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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