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Investment in Term Deposit by State Government Institution

To discontinue the practice of inviting competitive bids for Term/ Fixed Deposits from the Banks and shall place their deposits with the bank(s) with whom they have a regular course of business, including public sector banks.

Published in Finance

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

No. 2261-F(Y), Dated: 15th March, 2013.

MEMORANDUM

Sub: Investment by the State Government Institutions in the Term Deposit.

It has been brought to the notice of the Government that the practice of inviting competitive bids for placing term/fixed deposits with banks is prevalent in many State Government Departments, Directorates, Regional and District Offices, Companies, Corporation, Autonomous/Statutory/Local Bodies. This leads to frequent transfer of Term/Fixed Deposit Account of the Government Office/Organisation from one Bank to another, engaging their attention more in the rate of interest offered rather than in fund management and its security.

Now, in terms Government of India, Ministry of Finance, Department of Expenditure O.M. No. 7(2)/E.Coord/2007 dated 15 January, 2008 and in continuation of this Department Memorandum No. 585-F(Y) dated 21st January 2013, the Governor is pleased to direct that the State Government Departments, Directorates, Regional and District Offices, Companies, Corporation, Autonomous/ Statutory/ Local Bodies shall forthwith discontinue the practice of inviting competitive bids for Term/ Fixed Deposits from the Banks and shall place their deposits with the bank(s) with whom they have a regular course of business, including public sector banks.

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

No. 2261-F dated 15.03.2013, Source