FINANCIAL HANDBOOK-I

RULE DETAILS
NUMBER
2(g) Head of the circle-Postmaster General
4 Receipt of Money-
All transactions in India to which any officer of the govt in his
official capacity is a party must without any reservation be brought
to account.
5 All moneys in connection with any affairs of the Union in his
capacity as such, other than Revenues or Public Money raised or
received by Govt shall be paid into the Public account.
6 Public Account-the account maintained of moneys which have
passed into the custody of Govt.
7 A Govt servant supplied with funds for expenditure shall be
responsible for such funds until an account of them has been
rendered to the satisfaction of the accounts officer concerned.
8 Granting of ACG-67 Receipt
9 The duty of the departmental officers and not of the audit officer to
see that the dues of the department are regularly collected and
brought to account.
12 Payment of Money
Permission of withdrawal of money from public account by the
disbursing officer-
Purposes
 To pay sums due from the Govt to the drawing officer
 To provide the drawing officer with funds to meet claims
likely to be presented against the Govt in the immediate
future by a. Other GS b. Private parties.
 To enable the drawing officer to supply funds to another govt
officer from which to meet similar claims
 To pay sums on account of loans and advances.
14 Pay and allowances bills in respect of the P&T staff attached to the
special police establishment, Hyderabad will be drawn by the P&T
Directorate and remitted by Service Money Order.
15 No authority may incur any expenditure or enter into any liability
involving expenditure from Public Funds until the expenditure has
been sanctioned by general or special orders of the authority.
16 A disbursing officer can decline any payment if not permitted as per
the rules.
17 A disbursing officer can correct the bills and need not return the
bills and doubtful items which can easily be eliminated and pay the
 remaining amount.
18 All cheques and bills preferable at a treasury for payment are Not
Negotiable instruments can be endorsed only once in favour of the
specific party to whom the money is to be paid. If endorsed to the
banker, second endorsement can also be made either to a messenger
or agent.
Cheques drawn directly on the bank without the intervention of the
treasury officer are negotiable instruments and are not subject to
the provisions of this rule.

19 Seal and specimen signature

-Verification of signature on the order by comparison with the
specimen signature of the signing officer.
-Every officer who is authorised to draw funds from Post Office
shall send a specimen of his signature to the postmaster concerned.
19B Final Payment of GPF Money-
Embossed with a special metallic seal bearing the name of the office
of issue.
21 Claims by Govt servants-
LPC is must for drawal of pay and allowances except newly
appointed govt servants.
25 Arrear Claims
 Preferred within two years without an authority from the
Circle accounts officer.
 If claim is not exceeding Rs500/- within three years without
pre check.
 Not applicable to pension, pay and allces, int on Govt
securities and any other class of payments by special rules.
 The bills for claims more than two years old shall be
subjected to pre-check by the Circle Accounts Officer even if
the net amount payable after adjustment of advance dues is
nil.
25A Transfer TA and conveyance allowance claims submitted to the
controlling officer within one year from the date on which it
becomes due.
25B  Where no LTC advance is taken within 3 months(it can be
relaxed for a period not exceeding 6 months by the
ministry/Dept with the concurrence of Financial Advisro if
the reasons stated are convincing)
 Where advance taken, within one month from the date of
 return journey but relaxed upto 3 months provided the GS
refunded the advance within 45 days of return journey.
26 Overcharges and Undercharges of railways to be claimed within six
months.
27 Pay and allces, increments or other dues
 If not claimed upto 3 years no investigation but authorisation
by Circle Accounts office.
 If more than 3 years but not more than six years, specific
approval from HOD.
 If more than 6 years old , specific approval from DG for
investigation.(now by HOC)
 Medical expenses allowed to remain in abeyance exceeding
one year but not six years, no investigation.
 All petty claims more than 3 years old other than affect his
pension should be rejected.
 If pay commission arrear if not preferred within 2 years from
the date of revision requires authorisation.
 HOC may sanction adhoc payments of arrears of pay and
allowances where claims cannot be verified.
GOI decisions-1. Avoidance of delays in payment of arrear claims
1. Reckoning of the date in the case of OTA Claims
1st day of month following the month to which OTA relates.
(24 months from this date)
2. Reckoning the date in case of TA claims by retired Govt
servants appearing in a Court of Law for defending himself.
3. Medical reimbursement bills to be preferred within three
months from the last day of treatment.
4. Due date of Leave Travel Concession claim
5. Due date of OTA claims
28 Claims of pay and allces in respect of non-gazetted GS whose name
not to be included in the establishment bill not required to be pre-
checked by CAO.
GOI D-1-Procedure for dealing with time barred claims
29 No payment may be made on account of increases to pay until the
additional expenditure thereby caused has been provided for in the
budget estimates and duly sanctioned.
Drawal of increments-no budget allocation
30 Payments to persons not in Govt service- 2% of IT is deducted
at source if payment exceeds Rs10000/-
32 Payments on rent of buildings occupied by the P & T
Offices(rule 682 of Vol II)
33 Payments by Money orders(rule 679 to 681 of vol II)
35 Preparation of bills and their check-“Rupees twenty six only or
Rupees twenty five and Paise 25.
 All corrections in the total of bill should be attested by full
signature with date
 Bills affixed with facsimile signature of the authorised
officers of P&T and Indian Airlines and municipal are
accepted.
 A bill becomes voucher after payment
 The period of validity of pay order is only seven days from
the date of endorsement of pay order except pay and allces.
44 Certificate of Payment
45 Every voucher must bear a pay order and indicate mode of payment
specifying the amount payable both in words and figures.
-SPM makes payments in some cases without pay order of PM.
 Where there is a specific sanction of the competent authority
and the payment has to be effected by the SPMs.
 GPF , Pay and TA advances when sanctioned by Supdt
 Pensions bills
 Extra expenditure incurred for the delivery of heavy parcel
mail articles.
 Charges for extra despatch of mails
 Conveyance of cash
 Escorting cash remittances
 Payment of electric bills, sanitary and water charges
 Delivery of express delivery letters and messages
 Funeral expenses
 Messenger service bills.

46 All sub claims to be cancelled to avoid subsequent use

1. Rounding off transactions in Govt accounts.
 In the case of amounts fixed by court of law, pension,
DG, Commuted value of pension shall be rounded off
to the next higher rupee.
49 Stamps for receipts- net amount payable on a bill if exceeds
Rs5000/-, Revenue Stamp to be affixed.
51 Duplicates or copies of documents
52 Losses of Govt Property
53 Defalcations and Losses
 Petty cases-involving losses not exceeding Rs2000/- need not
to be reported to audit/accounting authority.
55 Loss of money or stamps in Pos-UCP and UCR
 1. Additional actions to be taken in cases involving material loss
or destruction of Govt property- loss exceeding Rs10000/-
called material loss should be reported to the police.
56 Internal check against irregularities, waste and fraud
57 Accidents-any serious loss of immovable property-reported to the
Head of the department-serious loss is exceeding Rs5000/-
58 Responsibility for losses etc-contributory negligence- Appx 4.
59 Responsibility for overcharges-countersigning officer for culpable
negligence.
60 Standards of financial property
61-62 Control of expenditure-(vol II)
63 Erasures
64-65 Maintenance of accounts
66 Demand for information by audit
67 Adjustments between Govts
69 Preservation of accounts records-appx 5,3 and 5 to the FHB vol
I,Volumes III and IV. Maintenance of a register of destruction of
records in Form ACG-91.
71-82 General outlines of the systems of accounts
Postal Receipts-1201, Postal Services-3201, Capital Outlay on
Postal services-5201
78 Submission of cash accounts to DAP by POs
79 Submission of bimonthly cash accounts by HRO
81 Drawal from Bank
86 Relations with audit- audit objections and Recoveries
 Return the objection statements within a fortnight or send a
letter explaining the cause of delay.
 Disbursing officer should refuse the disallowed payment by
audit to the GS and should not pay till authorisation by the
audit/account.
 Should not make any correspondence with audit when
retrenchment is ordered.
 when an audit officer/accounts officer disallows a payment as
unauthorised, Person aggrieved should refer the case to the
proper authority.
 Representations should not be latter than three months.
87 Recoveries may not ordinarily be made at a rate exceeding one-third
of pay
88 Maintenance of register regarding retrenchments ordered
Head of the office should check 10% of the entries every month.
89 Deductions from pay bills-instructions of audit officer to be
followed-
 The recovery of the sum disallowed from a pay bill from next pay
bill and TA from next month TA bill or from the pay bill if TA bill
not submitted.
92 Objection statements-pencil draft and a carbon copy. Carbon copy
after signature to be returned to Audit.
97A Audit Inspection Reports
100 Correspondence with Audit
Postmasters of SOs and BOs should not directly correspond with the
audit but only through Supdt or HO.
102 Requisitions for audited documents
 Audited bills, vouchers etc will not be supplied by CAO to
any departmental officer. If required, requisition to be
submitted through HOC.
 Paid MOs, IPOs, Discharged certificates or warrants of
payments in respect of SB by Supdt or first class PM.
 Inspectors and all HPMs can submit requisition directly for
MOs paid for enquiry. But void MOs paid only through
Supdt.
103 Cash-General matters –do not mix up with the public cash or
accounts
104 Cash includes legal tender coins, currency or Bank Notes, treasury
certificates, cheques payable on demand and Demand drafts. Also
includes postage stamps, Postal stationery, Reply coupons, RS,
NSS,CERS etc. Credit challans and Pay orders.

Govt securities, deposit receipts of Banks, debentures and bonds

accepted as security deposit whether from contractors or from
employees of the Dept, should not be treated as cash
110 Deposit and Collection of cheques
 A cheque drawn on any Bank at the same station as that of
the office at which it is accepted will be regarded as local
cheque.
 Even accepted at other HO in the same station will be treated
as Local cheque.
 Accepted at any of the SOs is also local cheque.
 All other cheques will be treated as outstation cheques.
 When govt dues are paid in fixed due dates, last day of the
month, cheques should not be accepted.
111 Acceptance of cheques
 Amount involved not less than Rs20/- to be drawn as cheque.
 The bank gives a guarantee and it is renewed every three
years.
  Cheques exceeding the total amount of the guarantee should
not be accepted from a drawer at any one time.
 Cheques drawn on Banks whose guarantees have expired will
not be accepted until they are renewed by the Bank
concerned.
 HPM may accept cheques of less than Rs20/- if satisfied.
 Cheques not covered by Bank’s Guarantee may be accepted
in payment
o Payment of postage from the holders of FM Licences
o Payment of fee for registration of abbreviated address
and for the renewal of such registration
o Payment of charges of telegrams accepted
o Payment of security deposits for the acceptance of
telegrams under the account system.
 Cheques drawn on local treasury may be accepted in payment
of departmental dues.
 Cheque transactions more than Rs1000/- should be checked
by the PM that they are correctly included in the account.
 Register of cheques received and cleared should be
maintained by sub offices in direct account with the treasury
as cleared independently.
114-117 Cash Book-upkeep
 SOs and BOs exempted from maintaining Cash Book. Instead
they should enter in SO and BO accounts and SODA and
BODA.
 GS entrusted with fixed imprests or temporary advances of
money are not required to maintain a cash book but only to
render accounts of their disbursement in Imprest Cash
Accounts in the prescribed form to be maintained.
 No receipt or payment other than that of cash to be entered in
the cash book.
118 Contingent Register
 In DG’s Office and Postal circle offices, all transactions of
payment on account of office expenditure will be recorded in
the “Contingent Register”. Two heads a. Expenditure met
from permanent advance b. Office expenditure met otherwise.
 At the close of the day, lump entry to be transferred to the
Cash Book.
120-121 Verification of cash book by the Disbursing Officer
123-124 Balancing of cash book
 HO cash book and TCB should be signed daily by PM.
  The cash book need not be closed on days when there are no
transactions and the cash chest is not opened.

126 Verification of balances by Inspecting officers-ACG-84

SUPPLY OF FUNDS AND OTHER REMITTANCE
TRANSACTIONS
128 Keeping the cash within min and max cash balance
129 Supply of funds from Banks and remit their surplus collections to
Banks
130 Validity of opening of drawing account is three months with the
treasury-treasury passbook and remittance to Treasury-Drawings
from Treasury
140(a)- Treasury pass book, Remittance to treasury and Drawings from
142 Treasury
 When remittance is to be made to a treasury, the amount
should be entered in the Tresury pass book and memorandum
of remittance should be prepared in duplicate.
 Memorandum should be affixed with oblong money order
stamp and signed by the Postmaster.
143-145 Cheques
1.Instructions to be followed to safeguard against fraudulent
payments
PO will not drawn cheque of value less than Rs100 for payment to
the firms or individuals.
Cheques of high value (Rs10 lakhs) may be signed by two officials.
146 Sub Office transactions with Teasuries
149 Specimen to be forwarded to the Treasury office whenever an in
charge of the office is transferred from the office to another.
-Under rule 162: Specimen signature and safeguards(rule 172 of the
compilation of the central treasury rules, volume –I)
150 Remittance between Head Offices
154 Sanction of cash imprest of a moderate amount for offices which are
not authorised to use their cash receipts for defraying contingent
expenses.
 Maximum amount payable on an imprest certificate at one
time is Rs250/-
155 Remittance of cash is sent to a post office-accompanied by
remittance book and a challan-disposal.
VII-REVENUE AND MISCELLANEOUS RECEIPTS
184 Each postal article is taxed with the prescribed fee either by means of stamps or
by recovery in cash.
185 Payment for special services –to be recovered through the bills to whom the
services rendered.
186 Postage on postal articles-Franking machine- “Postage realised in Cash”
188-189 Receipts on account of advt in Deptl publications
191 Receipts for sale of Publications and Forms-“Sale of publications, blank forms
etc”
193 Recoveries from Guarantors- charged in the schedule of UCR or UCP.
195 Collection of Telephone Revenue
1.Accounting of TRC
VIII-PAY AND ALLOWANCES: General Rules
216 Due date of drawal of pay and allowances-not earlier than 5 days
217 Separate bills may be presented for pay and allowances or leave
salary due for a month or part of a month and these bills may be
paid before the end of the month-
 When a GS proceeds on transfer, deputation, leave and
vacation to or form a place outside India from or to a place in
India and from any place outside India to another place
outside India
 When a GS is transferred and involving change of DDO.
 When a GS finally quits the service of the Govt or is
transferred to foreign service or on deputation to a state Govt.
219-220 Fund Deductions
221 House Rent recoveries
222 Attachment of pay and allowances etc for debt
 Salary to the extent of the first one thousand rupees and 2/3 of
the reminder in execution of any decree other than a decree
for maintenance.
 Has been under attachment for 24 months and exempted from
attachment until the expiry of a further period of 12 months.
 1/3 of the salary in execution of any decree for maintenance.
 The following allowances are exempted
o TA
o Conveyance allowances
o Meeting the cost of uniforms and rations
o Allowances granted for expensive localities
o HRA
o DA and DP
o A foreign allowance
o CEA
o Reimbursement of medical expenses
 Field allowance is to be included in the emoluments for court
attachment.
 Maximum amount attachable other than for maintenance is
X-Y-1000/3(x-total emoluments, y-exempted allces and
 subsistence allce)
 If an order of attachement is against a GS is received before a
previous order of attachment has been fully complied with,
the recoveries shall be made by the Disbursing officer so long
as the total amount recoverable with reference to the
attachment orders is within the maximum limits.
 If results in increasing the max limits, the disbursing officer
return the order to the court with a statement showing
o Particulars of the existing attachment
o Particulars of amount withheld
o Amount remaining to be recovered.
 Cost if any for remittance to court to be deducted from the
amount realised.
1.Recoveries towards Profession tax and co-operative society dues
227 First payment of Pay, allowances
 If the GS did not previously hold any post under the Govt
 Is re-employed after resignation or forfeiture of past service
 A certificate by the DDO to the effect that the MC of fitness
in the prescribed form has been obtained and placed
 A certificate regarding engagement of a newly appointed GS
for a period not exceeding two months without a MC of
health to be furnished.
 If a pensioner is re-employed, the fact shall be stated in the
bill.
 Pay to appointments of military pensioners in the civil dept is
fixed with reference to provisions of CCS(Fixation of Pay of
Re-employed Pensioners) Orders, 1986. A certificate to this
effect in the first pay bill to be furnished.
 LPC of GS whose names do not appear in the Establishment
pay bills should be filed by the Head of the Office with the
documents pertaining to the service book or service roll.
228 Responsibility for obtaining LPC rests with the Govt servant
 A disbursing officer not to pay the pay and allces to a GS to
whom he has granted a LPC unless the certificate is
surrendered.
 Withdrawal for a claim for TA by a retiring GS and his
family, from his last place of duty to a place where he wishes
to reside, may be permitted without surrendering the LPC.
 In the event of death, retirement or discharge of Govt servant,
the CEA admissible in respect of him should be drawn and
disbursed without surrendering LPC.
229 No pay and allces without surrendering the LPC granted
1. Provisional payment to non-gazetted staff without LPC

 Provisional payment of substantive pay may be allowed to

non-gazetted GS pending receipt of LPC either on transfer
from one non-gazetted post to another or on reversion from a
Gazetted post.

2. Drawal of provisional pay when renewal sanction for

temporary posts not received
 For period of 3 months after the expiry of sanction to the post
at the same rate
230 Vacancies caused by officers attending courts of Law as witnesses-
substitute will get minimum pay of the post accompanied by a
certificate.
231 Arrear Bills-drawn in a separate bill-entered in the pay bill register
in Form GAR-17-The drawing officer should record the certificate
1. Procedure for payment of arrears of pay, allowances, etc of a
Govt servant transferred one division/office
Due and Drawn statement and sent to the previous office
for verification and producing certificate.
2. Arrears of Dearness Allowance
No need for verification but paid on due and drawn
statement. Intimation of the payment will be given to the
DDO.
233 Payment on quitting service
234-235 Death of Payee-
 Pay and allowances can be drawn upto the date of death
irrespective of the time of death. Day means a calendar day
beginning and ending at midnight
 May be paid without production of usual legal authority
under the orders of Head of the Office.
 Claim exceeds Rs10000/-, IB is required with sureties.
236 Place of payment-at the station where DDO draws the claims. If GS
on tour, it will be remitted through bank draft or by Service MO.
238 Leave Salary-EL exceeding one month can be remitted through DD
at the expenditure of OE.
239 Pay Due to Govt Servants absent out of India- makes his own
arrangement to receive it in India.
240 Pay Due to GS on Field Service-debitable to defence budget.
242 Payment of Honorarium
243 Pay and Allowances to Messenger
 Messenger to produce a letter of authority from the Payee
 together with a receipt duly signed by the payee in ack of
payment.
 Person authorised by court on behalf of lunatic employed in
the department.
 Unable to present for payment, may be paid to the agent or
the banker duly authorised by the Invalidated GS under legal
acquittance holding a legally valid power of attorney.
244 Bond of IB to be entered into by Agents
246-270 Bills of Gazetted Govt Servants
 Head postmaster who is the Drawing and Disbursing officer
for all non-gazetted staff of his office as well as that of the
divisional office will not drawn pay and allowances of all
Gazetted GS for whom he is the disbursing officer.
ESTABLISHMENT
281 Date of Birth
1. Conditions for changing Date of Birth
 A request is made within five years of his entry into Govt
Service.
 Clearly established that a genuine bona fide mistake has
occurred
 DOB so altered would not make him ineligible to appear in
any school or university or UPSC in which he appeared or for
entry into Govt service.
283 Service Books
1.maintenance of service book in duplicate
 First copy retained and maintained by the Head of the office
and the second copy should be given to the Govt Servant for
safe custody wef 1.7.2005.
 In jan each year, the Govt servant shall hand over his copy of
SB to his office for updation.
 The office shall update and return within 30 days of the
receipt.
 In case of loss by the Govt servant, to be replaced on payment
of Rs500/-
284  Head of the office should verify and attest the SB.
 Following officers not other than Head of the office are also
authorised to attest
In respect of PO and RMS
o An accountant in selection grade
o If no accountant, any officer in selection grade
o Assistant account(LSG) in GPO
In respect of Circle and other Administrative offices
 o Office supdt or any official in the selection grade
authorised by the HOC
However the Head of the office should verify atleast 10% of entries
in the book per year and initial them in token of having done so.

1.Elimination of delay in the sanctioning and payment of pension

 Head of the office should verify annual verification and also
complete and certify the SBs in respect of previous service in
the 20th year of service or 5 years before the retirement
whichever is earlier.
2. Cost of photograph to be affixed on the first page of the revised
service book shall be borne by the Government
287 Custody of service book
 If the Head of the office is a non-gazetted GS, it is maintained
in the custody of his immediate superior.
1. Heads of offices may delegate to subordinate Gazetted
officers powers to attest entries in Service books of all GOs
288 Arrangement of Service Books
 On the first appointment of a GS for whom SB is required to
be maintained to be opened by the officer making the
appointment and attest the descriptive particulars on the first
page.
 In case of death, resignation or discharge, the date should be
entered in the book and preserved in the custody of the Head
of the office for five years and then destroyed.
 The descriptive particulars to be re-attested every 5 years by
the Supervising officer(ASP, IP, Second class
PMs,APM(Accts)).
 Re-attestation to SB of ASPs, IPs etc by Supdt.
290 Leave Accounts
292 The names of the following categories of non-gazetted Govt
servants shall be omitted from pay bills
 All persons in Central Services Group D
 All head constables and constables.
 In part II of the establishment bill, the claims relating to
office rent and payments for conveyance of mails and
stationery allowance to GDS Staff are shown.
 FSC is drawn through ACG-17, the monthly contingent bill.
 Amount claimed in the pay bill but not drawn should be
entered in red ink in the relevant money columns and ignored
in totalling.
296 CL Bills
301 Absentee Statement-
 the monthly bill shall be supported by an absentee statement,
if GS was absent during the month either on special duty or
on suspension, or with or without leave other than CL or
when a post kept vacant, whether an offg arrangements have
or have not been made against it.
 When a GS is paid for JT, it should be shown separately in
the absentee statement.
 Every SPM should send an absentee statement upto 20th of
each month, on 22nd to the HPM. Thereafter from 21st to end
of the month as a supplementary statement on the following
month.
309 Travelling Allowance Bills
318 Cost of Medical Treatment-
 Countersigned by the authority who can countersign the TA
bills and charged under the sub head “Salaries”.
 Medical claims for more than one official may be drawn in
one bill in form TR-27-A
319 Overtime Allowance in the Railway mail Service
 70 hours or less in a cycle to be countersigned and forward
them to the HRO.
 If beyond 70 hours in a cycle, the OT bills sent to HOC for
sanction.
320 Outstation Allowance Bills
 MG, Van peon in RMS to be prepared by HRO and sent to
Supdt, RMS for countersignature.
 Mail peons in Post offices are countersigned by Supdt or 1 st
class PM.
 Cash overseers and mail overseers to be drawn in the
establishment pay bills if night halts are fixed. If not, then
ACG-38(a) to be sent to Supdt for passing.
328  Undisbursed pay and allowances can not be kept in deposit.
Note 6-payment of regular pay and allces and advances through
service Money Orders, then the following advances can also be
remitted through service MOs
 Advances and withdrawals from GPF
 Medical advances
 Festival advances
 Cycle advances
 Advances of TA
 Flood/cyclone advances
  In respect of non-gazetted officials who have proceeded on
leave in India, the advances specified above may be remitted
to them by service MO at their leave addresses
330 Payment of dues to deceased officials and officials on leave or
under suspension
 Paid through the service MO.
 Subsistence allowance can also be remitted through service
MO if the suspended official is unable to attend the office.
CONTINGENT CHARGES
333 Classification of Charges
 All incidental and other expenses
 Contract contingencies-those for which a lump sum is
placed annually at the disposal of a Disbursing Officer for
expenditure without further sanction of any kind.
 Special contingencies- require sanction of the superior
authority.
 Countersigned contingencies-requires approval of the
controlling authority before then can be admitted as
legitimate expenditure against the Govt. Such approval taking
the form of countersignature after payment on a detailed bill
submitted to the circle accounts officer.
 Fully vouched contingencies-neither special sanction nor
countersignature but may be incurred by the head of the
office on his own authority subject to the necessity of
accounting for them. May be passed on fully vouched bills
without countersignature.
 Scale regulated contingencies-regulated by scales laid down
by competent authority e.g liveries to Group D servants,
rewards for destruction of wild animals etc.
 Contingent bills of offices of DG and of the Heads of
Circles do not require any countersignature.
 If not covered in Schedule of financial powers or through
any instructions, the following is the monetary limits
o HOD- Rs200 per year(recurring), Rs1000/-(Non-
Recurring)
o All others-Rs10/- per month, Rs100
335 Govt Of India Decision
General Terms and Conditions for employment of Casual labour
 Persons on daily wages should not be recruited for work of
regular nature.
 Recruitment of daily wages may be made only for work
which is of casual or seasonal or intermittent nature or for
 work which is not full time nature for which regular posts
cannot be created.
 Where the nature of work entrusted to the casual workers and
regular employees is the same, the casual workers paid at the
rate 1/30th of the pay at the min scale plus DA for work of 8
hours a day.
 If different, the casual worker may be paid only the min
wages notified by the ministry of labour or the State Govt. If
paid higher, it can be continued with the approval of financial
advisor.
 May be given one paid off after six days of continuous work.
 Paid for the national holidays if it falls on a working day for
the casual workers.

340-341 Responsibility of Drawing officers and Controlling Authority
regarding contingency charges
342-343 Permanent Advances
 Large administrative offices and certain officers of the RMS,
Managers, PSD.
 The advance is based on the average contingent expenditure
for the past 12 months.
 Recouped atleast twice a month.
 Charges in Post Office accounts on account of grant or
increase of permanent advances should appear in UCR and
credits on account of reduction appears in UCP.
 For the purpose of emergent petty advances. Ex-rail fare to
Group D, outstation allce to Group D, Groupd C SA required
to set at short notice in place of absentees
 In case of transfer of the charges and yearly on the 15 th April,
each officer should send an ack of the amount due to the
authority which sanctioned.
344-347 Control of Contingent Expenditure
348 Record of sanctions to expenditure
350 Cancellation and Destruction of Sub-vouchers
 Sub vouchers for sums exceeding Rs50/- but not exceeding
Rs200/- submitted to a controlling officer which he is not
required to forward to the circle accounts officer shall be duly
cancelled by him after check and the cancellation shall be
attested by the controlling officer.
 Sub vouchers not exceeding Rs50/- should be so defaced or
mutilated that they cannot be used again.
 Sub vouchers required to be sent to the Accounts officer
 should not be cancelled either by the Drawing officer or by
the controlling officer should not be cancelled either by
Drawing officer or by the controlling officer but sent to
Accounts officer.
354 Maintenance of Contingent Registers
 Head of the office or the gazetted officer to maintain.
 In the absence, non-gazetted officer can also initial but it
should be reviewed and re-initialled by the Head of the office
on return.
 Maintained in TR-29 in DG and Circle offices.
357 Bills for encashment
 When a contingent bill is endorsed to the private party, the
drawing officer shall before sign the bill, obtain the specimen
signature of the party on the body of the bill which he shall
attest before signing the bill.
 Endorsements remain current for 3 months from the date of
issue except in the last quarter upto 31st mar.
358-359 Fully vouched contingent charges
 Officers whose contingent bills do not require
countersignature should draw money from the post office by
bills in Form TR-30 showing full details of the charges.
 Sub vouchers more than Rs500/- to be submitted to the circle
accounts office.
 Contingent charges incurred on account of the wages of
mazdoors engaged on manual labour and paid at daily or
monthly rates should be supported by vouchers.
Countersigned Contingencies
364 Abstract Bill
 Contingencies countersigned after payment, the charges are
drawn in abstract contingent bills in form ACG-19
 In post offices, bills are prepared on 10th and the last working
day of the month impressed with paid stamp and sent to the
circle accounts office.
 The amounts drawn on the bill were already paid out of the
cash balance as soon as they were incurred and charged in the
schedule of bills paid on the actual dates of payment.
 Recurring contingent charges should be drawn in a separate
abstract contingent bills and marked in red ink as “special and
periodical charges”.
 Do not require to be countersigned and no vouchers should be
attached to them.
365 Detailed Bill
 From the monthly totals of the contingent register, the
monthly detailed bill shall be prepared in form ACG-19(1)
headed “Not payable” showing the monthly total of each
column.
 The numbers assigned to the sub vouchers and authority shall
be entered against each item.
 The amount shown in the bill must be agreed with the total of
the abstract contingent bills cashed during the month.
 It will be signed by the Head of the office and submitted to
the controlling officer with all sub vouchers not later than 10 th
of following month.
 After countersignature and admission, sent to the CAO.
 All items for more than Rs200/-
 All items of payment of railway freight on postal stores for
more than Rs50/-
367 Verification and Countersignature of Non-payable contingent bills
 Checked by Supdt
 Bills of divisional office are fully vouched in respect of the
office establishment are not checked by DO.
 NPC bills of other post offices except Gazetted HO are
thoroughly checked by the supdt on the following points
o Each item of expenditure is prima facie admissible and
covered by departmental rules and within their powers
of sanction.
o The special monetary or quantitative limits prescribed
for any item(stationery, bicycle and type writer repairs,
purchase of glass tumblers etc) have been observed.
o Cooly charges for despatch of mails and delivery are
not exorbitant compared with traffic and revenue of the
post offices
o In respect of contingent expenditure on divisional
establishment a monthly statement of such expenditure
incurred on the divisional office included in the fully
vouched contingent bills should be submitted to CO
alongwith the details of such expenditure
368 Disallowances
 After dispatch of the bill to the CAO, the countersigning
officer should communicate any disallowance to the drawing
officer and its amount to be refunded by short drawings.
Miscellaneous Charges
373 Refunds of Revenue
377 Refunds to Departmental officers
 Refunds of amount credited in excess in the accounts of an
office by an official of the department may be authorised by
supdt & first class PM.
 But other refunds to be authorised by HOC.
377A Refunds of Loans repaid in excess
 Refunded by the authority which sanctioned the load after
verification from departmental authority/CAO
LOANS AND ADVANCES TO GOVERNMENT SERVANTS
389 Advances for Departmental purposes –Emergent Advances
 May be made either directly to the parties or the drawn in
lump sums in the abstract contingent bill to the Govt servant.

 No officer disbursing these advances should be allowed to

draw a second abstract bill without producing a detailed bill
to account for the amounts already disbursed. Will not be
delayed beyond the end of the following month. Payees
receipt need not be sent with the detailed bill and their names
need not be shown it.

 Advances will be noted in the retrenchment and recoveries

register and their clearance watched through the same.
2. Advance payment to supplier
391 Repairs to rented Posts and Telecommunication buildings-by
Divisional officers- to be adjusted in the monthly rent.
392 Advances for contingent expenditure
 Advance may be made to the GS except inspecting authority
393 Advances for legal expenses-treated as final contingent charge.
394 Advances to Govt servants on personal account
396 Interest
1. Rate of interest on the advances for purchase of conveyances
397 Drawal of advances
399 Disbursement of advances
400 Repayment of advances
401 Mode of Recovery and Accounting of Loans and Advances
404 Recovery of Advance of Pay
405 Recovery of Advances of Travelling Allowances
409 Advances on Transfer
1.Advance of pay not admissible in mutual transfer case
2. No advance of pay in case of temporary transfer
410 Advances on tour
2. Relaxation in LTC Rules
414-A Leave Advance
417A Flood Advance
419 Advance for the purchase of Scooter
420 Advance for the purchase of motor car
2.Second or subsequent advance
4.Revised eligibility from 24.10.2008
420A An official not eligible to draw the advance under suspension
420B The recovery of the amount of an advance shall commence with the
first issue of pay, leave salary or subsistence allowance after the
advance is drawn
420C-D Recovery of Interest
3. Suspension of recovery pending pay fixation not permissible
4. Charging penal interest when purchase not effected within the
period
5. Penal interest to be charged if registration book is not
submitted within the stipulated period
6. Repayment by officials, sent on deputation abroad
7. Repayment by officials on foreign service out of India
Rule21(5) Advance for the purchase of personal computer(Compendium of
Rules on Advances)
421 Advance for the purchase of a bicycle-Interest Free Advance
421A Advance for the purchase of Typewriter
421B Advance for the purchase of Warm Clothing
421C Advance on the eve of important festivals
422 Payment of advance when a Govt servant is on leave
425 Agreement and Mortgage Bonds
1.Cash receipt should be produced within the prescribed period for
scrutiny
429 Sale or transfer of mortgaged Conveyance
SANCTIONS
434 Date of effect of sancation
2. Retrospective Sanction
435 Lapse of sanction- one year- GPF sanction-3 months
436 Reduction or discontinuance of sanction
442 Sanctions for write-off
DEPOSITS
448 No pay, pension or other allowances should be placed in deposit on
the ground of the absence of the payee or for any other reason
450 Refund or appropriation of security deposit
451 Recovery of cash deposits from Employees
457 Deposits of Government Promissory Notes
469 Deposits of Post Office Certificates
470 Security Deposits of Contractors
476 Deposits of Earnest Money
477-478 Refund of EMD
BUILDINGS AND RAILWAY MAIL SERVICE VANS
484 Register of Lands and Buildings
487 Assessment of rent
488 Recovery of Licence fee-Residential buildings
499 Buildings used partly as Residences
PROVIDENT AND OTHER FUNDS
532 1. Revised procedure consequent on dispensing with submission
of application for admission to General Provident Fund
533 Recovery of Subscriptions etc- To be discontinued during the last 3
months of service on superannuation
534 Premia or subscriptions to Post Office Insurance Fund may be
recovered from pensions pay bills
539A Instructions to be followed for correct preparation of Fund
Schedules
541 Withdrawals
546-553 Post Office Insurance Fund
554 Family Pension Funds
556-558 Compassionate Fund
Miscellaneous Subjects
559 Recoveries of Co-operative Credit Societies Dues –Appx 29I
Recoveries of membership subscriptions of Service Associations-
29II
560 Club Dues-Recovery
561 Recoveries of Premia due on Fidelity Bonds of Insurance companies
or Co-operative societies furnished as Security by P & T Officials
Extracts from GFR Rules,2005
145 Purchase of Goods without quotation-upto Rs15000/-
146 Purchase of Goods by Purchase
147 Purchase of Goods directly under rate contract
568 Payment for supplies-
1.Advance payment to private firms for supply of stores/service and
maintenance of machines etc
569 Bills presented in support of payments or purchases of stores shall
be accompanied by a certificate that the articles detailed in the
vouchers have been actually received and entered in the stock
register that their quantities are correct and their quality good.
570 The provisions to apply to supplies
575 Security Deposits made by central Govt Dept
Annexure Different Classes of Receipts exempt from Stamp Duty
3
4 Instructions For Regulating the enforcement of responsibility
for losses,etc.
5 Rules regarding the destruction of accounts records
appertaining to the accounts audited by the Indian Audit
Department
9 Rules regulating the preparation of Last Pay Certificate in case
of transfer on duty, or of return from Leave
13 Miscellaneous Rulings relating to office expenses
5. Charges for conveyance of Cash
6. Group D servants paid from contingencies
11. Escorts for conveyance of Cash
12.Extra Despatches of mail
13. Extra Expenditure incurred for delivery of heavy parcel mail articles
14. Fire protection
15. Fixtures and furniture
17. Freight and Demurrage charges
18. Funeral expenses
20. Hire of office furniture, electric fans, heaters, clocks, call bells etc
21. Hot and cold weather establishment
24. Law charges- reimbursement of legal expeses
27.Muncipal Taxes
29. items commonly required for office use
31. Official publications
33. Non Govt publications
34. Registration of lease etc.
40. Sealing Wax
43. Stationery and Printing Stores
45. Supply and distribution of black cancelling ink
46. Supply of electric lamps
13A Other contingencies
14 Purchase of stores for the public service
15 Purchase through DGS & D Contract

 No interest beyond the date of death

 Amount of advance rounded off to nearest multiple of Rs50/-
Name of the Eligibility Amount of advance Max insts Remarks
advance
INTEREST BEARING ADVANCES
CONVEYANCE If already purchased within
three months from the date of
application for advance on
taking a private loan eligible.
If the conditions attached to
the sanction not complied
then penal interest @2 ½ %
over the prescribed rate of
interest on compound basis.
MOTOR CAR Rs19530/- Rs1,80,000 or 8 200 II or subsequent advance is
and above months basic pay or eligible only after 4 years from
anticipated price of the date of drawal of last
the car whichever is advance.
less.
II advance-Rs1,60,000 Except a. Allowed to draw the
or 8 months pay or M/C advance as Motor cycle
anticipated price b. Where a GS disposes of his
motor car in India prior to his
posting abroad or
deputation/training abroad
lasting more than one year
and returns to India without a
motor car
c. is appointed to a regular
post abroad and does not take
his motor car along with him

Advance includes customs

duty in case of return from
abroad.
Motor Car, 8560/- Rs30000/- or 4 months 70
Scooter and above pay or anticipated
price

Second advance
Rs24000/- or 3 months
pay or anticipated
price
Moped -do- Rs20000/- or 70
anticipated price
whichever is less.
Computer 8560/- Rs30000/- or 150 II or subsequent advance is
Advance and above anticipated price eligible only after3 years from
excluding customs the date of drawal of last
duty advance.
Rs19530/-
and above Rs80,000 on first
occasion and
Rs75000/- on second
or subsequent
occasion.
 INTEREST FREE ADVACNE
PENAL INTEREST 2% OVER THE GPF if not complied with the instructions in sanction memo.
Name of the Eligibility Amount of Max instalments Remarks
advance advance
Advance of One Not more than three equal Recovery commences
Pay months monthly instalments from the month in which
pay the GS draws a full
not more than 24 monthly month’s pay or leave
Two instalments in the case of GS salary on joining his new
months in an office, but HQ is shifted appointment.
pay on Govt policy
No advance of pay in
case of mutual transfer
and temp transfer.
Advance of In full on submission of the
TA GS’s TA bill or adjusted from
the pay of the GS if TA bill
not submitted.

In case of tour, within 15

days from the return journey
or the date on which the GS
resumes duty after
completion of tour.
Second advance if journey
within a week from the first
journey.
LTC Advance Within one month if advance
taken from the date of return
journey relaxable upto 3
months
or three months if advance
not taken relaxable upto six
months.
Flood Rs2500/- 25 instalments commencing
advance from the second issue of pay.
Bicycle Not Rs3000/- 30 EMI
exceeding
GP
Rs2800/-
Type writer Rs1500/- 30 EMI Doubts
Warm All Group Rs3000/- 10 EMI Eligible once in a three
Clothing D and C years.
Recovered from the first
pay after drawal.
Festival GP Rs3000/- 10 EMI 25% Increased when DA
advance Rs4800/- increases to 50%
All Non- Eligible on duty or EL and
gazetted also female GS on
GS. Maternity Leave.
Admissible only one in a
financial year.
Recovered from the first
pay after drawal.
SANCTIONS

 No retrospective Sanction relating to revision of pay or grant of

concessions to GS.
 Valid for one year unless it is specially renewed.
 GPF sanction is valid for three months.
 Does not apply to allowance sanctioned to a post or a class of GSs has
not been drawn by a particular incumbent.
 All sanctions for waiving recovery of amounts disallowed by an audit
officer to be given a copy to Audit.
 All financial sanctions and orders involving payments from Govt funds
should be signed by the officers concerned in ink and should not be
conveyed over cyclostyled signatures. No objection to the making out of
extra copies of sanctions including signatures by cyclostyled process.

DEPOSITS

 Deposits not exceeding Rs25/- unclaimed for one whole account year
and all amounts exceeding above unclaimed for three years shall be
credited to Govt by means of transfer entries in the CAO.
 Can not be repaid without sanction of CAO.
 Sanction/payment authority issued by the CAO will be valid for three
months.
 The amount of refund charged as a refund and not debited to deposits.

PROVIDENT AND OTHER FUNDS

 Each HO will send a statement on 15th of each month showing the details
of GS will be required to subscribe 3 months hence.
 Temp Govt Servants after expiry of one continuous year can subscribe.
 Permanent GS can subscribe on date of appointment.
 For Group D, Provident accounts are kept in Head of the office.
 Subscription during the last 3 months before superannuation is
discontinued.