Cash and Debt

In: Business and Management

Submitted By foofy
Words 845
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Difference between daily cash balance and monthly closing cash balance

A. CASH BALANCE: For each State Government, the RBI maintains what is the called the Principal Government Deposit Account (PGDA), which is the cash account of the Government. The PGDA is fed by three subsidiary accounts i.e. • the PAD (ie., Balances held at RBI offices (RBI counters across the Country)), • IGTA (Inter Government Transaction Account), and • Agency Bank transactions (transactions reported by the Treasuries). These three accounts are affected daily and the cash balance for each day is calculated. However, the balances in each of these accounts are transferred after designated intervals to the PGDA and PGDA is updated only periodically. A monthly closing cash balance for the PGDA is calculated, although with a lag. • The PAD transactions are transferred to PGDA Account by CAS,RBI Nagpur on the last day of each month, including for the month of March each year.. • Inter Governmental Transaction Account balances (IGTA) and Agency Bank transactions are closed and balances transferred to PGDA on 11th of succeeding month. For the month of March, these are transferred on 15th/16 April of the succeeding year. • The monthly closing cash balance in PGDA will be calculated only by the 11th of the succeeding month. In case of March, it is by the 15th/16th of April of the next year. A. 2) DETERMINATION OF DAILY CASH BALANCE The calculation of the daily cash balance (for determination of whether minimum cash balance as prescribed is maintained or not and WMA/OD is needed) will include the following transactions • The opening balance of the day which is the cash balance retained on the previous day • Only For 1st -10th /11th of the month # : IGTA and Agency Bank…...

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