rbi

Guidelines for Reporting and Accounting Central Government Transactions in March 2020

Introduction

This document outlines the procedures for reporting and accounting of Central Government transactions for March 2020. This circular provides guidance to all Agency Banks regarding the closure of transactions and necessary arrangements to ensure accurate financial reporting for the fiscal year 2019-20.

Reporting and Accounting Procedures

Closure of Transactions

  1. The Government of India has set the deadline for the closure of residual transactions for March 2020 to April 10, 2020. All receiving branches must ensure that special arrangements, such as courier services, are in place to transfer challans and scrolls to Nodal/Focal Point branches promptly. This ensures that all payments and collections made at the end of March are accurately recorded within the current financial year.

Separate Reporting for March and April Transactions

  1. Nodal/Focal Point branches should follow the outlined process in the attached Annex for reporting transactions in April. Each branch is required to:
    • Prepare different sets of scrolls for March and April transactions during the first 10 days of April 2020.
    • Ensure that transactions (like revenues, tax collections, and payments) up to March 31, 2020, are recorded under the current fiscal year, separate from April transactions.
    • Avoid mixing any April transactions with residual transactions from March 2020 while reporting until April 10, 2020.

Instructions for Branches

  1. Immediate guidance should be provided to all relevant branches regarding these procedures.

Annex: Reporting of March 2020 Transactions

Daily Segregation of Transactions

  1. Starting April 1, 2020, Nodal/Focal Point branches are required to daily segregate all scrolls and challans pertaining to March 2020 from the receiving branches. These should be organized into:
    • Scrolls for March 2020 transactions (effected during FY 2019-20)
    • Scrolls for current transactions (effected from April 1, 2020, onwards)

Marking and Submission of Scrolls

  1. The scrolls for March 2020 transactions need to be distinctly marked as "March Residual – 1," "March Residual – 2," and so forth, through April 10, 2020. Each main scroll must receive a consecutive serial number. These scrolls, along with a daily summary of Receipts and Payments for March 2020 transactions, are to be sent to the relevant Departmental Officials like Zonal Accounts Officers, Pay and Accounts Officers, and Designated Officers.

Reporting to Link Cell

  1. Transactions need to be reported to the Link Cell via separate Daily Memos. Upon receiving these, the Link Cell will isolate the March Residual transactions and send them to the Reserve Bank of India, Central Accounts Section (CAS), Nagpur. This reporting should continue until April 10, 2020. All subsequent transactions will then be processed in the normal manner pertaining to the month of the report.

Preparation of DMS

  1. It is crucial for Nodal/Focal Point branches to prepare two sets of Daily Memo Summaries (DMS) for submissions to Zonal Accounts Officers:
    • One for transactions up to March 31, 2020
    • Another for March Residual Transactions adjusted by Nodal/Focal Point branches with the Reserve Bank of India, CAS, Nagpur, from April 1 to April 10, 2020.
  2. While preparing the statements for April 2020 transactions, which will also pertain to the fiscal year 2020-21, it is imperative to clearly mark the statement for March Residual Transactions as "March Residual Account." The deadline for submitting the statement of March Residual Transactions is by April 18, 2020.

Cheque Realization Regulations

  1. In accordance with circular GA.NB.No.376/42.01.001/1995-96 dated May 22, 1996, all cheques or amounts realized on or before March 31, 2020, should be classified as transactions for the current financial year (March 2020 or March Residual Transactions), even if reported in April (up to April 10, 2020). Conversely, any cheque presented by March 31, 2020, but realized after April 1, 2020, will be recognized as an April Transaction for the next financial year. Consequently, separate scrolls for March 2020 and April 2020 transactions must be maintained.

Conclusion

These instructions aim to streamline the reporting and accounting processes for Central Government transactions, ensuring a clear demarcation between transactions of different fiscal years. Adhering to these guidelines will facilitate accurate financial accounting and compliance with the Reserve Bank of India regulations.