Section 20(b) in Tamil Nadu Town Panchayats (Establishment) Rules, 1988
(b)The Security compensatory allowance shall be paid only to those who tender their security deposit in cash; the security deposit received in other forms like bank guarantees, N.S.C., N.D.C. bond, etc., need not be accepted and the security compensatory allowance be allowed at the rates prescribed from the date on which full amount of security deposit is, obtained in cash.
