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BANKING NETWORK As on 1st
July 2004, the Corporation is having 263 bank accounts with
State Bank of India in different states of North Zone, 117 accounts with
State Bank of Patiala in Punjab and Haryana regions and 31 accounts with State Bank of Bikaner
and Jaipur in Rajasthan Region. During Rabi and Kharif Procurement a
number of seasonal accounts are opened with these banks to facilitate the
payment for cost of grain and other admissible charges to the farmers,
State Government and its agencies as well as Millers and Arhatias. The
current accounts are also opened with other nationalised banks where bank
branch of State Bank of India , State Bank of Patiala or State Bank of
Bikaner & Jaipur does not exist to facilitate payment to the farmers.
Bank
account opening procedure
a). Where to open:
In view of requirement for making payments for cost of foodgrains,
incidental charges for carrying over operations at different points,
Freight for transportation of stocks to Railways and Transporters and
other administrative costs, the unit office responsible for payment can
open account in the name of Corporation in any of the following
categories of Banks:-
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State Bank of India, |
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Any of the
associate to the State Bank of India, |
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Nationalized banks |
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State Cooperative Banks, |
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Scheduled Commercial banks
and |
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Such of
the Central Cooperative Banks with which at the time of the opening
of the accounts have been classified, for a continuous period of not
less than three years in Category ‘A’ and ‘B’ according to the audit
classification of the Registrar of Cooperative Societies or any other
competent authority appointed for the purpose by the State
Government, provided these banks are included in the list of
Scheduled Banks circulated by the Reserve Bank of India. |
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b). How to
open bank account:
The unit office responsible for payment adjudges the convenient bank
branch, daily need of the funds and then selects the officer(s) to be
authorized for banking operations. The Regional Office submits proposal
of unit office to Zonal Office along with its recommendations and
confirmation that no vigilance case is pending/contemplated against the
proposed officer, for obtaining approval of the Competent authority i.e.
Zonal Manager or Manager (A/Cs). It is invariably ascertained that the
proposed officer should not be involved in any vigilance case. The
officer involved in any vigilance case or undergoing any penalty
prescribed under FCI (Staff) Regulations, 1971 cannot be authorized to
operate the bank account on behalf of Corporation. However, an officer
awarded the penalty of “Censure” can be authorized to operate the bank
account.
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Prescribed authority The
Board of Directors of the Corporation in their 154th meeting held in
New-Delhi on 13th March, 1984 resolved to prescribe the authorities to
open the bank accounts as well as to authorize the employees to operate
the bank accounts on behalf of the Corporation:-
a). Who can
open bank account:
The Zonal Manager and
Manager (Fin & A/cs) of the Zonal Office, who is in charge of Cash
Management, are authorized to open the bank accounts in the name of the
Corporation in any of the banks specified above.
b). Who can authorize any employee to operate:
The bank account of the Corporation may be operated by any the
following officers of the Corporation:-
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The Zonal Manager,
Additional Financial Adviser, Deputy Zonal Manager, Manager (A/Cs),
Sr. Regional Manager, Regional Manager, Joint Manager (Port
Operation) and Joint Manager (A/Cs), |
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Senior Dy. Manager (A/Cs),
Dy. Manager (A/Cs), District Manager, Senior Asstt. Manager (A/Cs)
and Assistant Manager (A/Cs) provided they are in turn authorized to
operate the bank accounts by the Zonal Manager, Additional Financial
Advisor, Dy. Zonal Manager, Manager (Accounts), Sr. Regional Manager,
Regional Manager and Joint Manager (Port Operation) as the case may
be. |
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The Zonal Manager may,
where the exigencies demand, also authorize any officer or official
other than those specified in sub clause (ii) above provided the bank
account is invariably operated jointly by two officers/officials. |
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System of maintenance of
bank account The
Cash Credit account opened with any of the branch of the prescribed bank
as proposed by the unit offices is allocated required notional cash
credit limit by the respective bank as per demand. The unit office
authorized to make payments per day up to the extent of allocated Cash
Credit limit. The branch of the bank is required to transfer the entire
day end balance of the account, whether debit or credit, to its
controlling branch where Central Cash Credit /Regional Cash Credit
account exists. RCC accounts are recouped by the
region concerned by transferring funds from their SBI accounts so that
RCC accounts are not overdrawn to the allocated cash credit limit.
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Charging
of Interest:
The interest is debited to the Central Cash Credit, Zonal Cash Credit the
Regional Cash Credit accounts of Corporation at the rate of maximum
lending rates prescribed by Reserve Bank of India from time to time. No
interest is debited to any of Unit office account in any case. Up to
31.3.2002 the interest was being charged on quarterly basis but W.e.f.
1.4.2002 it is being charged on monthly basis in accordance with
guidelines issued by RBI.
System of calculation of Interest:
Each and every entry responded to ZCC or RCC is valuated on the basis of
date of its originating at branch level. In case of Debit transfers it is
valuated from the date of transfer by branch. In case of Credit transfer
it is valuated from the date of its receipt in the concerned controlling
branch of ZCC/RCC, but bank compensates the Corporation for credit
balances in transit where the delay involved in each instance beyond
three days including the date of transfer for outstation remittances and
beyond the following working day in respect of remittances from local
branches. The interest for each and every entry is calculated from the
date of validation to the date of its posting and interest for the day on
balance at the day end.
Controlling cash credit
accounts
In some of regions
where wide network of associate banks of SBI exists Regional Cash Credit
accounts are to be opened with the concerned bank at Regional
Headquarters of Corporation. In the North Zone there are two Regional Cash Credit Accounts with State Bank of Patiala at Chandigarh for Punjab and Haryana Regions respectively and one
with State Bank of Bikaner and Jaipur at Jaipur for Rajasthan Region.
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