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
******