7th Pay Commission Cash and Treasury Allowance approved – Orders issued by Govt

Govt approves grant of 7th Pay Commission Cash and Treasury Allowance to Central Government Employees who are handling cash in the course of their official work

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 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 01.07.2017.

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

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