File No.06-4/2018-PAP
Government of India
Ministry of Communications
Department of Posts
(Establishment Division)
P.A.P. Section

Dak Bhawan, Sansad Marg,
New Delhi -110001
Dated: 17th October, 2019.

To

The Chief Postmaster General,
Mumbai 400001

Sub: Implementation of the recommendations of Seventh Central Pay Commission- Cash Handling and Treasury Allowance – Clarifications.

A reference has been received in the Directorate seeking clarification regarding admissibility of Cash Handing and Treasury Allowance on DOPT OM No – 4/6/2017-Estt. (Pay-II) Date 18.01.2019 ,circulated vide Directorate letter No. 06-04/2018-PAP dated 22.01.2019, on the following issues from Chief Postmaster General Mumbai vide his letter No.Estt/19-1/Cash Handling Allowance/2008-14 dated at Mumbai 28.06.19.

Also check: Implementation of the recommendations of Seventh Central Pay Commission – Cash Handling and Treasury Allowance

The matter has been considered in the Directorate and clarified the queries are as under.

Query No.1. Whether the revised rates of 7th CPC for Cash Handling Allowance and Treasury Allowance are also applicable for cash handling to the Sub Postmasters in single and double handed Post offices and to those Sub Postmasters in Post Offices where there is no separate Treasury is justified.

Clarification: Not applicable. Already clarified in para 2 (iv) and (v) of DOPT OM No. 4/6/17- Estt.(Pay-II) dated 18.01.2019.

Query No.2: Whether Rs. 700/- rate of Cash Handling Allowance and Treasury Allowance is to be granted directly to all eligible operative staff as it fixed for amount <=5 lakh average monthly cash handled or whether it is to be calculated and fixed every year based on the statistics of previous financial year’s average quantum cash disbursed for the Treasurers and Sub Postmasters in Post Offices where there is no separate Treasurer is justified.

Clarification: As per para 2(iii) of the said OM dated 18.01.2019 ” the Cash Handling and Treasury Allowance should be reviewed every financial year.”

Query No.3. Whether Cash Handling Allowance and Treasury Allowance will be allowed to all Treasurers in big offices if more than one Treasurer is working in those offices.

Clarification: No. Already clarified in para 2(vi) of the of the aforesaid mention OM dated 18.01.2019 that “not more than one official should be allowed the Cash Handling Allowance and Treasury Allowance in an office.”

(D.K.Tripathi)
Assistant. Director General (Estt.)
Phone No – 011-23096191

View the order

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F. No. 4/6/2017-Estt.(Pay-II)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

North Block, New Delhi
Date: 18.01.2019

OFFICE MEMORANDUM

Subject: – Implementation of the recommendations of Seventh Central Pay Commission – Cash Handling and Treasury Allowance -reg.

Consequent upon the decision taken by the Government on the recommendations of the Seventh Central Pay Commission vide Department of Expenditure’s Resolution No. 11-1/2016-IC dated 06.07.2017, Cash Handling Allowance and Treasury Allowance have been subsumed in ‘Cash Handling and Treasury Allowance‘. The President is now pleased to decide that Cash Handling and Treasury Allowance shall be admissible to Central Government employees at the following rates subject to conditions mentioned in subsequent paras: –

2. The powers to grant Cash Handling and Treasury Allowance remain delegated to the Ministries and Head of Departments who, at their discretion, may appoint Junior Secretariat Assistants / Senior Secretariat Assistants / Assistant Section Officers / officials holding substantive post up to level 7 of Pay Matrix, to perform the duties of Cashiers. The grant of Cash Handling and Treasury Allowance shall be subject to the following conditions:-

(i) The amount of Cash Handling and Treasury Allowance to be granted will depend on the average amount of monthly Cash disbursed, excluding payment by cheques/ drafts/ECS/online payments/other modes where cash handling in physical form is not involved.
(ii) The Ministry or Head of the Department concerned should certify, on the basis of the previous financial year’s average, the amount of Cash disbursed and sanction the rate of Cash Handling and Treasury Allowance appropriate to that quantum. The average amount of Cash disbursed should be arrived at by taking the total amount shown as disbursed in the Cash Book reduced by the items disbursed in the form of cheques/R.T.Rs/Drafts/ECS/online payments/other modes where cash handling in physical form is not involved, etc.
(iii) The Cash Handling and Treasury Allowance granted to the official should be reviewed every financial year.
(iv) Every official, who is appointed to work as Cashier, unless he is exempted by the competent authority , should furnish security in accordance with the provisions contained in Rule 306 (1) to 306 (4) in Chapter 12 of the General Financial Rules, 2017 as amended from time to time.
(v) The Cash Handling and Treasury Allowance is to be granted from the date of issue of order of appointment as Cashier or from the date of furnishing security, whichever is later.
(vi) Not more than one official should be allowed the Cash Handling and Treasury Allowance in an office/Department.
(vii) Sanction in each case should invariably be issued in the name of the person who is appointed to do the Cash work and for whom the Cash Handling and Treasury Allowance is sanctioned.
(viii) In cases of Cashier appointed on direct recruitment /promotion to such a post in terms of provision of RRs, no Cash Handling and Treasury Allowance will be admissible. Further, where there are sufficient number of Cashiers in various Grades to constitute a viable cadre in a Deptt./Organisation, then the post of Cashiers would not carry any Cash Handling and Treasury Allowance.
(ix) The Cash Handling and Treasury Allowance will not be admissible to Senior Secretariat Assistants cum Cashiers as Cash Handling is part and parcel of the duties of this post.

3. In the case of a newly created office, where it is not possible to observe all the conditions quoted above, Ministries and Heads of Departments may themselves grant Cash Handling and Treasury Allowance to cashiers during the first year of existence on the basis of the estimated average monthly cash disbursements. The other conditions quoted in para ( 2) above will, however apply.

4. Any relaxation of the above terms and conditions will require the prior concurrence of the Department of Personnel & Training.

5. These orders shall be effective from 01.07.20 17.

6. In so far as persons serving in the Indian Audit and Accounts Department are concerned, these orders are being issued after consultation with the Comptroller and Auditor General of India.

(Rajeev Bahree)
Under Secretary to the Government of India
Telephone No. : 011-23040489

To
All Ministries / Departments of the Government of India as per standard list

Source: DoPT

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