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CHAPTER IX

PROVIDENT FUND ACCOUNTS


Introductory. 901. Head of Account, 902. Accounting Procedure, 903. Credits and
Debits to the Fund, 904. Subscriptions and Refunds of Withdrawals, 905. Posting of Ledger
Accounts, 906. Provident Fund Journals, 908. Ledger Accounts, 909. Index Registers, 910.
Opening of New Accounts, 911, Check Sheets. 912.

Posting and Reconciliation.—Register of Debits and Credits, 913. Register of


Unposted Items, 914. Register of Unposted Ledger Account, 915. Reconciliation with
General Books, 916. Government Contribution, 917. Interest, 918. Annual Closing and
Reconciliation with General Books, 921. Account Furnished to each Member, 923. Transfer
of Provident Fund Accounts, 924. Closed Accounts, 925. List of Closed Accounts, 926.
Special Contribution to Provident Fund, 929.

CHAPTER IX
PROVIDENT FUND ACCOUNTS
A. INTRODUCTORY

901. The responsibility for the internal check of all transactions pertaining to, and
the maintenance of the accounts of the State provident Funds to which the personnel of
the railway subscriber devolves upon the Accounts officer. Internal check in connection
with subscriptions by and withdrawals and payments from the various Funds should be
conducted with reference to the rules of the provident Fund concerned. The Accounts
Office deals with transaction of the following funds: -

UNDER MAJOR HEAD 805-STATE PROVIDENT FUNDS

A. Civil-General provident Fund


C. Railways-State Railway Provident Fund
-State Railway Provident Fund (Contributory)
-State Railway Provident fund (Non-Contributory)
-Transferred Railway Personnel Provident fund
-Transferred Railway Personnel provident Fund (Contributory)
-Transferred Railway Personnel Provident Fund (non-Contributory)

D. Other Provident Funds.-


Other miscellaneous Provident Funds
(i) Ex-N.S. Railway Provident Funds(Contributory)
(ii) Ex-N.S. Railway Provident Fund (non-Contributory)
(iii) Ex-N. S. Railway Guaranteed Provident Fund (Contributory)
(iv) Ex-N.S. Railway Guaranteed Provident Fund (non-Contributory)
(v) Punjab (government Central Workshop) Contributory Provident
Fund
UNDER MAJOR HEAD 837-k-DEPOSITS & ADVANCES

-I.R.C. A. Employees Provident Fund


-I.R.C.A. Employees Provident Fund (Contributory)
-I.R.C.A. Employees Provident Fund (Non-Contributory)
-I.R.C.A. Employees Provident Fund Investment Accounts
(Contributory)
-I.R.C.A. Employees Provident Fund Investment Accounts (Non-
Contributory)

The accounts of the funds should be maintained also in accordance with the rules
of the funds which prescribe the more important books and accounts to the kept and the
manner in which they should be posted. The rules of the State Railway provident funds
will be found in the Indian Railway Establishment Code. The rules of other Provident
Funds are published as separate pamphlets.

Note.- The Fund Accounts of the Statutory Audit staff will be maintained by the
Accountant General, Central Revenues, or the Accounts Officer of the
railway in accordance with paragraph 1228 of Chapter XII.

A. STATE RAILWAY PROVIDENT FUND

902. Head of Account.- The transaction of the State Railway Provident Fund will
pass through the debt head “ State Railway Provident Fund Contributory/Non-
Contributory” under C-Railways, under the major head “805- state Provident Funds”
under “I-small Savings Provident Funds, etc.” (See Appendix IV).

903. Outline of Accounting Procedure.-in the Accounts Office, a ledger account


should be kept for each individual subscriber to the fund. All transactions affecting the
head "State Railway provident fund Contributory/Non-Contributory" should be posted in
the ledger accounts of the subscriber concerned. In order to ensure that the postings have
been correctly made, the entries in the ledger accounts should be abstracted in a
statement, called the check sheet, and the totals of the check sheet reconciled monthly
with the amounts credited and debited to the fund. The aggregate balance in the ledger
accounts should represent the balance under the head "State Railway provident Fund
Contributory/Non-Contributory" in the General books of the Railway.

904. the credits and debits to the head "State Railway provident Fund
Contributory/Non-Contributory" comprise the following-

CREDITS
(a) Subscriptions from members.
(b) Refund{ of temporary with drawals.
(c) Half-yearly bonus (for S. R. P. F.-contributory only).
(d) Interest.
(e) Miscellaneous adjustments including transfers to and from other
Accounts
Offices.
DEBITS
(a) Temporary withdrawals.
(b) Payments to staff who have ceased to be members of the Fund.
(c) Miscellaneous adjustments.

905. Subscriptions and refunds of temporary withdrawals by the members of the


Fund are generally recovered through pay bills (pay sheets, in the case of workshop
staff). The recoveries effected are shown in statements, called provident Fund journals
which accompany the regular pay bills. The sections which are responsible for the
internal check of the pay bills should check the correctness of the recoveries effected,
compare the details shown in the provident Fund Journal with the recoveries made in the
pay Bills and then pass on the provident fund journals to the provident fund Section for
posting into the ledgers. In the case of staff whose subscriptions or refunds of temporary
withdrawals are remitted in cash or are recovered outside India and passed on to India for
adjustment, necessary Journals should be prepared in the Provident Fund Section from
the Cash remittance notes or the extracts of schedules of miscellaneous remittances (see
paragraph 503), as the case may be, for posting in the ledger accounts of the staff
concerned. Credits on account of Government contribution and interest should be posted
in the manner indicated in paragraphs 925 to 927. Postings necessitated by any
adjustments should be made direct from the adjustment vouchers.

906. The postings in the ledger accounts of payments and debit adjustment should
made from the relevant pay orders passed for payment and the adjustment vouchers
respectively. All debit entries in the ledger accounts should be attested by the Accounts
officer-in-charge of the section at the time of passing the pay order for payment. The
opening balances carried forward from the previous year's ledger should be attested by
the Section officer (Accounts) or sub-head in charge. A percentage (as may be fixed by
the Financial Adviser and Chief Accounts Officer) of the entries of opening balances
should be checked and attested by the Accounts officer-incharge.

907. Account books to be in Sections or compartments.-For the convenience of


positing and reconciliation and for localizing errors in posting, the ledger accounts, the
check sheets, the Provident fund journals should all be in compartments or sections, i. e.,
by departments, districts or categories of state as may be decided by the Financial
Adviser and Chief Accounts officer.

908. Form of Provident Fund journals.-the provident Fund journals showing


the deductions made from pay bills on account of the State Railway Provident Fund
should be in Form A. 908.
Form A. 908

909. Form of Ledger Accounts.-The ledger account of each individual


subscriber to the Fund should be in Form A. 909. This form should be printed on both
sides of the paper. One sheet should be allotted to each subscriber so that the account for
two consecutive years may be recorded in the same ledger book.

Note.- In the case of non-contributory S. R. P. F. Accounts the columns under


government contribution will not be printed.
Form A. 909

910. Index Registers .- (1) A numerical index to the ledger in the order of
entrants should be maintained in Form A. 910. Besides this an alphabetical index by each
group or unit of accounts may be maintained to facilitate reference to the subscriber's
accounts numbers. The index Register (A. 910), whether numerical or alphabetical,
should shown the following particulars-

(a) The month in which the account is opened.


(b) Account number.
(c) Name of the subscriber.
(d) Designation and office or department and the staff or ticket number.
(e) The month in which the account is closed.
(f) Remarks.
(2) Additional columns may be provided in the numerical index register to
show:-
(a) reference to the memorandum under which the account number is
intimated in each case; and
(b) date of receipt of provident fund Declaration from each subscriber, if no
separate register for provident Fund Declarations is maintained.

Note.- The Provident Fund Rules require that the Accounts officer should call upon
every subscriber to declare, in the prescribed form. The person or persons
entitled to receive the provident fund moneys due to him in the event of his
death. The declaration forms submitted by the subscribes should, on receipt
in the Accounts office be kept under lock and key in the personal custody of
the Accounts officer. When a revised declaration is received from a
subscriber, the old declaration form should be cancelled and returned to the
subscriber. The dates of receipt of all declaration forms should be
systematically noted in the index Register or the separate register kept for
the purpose. Reference to the declaration forms submitted to the Accounts
officer should also be quoted on top; of the individual subscriber's ledger
accounts.

911. Opening of New Accounts.-When opening new accounts the following


points should be attended to:-
(a) The member's full name, designation (and station) should be entered
in the index Register (A.910) and the ledger (A. 909) in a clear hand.
The name of a subscriber should be spelt according to the
subscriber's own way and this spelling should be strictly followed in
all accounts and statement. In the case of Anglo-Indians and
Christians, the surname should be written first and after it the
Christian name or names.
(b) The staff or ticket number, where available, should be noted in the
index registers and the ledger, so as to guard against errors in
posting.
(c) Separate blocks of numbers (e.g., 1001 to 2000, 2001 to 3000)
should be alloted to separate departments or classes of employees;
and within each such block the number assigned to the members
accounts should be consecutive. A member's number should never be
altered, nor should the numbers of closed accounts be given to new
members.
(d) If a Muslim member, on opening his account makes the express
request that interest be not added to his deposit, a note to this effect
should be made in the index register and the words "No interest"
written on the top of the account in the ledger, Such a remark should
be repeated whenever a new ledger is opened.
(e) No accounts should be opened in the name of two or more persons
jointly.

912. Check Sheets.-The check sheets referred to in paragraph 903 should be kept
in two parts, one part for recording "Deposits of subscriptions and regular half yearly
bonuses" and the other for "withdrawals and deposits of other than the regular half-yearly
bonuses (e. g. Government Contribution allowed during the course of the half-year ;
retrospective Government contribution; Government contribution transferred from or to
other divisions or railways)". Both the parts should be posted from the ledger.

Form A. 912

B. POSTING AND RECONCILIATION

913. Register of Debits and Credits to "State Railway Provident Fund


Contributory/non-Contributory".-All Provident Fund journals received in the
Provident Fund Section should, before distribution to the ledger-keepers for posting into
the ledgers, be serially numbered and entered in a manuscript register called the Register
of Debits and Credits to the State Railway Provident fund Contributory/non-Contributory
(A. 913). This register should have separate Columns for the various compartments or
sections of the ledgers. The total recovery shown in each journal should be posted under
the appropriate column in the credit side of the register. The total of the Provident Fund
journals relating to all the abstracts of Bills (Form A. 1107) of a particular date should be
struck and agreed with the total credit to "S. R. P. F. C./N. C." for the date in the General
Cash Book (A. 304). Similarly withdrawals should be posted from the pay orders passed
for payment under the appropriate columns in the debit side of the register and the total
for each date agreed with the debit to "S. R. P. F. C./N.C" in the General Cash Book.
Miscellaneous adjustments of credit and debits should be posted separately and agreed
with the totals in the journal (A.307). The register of Debits and Credits to "S.R.P.F.
C/N.C." (A.913) will thus shown a complete analysis of the "S.R.P.F. C/N.C."
transactions booked in the accounts of the railway by compartments or sections of
Provident Fund ledgers and facilitate reconciliation of the postings in each section of
ledger accounts with the General books of the railway.

Form A. 913

914. Register of Unposted items .-If, while posting a Provident Fund Journal, a
ledger account cannot be traced, the relevant recovery in the Provident fund journal
should be posted in a "Register of unposted Items" (Form A. 914). Every attempt should
be made to locate the ledger account and to post the item in the proper ledger before the
monthly accounts are reconciled so that no unposted item is left in this register at the end
of each month. See also paragraph 915.
Form A. 914

REGISTER OF UNPOSTED ITEMS DURING ………….20 .

Compartment Name Account Page Amount Compartment Remarks


of No. No. of or section of as to
section of the P.F. ledger where transfer
ledger Journal posted new
number
allotted,
& c.

Rs.

915. Register of Unposted Ledger Accounts.-After the journals pertaining to a


compartment or section of the ledger accounts have been posted, it should be seen that
entries for the month have been made in all the accounts of the compartment or section. If
any ledger account remains unposted. It should be noted in the "Register of unposted
ledger Accounts". A ledger account will remain unposted it no pay has been drawn for
the employee concerned or if he is transferred to another compartment or section within
the same accounts circle or to another accounts circle. In the case of a transfer within the
same accounts circle, the register of unposted items (A. 914) will show the item to be
posted. In the case of a transfer outside the accounts circle, steps should be taken to
transfer the ledger account to the accounts circle concerned (see paragraph A. 932). In
reconciling the monthly postings in the various compartments or sections of the ledger
accounts, due allowance should be made for inter-compartmental or intersectional
transfers within the same accounts circle.

Form A. 915

REGISTER OF UNPOSTED LEDGER ACCOUNTS FOR…………20.

Compartment or Account Name Compartment or section Amount Rema


section where the No. From which recovery rks
ledger account is posted
is posted Compartment Page No. of
Or section The P.F.
Journal
Rs.

916. Reconciliation with General Books.-After the postings for a month in the
ledger accounts are complete, the check sheets (A. 912) should be posted from the ledger
accounts and totalled. The register in Form A. 913 will show the amounts debited and
credited during the month to the 'State Railway Provident Fund Contributory/Non-
Contributory" by compartments or sections of ledger accounts the totals in the Check
Sheets (A. 9120 should be reconciled with the totals under the relevant column in the
register of debits and credits to State Railway Provident Fund Contributory/Non-
Contributory (A. 913). In making this reconciliation due allowance should be made for
inter-compartmental or intersectional transfers within the same accounts circle. The
ground totals of debits and credits of the check sheets of the entire accounts circle should
be agreed with the total debits and credits appearing in the General Books and in the
monthly accounts of the circle under the head "State Railway Provident Fund
Contributory/non-Contributory".

917. Government Contribution. -After the ledger postings of subscriptions for a


half-year have been completed and reconciled through check sheets, the Government
Contribution admissible under the rules should be credited to each account. The column
for Government Contribution in the check sheet should thereafter be posted from the
ledger accounts and totalled. The total of government Contribution allowed should be
equal to the total subscriptions during the half-year, less total items not eligible for
government contribution. The total Government contribution allowed at the end of the
half-year should be adjusted by crediting "State Railway provident Fund/Contributory"
and debiting the service heads concerned in accordance with Chapter VIII of the Indian
Railway Financial Code in the accounts for the months of September and March (or
October and April according to existing practice).

918. Interest. -The interest admissible under the rules on the balances a credit of
members should be worked out and credited to the respective accounts at the close of
each financial year. The interest on contributions during the year will be calculated by
taking a single month's interest on the total of the minimum balances bearing interest
between the close of the fourth day and the end of each month for a year or any shorter
period for which it may become necessary to close the account. At the end of the year this
column should be totalled up in each account. One month's interest on this total will
represent the amount to be totaled up in each account. One month's interest on this total
will represent the amount to be allowed as interest on monthly deposits. If the slab system
of computing the interest is to be allowed as interest on monthly deposits. If the slab
system of computing the interest is to be applied. The interest should be calculated at the
appropriate rate on the average monthly balance for the year in the individual subscriber's
account as explained below-

The balance in a subscriber's State Railway Provident Fund/non- Contributory


and subscriber's side of the State Railway Provident Fund/Contributory Account at the
beginning of the financial year will consist of subscriber's own subscription including
interest thereon upto the end of the preceding financial year. Subscriptions compulsory
and voluntary refunds and withdrawals from the Fund will be taken into account for
working out the minimum balance as shown in the illustration given below and then
monthly average worked out at the end of the financial year or earlier if necessary to
close the account. In the case of State Railway Provident Fund Contributory Account,
with a view to arrive at the interest due on Government contribution, the minimum
balance shall be worked out for Government Contribution side separately as explained
below and interest worked at the appropriate rate applicable for the year. The differential
rates of interest on S. R. P. F. Balances shall be applied separately to employee's own
contribution and Government contribution. The interest on subscriptions and Government
contribution should be posted separately in the ledger accounts. The interest figures in
each account should be copied from the ledger into the appropriate columns of the Check
Sheet (A. 912) and the totals of these columns should be adjusted in the General Books
by debit to "Transfers Railway-Railway board". Vide paragraph 449.

Illustration showing the Calculation for Working out the minimum Balance
and Interest on S. R. P. F. Accounts.-Assuming the Rates of interest as 7.5% per annum
for the first Rs. 25,000/- and 7% per annum for any sums in excess of Rs. 25,000/-

Month Subscription C. S. Refu- With- Government Contribution


Compul- Volun- P. nd drawal
sory tary Depo- Minimum Deposi Minimum
Depo-sit sit Balance t Balance
bearing bearing
interest Interest
1 2 3 4 5 6 7 8 9

Opening
Balance 24020 24000
April, 76 100 50 24170 24000
May 100 50 24320 24000
June 100 50 24470 24000
July 100 50 24620 24000
August 100 50 24770 24000
September 100 50 24920 600 24000
October 100 50 25070 24600
November 100 50 1200 24020 24600
December 100 50 24170 24600
January, 77 100 50 50 24370 24600
February 100 50 50 24570 24600
March 100 50 50 24770 600 24600

Total
÷12 294240 291600
÷12

Average monthly balance-Rs. 24520-Rs. 24300


A. Interest on Subscription.-
Monthly Average of column 6=Rs. 24520
Interest on 1st 2452027.5%=Rs. 1839
B. Interest on Government Contribution.-
Monthly Average of column 8=Rs. 24300
Interest on 1st Rs. 24300 @ 7.5%=1822.50 or Rs. 1823.

ABSTRACT FROM WHICH ANNUAL DEPOSIT ACCOUNT IS TO BE COPIED


Subscription government contribution
A. Opening Balance 24020 24000
B. Contribution during the 1800 1200
year
C. Refunds 150
D. Interest 1839 1823
Total A+B+C+D 27809 27023
Less withdrawal 1200 ……
Balance carried forward 26609 27023

Note.-(1) in cases where the rate of subscriptions to the Fund has been uniform
throughout the year, the total minimum balance bearing interest may be obtained by
applying the formula of Arithmetical Progression viz., [(n. s. (n plus I)] wherein 'n' is the
number of months and 's' the rate of subscription. ²
(2) When a temporary advance is granted from the State Railway Provident fund
Contributory/Noncontributory, the outstanding balance in respect of a previous
advance which is deducted therefrom and credited to the Subscriber's account
should be included under the minimum balance bearing interest for that.
.
919. Special measures should be taken towards the close of the year to make
the interest calculations .-As no interest is allowed on deposit made after the close of
the fourth day in any month, the monthly minimum balances bearing interest can be
totalled immediately after the posting for March and the interest calculated and entered in
pencil. In making repayment in March any of these calculations may if necessary be
altered (see also paragraph 449).

920. Points to be noted in crediting subscriptions, govt. Contribution for


contributory S. R. P. F. S and interest.-The following points should be noted in
crediting subscriptions, government contribution and interest to ledger accounts.

(i) In all cases in which the emoluments of staff are paid on the basis
of the "accommodation month" i. e. wages period not coinciding
with the calendar month), the Provident Fund recoveries made
should be credited in the accounts on the 1st of the calendar
month preceding the last day of the accommodation month.
(ii) In case where subscription to the Provident Fund have been
recovered in excess of those admissible under the rules the
amounts of subscriptions and interest thereon credited in excess
should be refunded to the subscribers and the amounts of
Government Contribution and interest there on together with
interest on subscriptions credited in excess should be written back
as soon as the irregularity comes to notice. This rule should be
applied in all cases of excess credits, whether due to wrong
fixation of pay or irregular membership. In all such cases the F.
A. & C. A. O.’s . are competent to sanction the payment of
interest to the staff under them. For the purpose of calculation of
interest on excess contributions the ledger accounts need not be
recast. Simple interest at the prescribed rates on the total
overpayments for half the period will yield fairly accurate results
and this method should be adopted.
(iii) In the case of a subscriber whose Government Contribution was
forfeited because of his quitting service before the completion of
five years and was credited to the Staff Benefit Fund under Rule
1205 (2) of the Indian Railway Establishment Code Vol. I the
forfeited Government contribution should be re-employment be
re-credited by writing back the amount from the Staff Benefit
Fund to his Provident Fund account, provided the break in service
between quitting the service and re-employment is duly condoned
and the employee is permitted to refund the Provident fund
money received by him. This adjustment will however he made
after the recoveries on account of the arrears of the Provident
Fund have been effected.
Note.- (1) When the recovery of overpayments of emoluments is
waived by the competent authority in cases of wrong
fixation of pay recovery is waived only on such portion of
overpayment as is not covered by the amount that is being
refunded from the Provident Fund.
(2) The interest allowed on amounts irregularly credited to "S. R.
P. F. C. / N. C." and subsequently written back should be
credited to "146 Indian Railways/Commercial lines Revenue
Receipts".
(3) The Interest charges on retrospective Govt. Contribution 1312
(4) RI should be debited to the working expenses of the
Railway (and not to "Transfers Railway-Railway Board").

921. Annual Closing and Reconciliation with General Books.-The account of


the State Railway Provident Fund including the accounts of members should be made up
annually at the close of the financial year and reconciled with the general books (see
paragraph 922). The Accounts Officer should certify that the balances have been
reconciled with the General Books of the Railway and record the certificate in his Debt
Head Report (see paragraph 748-A).

922. The reconciliation with the General Books should be made in the
following manner.-After the postings for March are completed each account in the
ledger should be closed. The opening and closing balances of 'subscriptions" and "govt.
Contribution", the total deposits and withdrawals during the year and the interest in each
account should be copied from the ledger in the check sheet under the appropriate
columns the postings in the check sheet should them be totalled and agreed with the
figures in the General Books. Reconciliation by each compartment or section of the
ledger should be done with the help of the Register of Debits and credits to "State
Railway Provident Fund Contributory/Noncontributory" (Form A. 913).

923. Account furnished to each member.-The annual statement of account


furnished to each number after the close of each year should be in Form A. 923.

Form A. 923
923. Distribution of Annual P. F. Statements.-It is essential that every
employee gets his annual statement of P. F. Account regularly every year. For this
purpose the F.A. & C. A. O. in consultation with the Chief Personnel Officer will work
out a detailed scheme for distribution of the statements amongst the employees along
with the disbursement of pay in accordance with a programme which should be notified
to the employees in advance.

924. Transfers of Provident Fund Accounts.-A member, who is transferred


without break of service, from one Railway or Office to another with the permission of
the head of the Railway or Office concerned, should have his provident fund Account
transferred to the new Railway or Office. Interest should not be credited to the member's
account for a part of the year but should be credited at the end of the financial year and
adjusted in the Books of the Railway or the Office to which the depositor is transferred.
The transfer should be initiated by the Accounts Office of the Railway or circle to which
the subscriber was attached by forwarding. -

(a) an advice of transfer (A. 924);


(b) a copy of the ledger account showing the details of his
deposits and withdrawals, and
(c) his nomination form, if any, in original

to the Accounts Officer of the Railway or circle to which the subscriber has been
transferred. On receipt of the advice of transfer the latter Accounts Officer should issue a
transfer certificate against the former for acceptance and return. In cases of temporary
transfers where the period of transfer is likely to exceed on year, the Provident Fund
Accounts may be transferred to the Accounts Officer of the Railway of office to which
the subscriber has been transferred. In other cases the balances may continue to be kept
by the parent Railway or Office of the Railway servant concerned.

Note.-(1) In the case of a permanent transfer to another department of the Central


Government or a State Government the current year's interest will be credited to the
member's account up to the end of the month preceding that in which the account is
transferred. The same procedure would be followed by other department of the
Central Government and State Government in case of transfer to the Railway
Department.
(2) In order to ensure that the Accounts are transferred without delay, the Register of
Last Pay Certificate maintained in the Establishment Section of the Accounts Office
should be revised every minth and necessary action taken to transfer the S. R. P. F.
Account.
Form A.924

925 Closed Accounts.-(1) As soon as possible after the death of a subscriber, or


after a subscriber quits service, prompt action should be taken by the Accounts Officer to
close the account of the subscriber and to issue the requisite notice to the person or
persons entitled to receive the provident Fund money specifying the balance at the credit
of the account and tendering payment thereof.

Note- When a subscriber quits the service or dies while in service, interest on the amount
standing at his credit in the Fund accrues up to the date of tender of payment or up
to the end of the sixth month after the month in which the subscriber quits the
service or dies, whichever is earlier.

(2) The Accounts Officer, shall, subject to the provisions of Rules 1339 and 1340
of the Indian Railway Establishment Code, Volume I, make prompt payment of that
portion of the amount is the Fund in regard to which there is no dispute or doubt, the
balance being adjusted as soon after as may be possible. (3) If the person to whom any
amount is to be paid under the rules of the Provident Fund is a minor or lunatic for whose
estate a guardian under the Guardians and Wards Act, 1890 (VIII of 1890) or a manager
under the Indian Lunacy Act, 1912 (IV of 1912), as the case may be, has been appointed,
the payment shall be made to such guardian or manager and if no such guardian or
manager has been appointed, the payment shall be made to the person authorized by law
to receive payment on behalf of the minor or lunatic. In cases where no natural guardian
of minor or minors exists, the payment of the share of each minor, after deduction of
Government dues, etc. of the Provident Fund money (including special contribution to
Provident Fund) to the extent of Rs. 5,000 (or the first Rs. 5,000 where the amount
payable exceeds Rs. 5,0000 may be made to the person considered fit by the Controlling
Officer to receive payment on behalf of the minor or minors without requiring him/her to
produce a guardianship certificate provided he/she executes a bond signed by two sureties
agreeing to indemnify the railway against any subsequent claims which might arise. The
person claiming payment on behalf of the minor or minors should also be required to
produce an affidavit that he/she is in charge of the property of the minor or minors and is
looking after it or that if the minor or minors has/have no property other than the
Provident Fund money the minor or minors is/are in his/her custody and care. The
balance is excess of Rs. 5,000 if any, would be payable in accordance with the normal
rules, i. e., on production of certificate of guardianship.

Note.- The power of the controlling officer under this rule may be exercised by a District
officer or an Assistant officer in independent charge of a district.

(4) If the existence, en venture de sa mere, of a child to the subscriber is brought


to the notice of the Accounts Officer, he shall retain the amount which will be due to the
child in the event of its being born alive, and distribute the balance. If subsequently no
child is born or the child is still born, the amount retained shall be distributed in
accordance with the provisions of Rule 1340 of the Indian Railway Establishment Code
Volume 1.

926. When an account is closed, it should be removed from the Provident Fund
ledger to a separate list called the list of Closed Accounts (Form A. 926). The balance on
such accounts closed during the year should not be removed from the books of the
Railway Department, but should in accounts for march, be transferred to "Deposit". Any
item so transferred, not exceeding unclaimed by the 31st March of the third succeeding
year, will be credited to revenue. The list of "Closed Accounts" should be consulted when
applications for refund are received by the Accounts Officer and the refund should be
noted in the list to prevent a double payment.

Form A. 926

927. If after an account is closed, a petty error in calculation is discovered, the


correction of which leaves a small balance in the account, the Accounts Officer should,
after having, if possible, informed the subscriber and after six months have elapsed, credit
it in the Railway Account at "Z 650 other unclassified Receipts" making a note in the
ledger (A. 909) of the transaction. Such an amount, may, at any time, be refunded.

928. There is no limitation of time to the legal liability to pay accumulations in


the Provident Fund with interest already accrued. When legal ownership is contested and
the amount involved in more than Rs. 5,000, earliest possible action should be taken to
ascertain in whose favour the case has been decided by a Court of law and to issue the
requisite notice tendering payment.

929. Special contribution to Provident Fund.-The Special Contribution to Fund


sanctioned in favour of retired, etc, employees (see paragraph 1314-R) should be
incorporated in the Ledger of State Railway Provident Fund Contributory Accounts and
the payment of the Special contribution should also be recorded therein.

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