April 25, 2005
The Chairman & Managing Director / Managing
Director
State Bank of India and its Associates/
All Public Sector Banks/ Jammu & Kashmir Bank Ltd.
Dear Sir,
Maintenance of Government Accounts - Recovery
of Interest on delayed remittances (Government of India Transactions)
The existing procedure for remittance of collection
of Government receipts/revenues for crediting into Government account maintained
at CAS, RBI, Nagpur has been reviewed by a Committee set up by Government of
India with members drawn from Government, Reserve Bank of India and a few select
Public Sector Banks. Based on recommendations of the Committee, it has been
decided as under:
1. Permissible period for remittance of
Government Revenues
a) Local Transactions - Wherever the
collecting branch and focal point branch are in the same city/agglomeration,
the settlement of transaction with CAS, RBI, Nagpur is required to be completed
within T+3 working days (where T is the day when money is available at the branch).
For calculating the working days, the RBI calendar will be followed.
b) Outstation Transactions - Wherever
the collecting branch and the focal point branch are in different city/agglomeration,
the settlement of transaction with CAS, RBI, Nagpur is required to be completed
within T+5 working days (where T is the day when money is available at the branch).
For calculating the working days, the RBI calendar will be followed.
2. Charging interest on delayed remittance
– ‘Delayed Period Interest’
a) Total amount, which has not been remitted
in time and the penalty due alongwith the details of the individual cases will
be intimated by concerned Ministry /department to the Head Office of the bank
concerned on a quarterly basis by the 15th of the following month.
The period of delay for this purpose will be counted from the date of receipt
of the collection at the receiving branch (actual realization of money in the
bank) till they are reported to RBI, CAS, Nagpur for credit to Government.
b) The present system of charging penalty at
Bank Rate +2 % will continue. The charges shall henceforth be known as ‘Delayed
Period Interest’.
c) There will be no change in the permissible
remittance period or penal charges for the various Deposit Schemes of the Ministry
of Finance.
d) Delayed period interest will be recoverable
from the banks regardless of the amount involved.
3. The cases for relaxation of the permissible
period in respect of difficult areas or due to the matters beyond the control
of the banks will be forwarded on case – to - case basis to Office of Controller
General of Accounts through the Ministry/Department concerned for approval as
hitherto.
4. This supersedes all our earlier instructions
on the subject.
5. The revised instructions will be effective
from 01.05.2005. These instructions are not applicable to Private Sector
Banks.
6. The above instructions will not apply to
transactions under OLTAS. Separate instructions have already been issued vide
our circular
No.RBI/2005/411 dated April 1, 2005 in this regard.
7. Please acknowledge receipt.
Yours faithfully,
Sd/-
(M.T.Varghese)
General Manager