Railway Accounts Department Examinations

Wednesday, June 16, 2021

Journey of Rupee from Booking Office to RBI

 

 

Journey of Rupee from Booking office to RBI

 

By Nageswara Rao M, 9492432160

 

 

Total Stages  - Three 

1.    From Booking Office to Cash Office   

 

2.    Cash Office to PSBs ( Public Sector Banks)

 

3.    PSBs to RBI

Financial Transactions   -  3 Stages  

1.    Accountal of Earnings  (through CRN -Cash Remittance Notes / TRN -Treasury Remittance Notes) 

Date

Particulars

Debit

Credit


Remittance Into Bank (RIB) A/c   Dr

Re 1

       To Coaching Earnings (Abstract X)

Re 1

 

(Being accountal of Coaching Earnings

& Kept at Suspense Head to watch the

Accountal at RBI)

 

 

 

2.     Accountal of Cash at PSB – Public Sector Bank 

Date

Particulars

Debit

Credit

PSB Suspense A/c  Dr

Re 1


      To  Remittance Into Bank (RIB) A/c

Re 1

 

(Being accountal of Coaching Earnings

& Kept at Suspense Head to watch the

Accountal at RBI)

 

 

 

3.     On Receipt of Clearance Memo from RBI

Date

Particulars

Debit

Credit

Deposit  with RBI  A/c Dr

Re 1

            To PSB Suspense A/c 

Re 1

 

(Being accountal of Coaching Earnings

& Kept at Suspense Head to watch the

Accountal at RBI)

 

 

 

 

 

 

Left over Entries after clearance of RIB A/c & PSB Suspense A/c  i.e., Net of above 3 Transactions: 

 Date

Particulars

Debit

Credit

Deposit  with RBI    Dr

Re 1

            To Coaching Eanings (Abstract X) 

Re 1

 

(Being accountal of Coaching Earnings

& accounted at RBI)

 

 

 

Commercial Accounts – In Business

Date

Particulars

Debit

Credit

Cash A/c  Dr

Re 1

            To Sales (Goods)

Re 1

 

(Being Sales of Goods)

 

 

 

·         Cash is Real Account.  Real Account Rule is “Debit what Comes in and Credit What Goes out” .  Cash is coming into Business. Hence Cash Account is Debited.

 

·         Goods are Real Account.  Real Account Rule is “Debit what comes in and Credit what Goes out”  -  Goods going out from business,  Hence Goods Account is credited. 

Closing Entries (Chapter Two of Accounts Code): 

·         At the end of Financial Year, the following transactions in the Indian Railways have been closed to the respective heads.

SN

Transaction

Closed to

1

Revenue transactions (except suspense heads i.e., MAR  & DP)

Net Revenue

2

Capital transactions (except suspense heads i.e., WMS & Stores Suspense)

Capital outlay

3

Debt (Example: Provident Fund)

 

 

 

Balance

4

Remittances (Examples: Remittances into Bank and Cheques& Bills)

5

Balance in Transfer Railways (if any) in the Books of Railway Board

6

Revenue suspense head MAR, Capital suspense heads WMS, Stores & MAC and Link Heads a) Demands Payable b) Traffic c) Demands Recoverable d) Labour

7

Balance in Transfer Railways in the books of Zonal Railways

Miscellaneous Government Account

8

All heads (other than Debt & Remittances)

Example: Deposit with Reserve Bank of India

 

Remittance Into Bank – RIB

 

·         It is a Suspense Head  

 

·         Major Head - 8677

 

·         Operated to watch on the accountal of Treasury Remittance Notes. 

 

·         It is operated for Cash Received into the Railways (Like Cheques & Bills operated for Cash outgoing from the Railways)

 

·         PSB branches forward (through their FPB - Focal Point branch) DMS – Date-wise Monthly Scrolls to PFA office.  On verification of the same, RIB Account is cleared by Debited to PSB Suspense Head. 

 

·         In first stage, this Account is Debited and in Second stage, the same is cleared by Credited.  In practical, instead of Credit the Head, Minus Debit to this Head.

 

·         That is First Debited and then Minus Debited.  Hence the RIB is closed for that particular transaction.

 

·         It is always showing Debit Balance.  

 

Public Sector Bank Suspense

 

·         Introduced  - 1993 October

 

·         It is a Sub Head under Major Head 8658 – Suspense Accounts  

 

·         Object:  To watch the adjustments of Railway Transactions in the Public Sector Banks  (Both Debit and Credit)

 

·         Operated for clearance of Remittance Into Bank and Cheques & Bills

 

·         Not operated for Pension Payments.

 

 

 

 

Deposit with Reserve Bank:

 

·         Major Head 8675

 

·         It is Final Head (not suspense Head) for accountal of Cash Receipts & Cash payments and Adjustments on Behalf of Government of India.

 

·         It is maintained at CAS – Central Accounts Section, RBI, Nagpur.

 

·         It is operated for all types of Cash payments, Cash Receipts, Adjustments.

 

Railway Fund

 

·         Maintained in the books of CAS – Central Accounts Section, RBI/Nagpur

 

·         Though the Railway transactions form the part of Consolidated Fund, Contingency Fund & Public Account, they are accounted in the prof forma Railway Fund.

 

Door Step Banking

 

·         First Zonal Railway – introducing the Door Step Banking – SWR in 2016

  

·         So far 7 Zonal Railways have initiated Door Step Banking. 

 

·         SCR has entered MOU (Memorandum Of Understanding) with SBI in 2020  January

 

·         Direct pickup of Earnings/Revenue from 585 Railway Stations over SCR by SBI.  

 

·         Approximate Railway Stations in IR - 8000

 

·         Saves the tedious and complex activity of Cash Movement through Cash safes in Trains.

 

·         Avoids delay in accountal of Earnings into Bank.

 

·         All Railway Stations will have uniform Cash Remittance Mechanism.

 

·         Real time information about cash being deposited by different stations.

 

·         Avoidance of unwanted accumulation of Cash at Railway Stations.

 

·         Elimination of Cash In Transit  

 

·          Detailed MIS Reports – Date wise transactions furnished by Bank to Railways on day to day basis under focal point concept scheme

 

·         So that, monitoring of timely deposit of Earnings / revenue by the Bank into Railways Account,

Rail Shakti Account – SBI

 

·          Railway Board circular No.RBA 24/2012 dated 11.07.2012

 

·         Single Deposit Pooling Account  - Operated by SBI at Focal Point Branch (FPB)

 

·         To facilitate remittance of Railway Earnings by Stations to nearby SBI branches without opening a Railway Deposit Account. 

 

·         The said SBI branches will credit the amount instantly to FPB on a daily basis.

 

·         FPB will provide a Daily scroll incorporating all such details to PFA Office.  

 

Key Takeaways

1.    Accounts operated in this Journey are:

a)    Earnings

b)    RIB

c)    PSB Suspense

d)    Deposit with RBI

 

2.    CRN – Cash Remittance Note

 

3.    TRN – Treasury Remittance Note

 

4.    SBI Pooling Account – DSB – Rail Shakti Account

 

5.    DSB – Door Step Banking

 

6.    DMS – Date-wise Monthly Scroll

 

7.    FPB – Focal Point Bank

 

8.    RIB Head always shows Debit Balance

 

9.    Clearance Memo issued by RBI – Authority for operating Deposit with RBI Account in PFA Office.

 

10. PSB Suspense introduced – 1993 October

 

11. Revenue transactions (Earnings / Expenses) - closed to Revenue outlay - at the end of Financial Year.

 

12. Deposit with RBI – closed to Miscellaneous Government Account – at the end of Financial Year.  

 

13. RIB Major Head – 8677 

 

14. PSB Suspense – Sub Head under Major Head 8658- Suspense Accounts 

 

15. Railway Fund – operated in CAS – Central Accounts Section, RBI, Nagpur

 

16. First Zonal Railway – Implementing DSB – SWR  

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