GENERAL OUTLINES OF THE SYSTEM OF ACCOUNTS
Transactions of other Governments in State Treasuries
Article 13
Cash balances held in a State Treasury form part of the Consolidated
Fund, the Contingency Fund (if one has been established) and the Public Account of the
State to which the Treasury belongs. The Treasury Rules of each State Government
issued under Article 283 of the Constitution, provide that moneys may be received and
payments may be made on behalf of the Central Government and other State
Governments by a State Treasury situated at a place where the treasury business is not
conducted by the Bank, such receipts and payments being taken in the first instance the
cash balance of the State concerned.
On receipt of intimation of such transactions through
the monthly Treasury Account or otherwise the Accountant-General makes the requisite
adjustments through the Central Accounts Section of the Reserve Bank against the
balances of the Central Government or other State Governments held by the Bank
Moneys paid or received in the office of the Accountant-General on behalf of another
State and book entries made in the offices of the Accountant-General affecting the
accounts of another State or the Central Government will likewise be adjusted by the
Accountant-General through the Central Accounts Section of the Reserve Bank against
the balances of the Central or State Govt., as the case may be.
State Transactions in Central Treasuries
Article 14
Cash balances held in the Treasuries of the Central Government form
part of the Consolidated Fund, Contingency Fund and the Public Account of India.
Transactions on behalf of State Governments arising in these treasuries are taken against
Central balances in the first instance and are subsequently adjusted by the Accountant General against the balances of the State concerned through the Central Accounts Section of the Reserve Bank.
Course Purchase Query 