Treasury Account Classifications

• Each item of receipt and payment occurring at a treasury is broadly classified in the treasury accounts.
• Classifications are made concerning the Government (Central, Union Territory, or State) and the relevant department involved.
• Transactions of Railways, Postal, and Defence Departments are treated separately from other Central Civil Transactions, despite being part of the Central Government's transactions.
• Transactions that cannot be directly allocated are entered under the account head “8658—Suspense Accounts—Suspense Accounts (Civil) - Unclassified Suspense”.
• The Accountant General clears debits and credits booked to this suspense head by adjustment under the appropriate head of account.

Central Civil Transactions in State Treasuries

• After departmentalisation of Central Government Accounts, some receipt and payment transactions relating to the Central Government (Civil) occur at State Treasuries.
• These include payment of interest and repayment of principal on Central Government securities, receipts and security deposits for Lok Sabha elections, and payment of civil pensions.
• Treasuries account for these transactions under "PAO Suspense Items adjustable by PAO Ministry/Department" below Major Head '8658-Suspense Account'.

Payments and Debits Allocation

• Principal Accounts Office, Department of Economic Affairs, New Delhi, bears the debits for payments pertaining to Central Government Securities.
• The debt for Central (Civil) Pensions, including pensions to High Court Judges and Freedom Fighters, is raised against the PAO in the Central Pension Accounting Office.

Transactions Relating to Other States

• Transactions relating to other States, whether at a bank or non-bank treasury, are classified under the remittance head ‘8793-Inter State Suspense Account Government of....'

Transactions in Union Territory Treasuries

• Transactions on behalf of a State Government originating in a Union Territory treasury are classified under the head '8658- Suspense Accounts Suspense Accounts (Civil)-Account with Accountant General....'

Transactions for Railways, Postal and Defence Departments

• Railway, Postal, and Defence Transactions are permitted to arise in State treasuries.
• This includes pension payments to Railway and Defence pensioners and remittances into/drawal from non-bank treasuries/sub-treasuries.
• They're classified under Major head 8658 and sub-head 'Account with .' and entered in the State cash account, list of payments, and closing abstracts.
• These rules apply to Union Territory treasuries/sub-treasuries
• No transactions from the Telecommunications Department will arise at Treasuries

Transactions with Reserve and State Banks

• Business transacted directly with the Reserve Bank and State Bank by Railway, Postal, and Defence Departments is scrolled to them and taken against their balances in the Reserve Bank (CASH) Nagpur, bypassing treasury accounts.

Foreign Government Pension Payments

• Payments of pensions on behalf of foreign Governments (excluding Burma) to pensioners in India are classified under the Major Head '8658 Suspense Accounts-101-PAO Suspense'.
• Cash settlement is handled by the Accountant General with the PAO, Ministry of Finance (Department of Economic Affairs), New Delhi.
• Payment of pension to Burma Government Pensioners at State Treasuries is classified under "8679-Accounts with Governments of other Countries-Burma".
• Settled by the Accountant General directly with the Government of Burma, as per the procedure in Article 5.17

Reserve Bank Transactions

• Receipts and payments on account of the Reserve Bank in a State treasury relating to Currency Chest operations are credited or debited to the head '8782-Cash Remittances.
• Transactions of Telegraphic Transfer and drafts on Reserve Bank account shall be classified under the head "8782-Cash Remittances 105-Reserve Bank of India Remittances".

Departments Drawing Money by Cheques

• Transactions with departments drawing money from the treasury by cheque are entered without details, unless otherwise provided.
• An exception is that pay, allowances, and contingencies of State Public Works Department officers are classified under particular heads on those bills.
• Payments of compensation for lands for the State Public Works Department by State Land Acquisition Officers are debited to the Public Works Department, with division/office specified.
• Payments on compensation for lands acquired on behalf Central Government Ministries/Departments, Appendix IV to the Central Government Account (Receipts and Payments) Rules, 1983 is relevant.

Earnest Money Deposits

• Earnest money deposits by intending tenderers of the Forest Department are credited as "Revenue Deposits".

Classification of Remittances

• Between two non-bank treasuries or including a bank treasury belonging to the same Government, use "8782-Cash Remittances" for adjustments.
• Between two non-bank Treasuries (different State Governments): "8793-Inter State Suspense Account".
• Between State Bank/Non-bank treasury and a Central Treasury: "8658-Suspense Accounts. 101-PAO Suspense".
• Remittances between banks do not appear in Treasury accounts.

Special Cases

• Remittances between non-bank treasuries of Union Territories which render accounts to two different Accountants General, shall be accounted for under the head 8999-Cash Balance
• Individual remittances between non-banking treasuries in some States and a specific Reserve Bank office should be classified under '8782-Cash Remittances.
• The Reserve Bank office will adjust the transactions directly against the balances of the State Government concerned.

Sub-Treasury Transfers

• Remittances between sub-treasuries in the same district or between a treasury and sub-treasury subordinate to it are treated as "Transfers within the Treasury".
• If the business is conducted by the bank, the remittance is classified as "Remittance in Transit-Local" below the major head '8999 Cash Balance'.

Small Coin Depot Remittances

• Remittances from a small coin depot to a State non-bank Treasury are accounted for as receipt from/payment to the Central Government, under the suspense head 8658.
• This head is cleared by the Accountant General by sending an outward claim to the Principal Accounts Office of the Department of Economic Affairs.
• Remittances between Small Coin Depots or between a Small Coin Depot and a Mint shall not pass through the treasury accounts.

Adjustments by Transfer

• When a payment is authorised to be made "by transfer," the amount is debited to the appropriate head of payment with a per contra credit to the receipt head concerned.
• Only the net cash payment is entered in accounts.
• Sums deducted from State bills (excluding interest payment bills for State Government Securities) on account of Income Tax and subscriptions to the Postal Life Insurance Fund creditable to Central Government are entered as credit on minor head "Tax deducted at Source Suspense.
• All deductions from bills paid in such treasuries shall be classified initially in the treasury accounts under the appropriate receipts heads concerned.