Section 9 in The National Small Savings Fund (Custody and Investment) Rules, 2001
9. Investment.
- (1) Sharing of Net Collections between Centre and States.- Such percentage of the net collections under all the Small Savings Schemes as may be determined by the Central Government from time to time shall be invested in the Central Government and State Government securities:Provided that the investment in the securities of a particular State Government shall be based on the net collections in that State.(2)Investment of net collections in the securities of the Central and State Governments shall be made every month or at such other intervals as may be necessary.(3)The terms and conditions of the securities eligible for investment from National Small Savings Fund shall be decided by the Central Government.(4)The Secretary, Department of Economic Affairs, Ministry of Finance, of the Central Government or an officer authorised by him shall issue necessary sanction indicating the name of the State or Union territory and the amount of investment to be made in their securities and also the amount to be invested in the Central Government securities as and when necessary.(5)In case the investment is being made in the State Government securities, the Chief Controller of Accounts, Ministry of Finance shall on receipt of the sanction referred to in the sub rule (4), issue an advice on the Reserve Bank of India, Central Accounts Section, Nagpur authorising them to debit the Central Government account for the specified amount. Simultaneously, Chief Controller of Accounts will account for the amount of the advice issued in his books by debiting the National Small Savings Fund) account "(8007 - Investments of National Small Savings Fund) per contra credit to 8658 - Suspense Accounts/110/Reserve Bank Suspense - Central Accounts Office". On receipt of the confirmation of the transaction from Reserve Bank of India, Chief Controller of Accounts shall clear the Suspense Head by reversing the entry and crediting "8675 - Deposits with Reserve Bank."(6)In case the investment is being made in the Central Government securities, the Chief Controller of Accounts, Ministry of Finance on receipt of the sanction referred to in sub rule (4) above shall issue an advice on the Reserve Bank of India, Central Accounts Section, Nagpur authorising them to invest the amount in Central Securities. Reserve Bank of India, on completion of transaction, shall send a debit and credit scroll to Chief Controller of Accounts, Ministry of Finance. These scrolls shall be accounted for under "8007 - Investments of National Small Savings Fund and 6001 - Internal Debt/122 - Special Central Government Securities issued against net collections of small savings from the 1st April, 1999."(7)The normal procedure followed in the case of the Central or State securities shall also be applicable to the Special Securities.(8)Interest on Investments. - Reserve Bank of India shall collect the interest on the securities from the issuer on the due dates and credit the same to the account of Department of Economic Affairs, Ministry of Finance of the Central Government.(a)In case of the State Government securities, on receipt of this advice from Reserve Bank of India, the Chief Controller of Accounts shall debit in his books "8675 - Deposits with Reserve Bank by crediting 8008 - Income and Expenditure of National Small Savings Fund."(b)In case of the Central Government securities, on receipt of this advice from Reserve Bank of India, the Chief Controller of Accounts shall debit in his books "2049 - Interest Payments, 01 - Interest on Internal Debt, 121 - Interest on Investment in Special Central Government Securities issued against outstanding balances of small savings as on the 31st March, 1999 and 122 - Interest on Investment in Special Central Government Securities" issued against net collections of small savings from the 1st April, 1999 by crediting "8008 - Income and Expenditure of National Small Savings Fund," as the case may be.(9)On maturity of securities, Reserve Bank of India shall collect the amount due from the issuers of the securities and credit the same to the account of Department of Economic Affairs, Ministry of Finance of the Central Government. In the case of the State Government securities, Reserve Bank of India shall send necessary receipt scroll to Chief Controller of Accounts, Ministry of Finance, Department of Economic Affairs, who shall account for it under "8007 - Investments of National Small Savings Fund" with contra debit to "8675-Deposits with Reserve Bank". In the case of the Central Government securities, a credit and debit scroll would be sent which would be accounted for under "8007-Investments of National Small Savings Fund" and "6001-Internal Debt" respectively.(10)The amount received on maturity of the investments shall devolve on the Central Government and accordingly, they shall be invested in the Central Government securities. Such securities shall also be issued on the same terms and conditions as in the case of securities against the Central Government's share of net collections. Suitable accounting entries as mentioned in sub-rule 6 shall be made by Chief Controller of Accounts, Ministry of Finance.
