Cash and Pay Department Overview
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Questions and Answers

What should be done with telegraph message drafts containing stamps?

  • They should be sent to the bank without verification.
  • They should be given to the Traffic Accounts Branch official. (correct)
  • They should be placed in the Chief Cashier's office until verified.
  • They should be opened in the cash office.

    • What is the role of the Shroff during the verification of cash bags?

  • To ensure all coins are current without distinguishing them.
  • To closely examine cash for uncurrent coins and notes. (correct)
  • To count the total cash without examining it closely.
  • To prepare the cash for immediate deposit at the bank.

    • How should uncurrent coins from each station be handled?

  • They should be mixed with current coins for convenience.
  • They should be sent directly to the Mint for replacement.
  • They should be disposed of immediately to avoid confusion.
  • They should be placed in separate indexed covers for each station. (correct)

    • What should be done with counterfeit coins considered well executed?

    <p>They should be treated as current coins.</p> Signup and view all the answers

    What is the Chief Cashier's responsibility regarding uncurrent coins detected at the bank?

    <p>To ensure that Shroffs are held accountable for prior detection.</p> Signup and view all the answers

    What is the purpose of the Chief Cashier's Cash Book in the Pay Department?

    <p>To document all cash payments made</p> Signup and view all the answers

    Which option outlines a responsibility of cashiers in the Cash and Pay Department?

    <p>Conducting surprise checks and verifying cash on hand</p> Signup and view all the answers

    What does the handling of cash primarily involve in the Cash Department?

    <p>Storing cash securely and maintaining accurate records</p> Signup and view all the answers

    What is the significance of remittance notes in the Cash and Pay Department?

    <p>They provide details of cash sent to banks or treasuries</p> Signup and view all the answers

    Which aspect is NOT a part of the verification process for cash balance?

    <p>Review of unpaid wages lists</p> Signup and view all the answers

    What role does the Bills Distribution Register play in the Pay Department?

    <p>It manages the distribution of bills and cheques</p> Signup and view all the answers

    In the context of cash handling, what is the purpose of cash witness?

    <p>To serve as a safeguard against cash discrepancies</p> Signup and view all the answers

    What type of receipt is given when a cheque is tendered for the first time?

    <p>Receipt for the cheque</p> Signup and view all the answers

    What happens if a cheque is dishonoured by the bank?

    <p>The tenderer will be informed immediately.</p> Signup and view all the answers

    What should be done with cash transactions in the CashBook?

    <p>They should be recorded as they occur.</p> Signup and view all the answers

    Who is responsible for signing the receipts granted to payees?

    <p>A responsible officer</p> Signup and view all the answers

    What is the guideline for transporting cash using Class IV staff?

    <p>Only trustworthy and experienced staff should be selected.</p> Signup and view all the answers

    What should be done at the end of each month regarding the CashBook?

    <p>Verify the cash balance and record a certificate.</p> Signup and view all the answers

    When are receipts granted for Railway freight?

    <p>Only when explicitly requested.</p> Signup and view all the answers

    What should be avoided when handling Government money?

    <p>Handling other personal funds without permission.</p> Signup and view all the answers

    Which of the following is a critical requirement when handling cash transactions?

    <p>Transactions should be attested in the CashBook.</p> Signup and view all the answers

    What should be done with each duplicate key of the safe or strong room?

    <p>It should be placed in a packet and sealed.</p> Signup and view all the answers

    Who is responsible for the custody of the duplicate key packets?

    <p>The departmental officer entrusted with custody.</p> Signup and view all the answers

    What information should be indicated in the register maintained in the office?

    <p>Full particulars of the duplicate keys in existence.</p> Signup and view all the answers

    When should the office call for the sealed packets containing duplicate keys?

    <p>During the month of April each year.</p> Signup and view all the answers

    What should be done after verifying the duplicate keys?

    <p>They should be returned properly packed and sealed.</p> Signup and view all the answers

    Who must make entries in the registers regarding the annual verification of duplicate keys?

    <p>The nominated officer responsible for custody.</p> Signup and view all the answers

    What is the responsibility of the office maintaining the duplicate key packets?

    <p>To ensure the packets are sealed and intact.</p> Signup and view all the answers

    What happens if a packet's seal is broken?

    <p>It indicates a breach of security.</p> Signup and view all the answers

    What should the officer do before returning the duplicate keys?

    <p>Verify and make an entry in the register.</p> Signup and view all the answers

    In whose custody are the duplicate key packets maintained?

    <p>The nominated officer.</p> Signup and view all the answers

    What is the first action a Shroff must take upon opening a cash bag?

    <p>Take out the Cash Remittance Note and hand it over without unfolding.</p> Signup and view all the answers

    What should happen if a discrepancy is found between the cash and the Remittance Note?

    <p>A recount should first be made by the Cash Witness.</p> Signup and view all the answers

    Who is responsible for obtaining the acknowledgement of the Shroffs?

    <p>The Chief Cash Witness.</p> Signup and view all the answers

    Where should the contents of the cash bags be emptied for counting?

    <p>On a carpet or table that is clear of everything.</p> Signup and view all the answers

    What must be done if the cash agrees with the Remittance Note?

    <p>Both the Cash Witness and Chief Cashier should initial the counterfoil.</p> Signup and view all the answers

    How many Shroffs should be employed in dealing with the bags from one station at a time?

    <p>Only one Shroff should be employed.</p> Signup and view all the answers

    What is the role of the Chief Cashier concerning discrepancies?

    <p>Chief Cashier should be informed only if the discrepancy persists after recounting.</p> Signup and view all the answers

    What must not happen until the bags from another station are disposed of?

    <p>The Shroff should not touch the new bags.</p> Signup and view all the answers

    What is the purpose of the Cash Remittance Note during counting?

    <p>It should be verified against the cash counted.</p> Signup and view all the answers

    What must the Officer-in-charge of the cash office do when discrepancies occur?

    <p>Conduct thorough investigations as deemed necessary.</p> Signup and view all the answers

    Who is authorized to employ a system using cash receipts at stations for certain expenditures?

    <p>The Financial Adviser and Chief Accounts Officer</p> Signup and view all the answers

    What conditions must be met for withdrawal from station earnings to occur?

    <p>An amount covering two weeks of transactions must be deposited in advance.</p> Signup and view all the answers

    In what circumstance can a General Manager allow the appropriation of departmental receipts?

    <p>For urgent expenditure due to natural disasters.</p> Signup and view all the answers

    Which of the following is NOT permitted concerning the appropriation of departmental receipts?

    <p>Utilizing receipts for operational costs without approval.</p> Signup and view all the answers

    Which officer must approve the appropriation of departmental receipts in cases other than specified exceptions?

    <p>The President</p> Signup and view all the answers

    What is required before the Financial Adviser can cash cheques issued against the drawing account?

    <p>Receipt of traffic receipts must occur</p> Signup and view all the answers

    Which party facilitates encashment of pay orders from station earnings?

    <p>The Employees Co-operative Credit Society/Bank</p> Signup and view all the answers

    What is a requirement regarding payments by Cashiers based on the witnessing process?

    <p>Payments should be made in the presence of witnesses appointed by the officers drawing the bill.</p> Signup and view all the answers

    Which of the following statements is accurate regarding the witnessing officer or subordinate?

    <p>They must be able to write in either English or Hindi to certify payments.</p> Signup and view all the answers

    According to the payment notification guidelines, when should the Accounts Officer notify the payment dates?

    <p>At least two months in advance for the payment of various classes of bills.</p> Signup and view all the answers

    What is a restriction placed on officers submitting bills for internal checks?

    <p>They need to specify the location of payment along with witness names.</p> Signup and view all the answers

    What should be done when a railway servant named to witness payment is unable to fulfill the role?

    <p>The officer-in-charge must authorize another railway servant to witness the payment.</p> Signup and view all the answers

    What is the first action required after receiving telegraph message drafts with stamps affixed?

    <p>Make them over to a responsible official of the Traffic Accounts Branch.</p> Signup and view all the answers

    Which of the following describes uncurrent coins that should be returned to the remitting station?

    <p>Light or defaced coins placed in indexed covers.</p> Signup and view all the answers

    What action should be taken if counterfeit coins do not meet the Chief Cashier’s acceptable criteria?

    <p>Return them to the remitting station to be replaced.</p> Signup and view all the answers

    What is the Chief Cashier's responsibility when uncurrent coins are found during bank transactions?

    <p>To ensure the loss is compensated by the Cash Office Shroffs.</p> Signup and view all the answers

    Which procedure should be followed before the end of each month with regard to the Cash Book?

    <p>Summarize all transactions and sign off by the Chief Cashier.</p> Signup and view all the answers

    What is the correct way to handle counterfeit coins considered unusually well executed during rail transport?

    <p>They must be treated as current and not tampered with.</p> Signup and view all the answers

    How should the Chief Cashier verify the cash collected in each bag?

    <p>By ensuring the Shroff closely examines each bag's contents.</p> Signup and view all the answers

    Which of the following is a key action required for managing uncategorized coins during verification?

    <p>Separate uncategorized coins and label them accordingly.</p> Signup and view all the answers

    What should be done with coins identified as uncurrent during station cash verification?

    <p>They must be covered and indexed for tracking purposes.</p> Signup and view all the answers

    What is the primary purpose of Form A. 1944 in the remittance process?

    <p>To facilitate daily payment into the Bank/Treasury</p> Signup and view all the answers

    How should daily receipts using Form A. 1944 be handled after payment?

    <p>They should be carefully filed and stamped to prevent reuse.</p> Signup and view all the answers

    What must be included when the Pay Department requests payments?

    <p>Abstract of bills, cheque requisitions, and corresponding cheques</p> Signup and view all the answers

    Which document serves as the voucher in support of credit entry in the Chief Cashier’s Cash Book?

    <p>The second foil of Treasury Remittance Notes</p> Signup and view all the answers

    What should the Chief Cashier’s Cash Book (Payments) be primarily based on?

    <p>Bills and cheques received from the Account Office</p> Signup and view all the answers

    How should the railway be organized to expedite payment of claims?

    <p>By dividing the railway into designated 'Pay Districts'</p> Signup and view all the answers

    What precaution must be taken with daily receipts to prevent their second use?

    <p>They must be stamped or obliterated adequately.</p> Signup and view all the answers

    What is the required format for Treasury Remittance Notes?

    <p>Blue paper with railway information printed boldly</p> Signup and view all the answers

    What action must the Cashier take upon receiving bills from the Accounts Office?

    <p>Grant suitable acknowledgment of the received bills.</p> Signup and view all the answers

    What geographical consideration is emphasized in arranging station names in the Cash Check Sheet?

    <p>Organizing by geographical position along the railway line</p> Signup and view all the answers

    What should be done with the acknowledgements from Cashiers at outstations?

    <p>They should be entered in the Chief Cashier’s Cash Book.</p> Signup and view all the answers

    Where should the total of cheques handed over to Cashiers be matched?

    <p>With the total of cheque requisitions received daily.</p> Signup and view all the answers

    What form should be used to register cheques that are required to place Cashiers at outstations in funds?

    <p>Form A.1950</p> Signup and view all the answers

    What must be done after posting the Cashier’s Cash Book (Payments)?

    <p>The bills should be sorted for distribution to Cashiers.</p> Signup and view all the answers

    How should the amounts of cheques omitted to be drawn be recorded?

    <p>In register Form A.1950.</p> Signup and view all the answers

    What should be quoted in the Bills Distribution Register for Cashiers at outstations?

    <p>The reference number of the Advice Note.</p> Signup and view all the answers

    What is the purpose of obtaining acknowledgements from Cashiers at headquarters?

    <p>To ensure accurate record-keeping.</p> Signup and view all the answers

    What is required before sending the register of cheques to the Accounts Office?

    <p>Deduction of these amounts from the Chief Cashier’s cheques.</p> Signup and view all the answers

    What must be done after obtaining acknowledgements on the Bills Distribution Register?

    <p>The register must be reviewed for any errors.</p> Signup and view all the answers

    Study Notes

    Cash and Pay Department

    • Organization: The Cash and Pay Department is headed by a Deputy Chief Accounts Officer (Dy CAO/C&P). Divisions have Divisional Cashiers subordinate to the Chief Cashier.
    • Responsibilities: Primarily responsible for banking railway cash receipts and disbursing payments (excluding cheque payments handled by a separate cell).
    • Internal Check and Rules: Rules are in place for internal checks and inspections of cash and pay procedures prescribed by the Financial Advisor and Chief Accounts Officer and are subject to general codes.
    • Cash Handling Procedures: Rules cover the handling of cash, including cash books, receipts, transportation, custody (with security measures), balancing procedures, local cheques, uncurrent coins, counterfeit currency, and Treasury Rules.
    • Pay Department: Manages pay districts and cash flow for payments.
    • Payment Procedures: Deals with bills, funds, payment methods, witness requirements, various payments for diverse purposes (e.g., salaries, claims, compensation, payments to contractors, payments on authorities, inter-district/inter-railway payments, postal payments).

    General Procedures

    • General Rules: General rules are designed to prevent misappropriation or loss, with minor deviations for local circumstances needing approval from the Financial Adviser and Chief Accounts Officer.
    • Systematic Internal Checks: The system ensures the proper handling of cash and payment records.
    • Reconciliation of Balances: Detailed reconciliation procedures for cash balances, with regular (periodic) security checks (by the Executive Engineer/Security Officer).
    • Custody of Cash: Strict rules regarding the custody of cash, outlining security measures, procedures for safe-keeping under guard, and preventing unauthorized access. This includes use of strong rooms with multiple locks and duplicate keys, with specific custody procedures.
    • Inter-District & Inter-Railway Payments: Special rules address transfers across districts and railways, emphasizing procedures for efficient handling and proper documentation. This includes transfers of charge of Cashiers.
    • Payment Records: Detailed procedural guidelines for creating, maintaining, and verifying payment-related records (e.g., Cash Book, Cashier's Ledger, Cash Check Sheets). Provides records and processes of transfers of money.
    • Remittances: Processes for remitting funds, including banks and treasuries, handling of cheques, and their clearance procedures.

    Handling of Cash

    • Cash Book: Daily records of all cash transactions for each railway servant, verified at month-end by the Cash Book officer.
    • Receipts and Payments: Rules outlining procedures for issuing and receiving receipts for payments (including proper receipt forms, signatures, and verification).
    • Cash Transport: Rules limiting use of messengers to transport cash in large amounts and provides procedures of using travelling safes.
    • Custody of Cash: Clarifies procedures for safekeeping cash at various locations (including separation in cases involving both government and non-government funds).
    • Bank/Treasury Payments: Procedures for ensuring accurate recording and remittance to banks and treasuries, including daily reconciliation and check sheets.
    • Cash Witnessing: Requirements for witnesses of transactions to ensure security/accountability.
    • Verification of Cash Balance: Verification of cash balance through a physical count once per month, preferably without prior notice.

    Special Procedures

    • Uncurrent Coins/Currency: Procedures address handling counterfeit and damaged coins; their reporting and return to the Mint are detailed and provide accountability.
    • Telegraph Drafts/Messages: Rules for handling telegraph drafts, specifying the procedures to comply with regulations and responsibility.
    • Station Remittances: Procedures for receiving, counting, and recording station remittances, along with witness requirements.
    • Cash Bags: Detailed procedures for the custody and handling of cash bags, including procedures for opening and counting cash.

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    Related Documents

    Cash and Pay Department PDF

    Description

    Explore the structure and responsibilities of the Cash and Pay Department, led by the Deputy Chief Accounts Officer. Learn about the internal checks, cash handling procedures, and payment management processes in place to ensure efficient financial operations.

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