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Date: 2022-02-24 Category: Not Applicable State: Union Government Country: India

Reporting and Accounting of Central Government transactions of March 2022

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This circular from the Reserve Bank of India outlines the reporting and accounting procedures for Central Government transactions for March 2022. It instructs agency banks on managing residual transactions and ensuring correct financial year allocation. The deadline for closure of residual transactions for March 2022 is April 11, 2022. Key Points / Main Content: * **Closure Date:** The closure date for residual transactions for March 2022 is fixed as April 11, 2022. * **Special Arrangements for Receiving Branches:** * Receiving branches must use special arrangements (e.g., courier service) to forward challans/scrolls to Nodal/Focal Point branches. * This ensures payments and collections made on behalf of the government in late March are accounted for in the same financial year. * **Reporting by Nodal/Focal Point Branches:** * Prepare separate scrolls: one for March 2022 residual transactions and another for April transactions during the first 11 days of April 2022. * Ensure transactions up to March 31, 2022, are accounted for in the current financial year. * Do not mix March 2022 residual transactions with April 2022 transactions. * **Scroll Segregation (April 1-11, 2022):** * Segregate scrolls/challans daily into: * Scrolls for March 2022 (or earlier) transactions. * Scrolls for current (April 1, 2022 onwards) transactions. * Mark March 2022 scrolls as "March Residual 1," "March Residual 2," etc., up to April 11, 2022, with consecutive serial numbers. * Forward these scrolls and daily summaries to the Departmental Officials concerned (Zonal Accounts Officers/Pay and Accounts Officers/Designated Officers). * Report these transactions separately to the Link Cell through Daily Memos for daily settlement with RBI, CAS, Nagpur. * **Link Cell Responsibilities:** * Segregate advices for March Residual transactions. * Forward them separately to RBI, CAS, Nagpur, up to April 11, 2022. * After April 11, 2022, report all transactions in the usual manner. * **DMS Preparation:** * Prepare two sets of DMS for March 2022 transactions for submission to Zonal Accounts Officers/Pay and Accounts Officers: * One for transactions up to March 31, 2022. * Another for March Residual transactions adjusted by Nodal/Focal Point branches with RBI, CAS, Nagpur, during April 1-11, 2022. * **April 2022 Transactions:** * Compile and furnish the monthly statement for April 2022 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". * Send the statement of March Residual Transactions to Zonal Accounts Officers/Pay and Accounts Officers latest by April 18, 2022. * **Cheque Realization:** * Cheques/amounts realized on/before March 31, 2022, are "March 2022 or March Residual Transactions." * Cheques tendered on/before March 31, 2022, but realized on/after April 1, 2022, are "April Transactions." Impact Analysis: * **Agency Banks:** * Impact: Responsible for implementing the new reporting and accounting procedures for Central Government transactions. They need to ensure all their branches are aware of the changes and comply with the instructions. * Action Required: Issue necessary instructions to all concerned branches immediately. * **Receiving Branches:** * Impact: Required to make special arrangements for timely transfer of challans/scrolls to Nodal/Focal Point branches and accurately classify transactions. * Action Required: Implement special messenger arrangements to ensure timely delivery of documents. * **Nodal/Focal Point Branches:** * Impact: Responsible for segregating transactions, preparing separate scrolls and statements, and reporting to the Link Cell and Departmental Officials. * Action Required: Follow the detailed procedures outlined in the annex regarding scroll preparation, reporting, and DMS submission. * **Link Cells:** * Impact: Responsible for segregating advices for March Residual transactions and forwarding them to RBI, CAS, Nagpur. * Action Required: Implement procedures to segregate and forward advices according to the guidelines. * **Zonal Accounts Officers/Pay and Accounts Officers/Designated Officers:** * Impact: Receive and process separate sets of scrolls and statements for March 2022 and March Residual transactions. * Action Required: Understand the changes in reporting and adjust their processes accordingly.

Key Entities Referenced

Reserve Bank of India: The central bank of India, the issuing authority of this circular. Agency Banks: Banks authorized to conduct 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 2021-22: The financial year for which the government accounts are being closed. Mumbai, Maharashtra: Location of the Central Office, Department of Government and Bank Accounts of the Reserve Bank of India. Nagpur, Maharashtra: Location of the Central Accounts Section (CAS) of the Reserve Bank of India.
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भारतीय �रज़व� ब�क RESERVE BANK OF INDIA _______________________________ _____________________________ www.rbi.org.in RBI/2021-22/176 CO.DGBA.GBD.No.S1422/42-01-029/2021-2022 February 24, 2022 All Agency Banks Madam/Dear Sir, Reporting and Accounting of Central Government transactions of March 2022 Please refer to Circulars DGBA.GBD.No.S140/42.01.029/2020-21 dated March 18, 2021 and DGBA.GBD.No.S26/42.01.029/2021-22 dated April 7, 2021 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 2020-21. 2. The Government of India has decided that the date of closure of residual transactions for the month of March 2022 be fixed as April 11, 2022. In view of the ensuing closing of government accounts for the financial year 2021-22, 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 2022 transactions by Nodal/Focal Point branches in April 2022, 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 2022 residual transactions and another for April transactions during the first 11 days of April 2022. The Nodal/Focal Point branches should also ensure that the accounts for all transactions (revenues/tax collections/payments) are effected at the receiving branches up to March 31, 2022 in the accounts for the current financial year itself and are not mixed up with the transactions of April 2022. Also, while reporting transactions सरकारी और बक� लखे ा िवभाग, केन्�ीय कायार्लय, मबुं ई स�� ल रेल्व ेस्टेशन के सामने, भायखला, मबुं ई -400 008 Department of Government and Bank Accounts, Central Office, Opp. Mumbai Central Railway Station, Byculla, Mumbai - 400 008 Telephone: (022) 2308 4121, Fax No. (022) 2300 0370/2301 6072/2301 0095, e-mail: cgmicdgbaco@rbi.org.in िहन्दी आसान ह,ै इसका �योग बढ़ाइए ।pertaining to March 2022 up to April 11, 2022, the transactions of April 2022 should not be mixed up with the residual transactions relating to March 2022. 4. Kindly issue necessary instructions in the matter to your branches concerned immediately. Yours faithfully (R. Kamalakannan) Chief General Manager Encl: As above 2ANNEX Reporting of March 2022 transactions Beginning from April 1, 2022, the Nodal/Focal Point branches will segregate on a daily basis all scrolls/challans pertaining to March 2022 received from the receiving branches concerned and prepare separate main scrolls for: (a) scrolls for transactions of March 2022 or earlier period (i.e. effected during the previous financial year 2021-22) and (b) scrolls pertaining to current transactions (i.e. those effected from April 1, 2022 onwards). 2. The main scrolls for March 2022 transactions prepared from April 1 to April 11, 2022 are to be distinctly marked as March Residual – 1, March Residual – 2 and so on upto April 11, 2022. In other words, serial number should be allotted in consecutive order for each main scroll of March 2022 transactions sent from April 1 to April 11, 2022. These scrolls along with the copies of daily summary of Receipts and Payments prepared separately for March 2022 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 11, 2022 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 2022 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 2022 transactions – one for transactions upto March 31, 2022 and another for March Residual transactions adjusted by Nodal/Focal Point branches with Reserve Bank of India, Central Accounts Section, Nagpur, during April 1 to April 11, 2022. 33. Since the Nodal/Focal Point branch will also be reporting the April 2022 transactions pertaining to year 2022-23 in addition to March 2022 Residual transactions, monthly statement for April 2022 transactions should be compiled and furnished to Zonal Accounts Officers/Pay and Accounts Officers in the usual way. In order to distinguish the April 2022 (year 2022-23) 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, 2022. 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, 2022 should be treated as transactions relating to the current financial year as "March 2022 or March Residual Transactions", the reporting of which may take place during the month of April (upto April 11, 2022). But if any cheque is tendered on or before March 31, 2022 and realised on or after April 1, 2022, it will be treated as transaction for the next financial year as "April Transactions". Accordingly, the banks will prepare separate scrolls for March 2022 and April 2022 (Financial year 2022-23) transactions. **** 4

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