Panchayat:Repo18/Law Manual Page0579
THE KERALA PANCHAYAT RAJ (INVESTMENT AND WITHDRAWAL OF PANCHAYAT FUND) RULES, 1996
S.R.O. No. 368/96.-In exercise of the powers conferred by Clause (xii) of sub-section (2) of Section 254 of the Kerala Panchayat Raj Act, 1994 (13 of 1994), the Government of Kerala, hereby make the following rules, namely:
RULES
1. Short title and commencement.--
(1) These rules may be called the Kerala Panchayat Raj (Investment and Withdrawal of Panchayat Fund) Rules, 1996.
(2) They shall come into force at once.
2. Definitions.
In these rules unless the context otherwise requires - (a) 'Panchayat means a Village Panchayat, a Block Panchayat or a District Panchayat;
(b) 'President means the President of a Village Panchayat or 'a Block Panchayat or a District Panchayat, as the case may be;
(c) 'Secretary' means the Secretary of a Village Panchayat or a Block Panchayat or a District Panchayat, as the case may be.
3. Lodging of Panchayat Fund,-
All monies received by the Panchayat shall be lodged in the nearest Government Treasury, or in the Post Office Savings Bank, or in the Co-operative Bank approved by the Registrar of Co-operative Societies or in the Nationalised Bank.
4. Investment of surplus Fund of Panchayat -
A Panchayat may invest any surplus fund in the Kerala Government Securities, securities issued by the Government of India including National Savings Schemes and Treasury Deposit Accounts or in the Co-operative institutions which are not below 'B' in audit grading: Provided that for premature withdrawal of such investments, the Panchayat shall obtain prior sanction of the officer authorised by the Government for this purpose and the officer shall before giving such sanction take into account the financial difficulties of the Panchayat concerned, at that time.
5. Withdrawal of money from the Panchayat fund.-
(1) The Secretary shall obtain written order of the President for withdrawing money from the Panchayat fund.
(2) The Secretary shall put his signature in all cheques or documents to withdraw money from the Panchayat fund.
(This does not form part of the Notification, but is intended to indicate its general purpose.) Clause (xii) of sub-section (2) of Section 254 of the Kerala Panchayat Raj Act, 1994 (13 of 1994) empowers the Government to make rules regarding the lodging, investment and the manner of withdrawal of Panchayat money. Government have decided to make rules for the above purpose. This Notification is intended to achieve the above purpose.