August 02, 2021<\/p>\n
The Chairman and Managing Directors\/ Managing Director\/ CEO
\nAll Agency Banks<\/p>\n
Dear Sir \/ Madam<\/p>\n
Please refer to our circular RBI\/2007\/291 DGBA.GAD.No.H-14061\/31.04.008\/2006-07 dated March 21, 2007 vide which partial modifications were done in the para 5.11 of the “Memorandum of Instructions on Accounting and Reconciliation of State Government Transactions”.<\/p>\n
2. (a) With a view to ensure prompt\/immediate refund\/credit to the government account in the cases of excess put through\/ double claim in the payment scrolls by the agency banks, it has been decided in consultation with the O\/o Comptroller and Auditor General of India (C&AG) that penal interest for excess put through\/ double claim amount may be levied by State Government as in the case of delayed credit of receipts.<\/p>\n
(b).The penal interest period for such double claim\/excess put through may start from the date on which the agency bank has received the excess put through \/ double claim amount and upto previous date to actual date of return of such excess put through \/ double claim amount by agency banks to concerned state government account (excluding the date of return of such excess payment\/double claim amount by the agency banks to government account(s)).<\/p>\n
(c) The rate of penal interest is Bank rate plus 2%. (The Bank Rate will be the rate notified by the RBI from time to time as applicable at the time of transaction).<\/p>\n
3. These instructions will come into effect from date of issuance of this circular. The procedure for claiming\/ recovering of delayed period interest will remain unchanged and it will be charged irrespective of the amount involved in such excess put through \/double claim by agency banks.<\/p>\n
4. You may bring the revised procedure to the notice of your branches accredited to conduct State Government transactions.<\/p>\n
5. All the State Governments are being advised about the revised procedure.<\/p>\n
Yours faithfully<\/p>\n
R Kamalakannan
\nChief General Manger<\/p>\n
For full detail click the link below :<\/p>\n