CIRCULAR 2

Ref.DGBA.358/41.04.001/97-98
29th May,1997
8th Jyaistha 1919(Saka)

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

Dear Sir,

Collection of Central Excise and Customs dues by public sector banks - introduction of system of certification by Focal Point Branch.

As you are aware, Government is laying emphasis on quick efficient and accurate system of collecting Government dues through public sector banks. In terms of para 9 of Revised Memorandum of Instructions for collection and Accounting of Central Excise Customs and other dues etc. Focal point branch is responsible for prompt and accurate accounting of the collections reported to it daily by all receiving branches including its own receipts. It is, therefore, essential to render the main scrolls and the documents duly verified to local Pay and Accounts Offices without delay.

2. It has been observed that inspite of instructions issued from time to time, the collection of dues are not credited to Government Account in time. At times pipe-line transactions are not reported in time resulting in mismatch of information. With a view to keeping a close watch on the receipt of the scrolls from all the receiving branches and to ensure that the 100% collections of the Central Excise, Customs etc. duties are remitted to Government Account without delay, we have examined the present system of reporting by the public sector banks authorised to collect government dues. Keeping in view the requirement of Government it has been decided in consultation with CBEC to introduce a monthly certificate as under to be submitted by the focal point branches to the respective Pay and Accounts Offices. Accordingly the following clause has been incorporated after "J" of para 9 of the Booklet on Accounting ) "The Focal Point Branch should furnish a monthly certificate on the last day of the following month to the concerned PAO that no amount of Central Excise and Customs collection made in Name of the month) is lying either arrears with the collecting branches under its control or in the pipeline somewhere between it and the collecting branch.

You are advised to issue necessary instructions to your Focal Point Branches to incorporate the clause in the booklet ad to furnish the above Certificate to PAO with effect from May,1997. First such certificate should be furnished to PAO by 30t of June,1997.

Please acknowledge receipt.

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

Endt.GA.NB.No.358k/41.04.001/97-98/ of date.

Copy forwarded for information to :-

1. The Pr. CCA CBEC, AGCR Building, 1st Floor, New Delhi-1, with reference to his letter No. Coord/1(17)/C/Vol.II/838 dated 26th March,1997

2.The Chief General Manager, RBI, Ahmedabad/Bhubneshwar/ Bangalore/Calcutta/Chennai/Guwahati/Hyderabad/Jaipur/Kanpur/Mumbai/New Delhi/Nagpur/Patna/Thiruvanthapuram. There is no change in the procedure to be followed by the RBI Offices.

3. The Chief General Manager, Reserve Bank of India, Central Office, Inspection Department, B.K.Complex, Mumbai - 400 051(7 copies).

4. The Asstt.General Manager, RBI, Regional Audit Cell, Calcutta/Chennai/Kanpur/Mumbai/New Delhi.

5. The Senior Instructor, RBI, ZTC, Byculla, Mumbai - 400 008(12 copies).

6. The Principal Reserve Bank Staff College, RBI, 259 Anna Salai, Chennai-18.

7. The Principal Bankers Training College, RBI, Veer Savarkar Marg, Dadar (West) Mumbai-400 028

Sd/-
(R.Nageswara Rao)
Manager