Executive Summary:
This circular from the Reserve Bank of India outlines the reporting and accounting procedures for Central Government transactions for March 2021. It sets April 10, 2021, as the deadline for closure of residual transactions for March 2021. Agency banks are instructed to make special arrangements for timely processing and reporting and to follow specific guidelines for segregating March and April transactions.
Key Points / Main Content:
* **Closure Date:**
* The closure date for residual transactions for March 2021 is April 10, 2021.
* **Special Arrangements for Receiving Branches:**
* Receiving branches must use special arrangements like courier services to ensure timely transfer of challans/scrolls to Nodal/Focal Point branches.
* All payments and collections made on behalf of the government towards the end of March must be accounted for in the same financial year (2020-21).
* **Reporting by Nodal/Focal Point Branches:**
* Prepare separate scrolls for March 2021 residual transactions and April 2021 transactions during the first 10 days of April 2021.
* Ensure transactions up to March 31, 2021, are accounted for in the current financial year and not mixed with April transactions.
* Do not mix April 2021 transactions with March 2021 residual transactions.
* **Scroll Segregation and Reporting (April 1-10, 2021):**
* Segregate scrolls/challans daily, creating separate main scrolls for March 2021 transactions and April 2021 transactions.
* Mark March 2021 scrolls as "March Residual 1," "March Residual 2," etc., sequentially up to April 10, 2021.
* Forward these scrolls with daily summaries to Departmental Officials (Zonal Accounts Officers/Pay and Accounts Officers/Designated Officers).
* Report transactions to the Link Cell through separate Daily Memos for daily settlement with RBI, CAS Nagpur.
* Link Cells must segregate and forward March Residual transaction advices separately to RBI, CAS, Nagpur until April 10, 2021.
* After April 10, 2021, report and account for all transactions in the month of the report, regardless of the transaction date.
* **Daily Memo Submission (DMS):**
* Prepare two sets of DMS for March 2021 transactions: one for transactions up to March 31, 2021, and another for March Residual transactions adjusted during April 1-10, 2021.
* **Monthly Statement for April 2021:**
* Compile and furnish monthly statements for April 2021 transactions to Zonal Accounts Officers/Pay and Accounts Officers in the usual way.
* Clearly mark the statement for March Residual Transactions as "March Residual Account" and send it by April 18, 2021.
* **Cheque Realization:**
* Cheques realised on or before March 31, 2021, are considered "March 2021 or March Residual Transactions."
* Cheques tendered by March 31, 2021, but realised on or after April 1, 2021, are considered "April Transactions."
Impact Analysis:
Agency Banks:
* Impact: Agency banks are responsible for implementing the RBI's instructions regarding the reporting and accounting of Central Government transactions.
* Action Required: Issue necessary instructions to concerned branches immediately, ensuring adherence to the specified procedures and deadlines for segregating, reporting, and accounting for March and April 2021 transactions.
Nodal/Focal Point Branches:
* Impact: These branches have specific responsibilities for preparing separate scrolls, reporting transactions, and submitting DMS.
* Action Required: Segregate scrolls, prepare designated reports, and submit the same to the RBI.
Link Cells:
* Impact: These entities are responsible for the segregation and forwarding of transaction-related advice.
* Action Required: Segregate and forward the March Residual transaction advices separately to RBI, CAS, Nagpur.
Zonal Accounts Officers/Pay and Accounts Officers/Designated Officers:
* Impact: These officials receive reports and statements from the Nodal/Focal Point branches.
* Action Required: Process and reconcile the reports and statements received, ensuring accurate accounting of March and April transactions.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system.
Agency Banks: Banks authorized to handle Central Government transactions.
Central Government: The Government of India.
CBDT: Central Board of Direct Taxes
CBIC: Central Board of Indirect Taxes and Customs
Financial Year 2020-21: The Indian financial year, spanning from April 1, 2020, to March 31, 2021.
Mumbai, Maharashtra: City in Maharashtra, location of Department of Government Bank Accounts, Central Office.
Nagpur, Maharashtra: City in Maharashtra, location of Reserve Bank of India, Central Accounts Section (CAS).
भारतीय �रज़वर् ब�क
___________________RESERVE BANK OF INDIA___________________
www.rbi.org.in
RBI/2020-21/108
DGBA.GBD.No.S-140/42.01.029/2020-21 March 18, 2021
All Agency Banks
Madam/Dear Sir,
Reporting and Accounting of Central Government transactions of March 2021
Please refer to Circular DGBA.GBD.No.1744/42.01.029/2019-20 dated March 17, 2020
advising the procedure to be followed for reporting and accounting of Central Government
transactions (including CBDT, CBIC, Departmentalized Ministries and Non-Civil
Ministries) at the Receiving/Nodal/Focal Point branches of your bank for the Financial
Year 2019-20.
2. The Government of India has decided that the date of closure of residual transactions
for the month of March 2021 be fixed as April 10, 2021. In view of the ensuing closing of
government accounts for the financial year 2020-21, receiving branches including those
not situated locally, should adopt special arrangements such as courier service etc., for
passing on challans/scrolls etc., to the Nodal/Focal Point branches so that all payments
and collections made on behalf of government towards the end of March are accounted
for in the same financial year. These instructions regarding special messenger
arrangements may please be informed to all branches concerned.
3. As regards reporting of March 2021 transactions by Nodal/Focal Point branches in April
2021, the branches may be advised to follow the procedure as outlined in the Annex. To
sum up, the nodal/Focal Point branches will be required to prepare separate set of scrolls,
one pertaining to March 2021 residual transactions and another for April transactions
during the first 10 days of April 2021. The Nodal/Focal Point branches should also ensure
सरकारी एवं ब�क लेखा िवभाग, केन्�ीय कायार्लय, मुंबई स��ल रेल्वे स्टेशन के सामने, भायखला, मुंबई
Department of Government & Bank Accounts, Central Office, Opp. Mumbai Central Railway Station, 4th Floor, Byculla, Mumbai 400 008
Telephone: (022) 2301 6214, Fax No. (022) 2300 8764, e-mail: cgmicdgbaco@rbi.or4g0.in0 008
िहन्दी आसान हैइसका �योग बढ़ाइए ।
,2
that the accounts for all transactions (revenues/tax collections/payments) are effected at
the receiving branches up to March 31, 2021 in the accounts for the current financial year
itself and are not mixed up with the transactions of April 2021. Also, while reporting
transactions pertaining to March 2021 up to April 10, 2021, the transactions of April 2021
should not be mixed up with the residual transactions relating to March 2021.
4. Kindly issue necessary instructions in the matter to your branches concerned
immediately.
Yours faithfully
(R. Kamalakannan)
Chief General Manager
Encl: As above3
ANNEX
Reporting of March 2021 transactions
1. Beginning from April 1, 2021, the Nodal/Focal Point branches will segregate on a daily
basis all scrolls/challans pertaining to March 2021 received from the receiving branches
concerned and prepare separate main scrolls for:
(a) scrolls for transactions of March 2021 or earlier period (i.e. effected during the
previous financial year 2020-21) and
(b) scrolls pertaining to current transactions (i.e. those effected from April 1, 2021
onwards).
2. The main scrolls for March 2021 transactions prepared from April 1 to April 10, 2021
are to be distinctly marked as March Residual – 1, March Residual – 2 and so on upto
April 10, 2021. In other words, serial number should be allotted in consecutive order for
each main scroll of March 2021 transactions sent from April 1 to April 10, 2021. These
scrolls along with the copies of daily summary of Receipts and Payments prepared
separately for March 2021 transactions will be forwarded to the Departmental Officials
concerned (i.e. Zonal Accounts Officers/Pay and Accounts Officers and Designated
Officers) in the usual way. The Nodal/Focal Point branches will also be required to report
the above transactions to the Link Cell through separate Daily Memos. These advices
must be sent to enable the Link Cell of each bank at Nagpur, to make daily settlement
with Reserve Bank of India, Central Accounts Section (CAS) Nagpur. On receipt of
advices from the Nodal/Focal Point branches, the Link Cell should segregate the advices
for the March Residual transactions and forward them separately to Reserve Bank of
India, CAS, Nagpur. This procedure should continue upto and inclusive of April 10, 2021
only. All transactions reported thereafter by the receiving branches will be reported and
accounted for in the usual manner in the accounts of the month of report irrespective of
the date of transaction. Following the special arrangements for March 2021 transactions,
it is necessary for the Nodal/Focal Point branches to prepare two sets of DMS to be
submitted to Zonal Accounts Officers/Pay and Accounts Officers for March 2021
transactions – one for transactions upto March 31, 2021 and another for March Residual4
transactions adjusted by Nodal/Focal Point branches with Reserve Bank of India, Central
Accounts Section, Nagpur, during April 1 to April 10, 2021.
3. Since the Nodal/Focal Point branch will also be reporting the April 2021 transactions
pertaining to year 2021-22 in addition to March 2021 Residual transactions, monthly
statement for April 2021 transactions should be compiled and furnished to Zonal Accounts
Officers/Pay and Accounts Officers in the usual way. In order to distinguish the April 2021
(year 2021-22) and March Residual Transactions, the statement pertaining to March
Residual Transactions should be clearly marked as "March Residual Account". The
statement of March (Residual) Transactions should be sent by all Focal Point Branches
to Zonal Accounts Officers/Pay and Accounts Officers latest by April 18, 2021.
Note: As advised in our circular GA.NB.No.376/42.01.001/1995-96 dated May 22, 1996
all the cheques/amounts realized on or before March 31, 2021 should be treated as
transactions relating to the current financial year as "March 2021 or March Residual
Transactions", the reporting of which may take place during the month of April (upto April
10, 2021). But if any cheque is tendered on or before March 31, 2021 and realised on or
after April 1, 2021, it will be treated as transaction for the next financial year as "April
Transactions". Accordingly, the banks will prepare separate scrolls for March 2021 and
April 2021 (Financial year 2021-22) transactions.
***