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TREASURY OPREATION.

INTRODUCTION.
• The Treasuries are the units of the fiscal system
and the points at which the public accounts
starts.
• Under the agreements made by the Central Govt.
and each State Govt. with the Reserve bank of
India, the general banking business of these
Governments is conducted in accordance with
and subject to the provisions of the agreement
and of the Reserve Bank of India Act, 1934, and
such orders as may from time to time be given to
the Bank by the Govt concerned.
Initial Accounts.
• The initial accounts of receipts and payments on behalf
of the State Govts are maintained at the State
Treasuries in the respective States who compile and
render them monthly to the Accountant-General
concerned.
• In the case of Public Works and Forest, the Divisions
render monthly to the respective AG compiled
accounts of the transactions including in them inter
alia, the total amount of cheques drawn/money
remitted into the Treasuries during the month under
the relevant Remittance heads prescribed for the
purpose.
Initial Accounts.
• The contra debits/credits on account of the
cheque paid/money received by the treasuries
are included by the Treasuries in their initial
accounts for the month rendered to the AG.
• The pairing off of the credits/debits relating to
cheques drawn and encashed and moneys
remitted and brought to account by the
treasuries are watched by the AG concerned
through appropriate subsidiary registers.
Function of Treasury.
• Receipt of money from the public and
departmental officers for credit to Govt;
• Payment of claims against Govt on bills or
cheques or other instruments presented by the
departmental DDOs or pensioners or others
authorized to do so;
• Keeping initial and subsidiary accounts of the
receipts and payments occurring at them and
rendering statements of such transactions to the
AG for detailed compilation and consolidation;
Receipts.
• In the case of receipts, the treasury checks the
correctness of classification and completeness of
the challans.
• In cases where challans are countersigned by the
departmental officer, the depositor makes the
remittances direct at the Bank.
• In cases where challans are not countersigned by
the departmental officer, the depositor gets the
challan checked by the treasuries and remits the
amount at the Bank.
Payments.
• In the case of payments, claims are presented in the
prescribed forms at the treasury by the departmental DDOs
or by the public or pensioners.
• These claims are subject to treasury checks such as
arithmetical accuracy, correctness of the classification,
comparison of signature of DDO with specimen signature
on record with treasury, identification of the payee,
conformity with the authority, completeness of the bill with
supporting schedules in respect of recoveries, etc.
• The Bills/cheques are then passed for payment and sent to
the bank which makes the payment for the amounts as
passed by the treasury after identification of the payee.
Action by Bank.
• The Bank which receives the money and makes
payments, sends a scroll daily of the receipt and
payment transactions occurring there to the
corresponding treasury along with the supporting
documents ( challans and vouchers) daily.
• These bank scrolls merely list out the individual
receipts and payments giving the particulars of
the depositor/payee and amounts and are
required to reach the treasury the same evening
or the next morning.
Compilation.
• Separate Cash Book in T.A.1 should be
maintained for receipts and payments. Each
day’s total of Schedules are then posted in the
Cash Book.
• The Cash Accounts in T.A.36 and List of
Payments in T.A.37 should be prepared.
• The Cash Accounts should show the total
receipt collected and the List of Payments, the
total payments made during the month.
Monthly Account.
• A Closing Abstract in Form T.A. 38 with the
following documents should be submitted
monthly by treasury to the concerned AG:-
– Schedules of payments supported by connected
vouchers;
– Schedules of receipts supported by connected
challans;
– List of payments (TA 37); and
– Cash Accounts (TA 36).