BANKING OPERATIONSDAY-1 SESSION 3

TYPES AND NATURE OF ACCOUNTS

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TYPES OF GOVERNMENT ACCOUNTS

The main type of Accounts of Provincial & Central Government.

1. Drawing Account.

2. Assignment Account.

3. Personal Ledger Account

DRAWING ACCOUNTS

When an officer of a Government Department is authorized to draw funds from the Bank without limit such an account is called “Drawing Account”.

Offices have to make payments irrespective of balances.

IT refunds, Sales tax refunds, NSO Payments, CMA payments etc are examples of Drawing accounts

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ASSIGNMENT ACCOUNTS

Amount Limit is specified for each Assignment Account. The Limit can be Monthly or yearly and can be replenished or amended.

Authorized officers are free to withdraw funds from these accounts up to the amounts available.

On withdrawal the balances available in the respective accounts are accordingly reduced.

The Accountants General /MAG authorizes the Bank to open Accounts.

Amounts will be used by same financial year/given time period.

NBP- ASSIGNMENT ACCOUNT The Accountant General shall issue a letter of

assignment to the relevant DAO/treasury office with an endorsed copy to the branch manager of the State Bank of Pakistan, within whose area the account is opened.

Account name The bank branch from which it shall operate Authorised person Limit of the account

Funds for specified purposes. Each assignment account is established in fixed

currency Amount is specified for each Assignment Account.

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ASSIGNMENT ACCOUNT AT NBP –REIMBURSEMENT OF

Accounts opened at NBP Intimated to field office Treasury officer draws cheque NBP makes payment NBP presents its claim to SBPBSC Office. Reimbursement to NBP Responsibilities of SBP BSC

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ASSIGNMENT ACCOUNT An assignment account is a separate bank

account

Funds for specified purposes.

Each assignment account is established in fixed currency

Amount is specified for each Assignment Account.

The Limit can be Monthly or yearly and can be replenished or amended by the Government.

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ISSUES

Lapsing

Timely placement

Reconciliation 8

MONITORING OF ASSIGNMENT ACCOUNTGlobus Enquiry --Movement Register: This enquiry will display the limit granted, transaction effected

on account and progressive balance. At the end of enquiry, there will be total limit granted, limit used, and position as per transactions and position as per assignment register.

Assignment Accounts Checking- Daily: This enquiry will display all assignments accounts with Total Limit Used Up Amount-Register Used Up Amount-Transactions Difference (if any between Used up Amount Register and Used

Up Amount-Transactions) Available BalanceProper reconciliation Assignment Accounts

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TYPE OF ACCOUNTS

3.Personal Ledger Account:These accounts are maintained with the Government Treasury Officers. The officer concerned draws cheques on the Government Treasury Officer and T.O records the orders for making payment of the amount for which the Cheque has been drawn. SBP BSC Bank makes payment by debiting respective government account

PERSONAL LEDGER ACCOUNT

A personal ledger account (PLA) is also a facility provided to a delegated authority to incur expenditure upto a prescribed limit

PLA is a ledger account maintained by the DAO/treasury office.

Spending limit controlled by these offices , The DAO issue an official Cheque book DOs/DDOs of these departments draw

cheque on Treasury. Treasury Officer then affixes his pay order

and draw the same on SBP BSC Office.

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GENERAL MISUNDERSTANDINGS IN PLA CHEQUES

Face of instrument TO’S passing orders Validity issues

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