Operation and Maintenance of Bank Accounts with Govt. Fund

Government of West Bengal
Finance Department
Audit Branch
Writers’ Buildings, Kolkata- 700 001

No. 585-F(Y), Dated: 21.01.2013

MEMORANDUM

A comprehensive guideline was issued by Finance Department in memo no. 675-F dated, 22.01.2008 for opening and maintenance of bank accounts with Government fund for implementation of various schemes/ projects of the Government. Accordingly, the Departments, Directorates, Regional and District Offices, Companies, Corporation, Autonomous /Statutory/ Local Bodies looking after implementation of various schemes/ projects approach Finance Department for permission to open bank accounts. Such permission is given subject to observance of the guidelines issued by Finance Department vide memo no. mentioned above. Review of the system of operation of bank accounts undertaken recently by Finance Department reveals that in many cases the guidelines are not being followed, especially the ones specified at item no. 7, 10 and 12 of memo no. 675-F dt. 22.01.2008. Hence, it is reiterated that –

1. Bank account-wise consolidated plus-minus report prepared in the manner prescribed in item 7 of memo. No. 675-F dt. 22.01.2008 should be submitted at the quarterly interval;

2. Fund allowed to be deposited in the bank account should not be kept in Fixed Deposit at the bank, and should be utilized in the manner suggested in the scheme/ project guideline for the purpose for which it was sanctioned as early as possible;

3. Reconciliation of the balance of the bank account should be made on quarterly basis as suggested at item 12 of the memo no. 675-F dt. 22.01.2008.

Moreover, Departmental Controlling Officers and officers operating bank accounts at the Government Departments, Directorates, Regional and District Offices, Companies, Corporation, Autonomous/Statutory/Local Bodies should exercise prudence while depositing money in the bank account or fixed deposit and be cautious enough not to be carried away by unreasonably high rate of interest, however alluring the rate may be. Simultaneously, the cheque signing authorities should exercise caution while enfacing cheques with the payee’s name and the amount both in words and figures.

The Government Companies, Corporation, Autonomous and Statutory Bodies also invest in Fixed Deposit/ Time Deposit of a Bank/ Financial institution.

The undersigned is, therefore, directed by order of the Governor to issue the following additional guidelines for operation of bank account opened with Government money.

(i) Space, if any, in a cheque before and after the name of the Payee, amount in words and figures should be scored through by drawing a straight horizontal line before signing the cheque in order to eliminate any scope of interpolation in the blank space;

(ii) For opening a bank account or investment in Fixed Deposit the officer designated/authorised to operate the account should personally visit the bank for the purpose without taking any help of any agent/third party.

(iii) Similarly, for investment in fixed deposit/ time deposit of a bank/ Financial institution which is usually done by the Government Companies, Corporation, Autonomous and Statutory Bodies, the officer responsible to invest the fund should personally visit the bank/financial institution for the purpose without the help of any agent/third party.

(iv) Verification and reconciliation of the balances of the bank accounts including fixed deposit, if any, should be done at the earliest and once in a month through personal visit to the bank by a responsible officer of the Department, Directorate, or the concerned office/ organization/ autonomous body, as the case may be, for which the bank account is operated. A report on such verification and reconciliation should be submitted to the Departmental Secretary every month. Any case of discrepancy should be brought to the immediate notice of the Departmental Secretary and Principal Secretary, Finance Department.

(v) Help should be taken of the net banking facility, where available, by the controlling officer of the department or office operating the bank account to keep tab on the transaction recorded in the account statement and the available balance.

These guidelines should strictly be followed by the Controlling Officer/Cheque Signing Authority. Any loss arising from defalcation or fraud due to non-observance of strict fiscal prudence in operating the bank account or investment in Fixed Deposit or such other instrument will be solely attributable to the concerned controlling officer/cheque signing authority who would be held personally responsible for the loss.

Sd/- H. K. Dwivedi
Principal Secretary to the
Government of West Bengal.

No. 585-F dated 21.01.2013, Source