Rule 97 of The General Financial Rules 2017 Personal Deposit Accounts

Rule 97 of The General Financial Rules 2017 Personal Deposit Accounts

Visual Summary

Executive Summary

Rule 97 of the General Financial Rules, 2017, details the authorization and specific circumstances for opening Personal Deposit (PD) Accounts within the government. These accounts require a special order from the concerned Ministry or Department, in consultation with the Controller General of Accounts. They are integral to the Public Account and are subject to rigorous audit. The rule specifies various scenarios where such accounts are permissible, including administering monies for wards and attached estates, managing Civil and Criminal Courts’ deposits, handling receipts from regulatory activities, fulfilling liabilities arising from specific laws, and managing public funds in Defence Departments. The overarching goal is to ensure proper maintenance and audit of these specialized funds.

In-Depth Analysis of the Rule

Personal Deposit Accounts serve as a vital mechanism for managing specific funds within the government’s financial framework, distinct from the Consolidated Fund. This rule ensures that while these funds are managed with flexibility for their intended purposes, they remain under strict governmental oversight and accountability.

Breakdown of the Rule

• Authorization Process: A Personal Deposit Account can only be opened through a special order issued by the relevant Ministry or Department. This order must be made in consultation with the Controller General of Accounts, ensuring central financial oversight.
• Conditions for Opening: The rule explicitly lists five categories where PD accounts are generally authorized:
  • For Designated Officers managing monies for wards and attached estates under government administration, with proper accounting and audit arrangements.
  • For Civil and Criminal Courts’ deposits, in favor of the Chief Judicial Authority.
  • For receipts from government regulatory activities that are credited to a specific fund or account for expenditure under an Act, without involving the Consolidated Fund.
  • When a law or rule mandates the creation of a PD account, leading to government liabilities from special enactments.
  • For officers in Defence Departments administering public funds.
• Financial Integration and Audit: All authorized personal deposit accounts are considered part of the Government Account, specifically located within the Public Account. This ensures that despite their specialized nature, they are subject to proper maintenance of initial accounts and audit, as per existing financial rules and manuals.

Practical Example

Consider a scenario where a Civil Court receives substantial deposits from litigants as part of ongoing legal proceedings. To manage these funds transparently and securely, the Chief Judicial Authority, with the necessary special order and consultation with the Controller General of Accounts, establishes a Personal Deposit Account. This account allows the court to hold and disburse these specific funds as per judicial directives, ensuring they are segregated from the government’s general revenue while still being subject to government accounting rules and audit, thereby maintaining financial propriety and public trust.

Related Provisions

Understanding Rule 97 is enhanced by examining its connections to other provisions within the General Financial Rules, 2017:

• Rule 96 of The General Financial Rules 2017 Personal Deposit Account: This rule provides the general definition and context for Personal Deposit Accounts, explaining their purpose as a device for Designated Officers to credit receipts and effect withdrawals.
• Rule 77 of The General Financial Rules 2017 Main Divisions and Structure of Accounts: This rule outlines the three main parts of government accounts (Consolidated Fund, Contingency Fund, and Public Account), clarifying where Personal Deposit Accounts are located.
• Rule 22 of The General Financial Rules 2017 Expenditure from Public Funds: This rule sets the general principle that no authority may incur expenditure from public funds (including the Public Account) without sanction from a competent authority, reinforcing the accountability aspect of PD accounts.

Learning Aids

Mnemonics

• A.C.T.S. D. for PD Accounts:
  Authorization (Special Order, CGA)
  Courts (Civil/Criminal Deposits)
  Trusts (Wards/Estates)
  Special Laws (Liabilities by Law)
  Defence (Public Funds)

Process Flowchart

Multiple Choice Questions

Frequently Asked Questions

Key Takeaways

• Personal Deposit Accounts require specific authorization via a special order from the concerned Ministry/Department, in consultation with the Controller General of Accounts.
• These accounts are designated for specialized purposes, such as managing funds for wards, court deposits, regulatory activities, legal liabilities, and defence public funds.
• All Personal Deposit Accounts are part of the Government’s Public Account and are subject to strict accounting and audit requirements.
• The rule ensures that while these funds serve specific needs, they remain under central financial oversight to maintain transparency and prevent misuse.

Conclusion

Rule 97 of the General Financial Rules, 2017, establishes a clear framework for the creation and management of Personal Deposit Accounts. By mandating consultation with the Controller General of Accounts and specifying the limited circumstances for their use, the rule ensures that these specialized financial instruments are employed judiciously and remain fully integrated into the government’s accountability mechanisms. This balance between operational flexibility and stringent oversight is crucial for maintaining financial integrity in public administration.