating to the latter should be accounted for in a separate set
of books and be kept entirely out of the Government account.
[Rule 13(vii) of
CGA (R&P) Rules]
NOTE 1: The duties under paras 1.9 to 1.13 required to be performed by the Head of Office
himself may be entrusted to a subordinate Gazetted Officer nominated by the Head of
Office for the purpose.
NOTE 2: In the case of large receipts,a register of valuable as prescribed in Note 3 below
Rule 13 of GCA (R&P) Rules may be maintained.
[Note 1 below Rule
13 of (R&P) Rules]
1.16 The employment of peons to fetch or carry cash should be
discouraged. Where it is absolutely necessary to employ one for this
purpose, a person of some length of service and proved trustworthiness
[Rule 13 (viii) of
CGA (R&P) Rules]

6
should only be selected.
Drawal and
Disbursement
of Pay &
Allowances
1.17 The Head of Office is personally responsible for the amount drawn
on a bill, signed by him or on his behalf until he has paid it to the
person(s) entitled to receive it and has obtained a legally valid
acquittance.
[Rule 92(I) of
CGA(R&P) Rules]
1.18 In a case where a Government servant is physically unable to sign
the acquittance,the payment should be made to the person who has been
nominated by the Government servant to receive his Provident Fund
dues.
[Rule 92(I) of
CGA(R&P) Rules]
1.19 If for any reason, payment cannot be made within the course of the
month, the amount drawn should be refunded by short drawal in the next
bill and when the occasion for making the payment arises, the amount
may be drawn afresh under Rule 89 of CGA (R&P) Rules.
[Rule 92(2) of
CGA(R&P) Rules]
NOTE :- The amount of undisbursed pay and allowances may,at the option of the Head of
the Office, be retained for any period not exceeding three months,provided that proper
arrangements are made for the safe custody of the sums retained.
[Rule 92(2) of
CGA(R&P) Rules]
1.20 Pay and allowances can be drawn for the day of the Government
Servant's death irrespective of time of death. `Day', for this purpose
means the calendar day beginning and ending at midnight.
[Rule 94 of
CGA(R&P) Rules]
1.21 Dues in respect of pay and allowances of all kinds claimed on
behalf of a deceased Government servant upto and including the day of
death may be paid without the production of usual legal authority,if the
Head of Office is satisfied about the right of claimant. If the gross
amount of the claim exceeds Rs.10,000/- payment may be made by Head
of Office only on the execution of an idemnity bond in form GAR 26
duly stamped for the gross amount due for payment and after obtaining
two sureties.
[Rule 95 of
CGA(R&P) Rules]
Attachment of
Salary
1.22 It is the duty of the officer[Head of Office/DDO] receiving the
attachment order from the Court of Law that proper deduction is made in
satisfaction of such order from the pay of the Government Servant
concerned and to keep a record of such deductions in form GAR 22.
[Rule 74 of CGA
(R&P) Rules]
Recoveries on
account of
Professional
Tax & dues of
Coop. Socities
etc.:-
1.23 Recoveries from the salaries of Government servants on account of
profession tax levied under an Act of a State Government and dues of
Co-operative Societies registered under the various Co-operative
Societies Acts, where such Acts impose a statutory obligation on the
Government to effect such recoveries, shall be made by the drawing and
disbursing officer in accordance with such procedure as may be laid
down by Government from time to time.
[Rule 79 of
CGA(R&P) Rules]
Note :- A drawing and disbursing Officer may effect recoveries on account of dues of Co-
operative Societies from the salary payable to a Government servant provided that
[Rule 79 (2) of
CGA(R&P) Rules]

7
operative Societies from the salary payable to a Government servant provided that
Government servant authorises the Disbursing Officer in writing
CGA(R&P) Rules]
Accounts
of the
undisbursed
amounts
1.24 An account of undisbursed pay and allowances should be kept in a
Register in Form GAR 25/TR 71. Entries of the total and particular
amount of undisbursed pay and allowances may be made against each
bill serially and subsequent payments thereof entered in the appropriate
columns of the Register and the Cash book, each such entry being
attested by a Gazetted Officer. From this Register, an abstract of
amounts remaining undisbursed for three months should be prepared in
order to ensure their refund either in cash or by short drawal from the
next bill.
[NOTE 2 below
Rule 92(3) of
CGA(R&P) Rules]
Maintenance of
Bill Register
1.25 A bill register in Form GAR 9/TR 28-A should be maintained by
DDOs. The register should be reviewed monthly and the result of the
review recorded thereon.
[Note 1 below Rule
34 of CGA(R&P)
Rules]
Procedure for
Receipts
against the
amounts
received &
rendition of
accounts
1.26 The Head of Office receiving moneys on behalf of the Government
must give the payer a receipt (GAR 6/TR 5) duly signed by him or by
any subordinate officer authorisied by him after satisfying himself that
the amount has been properly entered in the cash book.
[Rule 21 &22 of
CGA (R&P) Rules]
NOTE :- The procedure in regard to the grant of receipt to be followed in respect of
cheques, bank drafts, postal orders tendered in payment of Government dues, the form and
custody of receipt books and issue of duplicates or copies of receipts etc. is laid down in
Rule 19 to 23 of CGA (R&P) Rules or in other departmental regulations.
NOTE 2 :- The head of account to which the receipt is creditable should be clearly
indicated in the challan form.
1.27 All moneys received by or on behalf of Government either as dues
of Government or for deposit, remittance or otherwise should be
immediately brought to account by the DDO in the cash book and
remitted into the Bank.
[Rule 3&4 of GFR]
Note :- These receipts should not be utilised to meet departmental expenditure except in certain
cases by Deptt. of Posts, Deptt. of Telecommunication, Railways, Public Works Deptt. etc.
[Rule 6 of CGA
(R&P) Rule]
Departmental
Officers other
than Cheque
Drawing
DDO’s
1.28 Departmental Officers (other than cheque drawing DDOs) located at
the same station as the PAO should remit the collections received in cash
or by local cheques/demand drafts into the bank in which the PAO holds
an account duly supported by a paying in slip (challans).
[Note 2 below Rule
18 of CGA (R&P)
Rules]

8
1.29 They should send to the PAO a weekly list of remittances into the
bank to enable the latter to verify the corresponding credits in the Bank
Scroll received by him from the Bank.
[Para 1.16.4 of
Civil Accounts
Manual]
1.30 Departmental Officers located at a station other than that of the
PAO should accept receipts either by Bank Draft drawn in favour of the
PAO concerned or in cash which should be converted into a demand
draft drawn in favour of the Pay and Accounts Officer. They should then
remit these demand drafts to the PAO for credit to Government Account.
[Note 2 below Rule
18 of CGA (R&P)
Rules]
Cheque
Drawing
Departmental
Officers
1.31 The receipt accepted by the cheque drawing officer should be
remitted into the branch of the Bank accredited to that officer on
prescribed paying in slips (challans).
[Rule 6(1)of
CGA(R&P) Rules
and para 1.16.2 of
Civil Accounts
Manual]
1.32 Based on the paying in slips (challans) received by him the cheque
drawing officer shall prepare a weekly statement of receipts, indicating
the No. and date of the paying in slip (challan), name of the depositor,
and the amount deposited and check the entries with the Bank Scroll
received by him. He should also reconcile discrepancies, if any, between
his figures and those in the Bank Scrolls and send a monthly bank
reconciliation statement in the prescribed form to the PAO concerned.
[Para 3.4.4 read
with Para 1.16.2 of
Civil Accounts
Manual]
NOTE :- In the case of revenue earning departments like CBEC,CBDT,etc. the detailed
procedure for crediting revenues into the banks and their reconciliation etc. as laid down in
the departmental manuals will be followed.
[Rule 24 of
CGA(R&P) Rules]
Refunds of
Revenue
1.33 The procedure for payment of refund of revenue as laid down in
Rules 139 to 145 of CGA (R&P) Rules should be observed except that the
bill for refund of revenue should be presented to the PAOs to whom the
departmental officers are attached. The PAO will, before making payment,
verify the original credit from his records.
1.34 In the case of refunds of revenue which were originally deposited
before the date of departmentalisation of accounts and accounted for by
the Treasuries, the departmental officers will first send the bill to the
treasury officers concerned for verifying the original credit with
reference to the details in columns 4 and 5 of the refund bill GAR 33/TR
41 and for affixing their (TOs) signature in column 6 in token of having
done so. The bills after due certification by the Treasury Officer should
be presented by the departmental officers to the PAOs concerned for
making payment. The PAOs will ensure that the above requirements
have been compiled with.
[Rule 142 of CGA
(R&P) Rules]

9
Defalcations &
Losses
1.35 Except where otherwise specifically provided, any loss or shortage
of public money, departmental revenue or receipts, stamps, stores or
other properties held by or on behalf of Government, cannot by
defalcation or otherwise including losses and shortages noticed as a
result of physical verification, should be reported immediately by the
subordinate authority concerned to the next higher authority.
(GFR 16).
1.36 The subordinate authority should also report the losses and
shortages (other than petty losses and shortages not exceeding Rs.2,000
in each case) to the Principal Accounts Officer of the
Ministry/Department and the Statutory Audit Officer, even when such
loss has been made good by the party responsible.
[Government of
India Decision (1)
below GFR 16 ]

10
CHAPTER 2
WITHDRAWAL FROM THE
GOVERNMENT ACCOUNT
Mode of
Withdrawal
2.1 Before any money is withdrawn from Government account by means
of cheques, a bill in the prescribed form is to be prepared. A bill is a
statement of claims against the Government, containing specification of
the nature and amount of the claims, either in gross or by items, and
includes such a statement presented in the form of a simple receipt.
2.2 The bill forms on which claims for pay, allowances, contingencies
etc. are to be prepared and the detailed procedure to be observed in the
preparation and presentation of such claims is to be regulated by the
relevant provisions in the Central Government Account (Receipts and
Payments) Rules. Some important points to be kept in view in preparing
bills are enumerated in the ensuing paragraphs.
[Rule 28 of
CGA(R&P) Rules]
Form of Bills
2.3 Bills should be prepared in the prescribed forms e.g.
Pay Bill
TA Bill
Contingent Bills
Sub-Vouchers for petty contingent expenditure
GAR 13,13 A & 15 (TR 33)
GAR 14,14A,14B,14C and 16(TR 25)
GAR 29,30,31,32(TR 30,31,32,33)
GAR 28(TR 30 A)
Rounding off
of Transactions
2.4 The provisions contained in Rule 17 of CGA (R&P) Rules regarding
rounding off of transactions in Government Accounts should be
observed while preparing and passing bills.
Accounts
classification
on bills
2.5 Charges relating to two or more major heads should not be included
in one bill. The full accounts classification must be recorded on each bill
by the drawing officer. The classification should also show whether the
expenditure is voted or charged and Plan or Non- plan. Its allocation
between departments or between Central Government and State
Governments wherever necessary should also be indicated on the bill.
Rule 33 (V) (VI) of
CGA (R&P) Rule
Instruction’s
for
Preparation of
bills
2.6 Corrections and alterations in the money columns and the total of a
bill whether made in words or figures should be neatly made by scoring
out the incorrect entry and making a fresh one. These corrections should
be attested by the dated signatures of the drawing officer as many times
as such corrections and alterations occur. Erasures and over-writing are
prohibited.
[Rule 33(iv) of
CGA (R&P) Rules]

11
2.7 All bills must be filled in and signed in ink, entries and signature
with ball point pens are also permissible provided they are clear and
legible.
[Rule 33(iii) of
CGA(R&P) Rules]
2.8 The total amount of each bill should, as far as whole rupees are
concerned, be written in words as well as in figures,care being taken to
leave no space for interpollation. The total should also be expressed in red
ink as being below a specified amount in whole rupees.
[Rule 33(iii)of
CGA (R&P) Rules]
2.9 When bills are presented/drawn on account of charges incurred under
any special orders, an attested copy of the sanction must be attached to
the bill.
[Rule 33(vii) of
CGA (R&P) Rules]
2.10 In the following cases, copies of sanction orders should also be
attached to the bill in which the amount is drawn / claimed in pursuance
of such sanctions :-
a)
Orders relating to loans/advances granted to Government
servants in pursuance of the provisions of GFRs, Medical
Attendance/HBA Rules.
(b)
Orders relating to advances/withdrawals/final payments under
GPF Rules.
(c)
Orders relating to promotion/appointment of Government
servants.
(d)
Orders of pay fixation,E.B. crossing etc.
[Rule 33(vii) of
CGA (R&P)
Rules].
Specimen
Signatures of
DDO
2.11 Every drawing officer should send a specimen of his signature to
the PAO or Cheque-drawing DDO as the case may be,through some
superior officer whose specimen signature is already with PAO/Cheque-
drawing DDO.
[Rule 51 of CGA
(R&P) Rules]
Essential
Conditions
governing
expenditure
from public
funds
2.12 No Drawing Officer should incur any expenditure or enter into
liability involving expenditure or transfer of moneys for investment or
deposit from Government account unless such expenditure or transfer, as
the case may be, has been sanctioned by general or special orders of
Government or by any authority to whom power has been duly delegated
in this behalf.
[Rule 6 of GFRs]
2.13 All charges actually incurred must be paid and drawn at once, and
under no circumstance be allowed to spill over to be paid from the grant
of another year.
[Rule 100(1) of
CGA (R&P) Rules]

12
2.14 No money should be drawn from the PAO/Cheque-drawing DDO
unless it is required for immediate disbursement. It is not permissible to
draw money in anticiaption of demands or to prevent lapse of budget
grant.
[Rule 100(2) of
CGA(R&P Rules]
2.15 The drawing officer entrusted with payment of money should
obtain a voucher setting forth full and clear particulars of the claim,
every voucher must have attached an acknowledgement of the payment
signed by the person by whom or on whose behalf the claim is put
forward.
[Rule 56 of
CGA(R&P) Rules]
Procedure for
Budgetary
control by
DDo’s
2.16 The drawing officer should ensure that no amount is drawn in
excess of the budget allotment. In order to exercise an effective check in
this regard, an Expenditure Control Register in Form GFR 9 should be
maintained showing the appropriation by sub-heads and units of
appropriation. At the time of signing each bill, it should be ensured that
the amount of the bill under signature is covered by the budget allotment.
A Liability Register (Form GFR 6) should also be maintained.
[Govt. of India
Decision 2 and 5
below GFR 66]
Procedure for
drawal of pay
& other fixed
allowances
2.17 A separate pay bill should be prepared for
(i) establishments whose charges are debitable to different heads of
accounts;
(ii) personnel to whom salary is payable individually by cheques;
and
(iii) Group `D' employees.
[Rule 66(2) of
CGA(R&P) Rules]
2.18 Each of the bills may be prepared by including both permanent and
temporary establishments and indicating the description of each section
prominently along with the sanctioned number of posts included therein.
The detailed instructions in Rule 66(2) of CGA(R&P) Rules should be kept
in view while preparing the pay bills.
2.19 The rate of pay claimed should always be noted and when pay is
drawn for a portion of a month, the actual period for which these
payments are claimed should be stated against the name of the
Government servant in the body of the bill. The other instructions
printed on the form of the bill should also be followed carefully.
[Rule 66(2) of
CGA(R&P) Rules]
2.20 Separate bills may be presented for pay and allowances or leave
salary due for part of a month which may be paid before the end of the
month in respect of cases mentioned, in Rule 65 of CGA(R&P) Rules.
2.21 A suitable register should be maintained by every disbursing officer
for recording all amounts disallowed by the PAO under

13
Rule 73 of CGA (R&P) Rules. Separate columns may be provided to
show the name and office of the person from whom the recovery is to be
effected, the nature and amount of the over-payment and the method by
which it has been adjusted.
2.22 The DDO should attend promptly to all objections and orders
communicated to him by PAO.
[Rule 62(1) of
CGA(R&P) Rules]
2.23 When the PAO disallows a payment as unauthorised, the DDO is
bound not only to recover the amount disallowed without heeding any
objection or protest,but to decline to pay it in future till the PAO
authorises the resumption of the payment.
[Rule 62(2) of
CGA(R&P) Rules]
Procedure for
drawal of
Travelling
allowances of
govt servants
2.24 The bills should be prepared in Form GAR 14 (alongwith claims in
Form GAR 14 A, 14B or 14 C as the case may be), the instructions
printed on the form being strictly observed. When a journey has been
performed by a circuitous route, the reasons for doing so must invariably
be stated in the bill.
[Rule 90(1)(i) of
CGA (R&P) Rules]
2.25 When actual expenses are drawn on account of carriage of horses or
conveyances details of horses or conveyances transported should be
furnished in the bill. Necessary Certificate regarding the number and
relationship of the members of family should also be furnished whenever
allowance in respect of family is claimed by a Government servant.
[Rule 90(1)(ii) of
CGA(R&P) Rules]
Certificate of
drawing officer
on TA Bill
2.26 A. All bills should bear a certificate of the drawing officer in the
following form :-
"Certified that I have satisfied myself that the amounts included
in the bills drawn one/two/three months previous to this date,with the
exception of those detailed below(total amount of which has been
refunded by deduction from the bill) have been disbursed to the
Government servants named therein and their receipts taken on the office
copy of the bill or in a separate acquittance roll''.
[Rule 90(1)( iii) of
CGA(R&P) Rules]
Countersig-
nature of Bill
by controlling
officer
2.26 B. No bill requiring previous countersignature of a controlling
authority should be presented before such countersignature has been
obtained.
[Rule 90(2) of
CGA(R&P) Rules]
2.27 Some of the important checks to be kept in mind by the
DDOs before submission of T.A. bills (both tour or transfer) to

14
P&AO are given below:-
(i)
TA bills have been prepared in duplicate (one for payment and
the other for office copy).
(ii) A copy of tour programme duly approved by the competent
authority has been attached with the bill. In absence of the tour
programme it should be ensured that the bill has been
countersigned by the competent authority.
(iii) The official has performed the journey according to his
entitlement. The claim should be restricted to the entitled
class unless travel by higher class has been allowed by the
competent authority
(iv) That the travel by air to non-entitled officers has been approved
by the competent authority.
(v)
That in case of travel by road between places connected by rail,
the road mileage is linked to rail mileage by entitled class.
(vi) If the offical has stayed in a hotel while on tour, the claim for
hotel rate of DA has been supported by vouchers for payment of
lodging charges.
(vii) The DA for the total period of absence from Headquarters should
be worked out as per SR 51.
(viii) If the bill is in order, the DDO before preferring the claim to
P&AO he should calculate the total amount payable. The
advance, if any, taken shall be adjusted in full or surplus got
refunded from the employee.
(ix) In case of TA bill on transfer, whether the claim for transfer
grant, packing allowances, personnal effects, transportation of
conveyance etc. has been prepared in terms of provisions of S.R.
116.
(x)
In case of TA on retirement whether the claim has been prepared
and preferred in terms of S.R. 147.
Time limit for
submission of
TA claim on
Tour
2.28 The bills of Government servants proceeding on tour should be
presented at convenient intervals during the period of their tour or
immediately on return to the headquarters and, as far as practicable,
before 31st day of March if the tour has been completed before that date.
2.29 T.A. claims not preferred by a Government servant within one year
from the date on which it became due, should be dealt with in
accordance with the provisions of SR 194 A and the Government of
India orders thereunder.
[Rule 90(3) of
CGA(R&P) Rules]

15
Important
checks for
drawal of
L.T.C claims
2.30 Leave Travel Concession was introduced in the year 1956. The
rules and procedure for claiming LTC have been laid down in CCS
(Leave Travel Concession Rules) 1988, as amended from time to time.
Some important checks to be exercised by the DDOs before preferring
these bills to the PAO/Cheque drawing DDOs are given below:-
(i)
L.T.C. Bill should be prepared in duplicate in form GAR-14 C
(one for payment and other as office copy) and the claim should
be passed keeping in view of the provisions of L.T.C. Rules.
(ii) The D.D.O. should examine whether the Govt. servant has
completed one year of continuous service on the date of journey.
(iii) Whether the claim has been preferred within one month/three
months of the date of completion of the return journey.
(iv) Whether the claim is for the journey performed within India.
(v)
If the journey was performed by road transport or steamer service
in conjuction with the railway, whether such services are
recognised.
(vi) Whether the home town is the permanent home town recorded in
the service book,or as declared by the officer for this purpose.
(vii) The DDO is also to examine the relationship of the members of
the family and their age as has been mentioned in the claim by
the government servant with reference to the official records.
(viii) Whether the official is entitled to the class of accommodation by
which he has travelled.
(ix) Whether the claim is by the shortest route.
(x)
Whether the government servant has intimated to the Head of
Office about availing of L.T.C.
(xi) Check serial numbers of railway tickets/cash receipts/bus tickets.
(xii) He is to examine whether a note of journey has been recorded in
the service book.
(xiii) Whether the concession has been availed only once during a
block of two or four calender years, or during its grace period.
(xiv) Whether any advance taken has been adjusted in full or surplus
refunded.
Meaning of
term
Contingent
charges
2.31 The term "contingent charges'' or "contingencies'' means and
includes all incidental other expenses (including on stores) which are
incurred for the management of an office as an office or for the working
of technical establishment such as laboratory, workshop, industrial
installation, store depot and the like but other than expenditure which
[Rule 96 of
CGA(R&P) Rules]

16
has been specifically classified as following under some other head of
expenditure e.g.,`work',`tools and plant'.
Types of
Contingent
charges
2.32 The five types of contingent charges are as follows:-
(i) Contract Contingencies - those for which a lump sum is placed
annually at the disposal of Disbursing Officer for expenditure
without further sanction of any kind. They generally consist of
average annual charges but with reasonable accuracy.
(ii) Scale regulated Contingencies - This comprise such contingent
charges as may be regulated by scales laid down by competent
authority such as rewards for destruction of wild animals.
(iii) Special contingencies - This include such contingent charges
whether recurring or non-recurring but not without the previous
sanction of superior authority.
(iv) Countersigned contingencies - This include such contingent
charges that require the approval of some controlling authority in
the form of countersignature after payment on detailed bill
submitted to Pay & Accounts Officer.
(v)
Fully vouched Contingencies - This comprise contingent charges
incurred by the Head of Office on his own authority and does not
require approval of higher authorities.
[(Rule 98 of
CGA(R&P) Rules]
Responsibility
of the drawing
officer for
pending
Contingent
expenses
2.33 Every Government Officer shall exercise the same vigilance in
respect of petty contingent expenses as a person of ordinary prudence
may be expected to exercise in spending his own money.
[Rule 107 of
CGA(R&P) Rules].
2.34 The drawing officer is responsible for seeing that the rules
regarding the preparation of bills are observed, and that the money is
either required for immediate disbursement or has already been paid
from the permanent advance.
[Rule 107 of
CGA(R&P) Rules].
2.35 The expenditure should be kept within the available appropriation
and all steps taken to obtain additional appropriation if the original one
has either been exceeded or is likely to be exceeded.
[Rule 107 of
CGA(R&P) Rules].
2.36 In the case of contract contingencies the proposed expenditure
should not cause any excess over the contract grant.
[Rule 107 of
CGA(R&P) Rules].

17
Instructions
relating to
affixing pay
orders, &
manner of
cancellation of
vouchers etc.
2.37 Every voucher must bear a pay order signed or initialled by the
responsible disbursing officer, specifying the amount payable both in
words and figures. All pay orders must be signed by hand and in ink.
[Rule 59(1) of
CGA(R&P) Rules].
2.38 All paid vouchers must be stamped 'paid' or so cancelled that they
cannot be used a second time. Stamps affixed to vouchers must also be
cancelled so that they may not be used again.
[Rule 59(2) of
CGA(R&P) Rules].
2.39 All vouchers to bills which are not required to be sent to PAO in
terms of Rule 109(iii) of CGA (R&P) Rules must be cancelled in such a
manner that they cannot be used subsequently for presenting fraudulent
claims or other fraudulent purposes.
[Rule 59(3) of
CGA(R&P) Rules].
Safe custody of
vouchers etc.
not submitted
to PAOs
2.40 Vouchers and acquittances which are not required to be submitted
to the Pay & Accounts Office should be filed and retained carefully in
the office concerned as important documents till they are destroyed
under the orders of competent authority.
[Rule 60(1) of
CGA (R&P) Rule]
General
Limitation for
payments out
of contingent
expenditure
Certificates
with contigent
bills.
2.41 No pay of any kind and no additions to pay may be drawn on bills
for contingent expenditure except in the case of hot weather
establishment, mazdoors engaged on manual labour and paid daily or
monthly wages, sweepers and other establishment mentioned in Rule
100(3) and (4) of CGA(R&P) Rules.
2.42 Contingent bills for wages of mazdoors engaged on manual labour
and paid at daily or monthly rates, rents, electricity and other connected
charges incurred on the hire of private building, bills which include
charges on account of purchase of goods on which sales tax has been
charged, expenditure on light refreshment at formal meetings should be
supported by certificates prescribed in Rules 101(1), (2), 104, 105 and
106 of CGA (R&P) Rules.
Cancellation &
destruction of
sub-vouchers
2.43 The following rules for the prevention of fraudulent use of sub-
vouchers should be observed in the matter of cancellation and
destruction of sub-vouchers:-
(i)
Unless, in any case, it is distinctly povided otherwise by any rule
or order, no sub-voucher may be destroyed until after a lapse of
three years.
(ii) Every sub-voucher which is not required under the rules to be
[Rule 109 of
CGA(R&P) Rules].

18
forwarded either to the PAO or to a Controlling Officer
alongwith the bills but is recorded in the office to which the
expenditure relates, must be duly cancelled by means of a rubber
stamp or by an endorsement in red ink across the voucher. The
cancellation should be made at the time when the contingent bill
in which the sub-vouchers are included is actually signed. If the
amount of a sub-voucher exceeds the permanent advance, the
cancellation should be made immediately the payment is made
and entered in the contingent register.
(iii) In all cases in which sub-vouchers are not required to be
submitted to the Pay and Accounts Office or to the Controlling
Officer, the Drawing officers should certify in the bill that sub-
vouchers other than those attached to the bill have been so
defaced or mutilated that they cannot be used again. A similar
certificate should be furnished by the controlling authority in
respect of sub-vouchers submitted to him by Drawing Officers
but which he is not required to submit to the Pay & Accounts
Office.
NOTE - Sub-vouchers which are required to be sent to the PAO should not be cancelled
either by the Drawing Officer or by Controlling Officer, as the duty of cancelling these sub-
vouchers and keeping them in proper custody to prevent their fraudulent use devolves on
the PAO .
Record of
Contingent
Expenditure
2.44 A register of contingent expenditure should be maintained in Form
GAR 27/TR 29 in each office and the initials of the head of office or of a
G.O. to whom this duty has been delegated by him should be entered
against the date of payment of each item.
[Rule 110 of
CGA(R&P) Rules]
2.45 As each payment is made, entries must be made in the contingent
register of the date of payment, the name of payee and the number of
sub-vouchers in the three columns to the left and the amount in the
proper column.
[Rule 110(4) of
CGA(R&P) Rules].
2.46 A progressive total of all the columns must be made immediately
after the monthly total so as to include all payments under each head to
enable the DDO to watch the progress of expenditure.
[Rule 110(5) of
CGA(R&P) Rules]
Bills for
Contingent
Charges
2.47 Where it is necessary to draw money for contingent expenses, or in
any case at the end of each month, a red ink line should be drawn across
the page of the register(s), the several columns added up and several
totals posted in separate bills for each class of contingent expenditure .
The head of the office or the officer to whom this duty has been
delegated should carefully scrutinise entries in the register(s) with the
sub-vouchers, initial them and sign the bill which will then be dated and
[Rule 111(1) of
CGA (R&P)
Rules)]

19
numbered and presented for payment to the Pay & Account
Office/Cheque Drawing DDO.
Fully Vouched
Contingent
Charges
2.48 Officers whose contingent bills do not require counter-signature
and who do not embody in their bills, charges of any officer dealing
separately with the PAO need not submit monthly bills. They should
draw money from the PAO by bills in form GAR 29/TR 30 showing full
details of the charges.
[Rule 114 of
CGA(R&P) Rules].
Scalus related
charges &
special
contigencies
2.49 Moneys required for meeting contingent charges should not be
drawn in advance in Abstract bills except in the following cases and that
too on the fulfilment of the conditions mentioned therein.
(i)
Charges regulated by scales and special contingencies which
require the previous sanction of a superior authority before they
can be incurred, should be drawn in the Abstract bill Form GAR
30/TR 31 but full description of the charges should be furnished
in the Abstract bill. In the case of special contingencies the
orders of the sanctioning authority must also be quoted.
[Rule 115(1) & (2)
and 117 of
CGA(R&P Rules]
(ii) When expenditure for which a lumpsum is granted under a single
special sanction, is continued over more than one month,the
second and subsequent month's bills should bear a note of how
much has been spent up to date under the sanction.
[Rule 115(2) of
CGA(R&P) Rules]
Abstract
contingent bill
(iii) A certificate should be attached to every abstract bill to the effect
that the detailed contingent bills have been submitted to the
controlling officer in respect of abstract contingent bills drawn
during the month previous to that in which the bill in question is
presented for payment. On no account may an abstract contingent
bill be cashed without this certificate.
[Rule 118 of
CGA(R&P) Rules]
Counter-signed
Contingencies
2.50 In the case of bills requiring counter-signature after payment, the
contingent charges should be drawn in the abstract bill and the numbers
assigned to the sub-vouchers pertaining to each entry in the abstract bill
should be detailed against the entry concerned, the amount being given
only in those cases where a sub-voucher is for more than Rs. 50. In other
words abstract bills should be drawn only after the supporting sub-
vouchers have been received, but only payment is yet to be made on
them.
[Rule 117 & 118 of
CGA(R&P) Rules]
2.51 The detailed bills in Form GAR 31/TR 33 should be presented to
the controlling officer promptly for countersignature and transmission to
the PAO.
[Rule 119 of
CGA(R&P) Rules]

20
Medical
Attendance Bills
2.52 The DDOs are advised to bear in mind the following checks for
examining the medical claims/bills.
1.
The bill for medical reimbursement should be orepared in form
GAR-23
2.
The amounts drawn in the bills must be supported by proper
receipts and vouchers in all cases, submitted by the govt. servant
alongwith essentially certificates in Form `A’ or `B’
3.
DDO is to examine as to whether the fees charged by the
Authorised Medical Attendant is in accordance with the
prescribed rates.
4.
He is to examine that all the sub-vouchers for purchase of
medicines or pertaining to various tests etc. are duly
countersigned by the medical officer and by the competent
authority accepting the claim of medical reimbusement.
5.
Special case is to be taken in regard to the diet charges because
these are normally included in the hospital bills submitted by the
govt. servants, as these charges are not reimbursable except in
case of group `D’ employees who are to undergo treatment of
T.B./mental diseases or leprosy etc.
6.
Details in regard to dependants of the govt. servants and
residential addresses must be obtained from the government
servants for keeping the same in the relevant records.
7.
Individual-wise ledger of medical claims should be kept by the
DDO so as to check the unduly heavy medical claims.
Conveyance
Allowance
2.53 The rates and conditions governing the grant of Conveyance
Allowances are contained in GIO(i) below SR 25. Before admiting the
claims the following checks may be examined by the DDOs:-
(i)
The DDO is to examine that the conveyance allowance is not
claimed by the officials during joining time,leave or any period
of temporary transfer.
(ii) The daily allowance or mileage allowance should not be allowed
for journeys within 8 km. radius.
(iii) The conveyance allowance should be allowed to those officials
who pay on an average (computed for 3 months) minimum 20
visits outside their normal duty hours in a month.
(iv) If the average number of visits is less than 20 in a month but not
below 6, proportionate reduction in conveyance allowance
should be done by the DDO.
(v)
If the average visit of an official falls below 6 in a month, the
conveyance allowance be not allowed to him by the DDO.
(vi) If the conveyance is not maintained or not used for official
journeys/hospital visits for more than 15 days at a time in a
month the proportionate reduction in conveyance allowance
should be done by the DDO.
(vii) A certificate is to be obtained from those officers who draw at
the minimum rates of conveyance allowance or who do not use
their own conveyance, to the effect that the transport expenditure
incurred in connection with official duty/visit, is not less than the
amount claimed. It is required to be furnished by the DDO
alongwith monthly pay bill.

21
CHAPTER 3
PROCEDURE TO BE FOLLOWED BY DDOs AUTHORISED
TO DRAW CHEQUES
Cheque-
Drawing DDOs
3.1 As a general rule, in the departmentalised system of payment all
payments are to be made only by the Pay & Accounts Offices of the
Ministry/Department after proper pre-check. However, as a partial
exception to this rule, the drawing and disbursing officers of offices
which are not located at the same station as the Pay & Accounts Office,
may be permitted to draw funds directly from the local branches of the
bank accredited to the Ministry/Department concerned by means of
cheques, for payment of pay and allowances (including travelling
allowances and medical claims-both advances and final bills) and office
contingencies. Bills for other kinds of payments will be presented to the
Pay and Accounts Office concerned for pre-check and payment by bank
drafts. Such bills shall in no case be paid directly by the DDO.
[CAM Para 1.6.1,
1.6.2 and 3.1.1]
NOTE 1 :- The term `Office Contingencies' referred to above should be interpreted in a
restricted way so as to cover only those items which would fall within the sanctioning
power of the DDO as well as certain periodical payments like rent, rates and taxes,
electricity, water and telephone charges and the other day-to-day office expenses.
[Note 2 below
CAM Para 3.1.1]
NOTE 2 :- In the case of some departments,claims of other specified nature may also be
authorised to be paid direct by DDO in consultation with the Controller General of
Accounts.
[CAM para 3.1.3].
Letters of
credit to
Cheque
Drawing DDOs
3.2 Each of these Drawing & Disbursing Officer, hereinafter referred to
as Cheque-Drawing DDO, will be placed in account with the local
branch of the Reserve Bank of India/State Bank of India or its
subsidiary/Public Sector Bank accredited to the Ministry/Department
concerned by means of a quarterly letter of credit opened in his favour
by the Pay & Accounts Officer concerned. The Cheque-Drawing DDO
will draw cheques only on the branch/branches of the RBI/SBI or its
subsidiary or the public sector bank, with which he is placed in account
and the bank will make payment of cheques upto the limit prescribed in
the letter of credit. The DDO should keep a close watch over the drawals
and should take prompt action for the renewal of the letter of credit by
assignment of additional funds by PAO,when needed.
[Rule 50 of
CGA(R&P) Rules].
NOTE 1 :- The fresh letter of credit/assignment issued after the expiry of the period
prescribed in the earlier letter of credits/assignment within the same financial year will be
treated as an addition to the unspent balance of the previous letter of credit/assignment. The
Pay & Accounts Officer while communicating the letter of credit/assignment for the second
[Rule 50 of CGA
(R&P) Rules].

22
and subsequent quarters would indicate not only the amount assigned for that quarter, but
also the progressive total of letter of credit/assignment upto the end of the quarter so that
the bank is enable to ensure that the total cumulative drawals from the beginning of the year
do not exceed the total progressive amount of letter of credit/assignment.
NOTE 2 :- A letter of credit or assignment shall lapse at the close of the financial year and
shall not be carried forward to the first quarter of the next year. The cheques actually issued
during the last quarter but presented for payment during the next quarter,(within the period
of validity) will be taken by the bank against the assignment of the year to which they were
drawn and not against the assignment of the year in which they are paid.
[Rule 50 of
CGA(R&P) Rules].
NOTE 3 :- A drawing officer in whose favour a letter of credit or assignment has been
issued is not permitted to draw the whole amount and place it in a separate drawing account
of the bank or in a private account.
[Rule 50(2) of
CGA(R&P) Rules].
NOTE 4 :- It is not also permissible to draw cheques and deposit the amount in the
department's cash chest at the end of the year for avoiding a lapse of grant.
[Note below Rule
50(2) of
CGA(R&P) Rules].
Payments on
behalf of one
or more offices
by Cheque
Drawing DDOs
3.3 In some cases, the Cheque-Drawing DDO at a station may also be
permitted to make payments on account of pay and allowances etc. and
office contingencies of one or more offices, in addition to his own, situated
in the same station or near about. The heads of such offices will present the
bills on account of pay and allowances and office contingencies to the
designated cheque drawing DDO for payment.
[CAM para 3.1.3].
Payments
other than pay
&
Contingencies
by DDOs
3.4 In addition to pay and allowances and office contingencies,as
referred to in para 3.1 above, Cheque-Drawing DDOs are also authorised
to make payments by cheques, of the claims of the following categories
after sanction of the competent authority to the same is obtained, a copy
of which should be sent to the Pay & Accounts Office :-
[CAM para 3.1.1].
(a)
Final payment of GPF moneys to and withdrawals of moneys
from GPF for Group `D' Government servants.
(b)
All short-term loans and advances to Government servants (i.e.
those recoverable in less than 60 instalments).
NOTE 1 :- Cheque-Drawing DDOs are not authorised to issue cheques for drawal of
advances (in respect of Government servants other than Group 'D') in terms of Rule
34(3)(v) of GPF(CS) Rules. Bills for the purpose, duly supported by formal sanction of the
competent authority, should be forwarded to the Pay & Accounts Office for payment after
precheck.
[Note 3 below
CAM para 3.3.1].
NOTE 2 :- The amount of quarterly assignments against which DDOs are authorised to
issue cheques will take into account the anticipated drawals on account of the advances
mentioned above.
[CAM para 3.1.2]
NOTE 3 :- Bills for payment of long-term loans and advances and for withdrawals from
provident fund, (in respect of Government servants other than Group 'D') under Rules 15
[CAM para 3.1.1].

23
and 16 of General Provident Fund (Central Services) Rules 1960 or corresponding
provisions of other provident fund rules, shall be paid only by the Pay & Accounts Office
on the basis of the sanction of the competent authority. Such payments should, in no case
be made by the DDOs by issue of cheques against their assignment.
3.5 In the case of Provident Fund advances paid by the Drawing &
Disbursing Officer, a statement of the amounts paid and the particulars
of the sanction, names of subscribers, their account numbers, etc. should
be forwarded to the PAO every month, to enable the latter to ensure that
the debit vouchers are received and posted in the accounts of the
subscribers and that the debits adjustable by Accounts Officers of other
Departments/Governments are passed on to them without fail.
[Note 4 below
CAM para 3.1.1].
Procedure for
payment
3.6 The bills relating to the above mentioned classes of payments will be
prepared in accordance with the rules and procedures prescribed in CGA
(R&P) Rules/GFRs etc. (See Chapter 2) and presented to the cheque-
drawing DDO for check and payment. In so far as the bills of his own
office are concerned, the Cheque-Drawing DDO will ensure that, to the
extent possible, the bills are got checked independently by a person other
than the one responsible for the preparation of the bills.
[CAM para 3.3.1]
3.7 The bills received for payment (including those pertaining to his own
office) will be checked by the Cheque-Drawing DDO to ensure that they
relate only to classes of payments which he is empowered to make by
issue of cheques as mentioned in para 3.1 to 3.4 above. Bills which do
not fall under these categories, if received, will be returned to the office
concerned for transmission to the Pay & Accounts Office for pre-check
and payment. After this preliminary verification the bills will be entered
in the ` 'Register of Bills received' in form CAM 18 (Appendix I).
[CAM para 3.3.2].
3.8 The bills will then be subjected to usual prescribed checks
enumerated in the CGA (R&P) Rules and para 3.3.2 of CAM. Inter alia,
the bills shall be arithmetically checked and examined with a view to
seeing that the claim is admissible, the authority good, the signature and
counter-signature where necessary are genuine and in order, and
corrections, if any, have been duly attested. After satisfying himself in all
respects, the cheque-drawing officer will sign the pay order on the bill
showing the amount for which the bill is passed in words and figures and
deface the Pay order. It should also be ensured that the quarterly
assignments as intimated by Pay & Accounts Office in respect of each
office are not exceeded. The cheque will then be prepared for the net
amount of the bills.
[The provisions contained in Rule 42 ibid should be observed while writing cheques]
[CAM para 3.3.2]

24
3.9 The number and date of the cheque issued and particulars of
bills,etc. will be noted in the `Register of cheques issued' in form CAM
19 (Appendix 2) and the entries will be attested by the Cheque Drawing
DDO at the time of signing each cheque. The date of encashment of each
cheque should also be entered in this register and the entries attested by
the Cheque-Drawing DDO. All the entries in this register should also be
subjected to independent check by another officer (preferably a Gazetted
Officer) against the relevant passed documents/vouchers. The register
should be closed for each day either on the same day or on the
commencement of the following day.
[CAM para 3.3.2].
Submission of
List of
Payments by
DDOs
3.10 Cheque-Drawing DDOs shall prepare a list of payments in
triplicate in the prescribed form CAM 21 (Appendix 3) at the end of
every week. Two copies of the list of payments accompanied by the paid
vouchers, schedules etc. should be sent to the Pay & Accounts Office on
the due dates as mentioned below:-
[CAM para 3.4.3]
1st to 7th
by the 9th of the month
8th to 14th
by the 16th of the month
15th to 21st
by the 23rd of the month
22nd to the end of the month
by the 3rd of the following month
Bank
reconciliation
statement
3.11The Cheque-Drawing DDOs should prepare a bank reconciliation
statement every month vide para 3.14 infra and send it to the Pay &
Accounts Officer.
NOTE - Sub vouchers upto Rs. 100 in value shall be retained by the cheque drawing
officers in their offices vide Rule 111(3) of CGA (R&P) Rules and these would be
examined at time of internal/local audit of their initial records.
A certificate shall be recorded by him on each contingency bill, to the
effect that sub-vouchers of value upto Rs. 100 numbering from sub-
vouchers .....................to sub voucher......................have been retained in
the office.
[CAM para 3.4.4
and Note there-
under].
Due date of
submission of
accounts by
DDOs working
on Public
Works/Forest
System
3.12 In the case of officers rendering accounts on the Public
Works/Forest system, the dates for submission of compiled accounts to
the Pay and Accounts Office shall be the 7th of the succeeding month.
[CAM para 3.4.5].
Submission of
scrolls by the
3.13 The paying branch of the bank will prepare daily scrolls of
payments DDO-wise but as the number of cheques drawn by the cheque
[CAM para 3.4.1].

25
paying branch
of bank
drawing DDOs will be few, the payment scrolls will be transmitted
weekly i.e.on every Saturday, in duplicate, by the paying branch,
covering the transactions from Monday to Saturday along with paid
cheques to the concerned Pay & Accounts Office, and a copy of the
scroll (without paid cheques) simultaneously to the Cheque-Drawing
DDO concerned.
Bank
Reconciliation
statement by
DDOs
3.14 The scrolls received from the Bank should be checked with reference
to the Register of Cheques issued in respect of the name of the payee and
the amount of cheque paid. Date of encashment should be noted in the
relevant column of the Register of Bills and the Register of Cheques. A
bank reconciliation statement (CAM 20) should be drawn up every month
explaining the difference between total payments made as per the Bank's
scroll and the total payments during the month as per the Register of
Cheques, indicating the details of the cheques issued during the month but
not encashed and cheque issued in earlier months cashed during the month.
Discrepancies, if any, noticed in the scrolls should be taken up with the
Bank immediately.
[CAM's para
3.4.2].
Forms of
Cheques and
Cheque Books
3.15 All cheques shall be drawn by the Cheque-Drawing DDOs on
forms in cheque books to be supplied to them by the Pay & Accounts
Offices concerned. The instructions contained in CGA (R&P) Rules in
regard to cheques and cheque books etc. should be carefully observed by
the cheque-drawing officers. Some of the important instructions are
indicated in the ensuing paragraphs.
[CAM para 3.6.1]
3.16 Cheque books shall, on receipt, be carefully examined by the
drawing officer who should count the number of forms contained in each
and record a certificate of count on the flyleaf.
[Rule 40(1) of
CGA(R&P) Rules]
Report of loss
of cheque
forms/Books
3.17 The loss of cheque books or a blank cheque form shall be notified
promptly to the branch of the bank with whom the disbursing officer
concerned has a drawing account.
[Rule 41 of
CGA(R&P) Rules]
Issue of
Accounts
Payee & open
cheques
3.18 All cheques towards payment of personal claims of Government
servants, contractors, suppliers and public sector companies and
corporations shall be drawn as payable to an order of the payee. Such
cheques shall be crossed with the subscription "Account Payee only''
whenever the amount exceeds Rs. 1000/- in regard to salary cheque or
wherever the amount exceeds Rs.500/- in respect of non-salary
cheques. Such non-salary cheque for an amount not exceeding Rs.
1000/- may however, be issued as open cheques if so desired by the
[Rule 44(3) of
CGA(R&P) Rules].

26
payee but only as order cheque.
It should be ensured that no payee makes it a practice to get an uncrossed
cheque in his favour as a matter of course.
Lowest limit of
the amount of
cheque drawn
3.19 There is no ban on cheques being drawn for less than Rs. 10/-.
However, in the case of the postal transactions, the lowest sum for which
the cheque may be issued is Rs. 100/-
[Note 3 below Rule
42 of CGA(R&P)
Rules].
Correction in a
cheque
3.20 All corrections and alterations in a cheque shall be attested by the
drawing officer by his full signature.
[Rule 43 of
CGA(R&P)Rules].
Currency of a
cheque
3.21 Cheques shall be payable at any time within three months after the
month of issue; thus, a cheque bearing any date in January is payable at
any time upto 30th April. Should the currency of a cheque expire owing
to its not being presented at the Bank within the period specified above,
it may be received by the drawer who should then destroy it and issue a
new cheque in lieu thereof. In the event of non-return of the time-barred
cheque to the drawer, the drawer should, on the expiry of the prescribed
period of three months after the month of issue of the cheque, require the
payee either to return the cheque or explain the causes for its non return.
If, as a result of this enquiry the cheque is reported as lost, the bank
drawn on should be requested to stop payment and issue an advice in
accordance with the procedure laid down in Paras 3.23 to 3.25 infra.
[Rule 45 & 46(2)
of CGA(R&P)
Rules]
Cancellation of
a cheque
3.22 When it is necessary to cancel a cheque, the cancellation must be
recorded on the counterfoil, and the cheque, if in the drawer's
possession, must be destroyed. If the cheque is not in the drawer's
possession, after satisfying himself with reference to his records (namely
payment and error scrolls and register of cheques delivered) that it has
not been paid, he should promptly send an intimation, by registered post
(AD) to the branch bank on which it is drawn to stop its payment. In case
of Cheque-Drawing DDO's the PAO should also be informed. A cheque
remaining unpaid for any cause for six months after the month of its
issue should be cancelled and, after the Accounts Officer/Cheque-
Drawing DDO has satisfied himself of its non-payment, the amount
should also be written back in the account.
[Rule 47 of
CGA(R&P) Rules]
Loss of
Cheques
3.23 When a Cheque-Drawing DDO report to the paying branch of the
bank about a cheque having been lost, the latter shall record a `Stop'
against the cheque and issue an acknowledgement in the following
form :-
[Rule 48(3) of
CGA(R&P) Rules]
Non-payment
certificate of
"We acknowledge receipt of your letter No......................................
dated.........................and advice having noted to stop payment of

27
lost cheque by
bank.
cheque No ..............................................dated.............................for
Rs.....................................Rupees................................................favouring
.................................. In this connection, it is certified that cheque
No...........................................
dated............................................for
Rs................................... reported by the drawing officer to have been
drawn by him on this Bank in favour of .............................will not be
paid if presented thereafter".
A copy of this acknowledgement should be sent by the Cheque drawing
DDO to the PAO concerned to enable him to issue a non-payment
certificate to the DDO in the following form :-
"Certified that cheque No...........................dated............................ for
Rs........................................reported by (the drawing officer) to have
been drawn by him on ............................................... branch of
..................................................Bank
in
favour
of
......................................has not been paid''.
Issue of fresh
cheque in lieu
of lost cheque
3.24 The Cheque-Drawing DDOs should note particulars of the non-
payment certificate received by him against the relevant entry in the
office copy of the list of payments, on the counterfoil of that cheque and
office copy of the relevant paid voucher before issuing a fresh cheque in
lieu thereof. The party requesting the issuance of a fresh cheque in lieu
of the lost one, should execute an Indemnity bond in Form GAR 12
(Appendix 4). However in the case of a Government Department, Public
Undertakings wholly owned by Government or a bank, the execution of
such an indemnity bond is not necessary but a fresh cheque should, in
these cases, be issued only on receipt of a certificate that the cheque
alleged to have been lost, and further that it will be returned to the
cheque-drawing DDO, if found afterwards. The number and date of the
fresh cheque will also be noted on the list of payments, paid vouchers
and counterfoil of the old and cancelled cheque.
[Rule 48(2) & (3)
of CGA(R&P)
Rules].
3.25 If the original cheque is found to have been paid afterwards, the
DDO should report the matter immediately to the paying branch and
inform the PAO accordingly by a telegram for further action.
[Rule 48(4) of
CGA(R&P) Rules].
Specimen
signature and
the use of new
cheque book by
the cheque-
drawing DDOs.
3.26 Every Cheque-Drawing DDO who is authorised to draw cheques
on a bank shall send specimen of his signature to the bank (and also to
the Accounts Officer) through some superior officer or predecessor
whose specimen signature is already with the Bank. When such an
officer makes over charge of his office to another, he shall likewise send
a specimen of the signature of the relieving officer to the Bank and
Accounts Officer concerned.
[Rule 51(1) of
CGA(R&P) Rules]

28
3.27 Specimen signature when forwarded on a sheet of paper other than
the forwarding letter itself, must be duly attested by the officer signing
the forwarding letter.
[Rule 51(2) of
CGA(R&P) Rules].
3.28 The Cheque-Drawing DDO shall notify to the bank branch upon
which be draws,the number of each cheque book which,from time to
time, he brings into use and the number of cheques it contains.
[Rule 39(1) of
CGA(R&P) Rules].
3.29 The Cheque should contain the name of Ministry/Department of
the Government of India and the code number assigned by the bank for
easy identification. The name of the station/name of the office/branch of
the bank and the designation of the officer signing the cheque should
either be printed or affixed by means of a rubber stamp, on the cheque
itself.
[CAM para 1.7.6]
Indenting &
Custody of
Cheque Books
3.30 Cheque-Drawing DDOs will requisition their requirement of
cheque-books from the Pay & Accounts Office concerned. The latter
will supply to the Cheque-Drawing DDO the minimum number of
cheque books, sufficient for his requirement for three months. The
cheque books will remain in joint custody of the cheque-cashier and the
Cheque -Drawing DDO. The stock of blank cheque books should be
stored in a steel almirah in double lock of which one key should be kept
by the Cheque-Drawing DDO and the other by the cheque-cashier. The
duplicate set of keys should be kept in an envelope sealed by the
Cheque-Drawing DDO and the cheque cashier in the custody of the
Head of Office/Principal Accounts Office.
[Para 6 & 8 of
Annexure 'C'
referred to in CAM
para 1.7.3].
NOTE 1 :- If the double lock system for custody of cheque books is not feasible in any
office owing to the smallness of the establishment or lack of facilities, the cheque
books should be in the custody of the Head of the Office under lock and key. The
Head of the Office will be responsible for their safe-custody and issue, to the cashier
as and when required, of the required number of cheque books.
[Note below Para 6
of Annexure 'C' to
Chapter 1 of
CAM].
NOTE 2 :- In cases where the power of drawal of funds by cheques is withdrawn from
any Cheque-Drawing DDO, all the unused forms from partly used cheque books with
that officer should be defaced by writing the word "Cancelled'' prominently across
each cheque form and its counterfoil (but without the signature of the Drawing
Officer) and returned to the PAO concerned. All unused cheque books should
however, be returned by the Drawing Officer to the PAO without any cancellation.
[Para 8 of
Annexure 'C' to
Chapter 1 of
CAM].
Stock Register
of Cheque
Books
3.31 A Stock register of cheque-books/forms should be maintained in
form CAM-1 (Appendix 5) to keep an account of the receipts, issues and
balance of cheque-books/forms. Each morning, the cheque-cashier
should take such cheque books from the Cheque-Drawing DDO as are
likely to be used during the course of the day, and should remain
responsible for their use and returns of the balance at the close of the
day. An account of cheque forms and daily should be maintained by the
[Para 7,9 and 10 of
Annexure C to
Chapter 1 of
CAM].

29
Cashier in Form CAM 2 (Appendix 5) and submitted to the Cheque-
Drawing DDO at the time of closing of the accounts daily. In this
register, the cheque numbers used during the day should also be noted.
Periodical
stock-taking
and also at the
change of the
Officer-in-
Charge.
3.32 Every six months, in April and October, stock taking of the cheque
books should be done by an officer other than the Cheque-Drawing
DDO and a certificate of physical count recorded by him in the stock
register. This stock-taking should also be done whenever there is a
change of the Cheque-Drawing DDO and the relieving officer should
initial the entry in respect of each of the cheque book noted in form
CAM 2 (Appendix 6) and sign a certificate in the stock register in the
following form:-
"Received the current cheque books as indicated by my initials in the
register of account of
cheque forms and the unused cheque books
from ................ to.............. as entered in the Stock Register''.
Physical verification can be entrusted either to the Inspecting Officer of
the Internal Inspection Party conducting the normal inspection of his
office or by any gazetted officer of his Department who vistits that office
in any other official work.
[Para 11 of
Appendix `C' to
Chapter 1 of CAM]
Categories of
Cheques
3.33 The cheques to be used by Cheque-Drawing DDOs will be of three
kinds:-
(i)
Negotiable:- For payments of personal claims of Government
servants, pensioners, contractors suppliers and public sector
companies and corporations. These will be drawn as payable to
or order of the payee. As a safeguard against fraudulent
payments all non-salary cheques in excess of Rs. 250 and salary
cheques in excess of Rs. 1,000 will be crossed and marked
"Account Payee only''. A distinct format for this type of cheque
bearing the words "Pay to ................. or order'' on its body has
been approved by the Controller General of Accounts for use by
cheque-drawing DDOs.
NOTE :- It is permissible to pay the salaries and allowances etc.,of the Government
servants by cheque,if the Government Servant so opts. The option in this regard will
however, be exerciseable in March every year for the ensuing financial years. Payments
other than of salary will also be made by the same mode of payment as of salary.
However, in cases where salary is paid in cash, other payments like house building
advance, etc. may be made by cheques if these are large and are specifically required in
writing to be made by cheque.
[Rule 44(3)(b)of
CGA(R&P) Rules
and Notes 1 & 2
thereunder]

30
(ii) Not Transferable :- These cheques are to be drawn in favour of
Government officers responsible for disbursement of salaries etc.
of office establishment and payments on account of office
contingencies. These cheques should, therefore, be drawn in
favour of the Payee by his official designation and should
contain the superscription 'Not Transferable' on the top and
should be drawn as payable to the Payee only and not 'to Order'.
These cheques are not negotiable and payments will be made
only to the payee or to his messenger holding a letter of authority
on proper identification.
A distinct format of this type of cheque with the superscription
"Not Transferable'' has been approved by the Controller General
of Accounts for use by the Cheque-Drawing DDO's.
[Rule 44(2) of
CGA(R&P) Rules
and Notes
thereunder].
(iii) Not negotiable and not payable in Cash-Creditable to
Government account only:- Cheque drawn in favour of
Government offices or Departments or payments on account of
inter-departmental or inter-Governmental dues e.g. telephone
bills etc., shall be crossed and the words "For credit to
Government account and not payable in Cash'' written between
the lines.
The distinct format for this type of cheques, bearing the superscription
"Government Account'' has been approved by the Controller General of
Accounts for use by the Cheque-Drawing DDOs. These special cheques
forms, therefore, do not require to be crossed.
[Rule 44(1) of
CGA(R&P) Rules
and note
thereunder].

31
CHAPTER 4
SERVICE BOOKS
Maintenance of
Service Books
4.1 The rules governing the maintenance of service books in respect of
Government servants are contained in the FRs&SRs and the GFRs.
Some important provisions of rules which should be kept in view while
maintaining service books are mentioned in the ensuing paragraphs.
4.2 A Service Book should be maintained by the Head of Office for
every Government Servant (Gazetted and Non-Gazetted) holding a
substantive post on a permanent establishment or officiating in a post or
holding a temporary post likely to last for more than one year.
[SR 197].
Custody of
Service Books
4.3 A service book shall be maintained for a Government servant from
the date of his first appointment to Government service. It must be kept
in the custody of the Head of the Office in which he is serving and
transferred with him from office to office.
[SR 198].
Attestation of
Entries in
Service Books
4.4 The Head of Office can delegate, to a subordinate gazetted officer
under him, powers to attest entries in the service books of all gazetted
officers (except his own) for the maintenance of which he is responsible.
The Head of Office should however scrutinize at least ten per cent of
these documents every year and initial the same in token of having done
so.
[Government of
India decision (1)
below SR 199 in
the Swamy's
Compilation of
FRs & S Rs, Part 1
(7th Edition)].
Entries of
Foreign
Service in
Service Books
4.5 If a Government servant is transferred to foreign service, the Head of
his Office or Department must send his service book to the Pay &
Accounts Officer who will return it after noting in it, under his signature,
the order sanctioning the transfer, the effect of the transfer in regard to
leave admissible during foreign service etc. On the Government servant's
re-transfer to Government service his service book must again be sent to
the Pay & Accounts Officer who will then note in it the fact of recovery of
leave salary and pension contributions. No entry relating to the period
spent on foreign service should be attested by any authority other than the
PAO. This fact is ,however to be recorded by DDO in case of the merged
DDO Scheme.
[SR 203].
Leave Account 4.6 A leave account shall be maintained for each Government servant
(Gazetted or Non-Gazetted) by the Head of Office. Entries regarding
leave in the leave account and the service book should be made distinctly
and attested.
[Rule 15 of CCS
(Leave) Rules].

32
Nature of
Entries in
Service Books
4.7 Every step in a Government servant's offical life should be recorded in
his service book and each entry must be attested by the Head of Office or if
he himself is the Head of Office, by his immediate superior. The Head of
Office must see that all entries are duly made and attested and that the
service book contain no erasure or over-writing, all corrections being
neatly made and properly attested.
[SR 199].
4.8 The entries regarding increments, and fixation of pay should be
based on the Increment Certificates, and Pay fixation statements. The
declaration of the Government servant electing the new scale of Pay and
the statement showing the fixation of his initial pay in the relevant scale
in support of the entry in the service book should be pasted in the service
book.
[Government of
India Orders(1)
below SR 199 of the
"Swamy's
Compilation of FRs
& SRs (Part 1) (7th
Edition)''].
4.9 The declaration of Home-Town for purpose of Leave Travel
Concession duly accepted by the competent authority should be pasted in
the service book.
[Rule 4 of the LTC
Rules].
4.10 Every period of suspension from employment and every other
interruption in service must be noted promptly with full details of its
duration and be properly attested.
(SR 200].
Periodical
Inspection of
Service Books
by the Govt.
Servant
Concerned
4.11 The Head of Office should show the service book to each
Government servant under his administrative control every year, and
obtain his signature therein in token of his having inspected the service
book. A certificate to the effect that he has done so in repect of the
preceding financial year should be submitted by him to his next superior
by the end of every September.
[SR 202].
Entries
regarding Date
of Birth
4.12 The provisions of Rules 79 and 80 of GFRs should be observed
with regard to the entry of the date of birth in the service book.
4.13 No alteration in the date of birth of a Government servant should be
made except with the sanction of the Ministry/Department concerned of
the Central Government, under which the Government servant is serving,
provided :
(a)
A request in this regard is made within five years of his entry into
Government service.
(b)
it is clearly established that a genuine bonafide mistake has
occured; and
(c) the date of birth so altered would not make him ineligible to appear
in any School or University or UPSC examination in which he had
[Note 5 below FR
56].

33
appeared, or for entry into Government service on the date on
which he first appeared at such examination or on the date on
which he entered Government service.
Entries
regarding
verfication of
service
4.14 (i) In the beginning of each year all the service books should be
taken up for verification of service by the Head of Office in terms of
Rule 81 of GFRs and a certificate in the following manner recorded
therein over his signature :-
"Service verified upto (date) from ........................the record from which
the verification is made''.
(GFR 81).
(ii) If any portion of service cannot be verified from office records, the
Head of Office should state distinctly that for the excepted periods
(naming them) a statement in writing by the Government servant as well
as a record of the evidence of his contemporaries ,is attached to the
service book.
[Government of
India Decision
No.(1) below GFR
81].
4.15 In case of transfer of Government servant, the Head of Office
under whom he was originally employed should record the verification
of service in respect of the whole period during which the Government
servant was employed under him before forwarding the service book to
the office where his services are transferred.
[Government of
India decision(3)
below GFR81].
Providing
certified copy
of Service Book
4.16 A certified copy of service book may be supplied on payment of a
copying fee Rs. 5/- to a Government servant who asks for it on quitting
Government service, by retirement, discharge or resignation.
[Government of
India decision
No.(5) below GFR
81].
Note regarding
receipts of
nominations for
pension/ DCRG
& other
important to
entries
4.17 A clear note should be made in the service book regarding the
receipt of nomination for DCR Gratuity and Family Pension and related
notices from the Government servant and where they have been lodged
for safe custody.
[Government of
India Decision No.
1 below Rule 53 of
CCS (Pension)
Rules,1972].
4.18 The orders of the competent authority regarding the counting or
otherwise of periods of extraordinary leave,or periods preceding breaks
in service or qualifying service for pension should be obtained invariably
at the very time the occasion arises and not later. Such orders should be
noted in the service book.
[Government of
India Decision(7)
below GFR 81].

34
4.19 General Provident Fund Account No. allotted to a Government
servant (including any subsequent changes in the Account No.) should
be entered on the right hand top of page 1 of his service book by means
of a rubber stamp.
[Government of
India Order No. (5)
below SR 199 in
Swamy's
Compilation of
FRs,Part 1 (7th
Edition)].
4.20 The Head of Office should ensure that necessary note of the
membership of CGEGI Scheme has been made in respect of Government
Servants who were in service on 1st November,1980 and who did not
exercise the option to opt out of the scheme and those who joined the
Government Service later.
[Para 4.2 of M/F
OM No.F.15(3)/78
WIP dated 30-10-
80,read with OM
No..F.15(3)/78
WIP,dated 20-2-
82].
4.21 The Head of Office should obtain from every Government servant
who is a member of C.G.E.G.I. Scheme a nomination in Form 7/Form 8
as the case may be, countersign it and paste it in the Service Book.
Whenever the nomination is revised by the Government servant, the
fresh nomination should be similarly counter-signed and pasted.
[Para 9 of the M/F
O.M. No. F.
15(3)/78 WIP,
dated 31-12-80].
4.22 The photograph of the Government servant should be pasted on the
right side of page 1 of the service book.
4.23 Proper entries regarding medical examination of the Government
servant at the time of appointment and attestation forms verifying
antecedents and character etc. should be made at the appropriate place of
the service book.

35
CHAPTER 5
CENTRAL GOVERNMENT EMPLOYEES' GROUP
INSURANCE SCHEME, 1980.
5.1 The Scheme, Central Government Employees' Group Insurance
Scheme (CGEGIS) came into force from 1st January,1982. This scheme
provides for the Central Govt. employees the two fold benefit viz. (1)
insurance cover to help their families and (2) lump sum payment to
augment their resources on retirement.
5.2 The scheme has two funds namely (1) Insurance Fund and (2)
Savings Fund. A portion of the subscription is credited to Insurance
Fund and the other portion to the Savings Fund in the ratio of 3:7. The
Savings Fund will earn interest at the prescribed rate to be compounded
quarterly.
5.3 All these employees' who had entered Central Government Service
after 1st November,1980 will be compulsorily covered under the scheme
from the date it came into force i.e. from 1st January,1982. The
employees will be enrolled as members of the scheme only from 1st
January every year. If an employee enters service on or after 2nd January
in any year, he will be enrolled as a member only from 1st January of the
next year. However, he will be entitled to insurance cover from the
actual date of entry of service till the end of that calender year by paying
monthly subscription of Rs. 5/- p.m. as premium for every Rs. 15,000/ -
of the insurance cover.
Similarly, on regular promotion of a member of a lower Group to a
higher Group after 1st January in a year, his subscription will be raised
from the 1st January of the next year.
Note :- If an employee once admitted to a higher Group is subsequently reverted to the
lower Group for one reason or the other, he will continue to subscribe at the same rate as
that of higher Group.
5.4 Contract employees, persons on deputation from State Government
Public Sector Undertakings, or other autonomous organisations locally
recruited staff in the Missions abroad, casual labourer, part-time and ad-
hoc employees will not be covered by the scheme. It will also not apply
to persons recruited in the Central Government after attaining the age of
50 years.

36
5.5 Re-employed Defence personnel availing of the extended insurance
cover under the Group Insurance Scheme applicable to the members of
Armed Forces shall not be eligible to become members of this Scheme
until expiry of the extended insurance cover.
5.6 Subscription at the appropriate rate should be recovered by the DDO
from each member every month irrespective of whether the member is
on duty, leave or under suspension. In the case of absence on Extra
Ordinary leave, subscription due should be recovered in arrears in not
more than 3 instalments after the member rejoins duty, alongwith
appropriate interest thereon. In the event of death of a member during
Extra-ordinary leave, the DDO should recover arrears in subscription
alongwith interest, from the payment to the nominee admissible under
the scheme.
Note:- Subscription is payable till the end of service including the month in which an
employee retires, dies or is removed from service. If an employee dies during a month
before recovery of subscription for that month, his dues will be paid after deducting the
subscription.
5.7 In the case of members proceeding on foreign service, the recovery
of subscription would be watched by the PAO concerned in the same
manner as recovery of leave salary and pension contributions is watched.
5.8 The Head of Office should obtain Nomination(s) in Form 7 or Form
8, as the case may be, from all members without delay, and after counter
signature, have them pasted in their service books.
5.9 The Head of Office should ensure that Group-wise register of
members is maintained in Form 9 and kept up-to-date. This register shall
be sent to the DDO concerned once a year to verify whether appropriate
subscription are being recovered from all employees who have joined the
Insurance Fund or both the Insurance Fund and the Savings Fund under
the Scheme and to record a certificate to this effect.

37
CHAPTER 6
PROCEDURE FOR FINALISATION OF
PENSION/COMMUTATION CASES
6.1 It is one of the important functions of Heads of Offices to see that pension
cases of their retiring employees are finalised expeditiously and that there is no
delay in the payment of pension and DCRG. The rules and procedure for
finalisation of pension cases are laid down in Chapter VIII of the CCS
(Pension) Rules, 1972 as amended from time to time. Some important
provisions in this regard are mentioned in the ensuing paragraphs.
Time Table for
the Work
6.2 The Head of Office, or other authority responsible for preparing the
pension papers should initiate work of preparation of pension case two years
before the retirement of the Government servant. At this stage the essential
information necessary for working out the qualifying service should be
collected, and the entire service book should be examined with a view to
remove deficiencies and imperfections, if any, in the service book/records.
This process should be completed not later than eight months in advance of
the date of retirement of the Government servant.
[Rules 58 & 59 of
CCS (Pension)
Rules].
6.3 Particulars as required in Form 5 of the Pension Rules should be
obtained from the Government servant and the actual work of preparation of
pension papers, viz., the reckoning of qualifying service and the calculation
of average emoluments should also be taken up not later than 8 months
before the retirement date. Any deficiency or imperfection, or omissions
which still remain in the service records should be ignored, and the
determination of qualifying service should be proceeded with on the basis of
entries in the service records whatever the degree of perfection to which it
might have been possible to bring them by that time.
[Rule 59 of
CCS(Pension)
Rules]
Calculation of
Average
emoluments
6.4 The average emoluments should be determined with reference to
emoluments drawn during the last 10 months of his service, after taking into
account other provisions of Rule 34 of the CCS(Pension) Rules, 1972. This
work involves not merely an arithmetical calculation of the average
emoluments but also a check of the correctness of the emoluments which
enter into that calculation. To ensure that emoluments drawn during the last
ten months of service have been correctly shown in the service book, the
Head of Office may verify the correctness of emoluments for the period of
24 months only preceding the date of retirement and not for any earlier
period.
[Rule 59(i)(b)(iii)
of CCS (Pension)
Rules]

38
Completion &
forwarding of
Pension papers
to PAO for
arranging
payments
6.5 The process of determining the qualifying service and the average
emoluments and the admissible pension and gratuity should be completed
positively within a period of 2 months and the pension papers sent to the
Pay & Accounts Office concerned not later than 6 months before the date of
retirement. That Office will issue the pension payment order (including the
order for the payment of the death-cum-retirement gratuity) not later than
one month in advance of date of retirement.
[Rule 61 to 65 of
CCS(Pension)
Rules].
6.6 It should be seen that the regular payment of superannuation pension
commences from the first day of the following month.
[Rule 83(2) of
CCS(Pension)
Rules].
Finalisation of
Pre-mature
retirement
cases
6.7 Pension cases of Government servants retiring earlier than their
normal date of compulsory retirement [either in pursuance of the
provisions of FR 56(J) or (K) and the corresponding provisions in the
CCS (Pension) Rules, 1972 or because of the deemed retirement in terms
of Rule 37 of the CCS (Pension) Rules, 1972 on the grounds of
permanent absorption in a public sector undertaking/autonomous body]
should also be processed and finalised expeditiously, even though
because of the nature of retirement, advance action on the above lines
cannot be taken.
[Rule 36 of
CCS(Pension)
Rules].
Qualifying
service -
Calculation
6.8 The following important provisions should be kept in view :-
(i)
Under Rule 21 of the CCS (Pension) Rules, 1972, extra -ordinary
leave granted on medical certificate qualifies for pension. The
appointing authority may, at the time to granting extra-ordinary
leave, also allow the period of such leave to count as qualifying
for pension if the leave is granted due to inability of the
Government servant to join or rejoin duty on account of civil
commotion or for prosecuting higher scienctific and technical
studies.
(ii) Rule 23 of the CCS (Pension) Rules, 1972 requires that in cases
other than those in which suspension has been held to be wholly
unjustified, the competent authority should at the appropriate time,
declare whether, and so what extent, the period of suspension will
count towards the qualifying service. Specific entries in this regard
in the service book /records should be taken note of at the time of
reckoning qualifying service. In the absence of any specific
entry,the period of suspension shall be taken as counting as
qualifying service.
[Rule 21 of CCS
(Pension) Rules]
(iii) In the absence of a specific indication to the contrary in the
service records, as interruption between two spells of civil
service rendered under the Central Government including service
paid out of Defence Estimates or Railway Estimates will be
[Rule 28 of CCS
(Pension) Rules].

39
treated as automatically condoned and the pre-interruption
service treated as qualifying service for pension, except where it
is otherwise known that the interruption was caused by
resignation, dismissal or removal from service or due to
participation in a strike. The period of interruption itself shall not
count as qualifying service for pension.
(iv) In cases of deputation/foreign service, where the Government
servant himself is to make payment of pension contributions, it is
necessary to ascertain whether such recoveries have been made,
before the period of foreign service is reckoned as qualifying
service. However, the Government servant should not be put to
considerable difficulty because of any defective or incomplete
record maintenance by the Administrative/ Accounts Offices. In
such cases, the Government servant could be asked to produce
evidence to show that he had indeed made the contribution. In cases
of deputation/foreign service where the responsibility for making
pension contributions is that of the borrowing organisation and
where either some of the contributions have not been recovered or
the records in respect of the recoveries of contributions are
incomplete, while the authorities concerned should pursue the
matter with the borrowing organisation separately for appropriate
action, this should have no bearing on the processing and
finalization of pension papers.
[Government of
India Decision
under Rule 67 of
CCS(Pension)
Rules].
Administrative
sanction to
pension and the
concept of
approved
Service –
Dispensation
thereof.
6.9 The requirement of an administrative sanction to pension has been
dispensed with and as such the pension papers need not be submitted to
the Head of the Department or the Appointing Authority for obtaining
administrative sanctions.
Payment of
Provisional
Pension &
Gratuity
6.10 Where departmental or judical proceedings instituted during the
service of the Government servant are not likely to be finalised by the
date of retirement, action to grant provisional pension in terms of Rule
69 of the CCS(Pension) Rules, 1972 should be taken so that the retiring
government servant may not be put to undue hardship.
[Rule 9 & 9(4) of
CCS(Pension)
Rules].
6.11 If, after the submission of pension papers to the Accounts Officer
responsible for issuing the Pension Payment Order,any event occurs
which has a bearing on the amount of pension admissible,the fact should
be promptly reported to him by the Head of Office.
[Rule 62 of
CCS(Pension)
Rules].
6.12 In exceptional cases where for any special reasons it has not been
found possible to complete and forward the pension papers to the
[Rule 64 of CCS
(Pension) Rules]

40
Accounts Officer responsible for issuing the PPO within the prescribed
time-schedule, or if the Accounts Officer has returned the papers to the
Head of Office for eliciting further information before issue of
PPO/GPO, and the Head of Office is of the opinion that the government
servant is likely to retire before his pension and gratuity are finally
assessed, he should, without delay take steps to determine the amount of
pension and gratuity and sanction their payment as provisional pension
and provisional gratuity, which shall be drawn in the same manner as
pay and allowances and paid to the Government servant, on retirement.
(Pension) Rules]
6.13 The provisional pension is not intended to be continued on a
provisional basis beyond a period of six months from the date of
retirement.
[Rules 64(6) & 72
of CCS(Pension)
Rules].
6.14 The issue of a Last Pay Certificate should not be insisted upon before
the payment of provisional pension. During the period of six months after
retirement which has been provided for various purposes, it should be
possible for the Head of Office or other office concerned to issue the Last
Pay Certificate. In cases in which the last Pay Certificate has not been
issued by the time the formal pension/gratuity payment orders are received
(whether this happens prior to the retirement of the Government servant or
after his retirement and after the grant of a provisional pension), the
gratuity payment order will in any case include a provision for the
withholding of 10 per cent of the gratuity or Rs. 1000/- whichever is less
pending the production of the Last Pay Certificate.
[M/F
O.M.F.11(3)EV
(A)76 dt.29-2-76].
Adjustment of
Government
dues
6.15 In order to ensure timely finalisation of pension cases, suitable
action should be taken to ascertain the Government dues well in time and
to adjust them in accordance with the prescribed procedures. In this
connection, the following instructions should be observed :-
[Rule 71 of CCS
(Pension) Rules]
A. Dues
pertaining to
Government
accommo-
dation under
the Directorate
of Estates.
(i)
The Head of Office should write to the Directorate of Estates at
least two years before the retirement of the Government servant
in occupation of a Govt. accommodation for issue of `No
Demand Certificate'. The Directorate of Estates should scrutinize
its records and inform the Head of Office 8 months before the
date of retirement, if any, outstanding dues are recoverable from
the Government servant on that date. If no intimation regarding
such dues is received by the Head of Office, he should presume
that nothing is recoverable from the Government servant in
respect of any past period. If the Directorate of Estates intimates
the amount of Government dues recoverable in respect of any
past period, the Head of Office should ensure that these dues are
recovered from the current pay and allowances/gratuity as the
[Rules 57 &
72(1)(3) of
CCS(Pension)
Rules].

41
case may be.
(ii) The Head of Office should ensure that licence fee for the next 8
months i.e. upto the date of retirement is recovered every month
from the pay and allowances of the Government servant.
[Rule 72(2) of
CCS(Pension)
Rules].
(iii) The Directorate of Estates will also intimate to the Head of
Office the amount of licence fee for the period of two months
beyond the date of retirement and the same should also be
recovered from the gratuity, where the Government servant is to
retain Government accommodation beyond his date of
retirement.
[Rule 72(4) of
CCS(Pension)
Rules].
B. Dues other
than those
pertaining to
Government
accommo-
dation.
(i)
For ascertaining other Government dues, action should be initiated
simultaneously with the processing of the pension papers i.e. two
years prior to the retirement on superannuation or on the date of
proceeding on leave preparatory to retirement, whichever is earlier
and by the time the next stage of the actual preparation of pension
papers is reached, it should be possible to know all Government
dues outstanding against the Government servant. This information
should be updated with reference to the records of the subsequent
period till the Government servant retires.
(ii)
The Head of Office should mention clearly in the pension papers,
the outstanding Government dues which should be recovered from
the death-cum-retirement gratuity,and if after submission of the
pension papers, additional recoveries to be made from the gratuity
come to notice, these should be promptly reported to the Accounts
Office.
[Rule 73 of
CCS(Pension)
Rules].
NOTE (a) :- The arrears of water and electricity charges recoverable by local bodies and co-
operative societies dues cannot be treated as dues to Government. No recovery of such dues
should be made from the DCRG.
[Government of
India Decision 1
below Rule 73 of
CCS (Pension)
Rules,1972].
(b) :- Family pension is like any other pension and recoveries of dues whether Government
or Non-Government are not permissible from it without obtaining the consent of the
pensioner.
[Government of
India Decision 1
below Rule 73 of
CCS (Pension)
Rules,1972].
(c) :- The term `Government dues' covers only the dues payable to the Government and
does not include dues while on deputation to an autonomous Organisation. The latter can,
however, be recovered from the gratuity if the Government servant has given his consent in
writing.
[Government of
India Decision 2
below Rule 73 of
CCS (Pension)
Rules,1972].
Commutation
of Pension
6.16 Commutation of Pension is governed by the Central Civil
Services(Commutation of Pension) Rules,1981 which came into force

42
of Pension
from 1-7-81. These apply to all government servants entitled to pension
under C.C.S. (Pension) Rules,1972.
Restriction,
limits etc on
commutation
of Pension
6.17 Commutation of Pension is allowed either on medical examination
and also without medical examination in certain cases as specified in the
rules. However, government servant against whom departmental or
judicial proceedings have been instituted, cannot avail of commutation
benefits during pendency of such proceedings.
[Rule 4,5&8] of
commutation of
Pension Rules
1981
6.18 A fraction not exceeding one third of the pension is allowed to be
commuted by a government servant. If the fraction of pension to be
commuted results in a fraction of rupees, such fraction should be
ignored. The commuted value of pension shall be worked out with
reference to the Table of the values, prescribed from time to time and
applicable to the applicant on the date on which the commutation
becomes absolute. The commuted value shall be expressed and paid in
whole rupees.
Commutation
of Pension to
become
absolute
6.19 (i) The Commutation of pension becomes absolute when the
application in the prescribed form is received by the Head of Office where
commutation is without medical examination and on the date on which the
medical authority signs the medical report when commutation of pension is
sanctioned on the basis of medical examination.
Rule 6 of
commutatuion of
Pension Rules 1981
(ii) In the case of a government servant retiring on superannuation who
desires payment of commuted value of pension being authorised at the
time of issue of pension payment order and applies for commutation of a
fraction of pension along with pension papers prior to the date of
retirement in accordance with sub rule (3) of Rule 13, the commutation
of pension becomes absolute on the date following the date of his
retirement.
[Authority - DPAR
: Notification No.
34/1/81-Pension
unit dt. 8-7-
83]Rule 6(i)(a)].
Commutation
of Pension
without
medical
examination
6.20 A government servant who has been authorised superannuation,
retiring, compensation pension or pension after finalisation of
departmental or judical proceedings, or pension on absorption in public
sector undertaking(with option to receive monthly pension) is entitled to
commutation benefits without medical examination.
Rule 12 of CCS
(Cmmutation of
Pension) Rules
1981
Authorisation
& Payment of
Commuted
value of
Pension
6.21 In the type of cases referred to in sub-para (ii) of para 6.19, the
Head of Office, after obtaining authorisation from the Accounts Officer,
would draw the amount of commuted value of pension and disburse it
i.e. hand over the cheque not payable before the first day after the date
following the date of retirement of the government servant. In other
cases, the Head of Office should initial the form in token of timely
receipt and should acknowledge immediatley its receipt to the applicant.

43
After verifying the particulars in the application including the commuted
value worked out, the Head of Office should forward it to the Accounts
Officer for issue of authority to the pension disbursing authority with a
copy to the applicant.
Commutation
of Pension
after medical
Examination
6.22 The benefit of commutation is also admissible to a government
servant who is sanctioned provisional pension, and the procedure for
making such payment by Head of Office applies. The provisional
commuted value is subject to final assessment.
Commutation of pension after medical examination is admissible to
government servant retired on invalid pension, on absorption in public
sector undertaking with an option for the alternative of receiving a lump
sum in lieu of pension, on compulsory retirement, on applying for it after
the expiry of one year of retirement etc. On receipt of the prescribed
application form, the Head of Office would acknowledge it and forward
the same immediately to the Accounts Office. The Accounts Office shall
then fill in the relevant particulars and return to Head of Office for
onward transmission, alongwith other particulars, to the designated
medical authority for medical examination under advice to the applicant
himself.
Rule 18 bid
On receipt of report from the designated Medical authority, the Accounts
Office will issue the authorisation to the pension disbursing authority
under advice to the applicant/Head of Office.
Nomination etc
for Payment of
arrears of
deceased
Pensions.
6.23 The Payment of arrears of Pension (Nomination) Rules,1983 which
came into force with effect from 10-9-83, extend the facility of
"nomination'' for payment of arrears of pension to "nominees'' of the
deceased Central Government pensioners. Nomination includes fresh
nomination, modifications of the existing one, etc.
[DPAR's
Notification No.
26(3)/Pension-
Units/82,dated 26-
8-83].
The Head of Office should obtain, in triplicate, nominations in
prescribed forms, within 3 months before or after the date of retirement
from the retiring/retired government servant. After verification of
particulars, the Head of Office should return(within a maximum period
of 30 days), the duplicate copy, duly attested by Head of Office or by
another authorised officer, to the retiring/retired government servant for
his record. The triplicate copy would be sent by Head of Office to the
Accounts Officer alongwith the pension papers (if still lying with his
office), or would be sent separately to the Accounts Officer by giving
reference to PPO No. etc. for onward transmission of the same to the
Pension Disbursing Authority for their record and custody. The Original
copy of such ``nomination'' would be retained by the Head of Office for
his own record.
Rule 5 of Payment
of Arrears of
Pensions
(Nomination)
Rules 1983

44
CHAPTER - 7
PROCEDURE FOR THE MAINTENANCE OF GPF ACCOUNTS OF
GROUP `D' EMPLOYEES OF THE CENTRAL GOVERNMENT
Maintenance of
GPF Accounts
7.1 The detailed procedure to be followed by the Heads of Office for the
maintenance of the GPF Accounts of Group `D' employees of the
Central Government has been prescribed in the Ministry of
Finance(Department of Expenditure) O.M.No. 52(2)-EV/60 dated the
27th June,1960 reproduced in Appendix 49 of Chowdhary's Compilation
of the CSR Vol.II(Part II), 12th Edition. Some important provisions of
the said procedure are briefly stated in the ensuing paragraphs.
Allotment of
GPF Account
Number
7.2 All permanent employees and temporary employees in continuous
service for more than one year should be admitted to the fund and
assigned account numbers, which should be duly intimated to the
subscribers.
GPF Ledger
7.3 A ledger account for each subscriber should be maintained in the
prescribed form. These forms should be in bound volumes, which should
be machine numbered.
Schedule of
GPF recoveries
7.4 Each month the Drawing Officer should prepare a schedule of GPF
deductions for posting in the ledger accounts. The schedule of GPF
deductions should not be enclosed to the pay bill but, instead, a
certificate in the prescribed form should be attached to the pay bills,
indicating the total amount deducted as GPF subscriptions and as refund
of advances.
Entries in GPF
accounts of
subscriber
7.5 The Head of Office should initial the entries in the P.F. Accounts
monthly, as a token of check of the correct postings of the amount of
subscriptions deducted, refund of advances and drawal of advances, part
final and final payments.
Broadsheet of
GPF
7.6 A broadsheet in the prescribed form should be maintained by each
Head of Office. All deposits and withdrawals posted in the ledgers
should also be posted in the broadsheet. The broadsheet should be posted
direct from the ledgers and not from the schedules or vouchers. The
broadsheet should be closed on or before the 5th of the following month
and submitted to the Head of Office for review.

45
7.7 The Head of Office should ensure that the amount as booked in
broadsheet agrees with the total of the certificate of deductions attached
to the pay bills and the payments made during the month.
GPF
nominations
7.8 Nominations in the prescribed form should be obtained/scrutinised
in accordance with the GPF Rules and kept in the personal custody of
the Head of Office. A note to this effect should also be kept in the ledger
as well as in the General Index Ledger to be maintained in the prescribed
form.
Transfer of
Accounts
7.9 In the case of transfer of any employee from one office to another,
his account should be transferred to the new Head of Office with a
statement, showing the closing balance as on 31st March of the
preceding financial year, which should include interest uptodate plus
bonus if due, subscriptions and recovery of temporary advances
monthwise drawal of advances/withdrawal if any, on or after 1st April,
details of drawal of temporary advances/withdrawal and closing balance
as on 31st March during the preceding three years. Two copies of the
statement should also be furnished to the Head of the Department for
noting and transmitting one copy to the concerned Pay and Accounts
Officer.
Reconciliation
of Accounts
7.10 Each Drawing Officer should send every month to his Head of
Department the totals of debits and credits in the prescribed form to
enable the latter to arrive at the total credits and debits in respect of all
the drawing officers in a month and to communicate the same to the
concerned PAO for reconciliation.
Annual
Calculation of
interest on
GPF deposits
7.11 Interest for each year should be calculated and entered in the ledger
accounts as well as in the broadsheet. The statement of interest thus
credited should be forwarded to the Head of the Department to enable
him to work out the consolidated figure in respect of all the DDOs under
him and send a consolidated statement to the Accounts Officer for
incorporation in the accounts.
Incentive
Bonus
7.12 Incentive bonus, wherever admissible, should be credited to the
subscriber's account. The balance on which bonus shall be calculated
would be the balance inclusive of the interest credited for the year.
Pass Books
7.13 Instead of preparing and issuing annual statements of GPF balances
to the subscribers, the Head of the Office should prepare and issue a Pass
Book to each subscriber in the prescribed format. At the end of each year
the Head of Office should collect the Pass Books of all the Group `D'
employees for completion and return. In the case of transfer of any
employee during the course of the year, his Pass Book should be

46
completed and returned indicating the No. and date of the letter under
which his GPF account has been transferred to the new office.
GPF final
Payment
7.14 In case of retirement, or death, or quitting of service, when the final
payment of GPF money becomes payable, the Head of Office should
obtain application in the prescribed form. The final payment of GPF
money should be made after the account has been thoroughly checked.
The Heads of Offices are authorised to make final payment of GPF
money without reference to the Accounts Officer concerned.
Payment under
DLI Scheme
7.15 In the case of death in harness, the Head of Office should ensure
that final payment made includes the amount admissible under Deposit
Linked Insurance Scheme under Rule 33A of GPF (C.S.)Rules.

47
CHAPTER - 8
ADVANCES TO GOVERNMENT SERVANTS
General
8.1 The general rules relating to grant of advances to Government
servants by Heads of Offices are contained in Chapter 14 of GFRs. Some
important provisions in this regard are mentioned in the ensuing
paragraphs.
Sanction of
advances by
Head of Office
8.2 The Head of office should sanction only such advances, for which
necessary powers have been delegated to him. A few examples, where
Head of Office is competent to sanction advances are given below :-
Advances
Rules in GFRs
(i) Interest bearing advances
Cycle
[191(2) ,212 & 213]
Warm Clothing
(216 to 221)
Table Fan
(221 A to 221 F)
(ii) Interest Free Advances
Pay & TA Advance on transfer
(222 to 226)
Tour Advance
(231 - 234)
L.T.C. Advance
(235)
Festival
(236 - 245)
Natural Calamities
(247 - 252)
Advance in lieu of Leave Salary
(259 - 261)
Advance to the families of
(262-267)
Government Servants who die in
service
Other Duties
of Head office
8.3 The Head of Office should ensure that the conditions attached to the
grant of advances according to the relevant rules are fulfilled and that
proper accounts are maintained and the recoveries of the advances and of
interest wherever recoverable are effected in time.
[GFR 187(a)]
Maintenance of
detailed
accounts of
advances etc.
8.4 Detailed accounts of all interest free advances and of interest
bearing advances recoverable in less than sixty instalments generally
referred to as short-term advances, should be maintained by the Head of
Offices in accordance with the provisions of relevant rules viz. GFR 187,
190, 215 etc. The following important provisions in this regard should be
kept in view :
(i)
As and when any payment of such an advance is made, it should
be entered invariably and distinctly by each Drawing &
Disbursing Officer (Departmental Officer) in the relevant column
of the Pay Bill register maintained in Form GAR 17 (TR 22-A).
Monthly recoveries effected from the individuals concerned and
(Annexure A-
Chapter 14-GFRs)

48
also of interest wherever recoverable should also be noted in the
recoveries column (advance-wise) in that register. No separate
register merely for watching the recoveries of advances
individual-wise is required to be maintained by the departmental
officers. A monthly abstract of recoveries (but not of interest) in
Form GAR 39 (TR 62 B) should be prepared [separately for each
advance accountable under a separate unit of appropriation
(heads) is the Demand for Grants] and attached to the last
establishment Pay Bill for a month by each Drawing Officer.
Office copies of such monthly abstract should be maintained by
them systematically and these should be bound separately for
each year.
(ii) Each departmental officer shall be wholly and solely responsible
for effecting the recoveries of such advances. He should
promptly attend to the discrepancies, etc. pointed out in the
monthly abstracts. The departmental officer should also make
available all the relevant records concerning such advances to
Internal check parties who are to verify that payment entries are
properly made in the pay bill registers and that recoveries are
regularly effected and shown in the monthly abstract schedules.
(Annexure A-
Chapter 14 -
GFRs).
Transfer of
balances under
advance heads
(iii) When a Government servant is transferred from one office to
another, the amount of each such advances paid and the balance
(instalment and amount) outstanding as on the date of transfer
shall be mentioned in the "Last Pay Certificate'' to be issued by
the departmental officer to enable the new office to effect the
recoveries where the transfers 'in' or 'out' is on foreign service or
on
deputation
to
Railways/Posts/
Telecommunications/Defence/State Governments, recoveries of
principal and interest, if any, are to be remitted by means of
cheque by the Drawing & Disbursing Officer of the Department
which effects the recoveries to the Drawing & Disbursing Officer
of the Department which had paid the advance. No cash
settlement to pass on either credit or debit is to be effected
between Drawing and Disbursing Officers in cases of transfers
between Civil Ministries/Departments of Central Government. In
the latter case the departmental officer will enter the particulars of
such transfers `in' and transfers `out' cases in the monthly abstract of
drawals and recoveries.
[Form GAR 39
(TR 62 B)
Annexure A-
Chapter 14-GFRs].
Reconciliation
of balances
(iv) For facilitating prompt reconciliation of balances outstanding as
on 31st March every year, each Drawing Officer will record a
certificate on the monthly abstract for the month of April each
year to the effect that:- "The total (namely Rs
.......................................) of the amounts outstanding on 31st
[GFR 187(c) and
Govt. of India's
decision (2)
thereunder].

49
March,19 (excluding recoveries from pay bills for March)
against employees on the rolls of the office on that date and
accepted by them individually as correct, is equal to the closing
balance indicated in the abstract for February, plus payments
made minus repayment received in cash during March of that
year”.
Important
Hints
8.5 In nut shell, the following points should be noted while
sanctioning,drawal,etc. for advances :-
1.
The Head of Office should ensure that the conditions attached to
the grant of advances are fulfilled and that proper accounts are
maintained.
2.
Recoveries of advances and of interest wherever recoverable
should be effected in time and delayed on no account.
3.
The detailed accounts of all short terms advances i.e. advances
recoverable in less than 60 instalments should be maintained by
the Head of Office.
4.
Every payment of advance should be entered in the pay bill
register, and the recoveries effected alongwith the interest, if any,
should be noted in that register.
5.
A monthly abstract of recoveries in the prescribed form (but not
of interest) should be prepared
and attached to the last
establishment Pay Bill for a month.
6.
Discrepancies pointed out by the PAO in the monthly abstracts
should be attended to promptly.
7.
In the case of transfer of a government servant from one office to
another the amount of each such advance paid and the balance
outstanding should be mentioned in the L.P.C.

50
CHAPTER - 9
STORES
General
Rules &
Instructions
for Purchase &
Consum-ption
of Stores
9.1 The general rules applicable to all departments regarding stores
required for use in the public service are contained in Chapter 8 of
GFRs. Detailed rules and instructions relating to various departments
responsible for or concerned in large purchases or manufactures or
consumption of stores are contained in the departmental regulations
relating to the departments concerned. Some important provisions of
these rules are enumerated in the ensuing paragraphs.
9.2 All purchases of stores for use in the public service should be
regulated in strict conformity with the stores purchase rules and the
subsidiary instructions reproduced in Appendix 8 and Annexure to
Chapter 8 of GFRs. Special rules relating to the purchase of stationery
stores are contained in Appendix 9 to GFRs.
9.3 Purchases should be made in the most economical manner in
accordance with the definite requirements of the public service. Stores
should not be purchased in small quantities. Periodical indents should be
prepared and as many articles as possible obtained by means of such
indents. At the same time, care should be taken not to purchase stores
much in advance of actual requirements, if such purchase is likely to prove
unprofitable to Government.
[GFR 103]
9.4 Where scales of consumption or limits of stores have been laid down
by competent authority, the officer ordering a supply should certify on
the purchase order that the prescribed scales or limits are not exceeded.
[GFR 103]
9.5 Purchase orders should not be split up to avoid the necessity for
obtaining the sanction of higher authorities required with reference to the
total amount of the orders.
[GFR 104]
9.6 The indents should be prepared in such form and in accordance with
such general or special instructions as may be issued by Government in
this behalf.
[GFR 105(1)]
9.7 Where stores are required to be supplied and paid for in a particular
financial year, indents should not be sent out so late in the financial year
that they cannot possibly be complied with and paid for within that year.
[GFR 105(2)]
Receipt of
Stores
9.8 All materials received should be examined, counted, measured or
weighed, as the case may be, when delivery is taken, and they should be
taken in charge by a responsible Government officer who should see that
the quantities are correct, their quality good, and they are according to
approved specification where prescribed and record a certificate to that
effect. The officer receiving the stores should also be required to give a
[GFR 106]

51
certificate that he has actually received the material and recorded them in
the appropriate stock register.
Issue of Stores
9.9 When materials are issued from stock for departmental use,
manufacture, sale, etc., the officer-in-charge of the stores should see that
an indent in the prescribed form has been made by a duly authorised
(indenting) officer, examine it carefully with reference to the orders or
instructions for the issue of stores and order the issue of stores.
[GFR 107]
Transfer of
Charge of
Stores
9.10 In cases of transfers, the officer-in-charge of the stores should see
that the stores in his custody are made over correctly to his successor and
a proper receipt taken from him.
[GFR 108]
Custody &
Accounts of
Stores
9.11 A subordinate authority entrusted with stores of any kind should
take special care for arranging for their safe custody, for providing
suitable accommodation more particularly for valuable and combustible
stores, for keeping them in good and efficient condition and for
protecting them from loss, damage or deterioration.
[GFR 109 (1)]
9.12 A subordinate authority should maintain suitable accounts and
inventories and prepare correct returns in respect of the stores in his
charge with a view to preventing losses through theft, accident, fraud or
otherwise and to making it possible at any time to check the actual
balances with the book balances and the payment to suppliers, etc.
[GFR 109(2)]
9.13 Separate accounts should be kept of -
(i)
"Dead stock'' such as plant, machinery, furniture, equipment,
fixture, and
(ii) Other stores
[GFR 111]
Annual
Physical
Verification of
Stores
9.14 A physical verification of all stores should be made at least once in
every year under rules prescribed by the Head of Department, subject to
such general directions as may be issued by the concerned Departments
of the Central Government or the Administrator as the case may be and
subject to the condition that the verification is not entrusted to a person :-
(i)
who is the custodian, the ledger-keeper or the accountant of the
stores to be verified, or who is nominee of, or is employed under
the custodian, the ledger-keeper or the accountant ; or
[GFR 116 (1)]
(ii) who is not conversant with the classification, nomenclature and
technique of the particular classes of stores to be verified.
Priced
Inventory of
Stores
9.15 Where a priced inventory is maintained the values recorded therein
should not be materially in excess of the market value of the stores. For
this purpose the Head of the Department concerned will issue
instructions to govern :-
(i)
the fixation of prices with reasonable accuracy :
[GFR 120]

52
(ii) the periodical review and revision of rates; and
(iii) the agency to be employed in periodical revaluation.
Sales &
Disposal of
Stores & write
off of Stores
9.16 All profits and losses due to revaluation, stock-taking or other
causes should be duly recorded and adjusted where necessary. Formal
sanction of the competent authority should be obtained in respect of
losses even though no formal correction or adjustment in the accounts is
involved.
[GFR 121]
9.17 The previous sanction of the competent authority should be
obtained to the writing off of all losses, deficiencies or depreciation in
the value of stores.
[GFR 123]
9.18 All stores reported to be obsolete, surplus or unserviceable should
be declared as such and disposed of promptly by the competent authority
or declared to the Directorate General of Supplies and Disposals where
so required.
[GFR 124(1) &
(3)]
9.19 Sales to private persons of stores other than those which have
become obsolete or unserviceable shall be regulated by special
departmental rules/orders.
[GFR 125]

53
CHECK LIST FOR DDOs FOR
READY REFERENCE
The DDOs are advised to bear in mind the
following essential checks :-
Chapter 1 - Cash & Accounts
1.
All monetary transactions should be entered in the cash book in
the prescribed form as soon as they occur and duly attested.
2.
The cash book should be closed regularly and completely
checked, and at the end of each month the cash balance verified
physically.
3.
In respect of Government moneys paid into the bank, the relevant
entry in the cash book should not be attested unless the bank's
receipt on the challans is verified.
4.
No money should be disbursed unless a legal aquittance from the
person(s) entitled to receive the amount drawn on a bill is
obtained.
5.
An account of undisbursed Pay & Allowances should be kept in
a register in form GAR 25 and the amounts remaining
undisbursed for 3 months should be refunded.
6.
For all moneys received, receipts in the prescribed form GAR 6
should be issued and it should be ensured that such receipts have
duly been entered in the cash book.
7.
All moneys received in cash or by cheques/Demand Drafts
should be promptly paid into the bank/sent to the PAO, as the
case may be.
8.
A proper account of expenditure and revenue receipts should be
rendered to the PAO by the prescribed dates and in the
prescribed forms.
9.
Except where otherwise specifically povided, any loss or
shortage of public money, stamps, stores or other properties
caused by defalcation or otherwise should be immediately
reported to the next higher authority as well as to the Principal
Accounts Officer and the concerned Audit Officer.

54
Chapter 2- Withdrawal from Government
Account
1.
No expenditure should be incurred without the sanction of the
competent authority.
2.
All charges actually incurred must be drawn and paid at once and
under no circumstances be allowed to stand over to be paid from
the next years' grant.
3.
No money should be drawn in anticipation of demand or to
prevent lapse of budget grant.
4.
Expenditure relating to two or more major heads should not be
included in one bill and full account classification must be
recorded on each bill.
5.
Expenditure control register should be maintained to exercise an
effective check over expenditure against the budget allotment .
6.
Bills for pay, leave salary and allowances should be prepared
separately for :-
(i) Establishments whose charges are debitable to different heads
of Accounts,
(ii) Personnel to whom salary is payable individually by cheque,
and
(iii) Group `D' Employees.
7.
T.A. claim not preferred within one year from the date on which
it became due should be dealt with in accordance with the
provisions of SR 194-A and the GI Orders thereunder.
8.
Contingent charges should not be drawn in advance in abstract
bills except in the case of contingent charges requiring
contersignature by the Controlling authority after payment. In
such cases the amount of each sub voucher in support of the
charges should be given in the Abstract bill.

55
Chapter 3 - Cheque Drawing DDOs
1.
Cheque Drawing DDOs should pay by cheques only such claims
(e.g. pay and allowances, office contingencies etc.) as they have
been authorised to entertain. Bills for other kinds of payments
should be presented to the PAO concerned, and such bills should
in no case be paid directly by the Cheque Drawing DDO.
2.
It should be ensured that cheques are not drawn in excess of the
limits prescribed in the letters of credit.
3.
The bills should be subjected to the prescribed checks
enumerated in CGA (R&P) Rules/CAM before they are passed
for payment.
4.
All cheques should be drawn on forms in cheque books supplied
by the PAO, and the instructions contained in the Central
Government Account (Receipts & Payments) Rules with regard
to cheques and cheque books should be followed.

56
Chapter 4 -Service Books
1.
A service book should be maintained by the Head of Office for
every Government servant (Gazetted and Non-Gazetted) holding
a substantive post or a temporary post likely to last for more than
one year and every step in a Government servant's official life
should be recorded in the service book and attested by Head of
Office.
2.
The Head of Office should show the service book to each
Government servant every year and obtain his signature therein
in token of his having inspected the service book.
3.
The Head of Office should scrutinise at least ten per cent of
service books every year.
4.
In the beginning of each year, all the service books should be
taken up for verification of service and a certificate of
verification of service recorded therein.
5.
A note should be kept in the service book regarding the receipt of
nominations for DCRG and family pension and related notices
from the Government servants and also indicating as to where
they have been lodged for safe custody.
6.
A note regarding the membership of the CGEGIS should also be
made in the service book of the Government servant concerned
and the relevant nomination(s), in prescribed form as obtained
from him and duly countersigned by Head of Office also pasted
in his Service book.

57
Chapter 5 - Central Government
Employees Group Insurance Scheme
1.
The Head of Office should ensure that a suitable note has been
made in Service Book of the Government servant concerned
regarding membership of the scheme and the employee has been
informed accordingly.
2.
Nomination (s) in prescribed form should be obtained from the
Government servant without delay countersigned by the Head of
Office and pasted in the Service book.
3.
The Head of Office should ensure that the Group-wise register of
members is maintained in the prescribed form and kept up-to-
date. He should also ensure that the necessary
verification/certification of the correctness of the deductions of
subscriptions from the salaries as noted in the register is done
annually by the DDO concerned.
4.
The rate of subscription for the scheme is fixed accordingly to
the Group to which an employee belongs, and the salary for
January, determines the rate of subscription. In the case of
promotion of an employee from one Group to another, the
subscription should be revised from next anniversary i.e. January
of the following year. The DDO should ensure that once an
official has been admitted to a higher Group, the rate of
subscription at enhanced rate continues and is not reduced even
if the official is reverted to a lower post, from a later date.
5.
In the case of death of a Government servant who is a member of
the Scheme, the Head of Office should ensure that payment on
account of insurance as well as saving fund is drawn without
delay from the PAO and disbursed to the nominee(s), as per
nomination.
6.
In the case of resignation or retirement Savings fund balance
should be drawn promptly from the PAO and disbursed to the
official.

58
Chapter 6- Finalisation of Pension Cases
1.
The Heads of Offices should see that pension cases are finalised
expeditiously and there should be no delay in the payment of
pensions DCRG and commuted value of pension.
2.
The preparation of pension papers should be initiated two years
before the retirement of the Government servant and verification
of the qualifying service including completion of service books
completed 8 months in advance of the date of retirement of the
Government servant.
3.
The pension papers duly completed after determining the
qualifying service, the average emoluments and the admissible
pension and gratuity should be sent to the PAO not later than six
months before the date of retirement of Government servant.
4.
In exceptional cases, where it is not found possible to complete
the pension papers within the prescribed time schedule, the Head
of Office should authorise the payment of provisional pension,
gratuity and commuted value of pension by the first of the month
in which it is due.
5.
In order to ensure timely finalisation of pension case, suitable
action should be taken to ascertain Government dues including
licence fee in respect of Government accommodation well in
time and to adjust them in accordance with the prescribed
procedures.

59
Chapter 7 - Maintenance of GPF Accounts
of Group `D' Employees
1.
All permanent employees and the temporary employees in
continuous service of more than one year should be assigned
GPF Account Nos.
2.
A ledger account for each subscriber should be maintained in the
prescribed form and posted every month from the schedule of
GPF deductions.
3.
A broadsheet in the prescribed form should be maintained and
posted every month direct from the ledgers and not from the
schedules or vouchers.
4.
The total of monthly debits and credits on account of GPF
(Group `D') should be reported every month to the Head of
Department in the prescribed form and on the prescribed date.
5.
Interest for each year should be calculated and entered in the
ledger accounts as well as in the broadsheet. The amount of
bonus admissible under the New Incentive Bonus Scheme should
also be posted in the ledger accounts and in the broadsheet. A
statement of interest/bonus thus credited should be sent to the
Head of Department by the prescribed date.
6.
A pass book should be issued to each subscriber in the prescribed
format.
7.
At the end of each year the pass books should be collected for
completion and returned to the subscribers.
8.
Final payment of GPF moneys should be made, after the
accounts have been thoroughly checked. In the case of a
Government servant dying in harness, payment on account of
Deposit-linked Insurance Scheme should also be made alongwith
GPF balance to the nominee(s) of the deceased Government
servant.

60
Chapter 8 – Advances to Government
Servants
1.
The Head of Office should ensure that the conditions attached to
the grant of advances are fulfilled and that proper accounts are
maintained.
2.
Recoveries of advances and of interest wherever recoverable
should be effected in time and delayed on no account.
3.
The detailed accounts of all short terms advances i.e. advances
recoverable in less than 60 instalments should be maintained by
the Head of Office.
4.
Every payment of advance should be entered in the pay bill
register, and the recoveries effected alongwith the interest, if any,
should be noted in that register.
5.
A monthly abstract of recoveries in the prescribed form (but not
of interest) should be prepared and attached to the last
establishment, Pay Bill for a month.
6.
Discrepancies pointed out by the PAO in the monthly abstracts
should be attended to promptly.
7.
In the case of transfer of a Government servant from one office
to another the amount of each such advance paid and the balance
outstanding should be mentioned in the L.P.C.

61
Chapter 9 - Stores
1.
Purchase orders should not be split up to avoid the necessity of
obtaining the sanction of higher authority.
2.
All materials received shall be examined, counted measured or
weighed as the case may be, when delivery is taken and they
should be taken in charge by responsible Government Officer.
3.
A physical verification of all stores should be made at least once
in every year.
4.
Previous sanction of the Controlling authority should be obtained
to the write off of all losses, deficiencies or depreciation in the
value of stores.

62
APPENDICES
List of Appendix
Serial No.
Description
Pages
1.
Register of bills received
63
2.
Register of cheques issued
64
3.
List of payments
65
4.
Indemnity Bond
66
5.
Stock Register of Cheque Books
67
6.
Account of cheque forms
68

63
APPENDIX 1
REGISTER OF BILLS RECEIVED
(Referred to in para 3.7)
Sl.
No.
Date
Designation
of D.D.O.
Particulars
of the bill
Net
Amount
Date of
passing
bill &
Issue of
Cheques
Cheque
No.
Amount
Remarks
1
2
3
4
5
6
7
8
9
APPENDIX 2

64
REGISTER OF CHEQUES ISSUED
(Referred to in para 3.9)
Sl.
No.
Date Ref. Sl.
No. of
Bill
Partic
ulars
of the
Bill
To
whom
issued
Cheque
No.
Amount
Initials
of
DDO
Remarks Date of
encash
ment
Initials
of
DDO
Amou
nt of
Assig
nment
Balance
in
assignme
nt
Account
1
2
3
4
5
6
7
8
9
10
11
12
13
APPENDIX 3
LIST OF PAYMENTS

65
(Referred to in para 3.10)
List of Payments for the week ending --------------------------------------------------------------------
Designation of the D.D.O. (Cheque drawing) -----------------------------------------------------------------
Abstract
Authority
Amount
Credit advised for the quarter ending ......................................
Balance in the quarterly credit at the close of last week...........
..................................................................................................
Total payments during the week.....................................
Balance in the quarterly credit of the end of the current
week.........................................................................................
......................
......................
Sl.No.
Date
Particulars of
the bill
To whom paid
Cheque No.
Amount
Total
Rupees_________________________________________________________________only.
Certified that the total payments and the balance in the quarterly credit as per Bank Scrolls and the
Cash Book have been reconciled for the last week i.e. week ending .............................. and the
reconciliation statement is enclosed.
Signature
Designation
APPENDIX 4

66
INDEMNITY BOND
(Referred to in para 3.24)
THIS DEED OF INDEMNITY made on the ...................................................................................... day
of............................................................... BETWEEN ................................................................................. Son of
....................................................................... Resident of ............................................................................. or (1)
................................................ Son of ........................................................resident of .......................................... (2)
................................................ Son of ........................................................resident of .......................................... etc.
carrying on business in co-partnership under the name and style of ..............................................
at..........................or................................a company registered under the Indian Companies Act,1913/Companies
Act,1956 having its registered office at ................................(here in after called 'the Indemnifier' which expression shall
unless excluded by or repugnant to the context be deemed to include his heirs, executors, administrators, legal
representatives, successors and permitted assigns) of the ONE PART and the President of India (hereinafter called 'the
Government' which expression shall unless excluded by or repugnant to the context be deemed to include his successors
or assigns) of the OTHER PART.
WHEREAS
on
the........................................day
of......................................Cheque
No......................
dated..........................................on...............................(Name of the bank) for Rs.................................................. was
drawn by........................................in favour of the indemnifier.
AND WHEREAS the Indemnifier has represented to the Government that the said cheque has been lost by
him/during transmission by post to him.
AND WHEREAS at the request of the Indemnifier the Government has agreed to issue a second cheque for Rs.
......................................being the amount of the said previous cheque No.......................... dated....................... upon the
Indemnifier giving such indemnity as hereinafter contained.
NOW IT IS HEREBY AGREED By and between the parties here to as follows:
(1) In consideration of the said premises and of the agreement on the part of the Government in issuing in favour
of the Indemnifier a second cheque for Rs..............................being the amount of the previous cheque
No...................................... dated ...............................the Indemnifier both hereby agree and undertake to refund to the
Government on demand and without demour the said sum of Rs.....................................in the event of the said previous
cheque No............................dated..............being presented to and paid by the bankers and to indemnify the Government
and keep the Government harmless and indemnified from and against all expenses which may be incurred by the
Government in relation thereto or in connection therewith.
(2) The Government agree to bear the stamp duty, if any, chargeable on these presents.
IN WITNESS WHEREOF the parties here to have set and subscribed their respective hands hereunto on the
....................................................day and year first above written.
Signed by the said Indemnifier in the presence of :
(1)
(2)
Signed for and on behalf of the President of India by Shri ..........................................................................................
(Name and Designation) in the presence of :
(1)
Name
Address
(2)
Name
Address
APPENDIX 5

67
STOCK REGISTER OF CHEQUE BOOKS
(Referred to in para 3.31)
Name of the Ministry/Department ----------------------------------
Receipt into Stock
Issues
Date
From
whom
Number
Books Forms
Sl.
Nos.
of
books
Date
To
whom
Number
Books Forms
Sl.
Nos.
of
books
Balance
of Books
on
receipt
or issue
Initials
of G.O.
Number and
Date of
acknowledg
ement of
books
issued
Remarks
1
2
3
4
5
6
7
8
9
10
11
12
13
14
APPENDIX 6

68
ACCOUNT OF CHEQUE FORMS
(Referred to in para 3.31)
Date
Opening
Balance
of
Cheque
Forms
No. of
Cheque
Forms
received
from
Stock
Total No. of
Cheque
Forms to be
accounted
for (cols.
2+3)
No. of
Cheques
issued
No. of
Cheque
Forms
cancelled
and
destroyed
with Sl.
No. thereof
Total No.
of
Cheque
Forms
accoun-
ted for
(Cols
.5+6)
No. of
Cheque
written
but not
issued
Closing
balance
of che
que Fo-
rms
(Col .4-
7)
Initials
of
Cashier
Initials
of
Officer-
in-
charge
1
2
3
4
5
6
7
8
9
10
11

The abbreriations used in the Manual may be read as follows :
A.G.
Accountant General.
C.A.M.
Civil Accounts Manual.
C.B.D.T.
Central Board of Direct Taxes.
C.B.E.C.
Central Board of Excise & Customs.
C.C.S.
Central Civil Services.
C.G.A.(R&P) Rules
Central Government Account (Receipts & Payments) Rules 1983.
C.G.E.G.I.S.
Central Government Employees Group Insurance Scheme.
C.S. Rs.
Civil Service Regulations.
C.T. Rs.
Central Treasury Rules.
D.C.R.G.
Death-cum-Retirement Gratuity.
D.D.O.
Drawing and Disbursing Officer.
E.B.
Efficiency Bar.
F.Rs.
Fundamental Rules.
G.F. Rs.
General Financial Rules.
G.O.
Gazetted Officer.
G.P.F.
General Provident Fund.
H.B.A.
House Building Advance.
L.P.C.
Last Pay Certificate.
L.T.C.
Leave Travel Concession.
No.
Number.
O.M.
Office Memorandum.
P.A.O.
Pay and Accounts Office/Officer.
P.P.O.
Pension Payment Order.
R.B.I.
Reserve Bank of India.
S.B.I.
State Bank of India.
S.Rs.
Supplementary Rules.
T.A.
Travelling Allowance.
T.O.
Treasury Officer.

A.
Subject Matter
Para
Attachment of Salary
1.22
Average Emoluments Advances
6.4
General
Sanction of advances by Head of Office
Other duties of Head of Office
Transfer of balances
Reconciliation of balances
8.1
8.2
8.3
8.4 (iii)
8.4 (iv)
Arrears of deceased
6.23

B.
Subject Matter
Para
Bills
Budgetary controls
Bill register
Bill Preparation
Bills & Pay order on Bill
Bills of Medical attendence
1.25
2.6
2.37
2.52
2.16
Bank reconciliation statement
3.11

C.
Subject Matter
Para
Conveyance allowance
2.53
Cheques/Cheque Books
Cheque Books-Forms of Cheques
Loss of Cheques
Issue of Account payee & open Cheques
Lowest limit of amount of cheque
Correction in cheques
Currency of cheque
Cancellcation of cheque
Indenting & custody of cheque books
Stock Register of cheques
Stock taking of cheques
Categories of cheques
3.15
3.17
3.18
3.19
3.20
3.21
3.22
3.30
3.31
3.32
3.33
Cheque drawing DDO
Payment of other offices
Payment other than Pay & contigencies
Procedure for payments by DDO’s
3.3
3.4
3.6
Commutation of Pension
6.16
Restrictions limitations etc.
When becomes absolute
without medical examination
Authorisation & Payment after medical examination
6.17
6.19
6.20
6.21

Cheques drawing departmental officers
Classification on the bills
Countersignature of the TA bills
Contingent Expenditure/ Meaning Charges
Bills of contingent expenditure
Fully vouched charges
Responsibility of DDOs
Types of Contingent charges
Concellation of vouchers etc.
General Limitations for payments out of
contingency & Certificate s with bills
Record of Expenditure
Scale related charges
Special Contigencies
1.31
2.5
2.26
2.31
2.46
2.47
2.33
2.32
2.37
2.41
2.44
2.49 (i)
2.49 (iii)

D.
Subject Matter
Para
DDO
General
Types of DDO
1.2
1.3
Drawal of Funds
Drawal & disbursement of Pay & Allowances
and Other fixed allowances
2.17
Payments other than Pay & Contingencies
Defalcation & Losses
Drawal of TA
3.4
1.35
2.24
Dues
Govt. dues (General)
6.15
Dues of Directorate of Estate
Dues other than relating to Govt. accommodation
6.15 (A)
6.15 (B)

G.
Subject Matter
Para
G.P.F. Accounts
Maintenance of Account
Allotment of Account Nos.
Ledger
Recovery Schedules
Entries in GPF Accounts
Broad sheet
Nomination
Transfer of GPF Account
Calculation of Interest on GPF
Incentive Bonus on GPF
Pass-Book
Final Payments
Payments under D.L.I.
7.1
7.2
7.3
7.4
7.5
7.6
7.8
7.9
7.11
7.12
7.13
7.14
7.15

L.
Subject Matter
Para
L.T.C. Claim
Letter of credit
List of Payments
Loss of cheque
Leave Account
Important Checks
Its submission
Non payment certificate
2.30
3.2
3.10
3.23
4.6

P.
Subject Matter
Para
Pension
Pension papers
Pre- mature retirement
Provisional Pension & Gratuity
Public Fund & Expenditure
therefrom
Qualifying Services
6.8
6.5
6.7
6.10
2.12

R.
Subject Matter
Para
Rendition of Accounts
1.26
Recoveries on account of
Professional Tax etc.
Receipt against the amounts
received
Refunds of Revenue
Rounding off of Transactions
1.23
1.26
1.33
2.4

T.
Subject Matter
Para
TA Claim of Actual Expenses
2.25
Certificate of drawing officer
Time limit for claim
Time table for Pension work
2.26
2.28
6.2

S.
Subject Matter
Para
Security Deposits for Holding
cash etc.
1.6
Specimen signatures of DDOs
2.11
Sub Vouchers-Cancellation &
destruction
2.43
Submission of Accounts/Lists
of Payment-Due date for
(i) Cheque drawing DDO’s
(ii) For DDO’s funtioning on
PWD/Forest Account pattern
3.10
3.12
Submission of Scrolls by Bank
3.13
Service Books
Its maintenance
Its Custody
Attestation of Entries
Entries of Foreign Services
Nature of Entries in Service Books
4.1
4.3
4.4
4.5
4.7
Service Book
Inspection by Govt. Servants
Entries regarding date of birth
Verification of Service
Copy of Service Book
Note regarding nominations
4.11
4.12
4.14
4.16
4.17

Stores
General
Purchase and Consumption
Receipt of Stores
Issue of Stores
Transfer of charge
Custody & Accounts
Physical verification
Inventory of Stores
Write-off Losses/differences in stores
9.1
9.2
9.3
9.9
9.10
9.11
9.14
9.15
9.17

U.
Subject Matter
Para
Undisbursed amounts
1.24

V.
Subject Matter
Para
Vouchers
Safe Custody
2.40