About the introduction of SBCO

INTRODUCTION

Preamble:— Before the take over of S.B. control work from Audit, the branch audit offices used to maintain duplicate Savings Bank ledger card in respect of every S.B. account in addition to the ledgers maintained in the Head Post Offices. Irregularities and discrepancies noticed by them at the time of posting the transactions in the ledger cards from the savings bank returns received from head post offices used to be taken up with the head offices in the form of lengthy objection statements. The interest used to be calculated by the audit and sent to Head Offices in the form of interest statement in the middle of June every year. It was then posted in the ledgers and thereafter the pass books were called for the entry of interest in them. The entire procedure meant a check by a remote office on the transactions and the procedure entailed duplication and delay. It was, therefore, felt necessary to set up a local departmental machinery for ensuring an on the spot check on the maintenance of ledger accounts in head offices and ensure their correct maintenance. The P&T Board decided in 1960 to take over the SB control work from the A.G. P&T and abolish the duplicate ledger cards maintained in branch audit offices. The approval of the A.G. P&T, C. A. G. and Ministry of Finance was also obtained. The scheme was first tried on an experimental basis in 5 Head Offices w.e.f. 1.1.1961. The experience then gained showed that the new system was workable and was in the interest of efficiency and economy. The scheme was then extended to all Head Offices in a phased program. The work was taken over in phases and last phase completed on 1-10-1965. The C.T.D. control work was also taken from the audit offices in phases w.e.f. 1.4.1966 and the last phase completed on 1.7.1976. Thereafter the pairing work of SB accounts on transfer was also taken from the A.G. P&T w.e.f. 1.2.1973 and entrusted to Pairing Organisation set up in each Circle.

Setting up of Control Organisation:—The Savings Bank accounts of the depositors are maintained in the ledger cards by the SB Branch of the Head Post Office. The deposit/withdrawal transactions as and when made by the depositor are posted in the ledger card and balance is worked out after each transaction. The ledger cards are kept in binders for the sake of convenient handling and accounting. Each binder contains 300 ledger cards. The control accounts of these binders i.e, binder-wise and office-wise balances of these accounts, are maintained by a separate Organisation named as Savings Bank Control Organisation set up in each Head Post Office.

Control Organisation — Organisation and significance :— The Savings Bank Control Organisation has been set up in each Head Post Office to maintain control accounts of Savings bank and carry out day-to day checks of the work done by the SB Branch. The Control Organisation consists of Supervisor and Postal Assistants. The Senior Postal Assistants are required to do the work of checking of vouchers, cash and non-cash transactions, verification of binder balances, checking of interest calculation, revival of silent accounts, etc. The Junior Postal Assistants do only posting and listing work in the various control registers. This Organisation is under the administrative control of the Senior Superintendents/Superintendents of Post offices/Gazetted Postmasters and functionally responsible to these authorities. The Organisation has a very important role in respect of Savings Bank operations. Unless the performance of this Organisation is efficient, the working of Savings Bank Branch will suffer and frauds may be facilitated.

Functions of Control Organisation :—

·         The main functions of the Control Organisation are as under :-

·         To maintain control accounts of all the Savings Banks Schemes.

·         To carry out percentage checks of vouchers and other items of work.

·         To verify binder ledger balances periodically.

·         To keep in its safe custody important records such as vouchers,      

·         undelivered pass books, list of transactions, silent accounts lists,  

·         Interest cum silent accounts statements, various control registers, etc.                                             

·         To check annual calculation of interest in SB/PPF/NSS accounts.

·         Preparation of annual interest and silent accounts statements.

·         To submit periodical returns to various authorities such as Postal  

·         Accounts Office, Divisional Office, Circle Office and Internal Check 

·         Organisation (SB).

Relation of Control Organisation with the Postal Accounts Office and Audit:—

After the take over of control accounts from the erstwhile audit and accounts offices the Control Organisation is now required to submit a monthly statement containing statistics of number of accounts, transactions, balances, etc. at the close of the month to the Postal Accounts Office. In the Postal Accounts Offices these statistics are consolidated for all the Head Offices in the Circle in order to arrive at the final closing balance of the Circle at the end  of each month. The consolidated statistics of deposits, withdrawals and closing balance under each category of accounts are intimated by the Postal Accounts Office to the Directorate by the due date.

The Control Organisation is not required now to submit any return to the audit office. This Unit is, however, inspected periodically by the audit party.

Pairing Organisation :—A Pairing Unit in each Circle and one Central Pairing Office has been set up in New Delhi. The Pairing Units are responsible for pairing the credits and debits of Home Transfers (Transfer of accounts from one Head Office to another in the same Postal Circle) and the Central Pairing Office for pairing the credits and debits of Foreign Transfers (Transfer of accounts from one Head Office to another in different Postal Circles). The Circle Pairing Unit is under the administrative control of Accounts Officer, Internal Check Organisation (Savings Bank) in each Circle whereas the Central Pairing Office is under the charge of Accounts Officer, Central Pairing Office. New Delhi. The Central Pairing Office also functions as a Circle Pairing Unit for Delhi Postal Circle and Base Circle of Army Post Offices. A separate section for this purpose has been formed in this office.

The Staff of the Circle Pairing Unit and Central Pairing Office consists of Supervisor and Postal Assistants. The main function of Pairing Units/Office is to compare the debit and credit items of Transfer from one Head Office to another in order to check frauds in wrong opening of accounts with higher balance in the transferee head office. These Units are inspected in detail by the Accounts Officer, ICO (SB) once a year in addition to the routine weekly/monthly checks which are carried out by him. The units are also inspected by the audit party periodically.

Internal Check Organisation (SB) : — (1) The Internal Check Organisation (SB) is an effective inspecting organisation for the inspection of the S.B. Branch of Head Post Offices and Control Organisation. It has been set up in each Postal Circle. It is under the administrative control of the Postmaster General/Regional Director of Postal Services and under the charge of an Accounts Officer, who is assisted by a Junior accoints Officer, one or more Postal Assistants and a Stenographer. The Accounts Officer is a technical advisor on SB matters to the Regional Director/Postmaster General under whom he may be working. The main functions of the Internal Check Organisation are summarised as under:—

·         To see that the staff of the Head Post Offices and the Control Organisation carry out their functions as prescribed in the rules and orders issued from time to time.

·         To see that the prescribed checks by the Control Organisation on the day-to-

·         day functioning of the Head Office are carried out properly.

·         To see that the registers of binder balances are maintained properly.

·         To see that the various registers and documents prescribed to be maintained by the Control Organisation are being properly and regularly maintained.         

·         To see that the pending objections are settled without any abnormal delay. 

·         To review the objections pending over three months in order

Composition and Functions of SBCO

 Duties of Supervisor

1.    Supervision over the staff of the Control Organisation.

2.   Distribution of work among the start

3.   To ensure that the sta ff performs the duties properly as prescribed in these

      rules and orders issued from time to time.                          

4.   To perform the duties specifically assigned to him in these rules and in the orders issued from time to time.

5.   To ensure that the periodical returns are sent by due dates.

6.   To maintain Nominal Roll (MS-12) [Annexure I] in respect of staff of the SBCO and put up the Roll once a week to the Postmaster for check.

Duties of Postal Assistant

1.   Examination of the lists of transactions.

2.   Maintenance of register SB-62, SB62(a) and SB-63.

3.   Preparation of the list of binder balances for verification.

4.   General check of vouchers. .

5.   Checking of H.O. and S.O. transactions.

6.   Checking of non-cash transactions and entries in the register SB-62.

7.    Verification of binder balances.

8.    Making entries in the consolidated journal (SB-72) and checking the daily   

       and progressive totals of different columns.

9.   Any other work which may be entrusted to him by the Supervisor and also in the orders issued from time to time.

The P.A. will maintain various registers as prescribed from time-to time for the above mentioned items of work. hi respect of objections raised by him he should ensure that the wanting information is furnished and satisfactory replies are given by the S.B. branch in time.

 Distribution of work:- The Supervisor will prepare the Memo of distribution of work among himself and Postal Assistants and send it to the A.O. ICO(SB) for approval. After it is approved by the A.O., it will be followed rigidly by the staff and the Memo will be kept in a file in the personal custody of the Supervisor. Any change found necessary thereafter will also require approval of the Accounts Officer.