CIRCULAR 1

Ref.C.O.DGBA.GA.NB.No.14/42.01.011/95-96
10th January,1996
20th Agrahayana 1917(S)

The Chief General Manager
State Bank of India & Associates
AND
The General Manager
All Nationalised Banks
(as per list attached)

Dear Sir,

Maintenance of Government Accounts - Interest on delayed transfer of revenue collections to Government Account and on excess/double reimbursements obtained from Government.

Please refer to our circular GA.NB.No.2517/GA.64(10)/G-91/92 dated 7th April,1992 in terms of which the banks were allowed a uniform transit period not exceeding 3 to 9 days inclusive of Sundays/Holidays instead of 3 to 7 working days for transfer of Government receipts to Government Account.

2. In view of difficulties expressed persistently by the public sector banks in adhering to the stipulated time schedule of 3 days for transferring the Government receipts received by their local branches to Government Account, it has been decided in consultation with the Controller General of Accounts, Government of India, Ministry of Finance, to enhance the period of 3 days allowed to local branches to 5 days including Sundays/holidays as maximum permissible transit period with immediate effect. However, the maximum transit period of 9 days including Sundays/holidays allowed to outstation branches will continue.

3. Accordingly the last sentence of para 1 of the Memorandum of Procedure forwarded with our circular GA.NB.No. 2375/GA.64 (10)G-90/91 dated 27th March,1991 will read as :
"In practice, however, RBI allows the following number of days from the date of receipt of dues at the receiving branches within which the collections should be credited to Government Account:-

a)	Local Branches	-	5 days including Sundays /Holidays
b)	Outstation branches		9 days including Sundays /Holidays

Also the words '3 to 7 working days' appearing in line 5 of para 2(b) will be substituted by the words '5 and 9 days including Sundays/Holidays'.

4. You may please issue necessary instructions to your concerned branches in this regard.

5. A copy of the instructions issued may please be forwarded to us for record. In the meantime please acknowledge receipt.

Yours faithfully,
Sd/-
(K.A.Parasuraman)
Dy. General Manager