One Day, One Minute, One Rule – 162. .
Cash Handling and Treasury Allowance Rates (7th CPC)
Cash Handling and Treasury Allowance Rates (7th CPC)
162. Following the recommendations of the Seventh Central Pay Commission, what are the revised rates for Cash Handling and Treasury Allowance for Central Government employees, and what are the primary conditions for its grant?
According to the Office Memorandum issued by the Ministry of Personnel, Public Grievances & Pensions, Department of Personnel & Training (DoPT) under No. 4/6/2017-Estt. (Pay-II) dated 18.01.2019 (circulated by the Department of Posts on 22 January, 2019), the revised monthly rates for Cash Handling and Treasury Allowance have been set based on the volume of cash handled. For an average monthly cash volume of ≤ ₹5 lakh, the revised rate is ₹700, while for volumes over ₹5 lakh, the rate is increased to ₹1000. These revised rates are effective retrospectively from 01.07.2017.
The grant of this allowance is governed by several strict conditions to ensure proper accountability. It is based solely on the average monthly physical cash disbursed, explicitly excluding non-physical transactions such as cheques, drafts, ECS, or online payments. Furthermore, any official appointed to perform cashier duties must furnish security in accordance with the General Financial Rules, 2017, unless specifically exempted by a competent authority.
There are also specific exclusions regarding who can claim this allowance. It is not admissible to officials for whom cash handling is considered an integral part of their recruitment or promotion duties, such as Senior Secretariat Assistants cum Cashiers. Additionally, the allowance is generally limited to one official per office or department and must be reviewed every financial year based on the previous year's average disbursement.
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