Rule 96 of The General Financial Rules 2017 Personal Deposit Account
Original Rule Text
Visual Summary
Enables designated officers to manage funds directly.
Ensures no negative balance and bank oversight.
Limited to government officers in official roles.
Executive Summary
Rule 96 of the General Financial Rules, 2017, introduces the concept of a Personal Deposit Account, a specialized financial mechanism designed to empower designated government officers to manage receipts and withdrawals directly. This account operates under the strict oversight of the authorized bank, with a critical safeguard to prevent any negative balances. Its use is exclusively restricted to government officers acting in their official capacity, ensuring accountability and proper financial conduct within the public sector.
In-Depth Analysis of the Rule
Rule 96 outlines the framework for Personal Deposit Accounts, a crucial tool for decentralized financial management within government operations. This rule aims to streamline certain financial transactions while maintaining robust controls.
Breakdown of the Rule:
- Purpose of Personal Deposit Account: It serves as a mechanism for designated officers to directly credit receipts and effect withdrawals. This implies a degree of operational autonomy for specific financial activities.
- Bank Oversight: The account is subject to an “overall check” by the bank where it is opened. This ensures external validation and adherence to banking norms.
- No Minus Balance: A fundamental safeguard is the requirement for the designated officer to ensure, with the bank’s help (via a personal ledger account), that no withdrawal leads to a negative balance. This prevents unauthorized overdrafts and maintains financial discipline.
- Exclusive to Government Officers: Only government officers, acting strictly in their official or any other capacity as designated, are authorized to be the Designated Officer for such accounts. This limits access and ensures that these accounts are used solely for public purposes.
Practical Example:
Imagine a District Collector who needs to manage funds for immediate relief operations during a natural disaster. Instead of routing every small transaction through the central treasury, a Personal Deposit Account can be authorized. The Collector, as the Designated Officer, can directly receive and disburse funds for urgent needs like purchasing supplies or making immediate payments to local service providers. The bank maintains a ledger to ensure funds are available, and the Collector is personally responsible for ensuring no overdrafts occur, all while operating strictly within their official capacity for public welfare.
Related Provisions
Understanding Rule 96 is enhanced by examining related provisions that govern government accounts and financial management:
- Rule 97 of The General Financial Rules, 2017 Authority to Open Personal Deposit Account: This rule details the authority required to open a Personal Deposit Account and its integration into the Government Account.
- Rule 77 of The General Financial Rules, 2017 Main Divisions and Structure of Accounts: Provides context on how Personal Deposit Accounts fit within the broader structure of Government Accounts (Consolidated Fund, Contingency Fund, Public Account).
- Rule 74 of The General Financial Rules, 2017 Cash Based Accounting: Explains the cash-based accounting principle followed by government accounts, which is relevant to how transactions in Personal Deposit Accounts are recorded.
Learning Aids
Mnemonics:
- P.D.A. – Personal Designated Account: Prevent Deficits, Authorized only.
Process Flowchart:
Multiple Choice Questions (MCQs)
1. What is the primary purpose of a Personal Deposit Account under Rule 96 of the General Financial Rules, 2017?
- A) To allow private citizens to deposit funds with the government.
- B) To facilitate designated officers in crediting receipts and effecting withdrawals directly.
- C) To manage the Consolidated Fund of India.
- D) To provide loans to government employees.
Show Answer
Correct Answer: B) To facilitate designated officers in crediting receipts and effecting withdrawals directly.
2. According to Rule 96 of the General Financial Rules, 2017, who is authorized to be a Designated Officer for a Personal Deposit Account?
- A) Any citizen with a valid bank account.
- B) Only retired government officials.
- C) Only Government officers acting in their official or any other capacity.
- D) Any individual approved by the bank.
Show Answer
Correct Answer: C) Only Government officers acting in their official or any other capacity.
3. What critical financial safeguard is mandated for Personal Deposit Accounts under Rule 96 of the General Financial Rules, 2017?
- A) All withdrawals must be approved by the Ministry of Finance.
- B) The account must always maintain a minimum balance of Rupees one lakh.
- C) The Designated Officer must ensure no withdrawal results in a minus balance.
- D) Funds can only be withdrawn once a month.
Show Answer
Correct Answer: C) The Designated Officer must ensure no withdrawal results in a minus balance.
4. Who exercises an “overall check” on a Personal Deposit Account as per Rule 96 of the General Financial Rules, 2017?
- A) The Comptroller and Auditor General of India.
- B) The Ministry of Finance.
- C) The bank in which the account is authorized to be opened.
- D) The Head of the Department.
Show Answer
Correct Answer: C) The bank in which the account is authorized to be opened.
5. A Personal Deposit Account, as described in Rule 96 of the General Financial Rules, 2017, is primarily intended for:
- A) Commercial transactions of public sector undertakings.
- B) Managing personal funds of government employees.
- C) Streamlining specific financial operations for designated government officers.
- D) Collecting tax revenues for the Central Government.
Show Answer
Correct Answer: C) Streamlining specific financial operations for designated government officers.
Frequently Asked Questions (FAQs)
What is the primary function of a Personal Deposit Account under the General Financial Rules, 2017?
Its primary function is to enable designated government officers to directly manage the crediting of receipts and effecting of withdrawals for specific purposes, subject to bank oversight.
Can any government employee operate a Personal Deposit Account as per Rule 96 of the General Financial Rules, 2017?
No, only government officers specifically designated for this purpose and acting strictly in their official capacity are authorized to operate such accounts.
What is the significance of the “no minus balance” requirement for Personal Deposit Accounts?
This is a crucial financial safeguard ensuring that the account does not go into overdraft, promoting fiscal discipline and preventing unauthorized liabilities.
Key Takeaways
- Personal Deposit Accounts (PDAs) facilitate direct financial transactions for designated government officers.
- Strict bank oversight and a “no minus balance” rule are fundamental safeguards for PDAs.
- Only government officers acting in their official capacity can be designated to operate these accounts.
- PDAs streamline specific financial operations while ensuring accountability and financial propriety.
Conclusion
Rule 96 of The General Financial Rules, 2017, establishes a vital mechanism for efficient and controlled financial operations within government departments. By allowing designated officers direct access to manage specific funds under stringent conditions, it balances operational flexibility with robust accountability, ensuring public moneys are handled with the highest standards of financial propriety.