STANDARD OPERATING PROCEDURE

FOR
SETTLEMENT OF INTEREST ROUTED THROUGH STATE TREASURY TO CFI BY SNA

Public Financial Management System

Office of Controller General of Accounts
Ministry of Finance, Department of Expenditure
Government of India
TABLE OF CONTENTS
1 Introduction ............................................................................................................................... 3
2 Scope: ....................................................................................................................................... 3
2.1 Deposit of Interest earned from Holding /SNA & Other Account to Treasury ..................... 3
2.1.1 Agency DO: Deposit of Interest earned from Holding/SNA Account to Treasury ........ 3
2.1.2 Agency DO: Deposit of Interest earned from Other Account (non SNA) to Treasury .. 5
2.1.3 Agency DA: Approval of Deposit Interest earned from Holding / SNA & Other
Account as (Non SNA) to Treasury ............................................................................................ 8
2.1.4 Agency DO: Settlement of Interest Amount deposited to Treasury through Holding
/SNA & Other Account as (Non SNA) ..................................................................................... 10
2.1.5 Agency DA: Approval of Settlement Interest Deposited to Treasury (Holding/SNA &
Others as (Non SNA) ............................................................................................................... 12
2.2 User Type: PAO (Pay and Account Office) Manage Interest Settlement through Treasury 14

2.3 Final View the Settle Voucher (PAO) ............................................................................... 16

1 Introduction

Currently, PFMS does not have functionality for the settlement of interest amounts routed through
the State Treasury to the CFI by SNA. This new functionality will allow the SNA Agency to settle
interest amounts already submitted to the State Treasury using cheque or demand draft (DD). The
cheques/DDs are issued by the SNA Agency from either the Holding Account, SNA Account, or
other accounts.

Therefore, it is proposed to introduce a new feature in PFMS that will enable SNA Agency users
to settle interest amounts submitted via cheque or demand draft. This addition to PFMS will
streamline the settlement process, making it more efficient, transparent, and auditable, ensuring
the proper crediting of interest earnings to the CFI.

2 Scope:

This (SOP) applies to SNA Agencies responsible for managing the settlement of interest amounts
earned and remitted to the State Treasury through various accounts, including the Holding
Account, SNA Account, or other pre-SNA accounts/Non SNA. A new PFMS functionality allows
these users to settle payments made via cheque, demand draft (DD), or other modes.

For the Deposit of Interest Earned - Already Paid through Treasury, cheques or DDs are issued by
the SNA Agency from either the Holding Account, SNA Account, or Other Accounts. The
following process applies to the Holding Account; the same steps should be followed if the "SNA
Account" or "Other Account" is selected on the Deposit Earned page after the scheme selection.

2.1 Deposit of Interest earned from Holding /SNA & Other Accountas Non SNA to
Treasury
2.1.1 Agency DO: Deposit of Interest earned from Holding/SNA Account to Treasury
User: Agency DO
The User Navigates to “My Funds>Deposit Interest Earned” and the page “Deposit of Interest
Earned on Unspent balance for SNA Schemes” opens.
The user selects scheme Type as “State Govt. Schemes” and selects the SNA Scheme and
“Account Type” as Holding Account and clicks on “Show Interest Amount in Account” button.

The user will be able to see the following account types on the “Deposit Interest Earned on
Unspent balance for SNA/CAN/CSNA Schemes”

After, the system displays the Mapped Controller/ PAO/DDO details and the Remittance details
including the Centre Share / State Share ratio %. All pending interest vouchers are shown to
the user.
The user clicks the "Centre Share Amount/Total Interest Earned/State Share”checkbox,
selects the appropriate reason for editing, and enters the updated Centre Share value. Afterward,
the user selects the “Already Paid-Treasury” option and clicks the “Submit” button.

After submission, a pop-up message will appear for the DA user to approve. The user can then
click "OK" to proceed or "Cancel" to return.

Once the user clicks the "OK" button, a message stating "Record Submitted Successfully" will
appear, and the system will redirect to the "Deposit of Interest Earned on Unspent Balance for
SNA Schemes" page.

2.1.2 Agency DO: Deposit of Interest earned from Other Account (non SNA) to Treasury
User Role: Agency DO
The Agency DO navigates to “My Funds >Non SNA/CAN Interest Earned”, which opens the
page “Entry of Non SNA/CNA Interest Earned.”
The user selects scheme Type as “State Govt. Schemes” and selects the SNA Scheme and
“Account Type” as “Other Account as (Non SNA)” and clicks on “Show Interest Amount in
Account” button.

User displays the Mapped Controller/ PAO/DDO details and the Remittance details including
the Centre Share / State Share ratio %.Afterward, theDO will add all pending interest
vouchers, which are then shown to the user.
The Status will display “Interest Added successfully” The user then clicks the "Centre Share
Amount/Total Interest Earned/State Share”checkbox, selects the appropriate reason for
editing, and enters the updated Centre Share value. Afterward, the user selects the “Already
Paid-Treasury” option and clicks the “Submit” button.

After submission, a pop-up message will appear for the DA user to approve. The user can then
click "OK" to proceed or "Cancel" to return.
Once the user clicks the "OK" button, a message stating "Record Submitted Successfully" will
appear, and the system will redirect to the "Deposit of Interest Earned on Unspent Balance for
SNA Schemes" page.

2.1.3 Agency DA: Approval of Deposit Interest earned from Holding / SNA &Other Account as
(Non SNA) to Treasury
User Role: Agency DA
The Agency DA navigates to “My Funds > Manage Interest Earned”, which opens the page
“Manage Interest Earned on Unspent Balance for SNA Schemes.”

The user selects the scheme type, scheme, account type, and sets the status to “Submitted” before
clicking the “Search” button. This action displays the vouchers submitted by the Agency DO,
including the actual Centre Share amount, for approval.
The system displays all approval requests with a status of “Submitted.” The user selects the
scheme hyperlink, which opens a pop-up for approval or rejection, with the payment mode set to
“Already Paid-Treasury” through Holding Account and SNA Account.

The system displays all approval requests with a status of “Submitted.” The user selects the
scheme hyperlink, which opens a pop-up for approval or rejection, with the payment mode set to
“Already Paid-Treasury” through “ Account as (Non SNA)”.

When the user clicks the “Approve” button, a message stating “Request has been Approved
Successfully” is displayed, and the status is updated to “Approved.” In this case, no remittance
hyperlink is enabled, as the user has already made the payment to the Treasury via Cheque,
Demand Draft, or another method.
After clicking the "Approve" button, the user will be redirected to the "Manage Interest Earned on
Unspent Balance for SNA Schemes" page, and a pop-up message will appear stating, “Request
has been approved successfully”

2.1.4 Agency DO: Settlement of Interest Amount deposited to Treasury through Holding /SNA
&Other Account as (Non SNA)
User Type: Agency DO
The User Navigates to “Interest Settlement>Interest Deposited to Treasury” and the
page “Settlement of Interest Deposited through State Treasury” opens.

The user selects the Scheme Type, Scheme, and Account Type as “Holding Account,” along
with the Bank Account and From Date. The system automatically selects the To Date, and the
Payment Mode is auto-selected as “Already Paid-Treasury”.
The user selects the voucher number against which settlement details need to be entered. System
the displays the “Settle Challan” sectionand the user select the deposit “ID generated date”to
“To- date”

Based on the voucher number the data will populated on the page. The system auto populate the
voucher number and the Interest amount, Payment nature, Paid By and Scenario. The user enters
the following fields:- Instrument Type, Instrument Number, Instrument Amount, Instrument Date,
IGA Advice, Number (Mandatory Field), IGA Advice Amount (Mandatory Field), IGA Advice
Date (Mandatory Field), Clearance Memo (Mandatory Field), Clearance Memo Date
(Mandatory Field).

Note: - Same IGA advice number should not be used in same SLS.
The user must upload a PDF file of up to 4 MB to submit the voucher to “Data Approver”

The user clicks on “Submit for Approval”, enters remarks pop up button, and submits the details
to Agency DA for approval. The Status is updated as “Submitted”.

If user click the “Reset” button, the page will refresh and user will be able to fill the details again.
 Once the user clicks on “OK” button then the message is reflected on the screen “The
transaction details has been saved successfully with the voucher number:-[voucher
number]”.

2.1.5 Agency DA: Approval of Settlement Interest Deposited to Treasury

(Holding/SNA&Others as (Non SNA)
User: Agency DA
The User Navigates to “Interest Settlement>Manage Interest Deposited to Treasury” and the
page “Manage Interest Deposited through State Treasury” opens.

The user selects the Scheme type, Scheme, Account Type and the Bank Account and selects
the From Date; the system automatically selects the To Date and sets the status to “Submitted.”
The user clicks the "Search" button, and the system displays the vouchers submitted for approval
by the Agency DA in a grid format below.
The user selects the voucher whose details are to be approvedand Clicks on “Approve/Reject”
button to “Approve”the Voucher. If the User “Reject”the voucher then it will be back to “Data
Operator”

Note:Same IGA advice number should not be used in same SLS

The user enters the remark and clicks on “Submit to PAO”to submit the voucher, or clicks the
"Reject" button to return the treasury amount to the “Data Operator.
 In case of Approval the user enters the comments for the PAO to Settle the Interest Deposited to
Treasury, clicks on “Submit to PAO” button in the pop up, and the Status is updated as “PAO-
Submitted”

In case of Rejection, the comments are meant for the Agency DO user to correct the details
submitted. i.e., IGA Advice No, IGA Advice Amount etc. The status is updated to “Returned”
and sent back to the Agency DO.

2.2 User Type: PAO (Pay and Account Office) Manage Interest Settlement through
Treasury
User: PAO
The User Navigates to “Interest Settlement>Manage Interest Deposited to Treasury”

The page “Manage Interest Settlement through to Treasury” opens

The user selects the Financial Year, CSS Scheme, State and SLS Scheme and Settlement
Scenario and the Status as “PAO Submitted” and clicks on “Search” button.
The system displays the Interest details submitted by the Agency. The user selects the record and
the system displays the settle challan section.

The user need to click the “Approve Interest Settlement” button to approve the settlement if the
user will click on the “Return to Agency” button it will return to agencyDO.

If the IGA amount is less than center amount the display popup message will be shown [“IGA
advice amount is mismatched with the center Amount” do you still want to continue? Click
“OK” to continue and cancel to go back].

In case of approval, the user enters the comments for the PAO to Settle the Interest Deposited to
Treasury, clicks on “Approved to PAO” button in the pop up, and the Status is updated as “PAO-
Settled”
 Then the user select to the settled option and click on the “Search” button and the message will
display on screen “Treasury settlement has been approved successfully”.

2.3 Final View the Settle Voucher (PAO)

The User Navigates to “Interest Settlement>Manage Interest Deposited to Treasury” and the
page “Manage Interest Deposited through Treasury”opens.

The page will display to “Manage Interest Settlement through Treasury” The user fill the
“Financial Year, CSS Scheme, State, SLS scheme and Status and click on the Search button