Section 16 in The M.P. Municipal Accounts Rules, 1971
16.
Security furnished in cash by a municipal servant or a contractor may be converted, at the cost of the depositor, into any of the interest bearing forms of security mentioned in items (ii) to (v) of the preceding rule, provided :-(i)that the depositor has expressly requested in writing that this be done, and(ii)that the acceptance of the new form or forms of security is permissible under the rules and under the terms of the agreement or bond.Note. - (1) Cash actually received or recovered may be converted into an interest bearing form of security even when it forms part of a deposit which is being paid in instalment to and has not been realised in full.(2)Percentage deductions made from a contractor's bills held as security for the due fulfilment of a contract should not be converted into any other form of security.
