**Policy Summary: Recovery of Interest on Delayed Remittance of Government Receipts**
This circular, reference number RBI20192070/DGBA.GBD.No.65342/42.01.011/2019-20, issued by the Reserve Bank of India (RBI) on September 26, 2019, addresses the recovery of interest on delayed remittance of government receipts into government accounts. It serves as a directive to the Chairman and Managing Directors/Managing Director/CEO of all Agency Banks.
The circular aims to further harmonize the reporting procedures for both central and state government transactions to the RBI. Specifically, it updates the policy outlined in circular DGBA.GAD.No.H-483/42.01.011/2012-13 dated February 13, 2013, regarding petty claims of penal interest.
The key policy change is the adoption of the principle outlined in para 7.4 of the Comptroller and Auditor General of India's OM No. S-11012/13/1/AC-2022/RBD-3324-24 dated March 9, 2016, for State government transactions. This means that petty claims of penal interest involving amounts of ₹500 or below will be ignored and excluded from the purview of penal interest, applied on a per-transaction basis.
Agency banks are instructed to immediately notify their branches accredited to conduct state government transactions of this updated instruction. State governments are also being separately advised of this change.
For further information, contact Charulatha S Kar, Chief General Manager, Department of Government Bank Accounts, Central Office, Reserve Bank of India, 4th Floor, Byculla, Mumbai – 400 008. Contact can be made via telephone at 022-23016214, 022-23001670, fax at 022-23008764/23009126/23010095, or email at cgmicdgbarbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system and managing the country's currency.
All Agency Banks: Refers to all banks authorized to handle government transactions on behalf of the Reserve Bank of India.
Government Account: Account held by the government for managing its financial transactions and receipts.
DGBA.GAD.No.H483142.01.011201213 dated February 13, 2013: A circular issued by the Reserve Bank of India regarding government transactions.
Comptroller and Auditor General of India: An independent authority responsible for auditing government finances.
CGAs OM S11012131AC222015RBD332424 dated March 9, 2016: An Office Memorandum (OM) issued by the Controller General of Accounts (CGA) regarding penal interest claims.
State government: Refers to the government of individual states within India.
Mumbai, Maharashtra: City in India where the Central Office of the Reserve Bank of India, Department of Government and Bank Accounts is located.
भारतीय �रज़व र् बक�
_________________________RESERVE BANK OF INDIA________________________
www.rbi.org.in
RBI/2019-20/70
DGBA.GBD.No.653/42.01.011/2019-20 September 26, 2019
The Chairman and Managing Directors/Managing Director/CEO
All Agency Banks
Dear Sir / Madam
Recovery of Interest on delayed remittance of Government Receipts into
Government Account
Please refer to our circular DGBA.GAD.No.H-4831/42.01.011/2012-13 dated February
13, 2013 wherein, in order to bring uniformity in the procedure of reporting both central
and State government transactions to Reserve Bank, it was advised that the petty claims
of delayed period of penal interest involving amount of ` 500/- or below will be ignored
and excluded from the purview of penal interest.
2. With a view to bring further uniformity in the procedure for reporting both central and
state government transactions to Reserve Bank, it has been decided with the approval
of Comptroller and Auditor General of India that instructions given in para 7.4 of CGA’s
OM S-11012/1(31)/AC(22)/2015/RBD/332-424 dated March 9, 2016, will be made
applicable to State government transactions also i.e ignoring petty claims of penal
interest involving an amount of ` 500/- or below and excluding them from the purview
of penal interest, and applying the limit of penal interest of ` 500/- on per transaction
basis.
3. You may bring this instruction immediately to the notice of your branches accredited
to conduct state government transactions as the related instructions are already in
place.
4. The state governments are also being advised about the issuance of this instruction.
Yours faithfully
(Charulatha S Kar)
Chief General Manger
सरकारी एवं ब�क लेखा िवभाग, केन्�ीय कायार्लय, मुंबई स��ल रेलवे स्टेशन के सामने, चौथी मंिजल,भायखला, मुंबई - 400 008
Department of Government & Bank Accounts, Central Office, Opp. Mumbai Central Railway Station,4th Floor, Byculla, Mumbai - 400 008
Telephone: (022) 23016214,(022)23001670 Fax No. (022) 2300 8764/23009126/2301 0095, e-mail :cgmicdgba@rbi.org.in
-िहन्दीआसानह,ै इसका�योगबढ़ाइए-