Sunday, January 3, 2016

Discontinuation of the requirement for Paper to Follow (P2F) for Central Government cheques under CTS




It has now been decided to dispense with the current requirement of forwarding the paid Central Government cheques in physical form (P2F) to the Government departments.

 

“Revised Memorandum of Instructions for reporting and accounting of transactions of Union Ministries Expenditure Accounts (UMEA) by the accredited public sector banks”:

 

  1. This circular is to be inserted as Annexure-15 to the above circular.
     

  1. ‘Drawee bank’:  The branch accredited to a Ministry/ Department on which the cheques are drawn.
    ‘Presenting bank’: The branch where the cheques are presented for payment.
     
    Both the presenting banks and drawee banks would continue to discharge their duties normally with respect to payment of cheques. However, the government cheques would henceforth be paid in CTS clearing solely based on their electronic images. The paid cheques in physical form would be retained by the presenting bank.
     
  2. In case drawee bank desires to verify the physical cheque before passing it, the image would be returned unpaid under the reason “present with document”. The presenting bank shall ensure that the instrument is presented again without any reference to the account holder (payee).
     
  3. The presenting banks are to preserve the physical instruments for a period of 10 years. In case some specific cheques are required for any purpose under the law, they may be preserved beyond 10 years. Drawee banks shall preserve the images of all government cheques for a period of 10 years with themselves or through the National Archival System.
     
  4. The government cheques paid by a drawee bank across its counter by way of cash withdrawal or transfer also need to be truncated and preserved for
    10 years. A common electronic file containing the images of all the paid cheques shall be created on a daily basis for transmission to government departments.
     

  1. The drawee bank shall continue to send the payment scrolls, monthly DMS, etc., to the designated Focal Point Branch which will forward the same to the concerned Pay and Accounts Officer. Additionally, the electronic images of paid cheques, shall be provided by way of secured electronic communication.
     
  2. Whenever so demanded by the Pay and Accounts Officer, the Focal Point Branch shall arrange to furnish the cheques paid by way of cash and transfer immediately. In case of clearing, within a reasonable period. It is the responsibility of the presenting bank to comply with the request of the Pay and Accounts Officer/drawee bank within a reasonable time.
     
  3. Government cheques drawn on RBI / agency banks shall be presented in the grid within whose jurisdiction the branch of paying bank is located.
     
  4. Focal Point Branch shall ensure that the mistakes/ discrepancies pointed out are rectified, missing images are submitted immediately, the copies of the scrolls duly verified by the PAO are kept on its record, etc.
     
    The revised guidelines would be effective on cheques issued from Feb’ 1, 2016.

 

Based on RBI Circular dt 31/12/15. Please visit www.rbi.org.in for any further clarification if required….. Poppy