Security Deposits Chapter XVIII

A type of security deposit accepted from railway employees. It can be in the form of cash, government securities, deposit receipts, pay orders, demand drafts, guarantee bonds, deposits in the Post Office Savings Bank, National Savings Certificates, Railway Co-operative Credit Society, 12-year National Defence Certificates, 10-year Defence Deposits, National Defence Bonds, Unit Trust Certificates, or Indian Railway Finance Corporation Limited (IRFC) Bonds.

A security deposit accepted from railway employees consisting of cash. This is one of the simplest forms of security deposit.

A security deposit accepted from railway employees consisting of Government Securities, specifically State Loan Bonds. These securities are valued at 5% below the market price.

A security deposit accepted from railway employees consisting of deposit receipts, pay orders, demand drafts, and guarantee bonds. These can be from the State Bank of India or any nationalized bank.

A security deposit accepted from railway employees consisting of guarantee bonds executed or deposit receipts tendered by any scheduled bank.

A security deposit accepted from railway employees consisting of deposits in the Post Office Savings Bank.

A security deposit accepted from railway employees consisting of deposits in National Savings Certificates.

A form of security where the contractor provides a financial guarantee, typically a percentage of the contract value, to ensure the completion of the work.

Security offered in the form of government bonds or certificates, where the government provides a guarantee for repayment.

A deposit receipt from a bank or a Railway Cooperative Credit Society serving as security, with ownership transferred to the Accounts Officer.

Security deposits held in a Post Office Savings Bank, where the Accounts Officer manages the passbook and receives interest on behalf of the depositor.

The process of converting cash deposits into interest-bearing securities, subject to the depositor's written request and adherence to relevant rules and agreements.

A legal document outlining the terms and conditions of a security deposit, including how it will be refunded or used.

Individuals of high integrity and financial standing who act as personal guarantees for the completion of a project, should the primary security fail.

The value of a certificate or bond at the time of surrender or redemption.

The process of requiring the depositor to make up for any shortfall in market value of government securities, beyond a specified limit.

A sum of money held by the railway as a guarantee for fulfilling contractual obligations by employees or contractors.

The amount of cash security deposited can be confiscated by the railway if the depositor fails to fulfill the terms of the bond.

Cash securities deposited with the railway are not eligible for interest payments.

All cash security deposits received are recorded in the railway's books under the heading "Deposits."

A detailed record of cash security deposits and refunds is maintained in the 'Deposits Miscellaneous' Register.

When a refund is due, the Executive Officer issues a pay order to the employee or contractor.

The Accounts Officer verifies the amount of the refund against the records in the 'Deposits Miscellaneous' Register.

If the depositor wishes to convert cash security into other permissible forms, they can apply to the Accounts Officer.

The Accounts Officer arranges for the purchase of government securities, lodging in Scheduled Banks, or deposit in the Postal Savings Bank Account, as requested.

A register used to track the receipt and return of security deposits in the form of government promissory notes, fixed deposits, guarantee bonds, or other financial instruments. This register helps keep track of the types of securities, their expiry dates, contract details, and the contractor's name.

Regular monitoring of the market value of government securities held as security deposits. This is crucial to minimize potential losses due to market fluctuations and ensure the adequacy of the security provided.

This procedure involves verifying the authenticity, ownership, and proper endorsements of all paper securities received as security. It ensures that the documents are legitimate and the depositor has rightful ownership.

Government promissory notes with maturity periods longer than 12 months are handled according to a specific procedure outlined in the Government Securities Manual. This ensures that the management and accounting of such securities comply with relevant regulations.

A list created on the fly-leaf of the Security Register (A. 1817) to track the market values of all types of government securities. This helps to assess the current value of the securities held and determine if any adjustments are needed.

A document issued by the Indian government that lays down the procedure for handling securities of rupee loans issued by the Central and State Governments.

Promissory notes issued by the government that are accepted as security deposits.

The value of Government Promissory Notes that are accepted as security deposits. It's 95% of the market value on the day of deposit.

A certificate issued by the Local Public Debt Office that verifies the validity of endorsements on a Government Promissory Note made "perpro" or "for" the previous holder.

Fixed Deposit Receipts (FDRs) are accepted as security deposits, made out in favor of the Accounts Officer, and their maturity dates are closely monitored.

When a Fixed Deposit Receipt (FDR) is about to expire, the Executive Officer is notified to determine the contract's duration and whether the deposit needs extending.

Endorsement of a Government Promissory Note for payment to the Financial Adviser & Chief Accounts Officer. It should be endorsed as "Pay to (designation of officer) or Order" and signed by the endorser.

Government Promissory Notes accepted as security deposits must be complete. They should have accrued interest collected, blank cages for endorsements, and, if endorsed "perpro" or "for", a Local Public Debt Office certificate.

If the value of a Government Promissory Note depreciates significantly after the deposit, the depositor is required to make up the difference.

Instructions in this chapter are considered supplementary to the rules outlined in the Government Securities Manual.

Security deposit is a sum of money or financial instrument held by the railway as a guarantee for an employee or contractor's fulfilling their contractual obligations. If the employee or contractor fails to meet the requirements of the contract this security deposit can be forfeited.

Railway employees can use various forms of security deposits, including cash, government securities, deposit receipts, bank guarantees, and even post office savings. The specific acceptable forms depend on the railway's current policies.

Government securities used as security for railway employees are typically valued at 5% below their market value, ensuring a safety margin for the railway in case the securities decline in value.

When cash security is converted into other forms, like government securities or bank deposits, the railway ensures the depositor's request aligns with its policies and rules. This process aims to make the security deposit more beneficial for both parties.

The 'Register of Paper Securities' keeps track of all the paper security deposits received. This register helps the railway manage its security assets, keeping track of expiry dates, types of instruments, and related contract details.

Handling multiple types of government securities, like promissory notes (loans), requires specific procedures. This includes verifying the notes' authenticity, ensuring correct endorsements, and managing them according to their maturity dates.

The market value of government securities held as security needs to be monitored regularly. This ensures the security's value remains adequate and helps the railway adjust if necessary to protect itself from potential losses caused by market fluctuations.

The amount of the deposit shall be liable to forfeiture, under the orders of the competent authority, specified in the bond in the event of any loss to Government due to fraud, negligence or any other action (direct or contributory) on the part of the depositor or for the non-fulfilment or any of the conditions of the bond.

No interest will accrue on the amount of the security deposited in cash.

All security deposits received in cash should be accounted for in the books of the railway under the head "Deposits" and should be held at credit of that head until they are refunded, or appropriated under the orders of the competent authority.

The Government Securities Manual outlines the procedures for handling government securities, including those used as security deposits for railway employees.

Government promissory notes must be complete and endorsed properly. Any depreciation in value after deposit must be made good by the depositor.

The Financial Adviser & Chief Accounts Officer must be endorsed on all government promissory notes as the party to receive payment.

Instructions in this chapter are considered supplementary to the general rules outlined in the Government Securities Manual.

Endorsements on promissory notes by previous holders, marked 'perpro' or 'for', require a certificate from the Local Public Debt Office to validate their authenticity.

When accepting government promissory notes, the notes should be endorsed so that they can be further endorsed by the Reserve Bank. Furthermore, at least two blank cages should be included after the depositor's endorsement.

Fixed Deposit Receipts (FDRs) are accepted as security deposits, made out in favor of the Accounts Officer.

The value of government promissory notes accepted as security is 95% of their market value on the day of the deposit. This helps protect the railway in case of a decline in value.

The Accounts Officer is responsible for handling the renewal of Fixed Deposit Receipts used as security by contractors. They must ensure that the contractor takes timely action to renew the FDR before maturity to avoid loss of interest.

A Guarantee Bond issued by a bank is scrutinized by the Accounts Officer to ensure it meets all the conditions specified in the contract, including form, amount, period, and legal stamping.

The Accounts Officer ensures that Guarantee Bonds are properly kept and notifies the Executive Officer 3 months before their expiry date. The Executive Officer then takes action to renew the bond as needed for the project's duration.

The 'Register of Paper Securities' is a key document used to track all security deposits received in the form of paper instruments like government bonds or deposit receipts. It helps monitor expiry dates, contract details, and the depositor's identity.

This involves regularly checking the market value of government securities used as security deposits to ensure they remain sufficient, considering any potential depreciation. The Accounts Officer manages this to minimize financial risks.