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2 2-government payments processes

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2 2-government payments processes

  1. 1. BANKING OPERATIONS DAY-2 SESSION -2 GOVERNMENT PAYMENTS PROCESSES 1
  2. 2. MODES OF GOVERNMENT PAYMENTS 1.Cash Payments 2.Through Clearing 3.Transfer 2
  3. 3. MODES OF GOVERNMENT PAYMENTS The following are the main modes of Government Payments: 3 Sr. MODE REMARKS 1 Cash  Payment against instrument is made in cash. 2 Clearing  Payment against instrument is made through credit to presenting Bank Account. 3 Transfer  One Government Account is Debited and there against another Account is Credited.
  4. 4. PASSING POWERS (PARA 358 BD MANUAL) Group of officers Cash Clearing Transfer OG-1 Jointly with Asstt / Sr. Asstt /OG-1 Up to Rs. 20,000/- Up to Rs. 40,000/- Up to Rs. 40,000/- OG-2 Jointly with OG-1 Up to Rs. 1 million Up to Rs. 2 million Up to Rs. 2 million *OG-3 Jointly with OG- 2/OG-1 Up to Rs.100 million Up to Rs.100 million Unlimited Divisional Head Jointly with OG-2/OG-3 Above Rs. 100 million & Up to 500 million Above Rs. 100 million & Up to 500 million Chief Manager Jointly with OG-2/ACM Above Rs. 500 million Above Rs. 500 million 4
  5. 5. GENERAL PRECAUTIONS BEFORE PASSING INSTRUMENTS  The Cheque / bill is drawn on the office of the Bank where it is presented  Cheque is signed properly  Schedule of the instrument has been received  Matching the particulars of cheque with schedule.  Marking of Schedule  Where cheques have been drawn on assignment accounts it should be ensured that sufficient credit balance is available in the account to meet the payment and the Cheque has been drawn in the strict conformity with the instructions governing operations on that account. 5
  6. 6. GENERAL PRECAUTIONS......  The Cheque /bill is neither stale nor post dated. Government Cheques remain current for 3 months after the month of their issue. However their validity will be expired at the end of financial year While bills generally remain current for a period of 30 days. Income Tax refund , Sales Tax refund (Only in Islamabad)orders remain current during the year of the issue and would lapse on 30th June every year.  Cheque / bill is free from stoppage.  The Cheque /bill has been signed by an 6
  7. 7. GENERAL PRECAUTIONS......  Cheque series has been intimated  Amount in words and figures agrees  There is no over-writing on the Cheque /bill (FTR 161)  There are no additions ,alterations , correction, overwriting in the Cheque /bill.  The cheque is not mutilated  The protective cross entry, except in the case of Cheques which are typed on perforating machine (Rule 156)  Cheque is not crossed if presented for cash payment  Clearing stamps affixed if presented through 7
  8. 8. SCHEDULE & ITS MARKING Scrutiny of schedules Filling schedule date wise Marking on payment as well as on stoppage 8
  9. 9. SCRUTINY OF THE INSTRUMENTS face • Drawn on office • Words & figure • Properly signed • No Overwriting/alteration • Not mutilated • Protective cross entry validity • Stale/post dated • Stoppage free endorsement • Collecting banker’s discharge • Payees discharge Others : in addition to above checking schedule/ Advice and cheque book intimation. Applying checks as prescribed in para 420 of BD manual 9
  10. 10. CASH PAYMENT PROCESS (PAD COUNTER)  All Govt. instruments/Cheques meant for cash payments will be presented on PAD counter  PAD staff/counter official will receive the cheques and conduct the scrutiny/technical examination as prescribed in Para 420 of BD Manual  Identification of presenter DDO/Authorised cashier from cashier card/identity card  Taking the signatures of the presenter on the back of the check  Matching with attested signatures  Inscribing the initials by token officer to the effect that identification has been verified  Token will be issued to the presenter and token number will be written on the back of the cheque 10
  11. 11. CASH PAYMENT PROCESS..... PROCESSING OF INSTRUMENT AT PAD  The cheque would be delivered to the concerned official for marking schedule who after proper scrutiny will record the effect on the cheque under his initials.  The cheque will be passed to the concerned authorized official for scrutiny/verification of signatures and initial level passing as prescribed in BD manual Para 420  The cheque will be forwarded to Passing Officer for authorizing the payment who will inscribe his signatures under the PAY CASH stamp after applying all the relevant cheques as prescribed BD Manual.  Cancellation of drawer’s signature.  When the cheque is duly passed, same would be input in the Globus Banking System in the proper version 11
  12. 12. CASH PAYMENT PROCESS.....  All types of override messages will be supervised  Accounting entry in Globus Banking System DR Relevant Govt. Account CR Intermediary Account (Hard Coded)  Transaction number generated by globus will be written on the back of cheque/instrument.  Passed cheque delivered to Cash counter for cash payment. 12
  13. 13. PROCESSING AT CASH COUNTER  Scrutinize the instrument to ensure that the signature of the passing official of PAD Payment is in order and genuine  Cash Official (Inputter) will open the transaction in the prescribed version by feeding the transaction number written on the back of cheque/instrument .  Enter (input) the denominations in the prescribed version and will commit the transaction.  Cheque would be passed on to the Supervisor for authorizing the transaction who will authorize the transaction by verifying the facts.  Cash would be paid to the presenter of the cheque against surrender of the token and proper identification as per prescribed procedures. 13
  14. 14. CASH CHEQUE  CASH PAYMENT CHEQUE SAMPLE 14
  15. 15. PROCESSING AT CASH COUNTER  Branding “Paid in Cash” rubber stamp and initial of Paying officer  Balancing of cash  Delivery of instruments and tokens to PAU  Intimation of total amount to PAU  Matching of paid instruments with Globus Cash Scroll report in form Bkg.185 in respect of different Department of the Governments  Signing of Scroll 15
  16. 16. PAYMENTS THROUGH CLEARING  On receipt of cheques from NIFT same are tallied with NIFT Sheets . Any discrepancy is immediately intimated to NIFT  Marking of Schedule  Applying of the same checks as are applied to the instruments for cash payments (Para 420 of BD manual)  Clearing Stamp and branch endorsement should be there .  Scrutiny of the cheque by an official under his initial in the clearing stamp  Endorsement Issues 16
  17. 17. PAYMENTS THROUGH CLEARING  Passing the cheque by an authorized official under his initial in the clearing stamp  Cancel the signature of the drawer  If Cheques drawn on assignment account it should be ensured that sufficient credit balance is available  Inputting Authorization in Globus  Care for override messages in Globus  Generation of scroll & abstracts. 17
  18. 18. CLEARING CHEQUE  CLEARING CHEQUE SAMPLE 18
  19. 19. PAYMENTS THROUGH CLEARING CONT... NOTICING IRREGULARITY AFTER CLEARING PROCESS  In case any irregularity is detected in any clearing Cheque/bill after the clearing process is over or a Cheque/bill containing an irregularity could not through oversight be pushed through the return clearing the fact should immediately be brought in to the notice of the Assistant Chief Manager.  Reversal of the entry  Passing of new entry wherein the commercial bank Account is debited and composite NIFT(LHR NIFT) would be credited  Immediate intimation to the bank concerned on phone as well as through fax to avoid payment its end 19
  20. 20. PAYMENTS THROUGH TRANSFER  Payments Through TRANSFER  Transfer Cheque sample 20
  21. 21. INSTRUMENTS RETURNED UNDER OBJECTIONS Cheques Referred and Returned Register in form No. Bkg.46  Particulars of the cheque to be returned together with reasons for its return will be entered in this register  Objection memo with cheque and the register will be put up to the Assistant Chief Manager for checking the entries in the Register and signing the memorandum.  There must be a valid reason for returning a cheque. Returning the cheque on invalid reason may be damaging  Care should be made that no cheque is returned twice with the same objections. 21
  22. 22. OBJECTION MEMO 22
  23. 23. SOME COMMON OBJECTIONS ON CHEQUES  Not drawn on us  Schedule not received  Payees name differ with schedule  Effects not clear  Drawer signature differs  Cheque is unsigned  Alteration /correction in cheques is not accepted  Cheque is post dated  Undated cheque  Date is irregular such as 31 April. 23
  24. 24. SOME COMMON OBJECTIONS ON CHEQUES  Stale cheque  Amount in words figures differ  Cross cheque must be presented through clearing (if receives on cash counter)  Overwriting not acceptable  Cheque not in register  Payment stopped by the drawer.  Bank clearing stamp required (if presented through clearing)  Bank’s discharge required (in Clearing)  Cheque is mutilated  Balance not available 24
  25. 25. REVERSAL OF ENTRIES IN SYSTEM  Reversal before EOD  Adjustment after EOD  Zero level authorization 25
  26. 26. INCOME TAX REFUND ORDERS  Non-negotiable instruments payable to the payee or his banker on certification that amount will be placed to the payee’s credit on realization  The Income-tax/Sales-tax Refund Orders are issued in the form prescribed in the Income Tax Manual by the authorized Income Tax/Sales Tax Officers whose specimen signatures are recorded with the Bank  The number of the Refund Orders book and the serial numbers of the Refund Orders are be advised.  An advice in the prescribed form containing full particulars of the Refund Order viz., its number, date of issue, amount, name of the payee is also invariably issued over the signature of the authorized Income Tax Officer 26
  27. 27. INCOME TAX REFUND ORDERS…. PRECAUTIONS  It belongs to the Refund Order book  Verification of the signature of Drawer  Verification of particulars of Refund Order with Refund Orders Issue advice.  It should be ensured that advices are genuine, the amounts in words and figures agree and the number of the Refund Order given on advice is from the Refund Order book advised  Advice number is mentioned on Refund order  Advice numbers used by Income Tax department should be communicated to the offices in the same way as Refund order numbers are communicate  Crossing on the face of instrument clearly mention that it is a non- negotiable instrument  NTN No., year of assessment and joint signature of refund officer and Inspecting Assistant Commissioner or Additional commissioner over the refund cheque beyond Rs. 100,000/- is essentially required 27
  28. 28. REFUND OF INCOME TAX VOUCHER  Validity  Segregation of Income Tax Voucher up to Rs.10,000/ & above Rs.10,000/  Separate refund book  Countersignature 28
  29. 29. PAYMENTS TO RAILWAY 1. Current account III 2. Pension account  “Central XVII Railways – Pay & Pension Account”  Cheques from PR are specifically marked with “Salary Only” or “Pension Only”.  BSC field offices to submit separate debit scrolls along with paid cheques 3.PSDP Account XVIII  Separate list of signatories  Separate cheque series  Stamped with only for PSDP  No special authority No overdraft in any of Railway Account. 29
  30. 30. PAYMENTS TO RAILWAY  “Central XVII Railways – Pay & Pension Account”  authorized signatories cards of PR staff who are authorized for disbursement of salaries and pensions  cheques from PR in this new accounts that are specifically marked with “Salary Only” or “Pension Only”.  where no such stamp is found on cheque, the cheque will be paid from Account III  BSC field offices to submit separate debit scrolls along with paid cheques 30
  31. 31. DAILY REPORTS OF PAYMENT Sr. NO GOVERNMENT PAYMENT REPORTS 1 Scroll 2 Abstract 3 Treasury Sheet 4 Government Balance reporting to HOK 31
  32. 32. IDENTIFICATION OF THE PRESENTER In case the Cheque/bill is found prima facie in order, the token official will proceed with the identification of the presenter in the following manner: 1. If the payee is holding an identity card and an authority letter duly registered with the Bank issued to him by a Government Department, Local authority etc. bearing his attested photograph and specimen signature with the seal of the issuing Department affixed thereon as provided in Rule 430 of the Federal Government Treasury Rules Vol. I, the payee’s identity will be established by comparing his photograph with his person and his discharge signature on the instrument with the specimen appearing on the identity card. Particulars of the identity card such as its number, date of issue and the name of issuing department will be noted down by the counter official below the discharge receipt obtained by him from the payee under his initials. A register in form Bkg. 211 shall be maintained for the purpose of registering the Identity Cards of the Cashiers/Messengers of the Government Department/Banks/Local Authority etc. at the Public Accounts32
  33. 33. IDENTIFICATION OF THE PRESENTER  2. If the payee’s discharge signature has been attested by a person known to the Bank the counter official shall obtain a fresh discharge receipt of the payee on the back of the instrument in his presence and compare the latter signature with the attested, to ensure that the two agree. He will also verify the attesting person’s signature on the instrument with his specimen recorded with the Bank. The counter official will put his dated initials below the discharge signature of the payee obtained by him at the counter.  3. If the payee is identified by an OG-2/Treasury Officer of the Bank they will attest the payees discharge signature on the back of the instrument over their full signature. The counter official will obtain a fresh discharge signature of the payee in his presence and if the two signatures of the payee agree and the signature of the attesting employee of the Bank mentioned above is found to be in order by the counter Incharge he will put his dated initials below the last signature of the payee. 33
  34. 34. MAINTENANCE OF TOKENS  A few Tokens will be issued ACM to each counter against acknowledgement and full account obtained from them in the evening.  Tokens issued to the parties by counter staff  Surrendered by them to the Cash Department at the time of receiving payments  Cash division will return in the evening  In case any token is lost by any party this effect is immediately documented  Payment to the party will not be made unless his identity is established beyond doubt  Indemnity bond  Penalty an amount of Rs.300/- 34

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