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What should be done first when receiving documents for security deposits?
What should be done first when receiving documents for security deposits?
What is the purpose of maintaining a list on the fly-leaf of the Securities Register?
What is the purpose of maintaining a list on the fly-leaf of the Securities Register?
How often should the Securities Register be presented to the Accounts Officer?
How often should the Securities Register be presented to the Accounts Officer?
How should entries in the Register of Paper Securities be validated?
How should entries in the Register of Paper Securities be validated?
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What procedure should be followed for Government Promissory Notes deposited for various durations?
What procedure should be followed for Government Promissory Notes deposited for various durations?
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Which type of security deposit can be accepted from Railway servants?
Which type of security deposit can be accepted from Railway servants?
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What is the maximum allowed discount on Government Securities accepted as security deposits?
What is the maximum allowed discount on Government Securities accepted as security deposits?
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Which of the following is NOT an acceptable form of security deposit from Railway servants?
Which of the following is NOT an acceptable form of security deposit from Railway servants?
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Which entity's bonds can be used as a form of security deposit?
Which entity's bonds can be used as a form of security deposit?
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What is the role of Guarantee Bonds in security deposits for Railway servants?
What is the role of Guarantee Bonds in security deposits for Railway servants?
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Which form of security deposit involves a long-term commitment from employees?
Which form of security deposit involves a long-term commitment from employees?
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How are the Unit Trust Certificates valued when accepted as security deposits?
How are the Unit Trust Certificates valued when accepted as security deposits?
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What should Government Promissory Notes lodged as security deposits be endorsed for?
What should Government Promissory Notes lodged as security deposits be endorsed for?
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What is required before accepting a Government Promissory Note as a deposit?
What is required before accepting a Government Promissory Note as a deposit?
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What must be present on the Government Promissory Notes for further endorsement?
What must be present on the Government Promissory Notes for further endorsement?
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At what percentage of their market value should Government Promissory Notes be accepted during deposit?
At what percentage of their market value should Government Promissory Notes be accepted during deposit?
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What action is required if there is material depreciation in the value of Government Promissory Notes?
What action is required if there is material depreciation in the value of Government Promissory Notes?
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To whom should Fixed Deposit Receipts be made out?
To whom should Fixed Deposit Receipts be made out?
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Who is responsible for watching the dates of maturity of Fixed Deposit Receipts?
Who is responsible for watching the dates of maturity of Fixed Deposit Receipts?
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What should the Executive Officer do before the expiry of the Fixed Deposit Receipt?
What should the Executive Officer do before the expiry of the Fixed Deposit Receipt?
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What is the requirement if endorsements on the Government Promissory Notes are signed 'per pro' or 'for'?
What is the requirement if endorsements on the Government Promissory Notes are signed 'per pro' or 'for'?
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What is the ordinary percentage deduction from periodic payments for security from a contractor?
What is the ordinary percentage deduction from periodic payments for security from a contractor?
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Which option describes the required security if offered in the form of a deposit receipt?
Which option describes the required security if offered in the form of a deposit receipt?
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What is the procedure for security deposits lodged in the Post Office Savings Bank?
What is the procedure for security deposits lodged in the Post Office Savings Bank?
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When a security is provided in the form of government securities, what must be reserved regarding market value?
When a security is provided in the form of government securities, what must be reserved regarding market value?
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Under what conditions can cash deposits be converted to interest-bearing securities?
Under what conditions can cash deposits be converted to interest-bearing securities?
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What document must cover the security deposit, regardless of its form?
What document must cover the security deposit, regardless of its form?
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Who must authorize the depositor to receive interest from the bank or cooperative credit society?
Who must authorize the depositor to receive interest from the bank or cooperative credit society?
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What is the responsibility of the depositor regarding deposit made with the Railway Cooperative Credit Society?
What is the responsibility of the depositor regarding deposit made with the Railway Cooperative Credit Society?
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Which of the following securities from a contractor is NOT acceptable?
Which of the following securities from a contractor is NOT acceptable?
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Under what condition can the amount of the deposit be forfeited?
Under what condition can the amount of the deposit be forfeited?
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What happens to the interest on the security deposited in cash?
What happens to the interest on the security deposited in cash?
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What should be included in the Deposit Miscellaneous Register?
What should be included in the Deposit Miscellaneous Register?
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What action must the Executive Officer take when a deposit is refundable?
What action must the Executive Officer take when a deposit is refundable?
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How is the correctness of the refund amount checked?
How is the correctness of the refund amount checked?
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What must the depositor do to convert cash security into another form of security?
What must the depositor do to convert cash security into another form of security?
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What action does the Accounts Officer take upon receiving a request for conversion of cash security?
What action does the Accounts Officer take upon receiving a request for conversion of cash security?
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If a refund is given, what should happen to the amount noted?
If a refund is given, what should happen to the amount noted?
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What happens if the conditions for which the security was deposited are not fulfilled?
What happens if the conditions for which the security was deposited are not fulfilled?
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Which of the following statements is true about security deposits received in cash?
Which of the following statements is true about security deposits received in cash?
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What is the maximum percentage deduction that can be made from periodic payments for contractor security?
What is the maximum percentage deduction that can be made from periodic payments for contractor security?
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Under what condition does a depositor lose the right to the deposited interest from a bank when using a deposit receipt?
Under what condition does a depositor lose the right to the deposited interest from a bank when using a deposit receipt?
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What form must security deposits lodged in the Post Office Savings Bank take?
What form must security deposits lodged in the Post Office Savings Bank take?
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What is required for a cash deposit to be converted into interest-bearing securities?
What is required for a cash deposit to be converted into interest-bearing securities?
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What should be done regarding the Pass Book of a security deposit in the Post Office Savings Bank after the financial year ends?
What should be done regarding the Pass Book of a security deposit in the Post Office Savings Bank after the financial year ends?
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What measure is taken when Government securities depreciate in market value beyond 5 percent?
What measure is taken when Government securities depreciate in market value beyond 5 percent?
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What must accompany any form of security deposit regarding conditions of refund or appropriation?
What must accompany any form of security deposit regarding conditions of refund or appropriation?
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When must a security deposit in the form of cash be converted into another form of security?
When must a security deposit in the form of cash be converted into another form of security?
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What is the duty of the Accounts Officer regarding the security offered in the form of a Bank deposit receipt?
What is the duty of the Accounts Officer regarding the security offered in the form of a Bank deposit receipt?
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Which of the following is a valid method for Railway servants to provide security deposits?
Which of the following is a valid method for Railway servants to provide security deposits?
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What is the maximum discount allowed on Government Securities when accepted as security deposits?
What is the maximum discount allowed on Government Securities when accepted as security deposits?
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Which of the following forms of security deposit would be considered long-term?
Which of the following forms of security deposit would be considered long-term?
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What type of bonds can be executed as a Guarantee Bond for security deposits?
What type of bonds can be executed as a Guarantee Bond for security deposits?
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Which of the following options reflects the requirement for cash deposits when converted into another form of security?
Which of the following options reflects the requirement for cash deposits when converted into another form of security?
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Which of these is NOT a recognized entity to provide Deposit Receipts for security deposits?
Which of these is NOT a recognized entity to provide Deposit Receipts for security deposits?
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What must be included when considering the market value of Government Promissory Notes for security deposits?
What must be included when considering the market value of Government Promissory Notes for security deposits?
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What must the Executive Officer certify when a security deposit is refundable?
What must the Executive Officer certify when a security deposit is refundable?
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Which account should cash security deposits be recorded under?
Which account should cash security deposits be recorded under?
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What is required from the Accounts Officer upon receiving a conversion application for cash security?
What is required from the Accounts Officer upon receiving a conversion application for cash security?
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What happens to the balance amount of a refundable deposit once the pay order is passed?
What happens to the balance amount of a refundable deposit once the pay order is passed?
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What must a deposit be recorded in to ensure proper management and tracking?
What must a deposit be recorded in to ensure proper management and tracking?
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What is explicitly stated regarding the interest on cash security deposits?
What is explicitly stated regarding the interest on cash security deposits?
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Under what condition can the amount of the security deposit be forfeited?
Under what condition can the amount of the security deposit be forfeited?
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How should the refund process be initiated for a cash security deposit?
How should the refund process be initiated for a cash security deposit?
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What must happen before a conversion of cash security into a different form can be processed?
What must happen before a conversion of cash security into a different form can be processed?
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What action should the Accounts Officer take to prevent claims for loss of interest related to Fixed Deposit Receipts?
What action should the Accounts Officer take to prevent claims for loss of interest related to Fixed Deposit Receipts?
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Which responsibility does the Executive Officer hold regarding Guarantee Bonds?
Which responsibility does the Executive Officer hold regarding Guarantee Bonds?
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What condition must a Guarantee Bond meet in order to be considered valid?
What condition must a Guarantee Bond meet in order to be considered valid?
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What constitutes the responsibility of the Accounts Officer regarding the expiry of Guarantee Bonds?
What constitutes the responsibility of the Accounts Officer regarding the expiry of Guarantee Bonds?
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What should be done if the conditions of the Guarantee Bond are not fulfilled before cashing?
What should be done if the conditions of the Guarantee Bond are not fulfilled before cashing?
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What is the required action regarding the interest accrued on Government Promissory Notes before they can be accepted as deposits?
What is the required action regarding the interest accrued on Government Promissory Notes before they can be accepted as deposits?
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What is the minimum requirement for blank spaces on Government Promissory Notes to ensure proper endorsement?
What is the minimum requirement for blank spaces on Government Promissory Notes to ensure proper endorsement?
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What percentage of their market value should Government Promissory Notes be accepted at during deposit?
What percentage of their market value should Government Promissory Notes be accepted at during deposit?
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What is required if endorsements on the Government Promissory Notes are signed 'per pro' or 'for' the previous holders?
What is required if endorsements on the Government Promissory Notes are signed 'per pro' or 'for' the previous holders?
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In case of depreciation in the value of Government Promissory Notes, what action should be taken by the depositor?
In case of depreciation in the value of Government Promissory Notes, what action should be taken by the depositor?
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To whom should Fixed Deposit Receipts be made out according to the specified procedure?
To whom should Fixed Deposit Receipts be made out according to the specified procedure?
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What should the Executive Officer do regarding the Fixed Deposit Receipt before its expiry?
What should the Executive Officer do regarding the Fixed Deposit Receipt before its expiry?
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What is the general applicability of the Government Securities Manual regarding Indian Railways?
What is the general applicability of the Government Securities Manual regarding Indian Railways?
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What happens if the account officer misses the maturity date of the Fixed Deposit Receipts?
What happens if the account officer misses the maturity date of the Fixed Deposit Receipts?
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What is one requirement for Government Promissory Notes to be considered complete as deposits?
What is one requirement for Government Promissory Notes to be considered complete as deposits?
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Study Notes
Security Deposits
- Chapter XVIII details various security deposit types acceptable from employees and contractors.
- Railway employees' security can be: deposits of cash, government securities (e.g., State Loan Bonds, at 5% below market value), deposit receipts, pay orders, demand drafts, guarantee bonds (issued by State Bank of India or nationalized banks), bonds/deposit receipts from scheduled banks, deposits in Post Office Savings Bank, National Savings certificates, Railway Co-operative Credit Society deposit receipts or guarantee bonds, twelve-year National Defence Certificates, ten-year Defence Deposits, National Defence bonds, and Unit Trust Certificates (at 5% below market value or face value, whichever is less). Indian Railway Finance Corporation Limited (IRFC) Bonds (tax-free or taxable) are also options.
- Contractor security can be: security deposit under clause (i)-(vi) & (viii)-(xii) of sub-rule paragraph; a percentage deduction (ordinarily 10% from periodic payments); or personal security from two persons of known financial standing.
- If government securities are offered, the depositor may be required to cover any deficiency in market value exceeding 5%.
- If security is a bank or railway cooperative credit deposit receipt, the depositor must obtain the receipt.
- Cash deposits may be changed into interest-bearing securities if the depositor requests this in writing.
Banker's Guarantee Bond
- Banker Guarantee Bonds are issued by banks as security.
- The bond must meet specific conditions: conform to sub-paragraph (iii) & (iv) of paragraph 1801, be in the correct form (Appendix X), and accurately reflect the amount and period of the deposit; and comply with legal requirements (e.g., stamping), and conditions in the bond.
- Receipt and acceptance of the bond must be promptly reported to the appropriate departmental officer to support contract execution.
- The bond's expiry date should be tracked and renewed in a timely manner.
Fixed Deposit Receipts
- Fixed Deposit Receipts (when accepted) are made out in favor of the Accounts Officer. Receipt maturity dates should be monitored.
- Renewal of fixed deposit receipts must be arranged before expiry to avoid potential interest payment issues.
- Contractors should be aware of the responsibility to manage renewals.
- Receipts should be made out in the name of the Accounts Officer and kept under their supervision.
- The Accounts Officer needs to arrange for renewal before maturity dates.
- Contractors should be notified in advance for timely renewal action.
Register of Paper Securities
- A register (Form A. 1817) tracks receipt and return of government securities.
- Documents (like government promissory notes, fixed deposit receipts, guarantee bonds, bank/post-office certificates) must be genuine, and depositor's title must be clear, with proper endorsements.
- A market value list of government securities should be maintained in the register (A. 1817).
- Register entries must be attested by an Accounts Officer.
- Security deposits do not need to be adjusted in the railway accounts if given or received.
- Records of receipts and returns of Paper Securities need to be recorded.
Security Deposit Return or Appropriation
- Before releasing security deposits, the officer must provide a certificate (as per paragraph 1809).
- Securities must be returned to the appropriate party once the relevant contract/condition is finished; this needs to be entered into the Register of Securities, with the date of return.
- The officer must verify the end purpose of the deposit was complete before release; and address any claims the railway may have against the depositor before release.
- If there is no advice to return the securities within a month of the relevant contract completion, the Officer must address the matter.
Conversion of Cash Security
- Cash security can be converted into other security types upon written request to the Accounts Officer.
- The Accounts Officer handles the process of exchanging the cash for the desired paper securities.
- The conversion process may involve purchasing government papers or other authorized securities.
Other Important Points
- Government promissory notes must be endorsed for payment to the Financial Advisor & Chief Accounts Officer in specific formats, often including "Pay to... (designation of officer) or Order".
- Interest earned on securities should be remitted to officers after deducting income tax.
- The officer must ensure that the purpose of the security deposit is fulfilled and that there are no outstanding railway claims before returning securities.
- All interest accrued up-to-date should be collected before accepting a Government Promissory Note; and there should be blank cages after the depositor's endorsement on tendered scripts for further Reserve Bank use.
- Endorsements on promissory notes must be validated by the Local Public Debt Office if they were signed "perpro" or "for" the previous holder.
- Promissory notes are to be accepted at 95% of market value. Any price drop requiring the depositor to cover the difference must be arranged.
- Fixed deposit receipts' renewal needs to be arranged and properly accounted for. This includes keeping track of their maturity dates.
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Description
This quiz covers the various types of security deposits that are acceptable from employees and contractors as detailed in Chapter XVIII. Focused on the specifics such as cash deposits, government securities, and various bonds, it also examines the guidelines laid out for railway employees and contractors. Test your understanding of the policies and requirements for security deposits in the railway context.
