IX (232-266)

🆀CHAPTER IX 

LOANS AND ADVANCES

General–Main Classes of Loans and Advances

232. Loans and advances made by Government fall under the following main heads:—

 Loans bearing interest— 

1 Loans to local funds, private parties, etc. 

2 Loans to Government servants.

Advances not bearing interest—

3 Advances repayable. 

4 Permanent advances. 

🆀Loans bearing interest made by Government fall under the main heads :

(A) Loans to Local Funds

(B) Loans to private parties 

(C) Loans to Government servants 

(D) All the three above 

Correct Answer:-Option: (D) All the three above 

🆀What are the two heads under which advances not bearing are interests made by the Government ?

(A) Advances for cultivation and advance to Govt. servants

(B) Advances repayable and permanent advance

(C) Permanent advance and temporary advance

(D) Onam advance and T.A. advance

Correct Answer:-Option: (B) Advances repayable and permanent advance

1. LOANS TO LOCAL FUNDS, PRIVATE PARTIES, ETC. 

233. This head covers all interest-bearing loans made by the Government except those made to Government servants, and includes inter alia the following classes of loans : 

  (a) Loans to Port Trusts and other Port Funds. 

  (b) Loans to Municipal Corporations and Municipalities. 

  (c) Loans to Statutory Corporations and Boards. 

  (d) Loans to District and other Local Fund Committees. 

  (e) Loans to Co-operative Institutions and Banks.

  (f) Loans and advances under Community Development Programmes.

  (g) Loans and advances to displaced persons. 

  (h) Advances to cultivators. 

  (i) Loans to Panchayat Raj Institutions. 

  (j) Miscellaneous loans and advances. 

Note:— Heads of Departments and other Government Servants may sanction loans of classes (e) to (j) [other than Government Companies/ Corporations] to the extent of the powers delegated to them and the appropriations placed at their disposal (See Book of Financial Powers). The Government have not delegated to any authority any power to sanction loans of the other classes falling under this head and they are, therefore, sanctioned only by the Government. 

All the departmental officers operating the heads of account under !F. Loans and Advances should specify invariably in the sanction, the major, minor, sub and detailed head of account to which the loans sanctioned by them are to be debited. 

General Instructions 

234. The following general instructions apply to all loans falling under this head and the conditions on which the loans are granted should be framed in accordance with them :—

(1) Before considering a loan application, the following requirements should be fulfilled:–

(i)There should be adequate budget provision. 

(ii) The grant of the loan should be in accordance with the approved Government policy and accepted pattern of assistance. It is important that, in view of the shortage of financial resources, the scope of financial assistance in the shape of loan should not be expanded to include new types of loans or objects for which loans are not granted ; nor should the accepted pattern of assistance be varied. 

(iii) The applicant should be asked to furnish the following materials and information:— 

(a)Copies of profit and loss (or income and expenditure) accounts and balance sheet for the last 3 years.

(b)The main sources of income and how he proposes to repay the loan within the stipulated period. 

(c)The security proposed to be offered for the loan together with a valuation of the security offered by an independent authority and a certificate that the assets offered as security are not already encumbered. 

(d)Details of loan or loans taken from the Central Government or State Government in the past indicating the amount, purpose, Ministry or State from which loan was taken, rate of interest, stipulated period of repayment, date of original loan and amount outstanding against the loan(s) on the date of the application and the assets, if any, given as security. 

(e)A complete list of all other loans outstanding on the date of application and the assets given as security against them.

(f)The purpose for which the loan is proposed to be utilised and the economics of the scheme.

Note:— Where the loan is to be given to an institution on the strength of a guarantee given by the Trust managing it, similar information should be called for in respect of the Trust also. 

On receipt of the above information, confidential enquires should be made from the other concerned Governments from which the party has taken loans to judge his performance in regard to these previous loans. If the replies indicate that the performance was not satisfactory, the loan should be refused. In other cases it should be satisfied from the information supplied that the financial position of the party is sound and he can be reasonably expected to repay the loans in the prescribed period, either from the income from the specific scheme for which the loan is sought or from his general income. It must be noted that it is not always sufficient to have what may be considered as adequate security if the financial position of the party is not sound. In the event of default it may be difficult for Government to enforce the sale of the asset offered as security, especially, if it is not an earning asset. It is, therefore, important to see that both the criteria are satisfied.

 It might become necessary to obtain information periodically regarding the financial position of the applicant after the grant of a loan. For this purpose, a clause should be inserted in all loan agreements enabling Government at any time to call for the accounts of the applicant relating to any accounting year with power to depute an officer, specially authorised for this purpose, to inspect the applicant’s books, if necessary.

Loans should not be given at concessional rates of interest. If any concession is considered necessary, it should be given as a straight-forward grant unless a policy regarding the grant of such a concession has already been laid down by Government.

(2) Interest:— Interest should be charged at the rate prescribed by the Government for the class of loans concerned. It should be charged for the day of advance, but not for the day of repayment. For a period of less than a complete half year, the interest should be calculated as  (the number of days/365) x the yearly rate of interest. 

For a period of more than a half year but less than a year, half the yearly interest should be charged in respect of the completed half year together with interest for the remaining period of less than a half year calculated as above. In the case of “Advances to cultivators”, however the interest for a period of less than a year should be calculated by taking the calendar month as the unit, periods of fifteen days or more in a calendar month being treated as one calendar month and periods of less than fifteen days being ignored.

(3) Repayment:— (a) The borrower should be required to repay the loan in full within a specific term, which should be as short as possible, by paying the appropriate fixed instalments not later than the dates prescribed by the Government or other competent authority.  The term should run from the date on which the drawal of the loan is completed, unless the Government or other competent authority declare the loan closed with effect from an earlier date, in which case it should run from that date. The amount of each instalment to be repaid by the borrower should be rounded to the nearest rupee except in the case of the last instalment where the amount will be rounded to the nearest multiple of 5 paise. 

(b) If a borrower draws a loan in instalments and is required to repay it by half-yearly instalments for which no specified half-yearly dates are fixed when the loan is sanctioned, he should be required to make the first regular half-yearly payment six months after the date from which the term of the loan runs, and simple interest only should be charged on that date for the period prior to it. 

If specified half-yearly dates are fixed for the payment of the half-yearly instalments when the loan is sanctioned, the borrower should be required to make the first regular half-yearly payment on the second of those half-yearly dates after the date from which the term of the loan runs, and simple interest only should be charged on the first half-yearly date. For example, if the drawal of a loan is completed on the 31st March and the instalments are payable half-yearly on the 30th June and 31st December, the first regular half-yearly instalment should fall due on the 31st December following, and simple interest only should be charged on the 30th June.

If a borrower unduly delays the completion of the drawal of a loan, the matter should be reported to the Government or other competent authority with a recommendation that the loan be declared to have been closed as from a suitable specified date. The Accountant General watches the recoveries relating to each individual loan included in any of the following classes of loans mentioned in Article 232.

Items (a), (b), (c), (d), (i) and the portion of (j) relating to loans to individuals and to local bodies to cover revenue deficits.

He should report to the Government any undue delay in completing the drawal of any such loan payable in instalments, whether dates have been fixed for the drawal of instalments, or not. The departmental authorities concerned should take necessary action in regard to undue delay in completing the drawal of any other loan payable in instalments.

 This instruction applies mutatis mutandis to loans repayable by instalments other than half-yearly instalments.

(c)Any instalment paid before its due date may be taken entirely towards principal, provided it is accompanied by payment towards interest due up to the date of actual payment of instalment, if not the amount of the instalment will first be adjusted towards the interest due for the preceding and current periods and the balance, if any, will alone be applied towards the principal. If, however, the payment of the instalments is in advance of the due date by 14 days or less, interest for the full period (half year or full year as the case may be) will be payable. 

(d)The instalments towards the repayment of loans and advances granted by the Government which fall due on public holidays should, in cases not otherwise specifically provided for, be paid into the treasury on the working day immediately preceding the holiday. This will not affect payments which are made by book adjustments. 

(e) All officers who are responsible for the maintenance of loan registers and for watching the recovery of the loans will issue warning notices (in Form No. 25) to the loanees sufficiently in advance (say about one month prior to the due date) indicating the number of the instalment amount due (principal and interest may be shown separately) the correct head of account under which principal and interest should be paid, arrears, if any, under principal and interest etc. with a request to pay the dues before the due date. Omission to give the above warning will not give the loanees any claim to exemption from the consequences of default in the repayment of principal or interest thereon.

🆀All officials responsible for the maintenance of loan registers and for watching the recovery of loans will issue………....to the loanees sufficiently in advance of the due dates for payments. 

(A) Warning notice

(B) Demand notice 

(C) Payment notice

(d) Reminder notice 

Correct Answer:-Option:(A) Warning notice

(4) Defaults in payment.— 

(a) The Accountant General should report promptly to the Government any failure by a borrower to pay on the due date a payment due under a loan included in one of the classes of loans which he watches individually – See sub-clause (b) of clause (3) above. The departmental authorities should takes the necessary action immediately in regard to any default in making a payment due under any other loan. They should bear in mind the fact that a loan repayable with interest by equal periodical instalments will not really be fully discharged by the instalments unless each is paid punctually on the due date.

(b) The authority which sanctions a loan should ordinarily lay down in the order of sanction the rate of penal interest to be levied on all overdue instalments of interest or principal and interest. Penal interest at the rate of 2.5 per cent per annum over and above the normal rate of interest would be chargeable whether there is stipulation to the above effect in the order sanctioning the loan or not.

Penal interest at the above said rate will be levied in respect of overdue instalments of interest or principal and interest and also in the following cases on non-compliance with the requirement of rules :

(i)Retention of the loan amount unutilised by the loanee beyond the normal admissible period; 

(ii)Retention of sale proceeds of motor car/scooter/motor cycle purchased with Government loan beyond the normal admissible period; 

(iii)Non-utilisation of loan for the purpose for which it was sanctioned even when the loan is repaid to Government in lump within the normal permissible date;

(iv) Delay in the execution of mortgage bond after purchase of house-site/house and site/motor conveyance; 

(v) Delay in the production of utilisation certificate as well as completion certificate; 

(vi) Delay in taking comprehensive insurance cover from the State Insurance Department and production of insurance policies in respect of motor car/motor-cycle/scooter advances. 

(vii) Non-compliance with the requirement of other rules relating to house construction advance/motor conveyance advances. 

In all the cases mentioned above, penal interest at the rate of 2.5% per annum, over and above the normal rate of interest would be chargeable on the amount outstanding inclusive of interest accrued till the recovery is completed if the default in complying with the requirements of rules is not regularised earlier by the competent authority.

 These orders shall be applicable to loans sanctioned on or after 27-9-1975] 

🆀 What is the rate of penal interest for all overdue installments of loan? 

(A) 2 ½  %

(B) 2% 

(C) 3% 

(D) 3 ½ %

Correct Answer:-Option: (A) 2 ½  %

(5) Modification of original terms.— Every borrower should be required to fulfil strictly the terms settled when his loan was sanctioned. No Government servant should recommend to the Government or other competent authority a charge in the original terms for the benefit of a borrower unless there are very special and exceptional grounds for doing so. 

Loans to Municipalities and to District and other Local Fund Committees 

235. The detailed procedure to be followed in connection with borrowing by local authorities both from Government and otherwise is laid down in the Kerala Local Authorities Loans Rules, 1965 and these rules will apply to loans to Municipalities and other Local Authorities. Rules relating to the execution of work by the Public Works Department on behalf of local bodies out of loan funds sanctioned by the Government are contained in Articles 31 to 33 of the Kerala Account Code, Vol. III and Chapter 15 of the Kerala Public Works Account Code. 

Advances to Cultivators 

236. Advances to cultivators include— 

  (i)advances made under the rules issued under the Kerala Agriculturists’ Loans Act, 1961 (Act 27 of 1961) ; 

  (ii) any other advances made to cultivators in connection with land revenue, agriculture or famine under any Act of the Legislature or under any order of the Government.

 

Miscellaneous Loans and Advances 

237. Loans (other than loans to Government servants) which do not fall strictly under any of the other classes mentioned in Article 233 come under this head, e.g., loans to Government sponsored and other industrial concerns, loans for the development of large scale, small scale and cottage industries including handloom and coir industries, loans to Kerala Financial Corporation, loans for Low Income and Middle Income Group Housing, Colonisation, etc. The grant and repayment of these loans are governed by the general principles and instructions laid down in Article 234, and the detailed orders issued by Government from time to time. A Government servant who is concerned with the sanction or recovery of any category of loans falling under this head should keep an up-to-date file of the orders in force regarding them. 

In the case of a fully owned Government company/Corporation which receives a loan from Government no formal agreement is necessary at the time of sanctioning the loan. Hypothecation of its assets is also not required in such cases. It should, however, execute a written undertaking in Form No. 57 before the drawal of the amount of the loan. The stamp duty chargeable on the undertaking shall be borne by the Government. The countersigning authority should record on the bill for the drawal of the amount of the loan a certificate to the effect that the necessary undertaking duly executed by the loanee has been obtained. 

Loans to Government Servants–General classes of Loans 

🆀  Is it necessary under the rules to execute a formal agreement and hypothecation of its assets when a loan is granted by the Government to a fully owned Government Company/Corporation ? 

(A) Yes, It is necessary 

(B) An agreement alone is necessary

(C) No agreement or hypothecation of its assets. But a written undertaking in Form No. 57 is enough before the drawal of the amount of the loan 

(D) Hypothecation of assets alone is necessary

Correct Answer:-Option:(C)

🆀 Under which category, loans for development of large scale, small scale and cottage industries come?

(A) Advance to Cultivators

(B) Miscellaneous loans and advances

(C) Loans to Panchayat Raj Institutions 

(D) Loans and advances under community development programmes

Correct Answer:- Option: (B)

238. The following interest bearing advances are included under this head:— 

(A) Advances for the purchase of motor conveyances

(B) House building advances

(C) Cycle Advance 

(D) Marriage Advance

(E) Advances to Junior I.A.S. Officers for the purchase of furniture 

(F) Other advances

The Government grant these advances to their servants in accordance with the Rules contained in Articles 239 to 246. 

🆀 The interest bearing advance given to Government servants does not include: 

(A)House Building Advance 

(B) Cycle Advance 

(C) Marriage Advance

(D) Onam Festival Advance

Correct Answer:- Option:  (D)

🆀Which of the following is an interest free advance? 

        A:-Motor cycle advance 

        B:-Advance for officers deputed for training 

        C:-Advance for motor cycle 

        D:-Advance for house building 

        Correct Answer:- Option- B:-Advance for officers deputed for training 

🆀Advance may be given to purchase furniture 

 A:-All Govt. Servants 

 B:-All Gazetted Govt. Servants 

 C:-All Non-Gazetted Govt. Servants 

 D:-Junior IAS officers 

 Correct Answer:- Option-D 

🆀Which of the following is an interest bearing advances? 

        A:-Marriage advance 

        B:-House building advance 

        C:-Cycle advance 

        D:-All of the above 

        Correct Answer:- Option-D 

General Principles 

239. The following general principles and conditions apply to these advances:—

(1) No authority may sanction any advance if it would involve a breach of a standard of financial Propriety (Article 40).

(2) Government servants to whom advances may be granted.—As a general rule, no advance should ordinarily be granted to any Government servant unless he is in permanent service since the pay of a non-permanent Government servant is not adequate security for the advance. Advances may, however, be granted in accordance with the terms of these rules to officiating or temporary 

Government servants without any substantive appointment under general or special sanction of the Finance Department, if the circumstances admit of the provision of adequate security. 

In all such cases, a certificate shall be furnished that the Government servant to whom the advance is sanctioned will continue in service during the period of repayment of the advance.

 (3) Interest.— Simple interest should be charged at the rates fixed by Government from time to time and current at the time of granting the advance. The rates thus fixed for each kind of advance are given in the schedule below :¬

* SCHEDULE

	Name of Advance	Normal rate of simple interest per annum	Period current
1	Advance for the purchase of Motor Car	4.5 per cent	up to 22-10-1964
		5  ”	from 23-10-1964
		5.5  ”	from 1-4-1965
		5.75 ”	from 1-4-1969
		6 ”	from 1-4-1974
		7 ”	from 7-8-1980
		9 ”	from 1-4-1982
		9.5 ”	from 1-4-1984
		10 ”	from 1-4-1985
		12 ”	from 1-4-1994
		15 ”	from 1-4-1997
2	Advance of purchase ofScooter/motor Cycle	4.5 ”	Up to 22-10-1964
		5 ”	from 23-10-1964
		5.5 ”	from 1-4-1965
		5.75 ”	from 1-4-1969
		6 ”	from 1-4-1974
		7 ”	from 7-8-1980
		9 ”	from 1-4-1982
		10 ”	from 1-4-1985
		11 ”	from 1-4-1994
		11.5 ”	from 1-4-1997
3	Advance for the purchase of Cycle	4.5 "	Up to 22-10-1964
		5	from 23-10-1964
		5.5	from 1-4-1965
		5.75	from 1-4-1969
		6	from 1-4-1974
		7	from 7-8-1980
		9	from 1-4-1982
		10	from 1-4-1985

                   

(4) Repayment.— (a) The principal of an advance should be recovered in equal monthly instalments by compulsory deductions from the pay of the borrowing Government servant, beginning with the first payment of a full month’s pay after the advance is drawn unless otherwise provided in the rules governing particular advances, provided that a borrower may repay two or more instalments at the same time. The amount of the monthly instalments other than the last should be fixed in whole rupees and in the last instalment the remaining balance including any fraction of a rupee should be recovered. The maximum number of monthly instalments in which the sanctioning authority may permit the principal and interest of an advance of each kind to be repaid is indicated in the concerned Articles.

 The recovery of interest should begin with the pay of the next month after the repayment of the principal is completed. The interest should be calculated on the balance outstanding on the last day of each month. If the total amount of interest to be charged does not appreciably exceed the amount fixed for the equal monthly instalments for recovery of the principal, it should be recovered in a single instalment; otherwise it should be recovered in instalments not appreciably exceeding that amount.

(b) Unless otherwise provided in the rules applicable to advances of a particular kind, the amount of the monthly instalments to be recovered on account of an advance should not be changed by reason of the borrowing Government servant’s going on any kind of leave with leave salary. Deductions shall be made from the subsistance allowance on account of repayment of loans and advances taken from Government at such rates as the Head of the Department deems appropriate. The whole amount due should, however, always be completely recovered within the period originally fixed, unless for exceptionally strong reasons, the Government sanction a special extension of the period. 

(c)In the case of officers who are due to retire before the expiry of the period prescribed for repaying a loan, the instalments of repayment should be so fixed as to have the loan (principal and interest ) fully discharged before their retirement. 

(d)No recovery of the advances will be made during the period of leave without allowances and the repayment will be postponed in such cases to that extent, provided however, that the principal and interest are fully repaid before the officer retires from service. 

(e) When recovery is made on account of an interest bearing advance, a schedule of recovery in Form T .R. 106, (prescribed in the Kerala Treasury Code, Vol.II), separately for each type of such advance, shall be attached to the bill in which the recovery is made. In the case of such recoveries from the claims of non-gazetted Government Servants, the drawing officer shall certify on the recovery schedule attached to the bill for the month of February encashed in the month of March every year that the balances shown as outstanding therein have been accepted as correct by the Government servants concerned. [See para 3 of Rule 163 (1) of the Kerala Treasury Code]. 

The Accountant General will send intimations to the Drawing Officers/ Gazetted Officers that the balances shown by them in the recovery schedules attached to the bills for the month of February, as accepted, agree with those worked out in his books or point out discrepancies, if any, for rectification.

 

🆀  The interest of loan sanctioned to a Government servant will be recovered: 

(A) From the first month of salary after disbursing loan 

(B) With the principal amount 

(C) With the pay of the next month after the repayment of the principal is completed 

(D) None of the above

Correct Answer:- Option:(C)

🆀 Loans earning interest, made by the Government is :

(A) Permanent advance 

(B) Pay advance 

(C) T.A. advance

(D) Loans to Government servants 

Correct Answer:- Option:(D)

239A. All departmental officers who are responsible for disbursement and recovery of the following advances should maintain proper registers to record transactions thereunder in respect of Non-Gazetted Officers. 

(i) Interest-bearing advances of comparatively small magnitude recoverable in less than 60 instalments (e.g. Cycle Advance, Warm Clothing Advance, Mosquito Net Advance etc.)

(ii) Interest-free advances of comparatively small magnitude recoverable in less than 60 monthly instalments (e.g. advances of Pay and T.A., Festival Advance, Onam Advance etc.)

🆀Which is not an interest free advance? 

        A:-Mosquito net advance 

        B:-Advance for medical purpose 

        C:-Travelling allowance advance 

        D:-Marriage advance 

        Correct Answer:- Option-D 

🆀Which of the following is an interest free advance? 

        A:-Motor cycle advance 

        B:-Advance for officers deputed for training 

        C:-Advance for motor cycle 

        D:-Advance for house building 

        Correct Answer:- Option- B:-Advance for officers deputed for training 

🆀Interest free advance of comparatively small magnificent recoverable or less than ________ installments. 

 A:-30 

 B:-40 

 C:-12 

 D:-60 

 Correct Answer:- Option-D

 Each register should contain full particulars regarding drawals, recoveries and transfers. The amount of advance drawn in a bill date of encashment and the voucher number, the name of treasury and the names of the individual officers to whom the advances drawn were paid should be entered in the register in respect of each debit item. When fresh debits are received through last pay certificates that should also be entered in the register giving full particulars of the transfer. The recoveries effected  every month should be noted against the concerned individuals in the relevant monthly columns giving reference to the bill in which the recoveries were effected. When a person to whom advance was paid is transferred to another office, the particulars of the transfer should be noted in the registers and his outstanding dues clearly indicated in the last pay certificate issued to him.

A. ADVANCES  FOR THE PURCHASE OF  
MOTOR  CONVEYANCES 

(i) General 

240. No authority subordinate to the Government has power to sanction any advance for the purchase of motor conveyance.

🆀 No authority subordinate to ....................... has power to sanction any advance for the purchase of the motor conveyance

(A) Government

(B) District Collector 

(C) Tahsildar

(D) Head of Department

Correct Answer:- Option:(A) Government

 Procedure for Sanction 

241. Every application for an advance, *[from Gazetted Officers] unless otherwise directed by Government, should be referred to the Accountant General for remarks as to whether the grant of the advance would involve any departure from the ordinary rules and what amounts, if any, are outstanding against the applicant on account of advances of all kinds. *[The applications from Non-Gazetted Officers shall be verified by the Heads of Officers/Departments concerned. Date of effect 4-8-1980.] The sanctioning authority should specify in the sanction order a date by which the advance should be drawn, which should be within one month of the date of the order sanctioning it and in any case not later than the close of the current financial year in which it was sanctioned. If the advance is not drawn within this period, the sanction will lapse. 

(ii) Advances for the Purchase of a Motor Car 

242. These advances are sanctioned subject to the provisions of Articles 239, 240 and 241 and the following rules:— 

(a) Eligibility of Government servants for an advance.— A Government servant is not eligible for an advance unless the Government consider that it is desirable in the interest of the public service that he should use a motor car in the discharge of his duties.

 Only Government servants drawing a pay of not less than ** ` 2,640 with effect from 1-4-1990 per mensem and holding posts which entail duties involving touring or to whom the Government have granted a conveyance allowance for the maintenance of a motor car for the discharge of their duties are eligible for the advance. # But those officers having less than two years of service for superannuation on the date of receipt of application in the Finance Department will not be eligible for Motor Car Advance. 

Note:— For the purposes of these rules, Officers who have to move about frequently within the limits of the Trivandrum City may be regarded as touring officers.

(b) Conditions under which an advance is granted.— The grant of an advance is subject to the following conditions:— 

(1) A Government servant is not eligible for an advance on account of a motor car which he has already taken delivery unless the application is made within three months from the date of purchase of the conveyance. 

Note:— If a Government servant on duty who has applied for an advance from the Government has a favourable opportunity for buying a suitable car he may take delivery of it on payment of the whole or any portion of its purchase price, to be recouped later from the advance already applied for,  if and when the Government sanction it. 

(2)The amount to be advanced to an officer shall not exceed ₹40,000 (Rupees Forty thousand only) with effect from 1-4-1983 or 20 months substantive pay or the amount applied for, or the anticipated price of the car, whichever is least.]  Government may, however, base the amount at their discretion on the officiating pay, instead of substantive pay, when an officer is acting  in an appointment or in a grade from length of time during the period of repayment. If the actual price paid is less than the advance taken, the balance should be refunded to Government forthwith. 

Pay in respect of provisional appointments may be treated as officiating pay for this purpose and taken into account for calculating the eligible amount of advance, provided such appointments have been continuing for a period of twelve months and where Government consider that there is little chance of the officer being reverted to a lower post. 

Note 1:— The term actual price includes the price of such items which have necessarily to be purchased along with the motor conveyance (or in other words, on the purchase of which the purchaser has no choice), e.g., spare wheel, tyre and tube, pillion seat in a scooter. Where, however, certain accessories (e.g., radio in a car, plastic covers) are purchased which are not essential and which the customer purchases of his own volition, the term ‘actual price’ will not cover their cost. Insurance and registration charges which are incurred for running the motor vehicle cannot be included in the actual price of the vehicle. 

Note 2:— Special pay treated as coming under class II of Appendix IV, Kerala Service Rules will also be taken into account for fixing the eligibility of an officer, provided the officer is likely to draw the special pay during the period of repayment of the advance. 

Note 3:—  D.P. will be reckoned for the purpose of calculating the amount of advance admissible under these rules. 

(3) When the Government sanction an advance to a Government servant who is on leave or is about to proceed on leave, the advance may be drawn at any time during the currency of the leave if he receives intimation regarding the availability of the conveyance while he is on leave. If in any such case the restriction in Article 241 operates the sanction order may be renewed. 

(4) Except when an officer proceeds on leave for a period of four months and over or retires from service, or is transferred to an appointment the duties of which do not render the possession of a motor car necessary, he may not without the Government’s previous sanction, sell a car purchased with the aid of an advance which, with the interest on it in accordance with Article 239 (3) and (4)  has not been fully repaid. If a Government servant wishes to transfer such a car to another Government servant who performs duties of a kind that renders the possession of the conveyance necessary the Government may permit the transfer of the liability attaching to the car to the latter Government servant, provided that he records a declaration that he is aware that the conveyance transferred to him remains subject to the mortgage bond and that he is bound by its terms and provisions. 

(5)Whenever a Government servant sells a car before completing the repayment of an advance received from the Government for its purchase with the interest on it in accordance with Article 239  (3) and (4), he should apply the sale proceeds so far as may be necessary, towards the repayment  of the outstanding balance due to the Government. If, however, the borrower sells the car only in order to purchase another car the Government may permit him to apply the sale proceeds towards such purchase subject to the following conditions:— 

(i)If the amount outstanding exceeds the cost of the new car, the Government servant should repay the excess to the Government immediately. 

(ii) the Government servant should continue to repay the amount outstanding by the monthly instalments already fixed; and

(iii) the new car should be insured or mortgaged to the Government as required by these rules. The mortgage bond need be only for the outstanding balance due under the original mortgage and should be executed in Form No. 27A. 

🆀Form of supplementary mortgage bond to be executed by a Government when he sells a car before completing repayment of an advance for purchasing another car 

        A:-Form No. 27 A 

        B:-Form No. 34 A 

        C:-Form No. 27 C 

        D:-Form No. 41 

        Correct Answer:- Option-A

(6)If on sale of a motor car as contemplated in clause 5 above, a Government employee is in actual need of a second advance for the purchase of a new car and applies for it, he may be given an additional advance for the purchase subject to the following conditions:—

(i) The second advance will be restricted to the excess of the price of the newly purchased car over the sale proceeds of the old car provided the second advance plus the balance outstanding in respect of the original advance previously granted should not exceed the price of the newly purchased car and the limits prescribed in clause (2) above. 

(ii)The Government servant should continue to repay the amount outstanding under the original advance plus the amount of the second advance in monthly instalments at the rates fixed by the Government. 

(iii) The new car should be insured and mortgaged to the Government as required by these rules. 

(iv) The mortgage bond should be for the amount outstanding under the original mortgage plus the amount of the second advance and should be executed in Form No. 27B. 

Note:— The officers applying for second advance should state in the loan application the probable price of the car proposed to be purchased, probable amount by way of sale proceeds of the car purchased with the earlier advance and the balance amount required to purchase the new car.

 (7) An officer who has taken an advance will be entitled to a fresh advance only after the lapse of fifteen years from the date of drawal of the previous advance and the previous advance is fully repaid with interest. Applications for second advances should be sent through the Accountant General who will forward them to Government with a certificate that the previous advance has been fully adjusted.

🆀An officer who has taken a motor car advance will be entitled to a fresh  advance only after the lapse of _______________ years from the date of drawal of previous advance. 

A:-10 

B:-20 

C:-25 

D:-15 

Correct Answer:- Option-D 

(8) An officer drawing the advance is liable to pay penal interest at 2.5 per cent over and above the usual rate of interest on the balance of the principal amount outstanding from time to time from the due date of execution of the bond till the date of its final execution, if he fails to execute the mortgage deed within the prescribed period, viz., one month from the date of drawal of the advance. Government reserve the right to exempt the loanees from the operation of the penal clause if they are able to show that the delay for the excecution of the bond is occasioned by circumstances beyond their control. Penal interest at 2.5 per cent over and above the usual rate of interest will also be levied in cases of belated/defaulted repayment of the monthly instalment of the principal and/or interest. 

  (9) If an officer who has taken the advance dies while in service before the final settlement of the advance, no interest will be recoverable on the principal amount of outstanding advance proposed to be adjusted from the insurance amount and/or gratuity for any period beyond the date of death of the loanee. The amounts due on the insurance policy/policies assigned in favour of Government and the gratuity should be realised and adjusted to the extent necessary for the final settlement of the advance amount as early as possible after the death of the officer who has taken the advance. 

  (10) (i) The date of drawal of advance will be the date of issue of cheques when payment of the conveyance advance is made by personal cheque and the date of actual drawal or disbursement in the other cases of Gazetted Officers/Non-Gazetted Officers. To enable the Audit Officer to know the month from which the recovery should start, the Head of Office should invariably intimate the date of such disbursement promptly to the concerned audit officer. It should also be ensured that the time-lag between the date of drawal of a cheque and its disbursement by the Head of Office is reduced to the minimum.

 (ii) The period of one month laid down in the rule will be a calendar month from the date of drawal of the advance. 

(iii)When the period of one month provided under the rules is extended by competent authority the penal interest will be charged with effect from the date following that on which the extended period expires.

 (11) Every Government servant who applies for an advance should forward along with his application an agreement executed by him in the prescribed form. If the advance is granted, he should execute a mortgage bond in the prescribed form after buying the car and should also insure the car against full loss by fire, theft or accident.

(c) Repayment.— 

(1) Particulars of repayment of the advance will be determined by the sanctioning authority in the manner specified under the rules and will be indicated in the order sanctioning the loan. Ordinarily the whole amount of principal shall be recovered in 144 monthly instalments with effect from 1-4-1983 and interest as indicated in sub-rule (4) of Article 239. 

🆀The maximum number of instalments of repayment of motor car advance is 

 A:-144 

 B:-108 

 C:-120 

 D:-60 

 Correct Answer:- Option-A 

(2)In cases where the recovery could not be effected in 144 monthly instalments with effect from 1-4-1983 before the normal date of retirement the rate of recovery may be so fixed as to effect recovery at the normal rate till the date of retirement of the loanee, the balance being recovered in the lump from the death-cum-retirement gratuity admissible to him at the time of retirement subject, however, to the following:— 

(i) that he agree to the incorporation of a suitable clause in the prescribed agreement and the mortgage deed to the effect that the Government shall be entitled to recover the balance of the said advance with interest remaining unpaid at the time of his retirement or death preceding retirement from the whole or any specified part of the gratuity that may be admissible to him, and 

(ii) that he has not availed himself of and will not be availing himself of this facility in respect of house construction advance taken or to be taken by him. 

Note:— Calculation of death-cum-retirement gratuity will be as provided in rules in K.S.R. 

(d) Procedure.— (1) A Government servant who is eligible for and requires an advance should submit his application in Form 25A. 

(2) If the application is in order, the Head of the Department should certify #[that this has been verified and found correct] and forward it to the Government in the Finance Department through the Accountant General, who will certify as to ‘whether the grant of the advance would involve any departure from the ordinary rules, etc., (See Article 241). If for any reason, the sanctioning authority has to return the application for correction, the Government servant should re-submit the revised application through the Head of the Department, who should certify as to its correctness and through the Accountant General, who will again certify as to whether the grant of the advance would involve any departure from the ordinarily rules etc. @The applicant eligible for the advance should submit an agreement executed by him in Form 26, when the advance is sanctioned. 

🆀KFC Form 26 is related to _________. 

 A:-Motor Car advance 

 B:-Onam Advance 

 C:-Details of estimate 

 D:-Public work deposit 

 Correct Answer:- Option-A 

Note 1:— In the case of application from Members of Board of Revenue and Secretaries to Government, the authority competent to furnish the verification certificate will be the Special Secretary to Government in the General Administration Department. 

(3) A Government servant who draws an advance should pay finally for, and take delivery of the car within one month from the date of drawing the advance; otherwise he should repay to the Government at once the full amount of the advance drawn with interest on it for one month. If he completes the transaction with in one month allowed, he should then immediately execute a mortgage bond in Form 27 hypothecating the car to the Government as the security for the advance. He should enter the actual price paid for the car in the schedule attached to the bond. The sanctioning authority should see that the borrower completes the transaction within the time allowed or makes the necessary repayment immediately on its expiry. If he duly completes the transaction in time, the sanctioning authority should see that he immediately submits the necessary mortgage bond duly executed and should transmit it promptly to the Accountant General for scrutiny. It should after such scrutiny be forwarded to the Head of the Department or the District Treasury Officer, as the case may be, for custody. When the advance had been fully repaid, the bond should be returned to the Government servant concerned, duly cancelled, after obtaining a certificate from the Accountant General as to the complete repayment of the advance and interest. 

Note 1:— The stamp duty on account of execution of the mortgage bond will be borne by the Government.

 Note 2:— The advance should be drawn only after the Government servant concerned has received a written assurance from the motor car dealer that the supply is likely to be available within a month and a certificate to this effect should also be recorded on the bill for the advance. In the event of any delay in supply despite the written assurance given by the dealer, the Government servant should apply within the permissible period of one month for extension of the time limit for taking delivery of the car,  supported by a letter from the dealer indicating the probable period of supply and seek permission for retaining the advance amount for that period. The requests will be considered by Government on the merits of each case. 

Note 3:— A State Government servant who is sent on deputation exceeding 12 months out of India before an advance drawn by him for the purchase of a Motor Car is completely repaid by him, may at his option, be allowed by Government to repay the remaining instalments in rupees in India. The Government servant should arrange to remit the amount due by bank draft by the 15th, of every month in favour of the Accountant General, Kerala. A second mortgage deed shall be obtained from the Government servant to this effect in Form 27C and the office to which he is attached abroad informed accordingly. If the bank draft is not received by the Accountant General before the end of the month, he would immediately report the matter to Government in the Finance Department and also to the office abroad where the Government servant is working, for further necessary action. Failure on the part of the Government servant to remit the bank draft by the due date will render him liable to pay penal interest in accordance with the provisions in these rules, and on return of the officer, any amount left unrecovered will be deducted as before from his monthly pay bills by the Accountant General. 

(4) The mortgage bond to be executed by a Government servant who draws an advance provides that he shall keep the car insured against full loss or damage by fire, theft or accident. He should effect the necessary insurance within one month from the date of purchase of the car or within one month from the date of drawal of the advance whichever is later. The insurance in such cases should be arranged with the Kerala State Government Insurance Department.

 Form of the clause to be inserted in policies is as follows:

                
“It is hereby declared and agreed that the Insured’s.............................................. is pledged to the Governor of the State of Kerala (hereinafter referred to as the pledgee); and it is further declared and agreed that the said pledgee is interested in any money which but for this endorsement would be payable to the insured under this policy in respect of the loss or damage to the said *...................................................(which loss or damage is not made good by repair, reinstatement or replacement) and such money shall be paid to the said pledgee as long as they are the pledgee of the ..............................and their receipt shall be full and final discharge to the Government in respect of such loss or damage. 

Save by this Endorsement expressly agreed nothing herein shall modify or affect the rights or liabilities of the Insured or the Government respectively under or in connection with this policy or any term, provision of condition thereof.” 

The Government servant should also send direct to the Accountant General the insurance cover notes or the insurance policies. The Accountant General will bring to the notice of Government any case in which the insurance has not been effected within the period specified above. If the borrower fails to insure the car within the prescribed period, he should refund the whole of the advance with the interest that has accrued on it unless good reason is shown to the contrary. The amount for which the car is insured during any period should not be less than the outstanding balance of the advance with the interest that has accrued at the beginning of that period and the insurance should be renewed from time to time until the amount due is completely repaid. If at any time and for any reason the amount for which the car is actually insured is less than the outstanding balance of the advance including the interest that has already accrued, the Government servant should refund the difference to the Government in not more than three monthly instalments. 

The Accountant General should, whenever the policy is about to fall due for renewal, so long as any amount remains outstanding on account of the advance, require the borrower to produce his receipt for the renewal premium on each such occasion before the date on which the policy is due for renewal, and should scrutinise it to see that it is in order.

(5) All motor conveyances purchased with the advance sanctioned by Government should be compulsorily insured with the State Insurance Department. 

(6) Officers who have been granted advances for the purchase of conveyances should furnish the prescribed securities within two months from the date of issue of the authority for payment of the advance. If the documents are not furnished to the Accountant General and finally accepted by him within a period of two months, the Accountant General may order recovery of the advance in a lump. 

(e) Advances to Government servants on Foreign Service.— When a Government servant who is on foreign service requires an advance for the purchase of a motor car he should apply to the foreign employer to grant it from its funds. If the foreign employer wishes to grant the advance, he should apply to the Government for their sanction. If the Government accord their sanction, it will be subject to the proviso that the advance by the foreign employer shall be regulated by the same conditions as would apply to an advance by the Government. In special cases, however, where an Officer’s services have been lent to a local body or statutory corporation or industrial or commercial corporation or a company owned by Government or in which Government have controlling interest, whose financial position will not permit of the advance being made from its funds, the Government may, at their discretion sanction advances from the State Funds under these rules provided the officer’s duties are such as to render the possession of a motor car a practical necessity.

(iii) Advances for the purchase of motor cycles/ scooters — Eligibility of Government servants for an advance 

243. Article 242 applies mutatis mutandis to advance for the purchase of a motor cycle/scooter subject to the following modifications :¬

(a)A Government servant is eligible for an advance if he is included in one of the following classes. 

(i)Government servants who are eligible for an advance for the purchase of a motor car under Article 242 if they prefer to take an advance for the purchase of a motor cycle/scooter; and 

 (ii)Government servants drawing a pay of not less than * ` 1220 with effect from 1-4-1990 per mensem and holding posts which entail duties involving touring or to whom the Government have granted a conveyance allowance for the maintenance of a motor cycle/scooter for the discharge of their duties.

(iii) A physically (orthopaedically) handicapped Government servant whose basic pay is not less than @ ₹ 740 p.m.

Note 1.— The application for the advances should be supported by a Medical Certificate from an Ortheopaedic Surgeon of a Government Hospital that a Motor Cycle/Scooter will be of great help to the applicant and that the applicant will be able to drive the vehicle in spite of his handicap. 

Note 2.— The maximum number of instalments of repayments of the advance will be 100. 

(b) The maximum amount of advance admissible for the purchase of any type of motor cycle/scooter will be ! ₹ 6,000 ^(Rupees six thousand only) with effect from 1-4-1983, or 15 months’ pay of the applicant or the amount applied for or the anticipated price of the vehicle, whichever is least.] 

The whole amount of principal shall be recovered in ! 96 monthly instalments with effect from 1-4-1983, and interest as indicated in subrule  (4) of Article 239.

B. HOUSE BUILDING ADVANCE TO GOVERNMENT SERVANTS        

Different Kinds of Advances included under this  Head

244. Under the sanction of the Government or other competent authority to whom the power under this article is delegated advances may be made to an officer/ officers (on joint salary basis) in pensionable service towards the following purposes :¬

(1) Construction of a house for personal residence. 

(2) Purchase of a site and for the construction of a house thereon for personal residence. 

(3) Purchase of site with house for personal residence.

(4) Purchase of site with house for personal residence and repairs thereto. 

(5) Repairs to own house to make it habitable.

(6) Completion of construction of a house already taken up or to extend a house to make it sufficiently accommodative. 

🆀 House Building Advance will not be sanctioned to Government servants for : 

(A)Purchase of a site and for the construction of a house thereon for personal residence 

(B) Construction of house for personal residence 

(C) Making minor repairs of existing house 

(D) Purchase of site with house for personal residence

Correct Answer:- Option:(C) Making minor repairs of existing house 

🆀The House building Advance sanctioned to a Govt. employee in Kerala may be for

 A:-Construction of a house for personal residence 

 B:-Purchase of site with house for Tourist residence 

C:-Purchase of site with hotel for personal business and repairs thereto

 D:-All of the above 

 Correct Answer:- Option-A

🆀House Building Advance will not be sanctioned to Government Servants for :

(A) Purchase of a site and for the construction of a house thereon for personal residence

(B) Construction of house for personal residence

(C) Making minor repairs of existing house

(D) Purchase of site with house for personal residence

244

Eligibility of Government Servants for Advance 

244A. The following Government employees will be eligible for the advance:— 

1. All officers having substantive appointment in pensionable service. 

2 A Government employee without a substantive appointment who has put in a continuous service of not less than five years, subject to the following conditions :—

🆀The minimum period of service required under the Government for the sanction of House Building Advance :

(A) 2 years

(B) 10 years

(C) 5 years

(D) 3 years

(i) The Head of Department concerned should certify to the effect that the applicant is not likely to be thrown out of service and that he is likely to be confirmed. The certificate should be in Form 37. 

(ii) The maximum amount of advance admissible in such cases should be calculated on to the basis of the officiating pay of the post in which the incumbent is likely to continue. 

3. A Government employee whose services are lent on foreign service conditions institutions having statutory existence like the Kerala State Electricity Board, the University, the Finance Corporation and other commercial concerns and institutions owned or sponsored by Government provided the institutions concerned guarantee repayment during the period such employee is retained by them. 

4. Advances will also be given to officers of All India Services and to the State Government Officers to purchase or build or extend or repair houses outside the State.

Note 1:— It has been agreed that the State within whose jurisdiction the house is constructed will act as an agent for the State granting the advance on a reciprocal basis and 

(a) examine the correctness of the title deeds;

(b) watch the progress of construction; and

(c) enforce mortgage proceedings in case of default in the observance of the conditions on which the loan has been granted.

 In the case of State Government Officers advances will be given only in cases where the house to be purchased or constructed or repaired or extended is within the States of Tamil Nadu and Karnataka.

 Note 2:— The cost of verification of title deeds in other States, if any, will be borne by the member of the All India Services or other State Government Officer as the case may be. 

🆀The minimum period of service required for the sanction of House Building Advance: 

(A) 2 years

(B) 10 years 

(C) 5 years

(D) 3 years 

Correct Answer:- Option: (C) 5 years

A Government servant applied for House Building Advance - 2017. With effect from 1-9-2017, he is working on deputation in Kerala University. What is the condition under which House Building Advance, can be sanctioned to him after 1-9-2017 ?

(A) The amount has to be paid by Kerala University

(B) The repayment during the period of deputation is to be guaranteed by University

(C) Payment will be made, after the Govt. Servant reverse to parent department

(D) None of the above

Correct Answer:- Option:(B)

244B. Authority Competent to Sanction the Advance 

	Authority competent to sanction the  advance		Category of applicants for whom  advances can be sanctioned
1	Government in the Finance Department	1	Applications from the All India  Service Officers
1	Government in the Finance Department	2	Applications from the Heads of Departments
1	Government in the Finance Department	3	Joint applications of employees serving in different departments
1	Government in the Finance Department	4	Cases involving relaxation of rules or standing orders on the subject.
1	Government in the Finance Department	5	Advance to N.G.Os coming under the categories mentioned under article 244A sub-clause (4)
2	Heads of Departments and District  Collectors,		All other cases under their respective administrative control
3	Joint Secretary (Accounts) Public Department,		All other cases under their respective administrative control
4	Secretary to Government, Law Department		All other cases under their respective administrative control
5	Secretary to Government, Legislative Department		All other cases under their respective administrative control

🆀 Applications from the All India Service Officers for advance can be sanctioned by

 A:-Govt. of India 

 B:-Government in the Finance Department 

 C:-Secretary to Government, Legislative Department 

 D:-The President of India 

 Correct Answer:- Option-B 

🆀 Joint application for advance by employees serving in different dept. will be sanctioned by ............

A:-Joint Secretary, General Administrative Dept.

 B:-Secretary, Law Dept. 

 C:-Govt. in Finance Dept. 

 D:-Head of Depts. 

 Correct Answer:- Option-C

🆀Authority competent to sanction house building advance to Officers of All India Services and to the State Government Officers to purchase or build or extend or repair houses outside the State is :

(A)Heads of Departments 

(B) Government in the Finance Department 

(C) District Collector 

(D) Secretary to Govt. Law Department

Correct Answer:- Option: (B) Government in the Finance Department 

🆀The authority competent to sanction house building advance to Heads of Departments is : 

(A) Secretary to Government 

(B) Heads of Departments 

(C) Govt. in the Finance Department 

(D) Law Department

Correct Answer:- Option:(C) Govt. in the Finance Department 

🆀The authority competent to sanction house building advance for joint applications of Government employees serving in different departments is

(A)District Collector

(B) Head of Department 

(C) Govt. in the Finance Department 

(D) Law Department

Correct Answer:- Option: (C) Govt. in the Finance Department

🆀The authority competent to sanction house building advance to Heads of Departments is

(A) Secretary to Government

(B) Heads of Departments

(C) Govt. in the Finance Department

(D) Law Department

Correct Answer:- Option: (C)

🆀 The authority competent to sanction house building advance for joint applications of Government employees serving in different departments is

(A) District Collector

(B) Head of Departments

(C) Govt. in the Finance Department

(D) Law Department

Correct Answer:- Option: (C)

🆀 Authority competent to sanction house building advance to Officers of All India Services and to the State Government Officers to purchase or build or extend or repair houses outside the State is

(A) Heads of Departments

(B) Government in the Finance Department

(C) District Collector

(D) Secretary to Govt. Law Department

Correct Answer:- Option: (B)

🆀A Deputy Collector in Revenue Dept. propose to build a house in his native place in Kannyakumari District of Tamil Nadu. Who is the authority competent to sanction house building advance to him ?

(A) District Collector

(B) Secretary to Govt. Revenue Dept.

(C) Head of Department

(D) Govt. in the Finance Department

Correct Answer:- Option: (D)

CONDITIONS UNDER WHICH ADVANCE  IS SANCTIONED 

SECTION A 

General 

244C. (i) Advances for the purposes mentioned as items 1 to 4 under article 244 will not be sanctioned to a Government servant(s) who own(s) a house anywhere in the country either in his/her/their name(s) or in the name of his wife/her husband/their minor children *and to those having less than two years of service for superannuation on the date of sanctioning.

 While applying for the advance the applicant (s) should make a declaration in the following form in the application.

“I/We do not already own a house anywhere in the country either in my name/our names or in the name of my wife/husband or in the name of my/ our minor children.” 

Note.— Government may relax this provision in exceptional cases where they are satisfied that the house proposed to be built is required for the bonafide residence of the applicant and that it will be impossible for the applicant to reside in his existing house for reasons other than of its having already been let out on rent, or being situated at a place other than the place of his work.

(ii) Loans under more than one housing scheme will not be sanctioned to an applicant/applicants. 

(iii) Not more than two advances will be given to a Government servant(s) during the entire period of his/her/their service. 

(iv) The grant of the second advance is, however, subject to the condition that the Government servant(s) is/are obliged, for reasons beyond control, to dispose of the house constructed or purchased out of the first advance and that the first advance has been completely repaid by deductions from the salary or out of the sale realisation of the house which had to be sold by the Government servant(s), or partly by deductions and partly by sale realisation. 

(v) The Government servant selling the house constructed with the advance from Government should convince Government/the sanctioning authority of the necessity for the same and obtain prior sanction. The whole or balance of the advance outstanding against the Government servant on this account with interest remaining unpaid shall become payable in lump on the date of sale or immediately thereafter. 

(vi) More than one advance shall not be made for the same house and no officer may receive a second advance while any portion of a previous advance (including interest thereon) is outstanding against him except as otherwise provided in these rules.

 (vii) The maximum amount of advance admissible shall not exceed ₹20,00,000 or fifty times the basic pay of an officer/officers (on joint salary basis) or the amount applied for whichever is least. 

🆀The maximum amount of house building advance is

(A) 3 Lakh

(B) 5 Lakh

(C) 20 Lakh

(D) 10 Lakh

Correct Answer:- Option-C

🆀 The maximum amount of House Building Advance payable to Government servants whose application is received on or after 01.04.2016 is 

A:-Fifteen lakhs 

B:-Twenty lakhs 

C:-Twenty five lakhs 

D:-Twelve lakhs 

Correct Answer:- Option-B

🆀The maximum amount of house building advance is 

(A)  3 lakh

(B)  5 Lakh 

(C)  20 Lakh

(D) 10 Lakh

Correct Answer:-Option:(C)  20 Lakh

Note 1:— Dearness pay will also be reckoned for the purpose of calculating the maximum amount of advance admissible to an officer under this rule. 

Note 2:— The computation of the loan amount on the basis of officiating pay will be made in the case of an officer having substantive appointment, only if the concerned Head of Department, certifies that he is not likely to be reverted to a post having a lower scale of pay during the period of repayment of the loan.

 Pay in respect of provisional appointments may be treated as officiating pay for this purpose and taken into account for calculating the eligible amount of advance, provided such appointments have been continuing for a period of twelve months and where Government or the sanctioning authority consider(s) that there is little chance of the officer being reverted to a lower post. 

(viii) All such advances must be for bona fide requirements for the purchase of or building suitable houses for the personal residence of the officers concerned and if more is advanced than what is actually expended for the purpose, the surplus shall be refunded to Government. Advance may be made either in one instalment or in instalments as considered desirable. 

  (ix) Repayment of the advance shall commence from the first instalment of pay after the expiry of 9 months from the date of disbursement or the date of disbursement of the last instalment, as the case may be or the date of completion of the building whichever is earlier.  (This concession is not admissible to those who purchase a built house outright. The recovery in such cases will commence with the first issue of pay after disbursement of the advance. 

🆀 The recovery of house building advance, sanctioned to an officer who purchased a built house outright, commence with :

(A) The date of disbursement of the last installment

(B) The first installment of the last installment

(C) The first issue of pay after disbursement of the advance

(D) The date of purchase of building

  (x) Particulars of recoveries to be made from the borrower will be determined by the sanctioning authority in the manner specified under the rules and will be indicated in the order sanctioning the loan. The whole amount of principal and interest shall be recovered in not more than 216 monthly instalments.

 In the case of officers who are due to retire before the expiry of the above normal period of recovery, the instalments of repayment should be so fixed that the loan and interest thereon are fully discharged before their retirement. Provided that the recovery of the advance with interest in such cases may be made in convenient monthly instalments ( the amount of which should not be less than the amount of monthly instalment on the basis of the full period of repayment admissible under the rules) during the remaining period of his service and provided also that he agrees to the incorporation of a suitable clause in the prescribed agreement and the mortgage deed to the effect that the Government shall be entitled to recover the balance of the said advance with interest remaining unpaid at the time of his retirement or death preceding retirement, from the whole or any specified part of the gratuity that may be sanctioned to him. Provided further that where a part of the advance or interest is to be wiped off by adjustment from gratuity the amount actually adjusted will be deemed to have been remitted on the date of retirement/death of the loanee, and no interest will accrue on the amount so adjusted beyond the date of retirement/ death. 

(xi) Instalments of recoveries will be so fixed as not to contain fractions of a rupee. Fractions of rupee occurring in the calculation of interest will be included in the last instalment of interest. 

(xii) Advances will be recovered at the rate prescribed in clause (x) above or at a higher rate if the officer receiving the advance so desires in writing by compulsory monthly deduction from the bill for the salary or leave allowance of the officer. 

(xiii) Interest will be recovered in one or more instalments, each such instalment being not appreciably greater or less than the instalments by which the principal was recovered. The recovery of interest will commence from the month following that in which the last instalment towards repayment of principal is due. If for any reason interest due cannot be worked out finally, recovery should be made provisionally at the rate fixed for the recovery of the principal. 

(xiv) If for any reason, no salary is drawn by the officer in any month or months, the payment of the usual instalments must nevertheless be made by him. However, during full months of leave without allowance no recovery will be made and the repayment will be postponed to that extent, provided the principal and interest are fully repaid before the officer retires from service. 

  (xv) (a) In order to secure Government from loss consequent on an officer dying or quitting the service before complete repayment of the advance, the house together with the land it standing upon must be mortgaged to Government by whom the mortgage will be released on repayment of the full amount of the advance together with interest thereon.

  (b) The borrower should assign in addition to the land and building any one of the following as collateral security. 

  (1) A Life Insurance Policy taken by the loanee in the office branch of the State Insurance Department or in the Life Insurance Corporation of India or in the Postal Insurance for an amount sufficient to cover 25% of the amount of the loan. 

Note 1.— The Policy should be absolutely assigned to the Governor of Kerala in Form No. 35. The assignment of policy of Life Insurance will be made by an endorsement in the prescribed form upon the policy itself or by a separate instrument signed by the assignor or his duly authorised agent and attested by at least one witness specifically setting forth the fact of assignment. If the assignment is not made by endorsement on the policy, the assignment will be in the Assignment Deed form prescribed. 

Note 2.— In cases where the total value of the house constructed and the property hypothecated to Government alone with it as security for the loan exceeds the amount of the loan outstanding repayment by 100%, the insurance policy/policies pledged to Government as collateral security will be reassigned in Form 52 A in favour of the loanees, on request in writing. 

(2) Gratuity/death-cum-retirement gratuity to the extent of 25% of the loan.

 Note 1.— An assignment may be made by a Government servant of his gratuity/death-cum-retirement gratuity in Form 35 A towards payment of the advance to him by Government under the rules. The amount of gratuity deemed to be available for this purpose would be the amount due to the applicant on the date of his superannuation/at the time of retirement calculated on the basis of the appointment held by the applicant at the time of submitting his application for the grant of the advance. The amount so worked out should be not less than 25% of the advance applied for. 

Note 2.— In the case of non-Gazetted Officers the fact of assignment of death-cum-retirement gratuity as collateral security will be recorded in their service books and a certificate to that effect will be attached to the bill claiming the amount of advance. In the case of Gazetted Officers, Heads of Departments concerned will intimate the Accountant-General that the death-cum-retirement gratuity of the officer stands mortgaged to Government and a copy of the communication will be attached to the bill claiming the amount of advance.

 (3) Insurance against fire in the State Insurance Department for a sum not less than the amount of the advance. 

Immediately on completion of construction or purchase of the house, and in any case within two months thereafter the Government Officer concerned should insure the house at his own cost with the State Insurance Department for a sum not less than the amount of advance and keep it so insured against damage by fire, flood or lightning till the advance is fully repaid to Government, and keep the policy with the head of Department concerned or the Board of Revenue as the case may be. The premium must be paid regularly and premium receipts produced for inspection by the Head of Department/ the Board of Revenue. They should obtain from the Government Officer drawing the advance, a letter to the State Insurance Department notifying to the latter the fact that the Government are interested in the Insurance policy and forward it to insurer and obtain his acknowledgement. In the case of insurance effected on annual basis, this process should be repeated every year until the advance is fully repaid to Government. The Head of Department/Board of Revenue should furnish to the Accountant-General an annual certificate that the conditions prescribed in this clause have been fulfilled. 

(c) The borrower should also produce an encumbrance certificate for 12 years in respect of the landed property furnished as security. 

(xvi) The officer must satisfy the sanctioning authority regarding his title to the land upon which the house is or is proposed to the built and in the case of purchase of house or house site, that the proposed vendor has got clear title to the property which has been agreed to be sold to the applicant by the vendor. 

Note.— This rule does not preclude the grant of an advance to a person who does not possess proprietary rights on the land upon which he intends to build, provided that the Government are satisfied that the interest which he has in the land is such as to justify the grant of the advance. 

(xvii) An officer quitting or removed from a station where he has built a house, before the whole amount of the advance has been liquidated, will continue to be liable to the deduction of the monthly instalment until the advance is fully repaid, but with the special sanction of the Government he may be allowed to dispose of the house, provided he is thereby enabled to clear off at once the whole amount due, or to transfer it to any officer of his own or higher rank, the further deductions being made from the salary of such an officer. 

(xviii) Applications for advances should be made in Form 29 through the applicant’s departmental superior, who will record his opinion as to the necessity of the assistance. 

(xix) The applicant must declare that the amount will be expended only for the purpose for which it is applied for and pledge himself that surplus funds if any will at once be refunded to Government. 

(xx) The grant of advances is always subject to budget provision. If an advance which has been sanctioned has not been disbursed before the close of the 

financial year in which it is sanctioned the applicant will have to get the sanction renewed in the following year if he still wants the loan. 

(xxi) The loan amount should be utilised for the purpose for which it is granted within a reasonable time not exceeding one year from the date of full disbursement of the loan. 

(xxii) In case the applicant commits breach of any of the conditions under which an advance is sanctioned the entire amount advanced with 

interest shall become payable in a lump and shall be recoverable under the provisions of the Revenue Recovery Act.

 (xxiii) In the case of advances for purchase of site with house an amount not exceeding 25% of the value of the site with house may also be granted for repairs at the time of the purchase subject to the condition that the overall loan amount does not exceed the maximum amount for which the applicant is eligible at the time of application. The application in such cases should be accompanied by an estimate or repairs duly certified by the Assistant Engineer (Buildings and Roads) having jurisdiction over the area in which the site is situated. 

(xxiv) In the case of advances for the purchase of site with house and repairs thereto the advance will be disbursed in two instalments, the first instalment being equal to the value of the house and site and the second being the balance amount which will be disbursed only after the property is mortgaged to Government. 

(xxv)In the case of mortgage deeds executed by an officer, whether Gazetted or non-gazetted, whether independently or jointly with his/her/wife/husband, towards security for the house construction advance of any of the different kinds sanctioned to him/her/them, the stamp duty chargeable will be entirely remissioned. The remission of stamp duty will be available even when the mortgage deeds are executed by the Government employees jointly with others who are not Government employees. 

(xxvi) The applicant should furnish along with the application for advance a plan of the building proposed to be constructed or purchased by him and a certificate from the Village Officer concerned regarding the location of the site with reference to the nearest road, Survey No., Village and the detailed address of the owners of the adjoining properties. These records may be passed on, duly countersigned by the Head of Office, to the Executive Engineer having jurisdiction over the area in which the site is situated with a request for valuation. They need not be sent to Government along with the application, in cases where Government are competent to sanction the advance. But the Head of the Department should state in his certificate recorded in the application that the certificate from the Village Officer and the plan of the building have been obtained from the applicant (s). In cases where the Head of the Department himself is competent to sanction the advance, he should obtain the records and keep them with him. 

Note.— Since the purpose of the valuation is only to ensure proper utilisation of the loan amount an approximate valuation by the Public Works Department (Building and Roads Branch) will be sufficient. 

(xxvii) In the last pay certificate granted to officers the original amount of such advance, the amount repaid and the balance remaining due should be specified.

🆀The House Building Advance amount should be utilized for the purpose for which it is granted within a reasonable time not exceeding ________ from the date of full disbursement of the loan. 

 A:-Two years 

 B:-One years 

 C:-Three years 

 D:-Six months 

 Correct Answer:- Option-B

SECTION B 
Advances to Officers on Joint Salary basis

🆀Conditions for advance to officers on joint salary basis given in __________ KFC Vol.I 

 A:-Art 188 

 B:-Art 122 

 C:-Art 244 C. Section B 

 D:-Art 252 A 

 Correct Answer:- Option- C:-Art 244 C. Section B 

 When both husband and wife are individually eligible and jointly apply for assistance to build or acquire a house for their joint residence, advance may be made to both on joint salary basis subject to the following conditions:— 

  (i) The total of the officiating pay/substantive pay of the officers will be taken into account for determining the amount of advance admissible subject the maximum limit of ₹ 20,00,000. 

  (ii) The disbursement of the amount will be made on joint receipt signed by both the applicants. 

(iii) The husband and wife will be jointly and severally liable for the repayment of the advance with interest. The bond/agreement for securing the advance should be jointly executed by them. 

  (iv) Separate assignment deed is necessary in case the wife/husband also assigns her/his policy. 

  (v) Joint policies issued in the name of both husband and wife will also be accepted as security for advance. 

  (vi) For the purpose of monthly recoveries/repayments the advance amount will be split into two portions in proportion to their respective officiating/substantive pay and recoveries/ repayments effected accordingly. 

(vii)   Subject to the above, the general principles of Section A will be applicable. 

🆀When husband and wife are Government employees House Building Advance can be sanctioned : 

(A) To husband only 

(B) To wife only 

(C) To both on joint salary basis 

(D) To both if they are having children

correct Answer:- Option: (C) To both on joint salary basis 

SECTION C 
Advances to Officer/Officers to whom a plot of land is allotted 
by the Kerala State Housing Board 

Advances may be sanctioned to an officer/officers on joint salary basis for construction of house on plots of land allotted by the Kerala State Housing Board, Trivandrum for purchase of land allotted by the Board and for construction of house thereon on land with houses allotted by the Board. 

The general principles and conditions in Sections A and B will be applicable in addition to the following:— 

1. In case the Kerala State Housing Board will execute the sale deed in favour of the applicant only after the construction of the building is completed and if for that reason, it is not possible for the applicant to mortgage the property to Government before the amount of advance is drawn, the amount of advance will be paid to the applicant in one lump: 

  (a) after assigning the insurance policies in favour of Government as laid down in the rules. 

  (b) after obtaining a plan of the proposed building approved by the Kerala State Housing Board and

  (c) after obtaining an agreement from the loanee in Form 37A. 

2. The building should be constructed within one year from the date of disbursement of the advance. 

SECTION D 
Additional Advances 

1. (a) An additional advance may, however, be sanctioned to an officer/officers on joint salary basis who has/have already availed of an advance provided that the aggregate of the original and additional advances does not exceed the maximum amount he/she was/they were eligible for on the basis of his/her/ their pay at the time the original advance was sanctioned subject to the following conditions:— 

(1) A certificate from an officer of the Public Works Department (Roads and Buildings) not lower in rank than that of an Assistant Engineer who is having jurisdiction over the area in which the house is situated that the site with the construction already there on is worth the amount already sanctioned to the officer, specifying also the actual value of the construction (structure) is furnished along with the application. 

  (2) The application should be submitted within one year from the date of disbursement of the original loan. 

  (3) The additional advance thus granted will be treated as a part of the original loan. 

  (4) The recovery of the additional advance will commence immediately on the expiry of six months from the month in which the additional loan is disbursed, the entire amount (including the additional advance) being recovered with interest within the period fixed for the repayment of the original loan.

  (5) As the property would have already been mortgaged to the Government in consideration of the original advance the amount of additional loan will be disbursed only on executing a document creating a second mortgage on the equity of redemption in the form prescribed by the Government.

  (b) *Such additional advance shall not exceed ten times the basic pay of the officer or ` 20,000 whichever is less and will be allowed over and above the overall ceiling of ` 1,00,000 subject to the following conditions:— 

  (1) The additional advance will be granted only if applications in Form 30 for such advances are submitted within one year from the date of drawal of the original advance. 

  (2) The pay/salary of the applicant at the time of applying for the additional advance will be taken into consideration for reckoning the amount of advance. 

  (3) A certificate shall be produced from the Executive Engineer (Buildings and Roads) having territorial jurisdiction over the area to the effect that on account of non-completion of essential items of work the house is not fit for occupation and that the amount is required for bona fide completion of the house. In cases where the estimated value of the house (including the anticipated cost of completion of essential items of work) does not exceed ` 20,000 the certificate may be from the Assistant Engineer, having territorial jurisdiction over the area. 

  (4) The Additional advance thus granted will be treated as a part of the original advance.

  (5) In cases where the repayment of advance already sanctioned has commenced, the recovery of the additional advance will commence with the salary for the month, next to that in which the additional loan is disbursed provided the entire amount (including additional advance) is repaid with interest within the period fixed for the repayment of the original advance. In other cases, the repayment will commence along with that of the advance already sanctioned. 

  (6) As the property would have already been mortgaged to Government in consideration of the original advance/advances, the amount of the additional advance will be disbursed only on the Government servant executing a document creating a second or third, mortgage, as the case may be, on the equity of redemption. 

  (7) In the case of applications on joint salary basis for additional advance for completion of house constructed with the assistance sanctioned to any one of them the amount for which the new applicant is eligible will be calculated on the basis of his/her salary at the time of verification of the joint application.

 The disbursement of the amount will be made on joint receipt signed by both of them. 

  (8) Subsequent refixation of pay sanctioned to an applicant with retrospective effect will be taken into account for calculating the eligibility for additional advance. 

  (c) If the insurance policies already assigned in consideration of the original advances, do not cover 25% of the aggregate amount of the original and additional advances, fresh policy should be offered as collateral security in the case of application for additional advance and value of the new policy plus that of the policies already assigned should cover 25% of the total amount of the advance.

  (d) In cases where additional advances are sanctioned for construction of houses on plots of land allotted by the Kerala State Housing Board the amount of additional advance will be paid after executing a further agreement in Form 37B.

  (e) In cases of adjustment of a portion of the advance sanctioned for construction of a building in a plot allotted by the Kerala State Housing Board against the Death-cum-retirement Gratuity payable to the officer he has to execute a further agreement in the Form 37C over and above the agreement/agreements in Form 37A/37B.

  (f) In the case of additional advances applied for completion of construction of house or for repairs, a further encumbrance certificate supplementary to the one already furnished for the original loan, need not be insisted on, as the land with building stands mortgaged to Government. 

  (g)    Subject to the above, the general principles in Section A, B and C will be applicable.

 II. (a) An advance may be made to an officer to enable him to effect repairs to his own house which are required to make it habitable where such repairs are not in the nature of ordinary repairs and which involve an outlay large in comparison with the value of the house. 

  (b) Such advances shall not exceed Ten times the basic pay of the officer to whom it is made subject to a maximum of ` 20,000 or the amount required for the work whichever is less. 

  (c) Such advances may be made to an officer to repair a house which he has built or purchased with a previous advance but unless the Government otherwise permit at least five years should elapse since the previous advance was drawn.

  (d)    Subject to the above, the general principles of Sections A to D (I) will be applicable. 

Note:—The application for the advance should be supported by an estimate certified by the officer  mentioned in clause III (2) below. 

III. (1) (a) An advance may be made to an officer to enable him to complete the construction of a house already taken up or to extend a house to make it sufficiently accommodative, provided that in the case of an officer who had availed of an advance under sections A to D1 the advance should be limited for the purpose of extension only and a period of at least 5 years should have elapsed from the date of drawal of the previous advance and 

  (b) In the case of an officer who had availed of an advance under section DII the advance should be limited for the purpose of extension only and a period of one year should have elapsed from the date of drawal of the previous advance.

  (2) Such advance shall not exceed *15 times the basic pay of the officer to whom it is made subject to a maximum of ` 30,000 or the amount required for the work according to a certificate from an Engineer not lower in rank than that of an Assistant Engineer of the Public Works Department (Buildings and Roads) and having jurisdiction over the area in which the house is situated, whichever is the least. 

  (3) Each such application should be accompanied by an estimate certified by the officer mentioned in clause (2) above. 

  (4) For the purpose of repayment, the advance under this section will be treated as a separate advance, quite independent of the advance already drawn under section A to D1 or D II subject, however, to the General Principles in Article 244 C. 

RULES REGULATING  CALCULATION  OF  INTEREST 
AND DEATH-CUM-RETIREMENT  GRATUITY
1. CALCULATION  OF INTEREST 

🆀For advances given to a govt. employee calculation of interest and DCRG is as per ______________. 

 A:-Art. 322 KFC Vol-1 

 B:-Art. 82 KFC Vol-1 

 C:-Art. 244D KFC Vol-1 

 D:-Art. 122 KFC Vol-1 

 Correct Answer:- Option-C

244D. (1) (a) Interest shall be calculated for each month on the outstanding balance at the end of that month at the rate prescribed by Government from time to time. The rate to be applied will be that prevalent on the date on which the advance is drawn. The rates of interest as applicable from time to time are as given below: 

Normal rate of simple interest per annum Period current

5% upto 22-10-1964                 

5 ½ % from 23-10-1964 

5 ¾ % from 01-04-1969 

6% from 01-04-1974 

9% from 01-04-1982 

🆀The rate of interest for house building advance will be that fixed by the Government as applicable on : 

(A) Date of sanction of advance 

(B) The date on which the advance is drawn 

(C) The date of application for advance 

(D) None of the above 

Correct Answer:-Option: (B) The date on which the advance is drawn

🆀 Interest rate of house building advances as per Art. 244 of KFC is: 

(A) 8% 

(B) 6% 

(C) 9%

(D) 10% 

Correct Answer:-Option: (A) 8% 

[ കുറിപ്പ് : മാറ്റത്തിന് വിധേയം]

🆀Penal interest at........over and above the normal rate of interest will be levied in respect of overdue instalments of interest or principal of house building advance. 

(A) 18%

 (B) 2.5%

 (C) 3%

 (D) 1.75 % 

Correct Answer:-Option: (A) 18%

🆀Interest on house building advance sanctioned by Government is

(A) Compound 

(B) Flat 

(C) Simple 

(D) EMI 

Correct Answer:-Option: (C) Simple 

  (b) For the calculation of interest periods of half a month and over will be treated as one month and less than half a month as half a month. 

  (c) If the loanee dies while in service before the final settlement of the loan account, no interest will be recoverable on the principal amount of outstanding advance proposed to be adjusted from the insurance amount and gratuity for any period beyond the date of death of the loanee. The amounts due on the insurance policy/policies assigned in favour of Government and the gratuity should be realised and adjusted to the extent necessary for the final settlement of the loan account as early as possible, after the death of the loanee. 

2. LEVY OF PENAL INTEREST 

Penal interest at 2.5% (Two and a half per cent) over and above the normal rate of interest will be levied in respect of over-due instalments of interest or principal and interest outstanding from time to time in cases where there is any default, violation or breach of all or any of the provisions contained in these rules and/or in the original or supplementary mortgage deeds or any other documents executed in pursuance of these rules and also in the following cases of non-compliance with the requirement of rules: 

  (i) Retention of the loan amount unutilised by the loanee beyond the normal admissible periods. 

  (ii) Retention of sale proceeds of house site/site with house purchased with Government loan beyond the normal admissible period.

 (iii) Non-utilisation of loan for the purpose for which it was sanctioned even when the loan is repaid to Government in lump within the normal permissible date. 

  (iv) Delay in the execution of the mortgage bond after purchase of housesite/ house and site. 

  (v) Delay in the production of utilisation certificate as well as completion certificate. 

  (vi) Non-compliance with the requirement of other rules relating to house construction advance. 

🆀For non utilisation of housing loan penal interest at ________ will be levied over and above normal interest. 

 A:-5% 

 B:-18% 

 C:-2.5% 

 D:-7% 

 Correct Answer:- Option-C:-2.5%  

 In which of the following cases, the penal interest is not levied over and above the normal rate of interest payable to H.B.A (House Building Advance)? 

(A)Retention of the loan amount unutilized beyond the normal period 

(B)Delay in the production of utilisation certificate and completion certificate 

(C) Non-utilisation utilisation of loan for the purpose for which it was actioned even when the loan is repaid in lump within the normal period

(D)  Non-occupation of house, by the loanee, purchased out of loan 

Correct Answer:-Option: (D)  Non-occupation of house, by the loanee, purchased out of loan 

3. CALCULATION  OF  DEATH-CUM-RETIREMENT GRATUITY 

The Head of Department concerned and the Secretary, Board of Revenue in the case of Heads of Departments shall work out roughly the gratuity/death¬cum-retirement gratuity payable to the officer under the service rules applicable to him as well as the principal and interest that would be outstanding recovery on the normal date of retirement of the applicant. The basis for working out the gratuity/death-cum-retirement gratuity will be the appointment held by the applicant at the time of submitting the application. For purposes of calculating the death-cum-retirement gratuity adjustable towards the outstanding advance amount and interest the pay that will be taken into account is such pay including dearness pay as he would be eligible for at the time of retirement had he continued in the same appointment. For the purpose of calculating the principal and interest, it will be assumed that the Government servant can generally commence repayment of the advance one year after the date of application of the advance if it is for purchase of site and/or construction of a building and six months after date of application if it is for outright purchase of a built house. All such applications from Gazetted Officers should be routed to Government through the Accountant General.  The actual amount to be sanctioned and that to be adjusted from gratuity/death-cum-retirement gratuity as also the amount to be recovered in monthly instalments will be determined by the sanctioning authority in the manner specified under the rules and will be indicated in the order sanctioning the loan. 

Note 1:— The applicant should furnish a declaration in the application form 

that he agrees to adjust a portion of the advance (amount to be specified) 

from the gratuity/death-cum-retirement gratuity admissible to him. 

Note 2:— The Heads of Departments/Secretary, Board of Revenue should  certify in the application form “that the amount of gratuity/death-cum retirement gratuity due to the applicant on the date of his superannuation/at the time of retirement calculated on the basis of the appointment held by the applicant at the time of submitting the application is estimated to be `......................... and that the applicant is governed by K.S.R./A.I.S. Rules”.

 RULES REGARDING THE PROCEDURE ON RECEIPT OF APPLICATIONS 

244E. (i) Except in the case of advances requiring sanction of the Government in the Finance Department application from non-gazetted officers for advance shall be submitted through the Head of Office concerned who will forward it to the authority competent to sanction it. In the case of advance requiring sanction of the Government in the Finance Department, application for advance shall be submitted through the Head of the Department concerned who will forward it to the Government in the Finance Department direct in the case of Non-gazetted Officers and through the Accountant General in the case of Gazetted Officers. The Head of the Department will forward along with the application certificate in Form 37. He shall satisfy himself as to the sufficiency of the security offered in each case and shall while forwarding the application record his opinion as to the extent of the amount that may be advanced without risk to Government. When the applicant is himself the Head of a Department, he shall forward the application to the Accountant General through the Board of Revenue who shall certify as to the sufficiency of the security offered.  Application for cancellation of loans already sanctioned shall likewise be forwarded to the sanctioning authority through the Accountant General in all cases. Applications shall be received by the Accountant General only till the end of December each year. 

Note 1:— The procedure to be followed in the case of applications of the Heads of Departments will also apply to those of the Secretaries to Government including the Chief Secretary, Additional Secretaries and Joint Secretaries, Registrar of High Court and the Secretary to the Kerala Public Service Commission. 

Note 2:— The Head of the Department will record his opinion as to the sufficiency of the security on the basis of the valuation made by the Revenue Department in the case of advances for purchase of site. If the advance is for the construction of a house, it should be got valued by the Public Works Department on completion.  References for valuation to the Public Works Department may be made to the Executive Engineer (Buildings and Roads) and those to the Revenue Department to the District Collector concerned.

 Note 3:— In the case of applications for purchase of site with building the Head of the office or Department, as the case may be, will forward the applications to the sanctioning authority without the certificate of sufficiency of  security, but take action simultaneously to get the property valued by the Public Works Department and the  Revenue Department. He will obtain and file the certificate of valuation and inform the Accountant General  accordingly before the time fixed for mortgaging the property expires. If the value fixed by the Public Works Department and the Revenue Department together falls short of the loan amount, excess will be recovered from the applicant immediately in a lump. 

(ii) On sanctioning the loan or on receipt of Government orders sanctioning the loan, the disbursing authority concerned should get the security bond executed and obtain all the documents specified by Government Pleader in support of the clear title certificate. He should then arrange for all these documents being kept under safe custody along with the mortgage deed. In the case of the loans granted to the Heads of Departments, all these documents should be transmitted to the Principal Sub-treasury, Trivandrum by the Secretary, Board of Revenue, for safe custody.  The details of the documents obtained should be noted on the right hand side of the Register of Advances to Government Employees for buildings repairing or purchasing houses (Form 38) and attested by the Head of the Department/the Secretary, Board of Revenue as the case may be. 

The Head of Department or the Secretary, Board of Revenue, as the case may be, will be held personally responsible in the matter of keeping the documents under safe custody.  He can, however, nominate the Chief Ministerial Officer or the Superintendent-in-charge of Establishment Section/ the Sub Treasury Officer, Principal Sub Treasury, Trivandrum to assist him in this matter.  The documents pertaining to each loan should be kept in one cover or folder with a label on the outside giving details of the contents. An annual verification of the documents should also be made and the fact recorded in the register.

 The Head of Department or the Secretary, Board of Revenue, as the case may be, should also see that the insurance policies are kept alive and the insurance amount is adjusted to the loan account, if the policy matures during the period of repayment of advances. In the case of policies where the premia are paid by deduction from salary bills or otherwise the loanee should satisfy his immediate superior authority once in every three months that the premia have been remitted and policy is kept alive. The immediate superior in turn will report the fact to the Head of the Department who will make the necessary entries in the remarks column of the registers of advances maintained in his office, duly attested. Such reports should be sent to the Accountant General in respect of advances sanctioned to officers who are deputed on foreign service conditions. 

This procedure should be followed in order to see that statutory dues such as property tax, land revenue, michavaram, etc., are paid in time and the property offered as security is kept unencumbered.

 Note:— In deserving cases, Government will have the discretion to re-assign such insurance policies to the loanee before complete repayment of the advance with interest, irrespective of the consideration whether they have matured or not, provided the amount of other insurance policies, if any, assigned in favour of Government will cover  an amount not less than 25% of the outstanding amount of the advance with interest thereon at the time when the loanee requests for the re-assignment of the insurance policy/policies.

 *(iii)The Head of Department/sanctioning authority shall authorise the Head of Office/Drawing Officer and disburse the advance to the applicant on proper acquittance. The sanctioning authority will specify the fact of authorisation in the sanction itself to enable the Treasury Officer to make payment to the Head of Office/Drawing Officer concerned on the authority of that sanction. Accordingly the Head of Officer/Drawing Officer should follow the normal procedure of presenting the bills for drawal of House Building Advance at the Treasury through the Treasury bill book. In the case of joint loans a declaration shall be obtained along with application from either of the applicants authorising the other to receive payment in case the advance applied for is sanctioned by competent authority. 

🆀House building advance to Non Gazetted officer is sanctioned by 

        A:-head of dept. 

        B:-head of office 

        C:-administrative dept. 

        D:-finance dept. 

        Correct Answer:- Option-A 

# A certified copy of the sanction should be attached to the bill.

 (iv) Payment of the advances shall not be made unless the Head of Department/ Sanctioning authority, as the case may be certifies that all relevant document such as title deed, mortgage deed, collateral security etc., have been obtained and kept under safe custody.

 In the case of Heads of Departments the above certificate will be furnished by the Secretary, Board of Revenue.

 Exception:— Vide Art.  244 C (Section C). 

(v) In cases of House Construction Advance already sanctioned/to be sanctioned for construction of houses on plots of land allotted by the Kerala State Housing Board for purchase of land allotted by the Kerala State Housing Board and for construction of houses thereon/purchase of lands with houses allotted by the Kerala State Housing Board, the Heads of Departments concerned should obtain from the loanees non-encumbrance certificates of the properties along with the mortgage deeds, if the sale deed in favour of the loanees and the mortgage deeds in favour of Government are not executed simultaneously on the same day.  Such non-encumbrance certificates should cover the period from the date of sale of the property by the Board in favour of the loanees to the date of execution of the mortgage deed by the loanees in favour of Government and these certificates should be kept under safe custody along with the other documents. 

(vi) It will be the duty of the Head of the Department/Sanctioning authority/ officer concerned to see that the amount of loan is properly utilised within a reasonable time not exceeding one year from the date of full disbursement of the loan and to take steps for the recovery of the outstanding balances under the provisions of the mortgage deed. When the loan is disbursed before the house is constructed, the Head of the Department concerned must ascertain the actual value of the building completed and see to the refund of the balance of the loan that may remain unspent. This will be done by the Board of Revenue in the case of Heads of Departments etc., mentioned in Note I under Article 244E. (i). 

When House Construction Advance is sanctioned to an applicant to whom a plot of land is allotted by the Kerala State Housing Board, the Officer responsible to watch the utilisation of the loan amount, should intimate the Board that Government are interested in the land allotted to the loanee as well as in the building proposed to be constructed. He should also request the Kerala State Housing Board to intimate him in due course the execution of the sale deed in favour of the loanee to enable him to watch the timely execution of the mortgage deed of the property by the loanee in favour of Government. 

In cases where advances are sanctioned for constructing of houses on plots 

of land allotted by the Kerala State Housing Board, the Heads of Departments 

responsible for watching the utilisation of the advance, should obtain from the loanees, before disbursement of the advance, documentary evidence to prove that the cost of the land has been paid in full to the board and furnish a certificate to that effect along with the bill. In cases where advances are sanctioned for purchase of land allotted by the Kerala State Housing Board and construction of houses thereon, such documentary evidence should be obtained from the loanees within a period of two months from the date of disbursement of the advance. 

Along with the utilisation certificate, the officers responsible for watching the utilisation of the loan amount, should obtain from the loanees a certificate issued by the Kerala State Housing Board that the house has been constructed according to the approved plan. 

The officer responsible for watching the utilisation of the loan amount, should forward utilisation certificates of loans to the Accountant General within three months from the date fixed for the production of the utilisation certificate. 

It is also the duty of the Head of the Department/sanctioning authority to ensure that the property mortgaged to Government is kept free of any encumbrance throughout the period of repayment of the loan. He should also forward to Government not later than the first of the succeeding month half yearly statements showing the particulars relating to each advance in the prescribed form every year. 

(vii) The following procedure should be observed for the disbursement of advances for the purchase of house and house sites:— 

  (1) The details of the house and site or the site proposed to be bought and the house to be built on it should be given in the application, as far as possible. The approximate value of the land and building, should however be indicated in the application. The value of the house proposed to be purchased or constructed should cover two-thirds of the loan amount applied for. 

  (2) After scrutiny of the application by the sanctioning authority, the amount of advance admissible under rules will be intimated to the applicant and he/she will be asked to produce in the following form a clear title certificate relating to the property proposed to be purchased or on which the house is proposed to be constructed, from the Government Pleader of the respective districts to which the property belongs.

 “Certified that the applicant Sri/Sarvasree (here enter the name/names and addresses of the applicant/applicants) has/have clear title to the properties comprised in Sy. Nos.............................. (here enter Sy. No., Village and Taluk and the extent in each Survey No. of the security properties) subject to the charge/liability ............................................... (here enter the details of the charge or liability, if any) over Survey No.................................. 

There is no legal objection to sanction the loan applied for on the security of these properties subject to the clearance of the above charge/liability.

 Place...............

 Date............... Signature of the Government Pleader

II.        List of documents produced by the party. (here enter the details of documents).

 Place ..............

 Date............... Signature of the Government Pleader

III. List of documents to be kept under safe custody by Government (i.e., documents to be kept in original and those of which certified copies have to be obtained).

 (here enter the details of documents.)

 Place ...............

 Date ............... Signature of the Government Pleader

  IV.         Statement furnished by the government pleader explaining how the applicant gets clear title to the property offered as security.

 Place................

 Date................. Signature of the Government Pleader”

Scrutiny of the title deeds of the property will be done by the District Government Pleaders on payment of a fee of one per cent of the loan applied for subject to a minimum of ` 15 and maximum of ` 100 for each case or such other rates fixed by Government from time to time. The fee in each case will be realised direct from the applicant by the Government Pleader concerned. In case the amount of loan applied for is less than the amount admissible to him under the Rules and in case the applicant’s subsequent request for the grant of the full eligible amount, after the issue of the title certificate by the Government Pleader is entertained by Government, additional scrutiny fee shall be payable only if further scrutiny is done by Government Pleaders.

 No fee should be realised by the Government Pleader from the applicant for further clarification asked for on the title certificate once issued. The documents for scrutiny and issue of clear title certificate should be forwarded to the District Government Pleader through the Head of the Department or Office. 

  (3) In the case of applicants to whom plots are allotted by the Kerala State Housing Board, Trivandrum for construction of houses, the usual title certificate from the District Government Pleader may be dispensed with in case Government are satisfied that the plot of land allotted to an applicant is part of Government land assigned to the Board.

  (4) If after scrutiny of the documents, it is found that there is no risk in advancing money for the purpose, the sanctioning authority may sanction the advance. 

  (5) The advance for the purchase of the site with house will be disbursed in full after the assignment of insurance policies sufficient to cover 25 per cent of the advance and the execution by the applicant of an agreement to Government on stamp paper agreeing to purchase the property and execute a deed mortgaging that property to Government within two months from the date of drawal of the advance or to refund the entire amount with interest, on failure to do so. The agreement should be in Form 36. 

  (6) In the case of advances for purchase of site only the price of the site not exceeding 1/3 of the advance amount will be disbursed on execution of the agreement and assignment of insurance policies as laid down in the previous rule. The balance will be disbursed only after the site is purchased and mortgaged to Government. The mortgage deed in this case should be in Form 32.

  (7) Purchase of the site and/or building mortgaging the same in favour of Government should be completed within two months from the date of disbursement of the advance. In the case of purchase of site alone, the house to be built on it should also be mortgaged to Government. The Board of Revenue in the case of heads of Departments and the Heads of the Departments/Sanctioning authority in the case of other officers, should see that the condition is satisfied. The Treasury Officers disbursing the advances will intimate the particulars of the disbursement in the caseof Heads of Departments to the Board of Revenue and to the Heads of Departments/sanctioning authority in the case of other officers. If the borrower fails to execute the mortgage deed within the prescribed time limit, prompt action should be taken by the Board of Revenue or Heads of Departments/sanctioning authorities as the case may be, to recover the entire amount with interest in lump as agreed to in the agreement. 

PROCEDURE FOR RELEASE OF MORTGAGES/POLICIES AFTER COMPLETE REPAYMENT  OF THE  LOAN AND INTEREST 

244 F  . 1. When a government servant who has taken an advance under the rules for grant of house construction advance has remitted the principal and interest thereon, he should makes a request for release of mortgages to the Head of Department/Sanctioning authority concerned. When the loanee is a Head of Department the request should be made to the Secretary, Board of Revenue. The Head of the Department/Sanctioning Authority/the Secretary, Board of Revenue as the case may be, should forward the request to the Accountant General for verification. The Accountant General will verify the loan amount and recommend to the sanctioning authority whether the security documents may be released. The sanctioning authority may then issue formal orders for the release of securities.

 The Head of Department/sanctioning authority shall then prepare a draft release deed in Form 52 by an endorsement of the same on the mortgage deed itself. In cases where the sanctioning authority is Government in the Finance Department, it should then be forwarded to the Finance Secretary for execution. The sanctioning authority will execute the deed and return it to the loanee direct with instructions to present the document for registration before the concerned registering office within four months from the date of execution. In cases where the sanctioning authority is Government in the Finance Department, a copy of the instructions will be sent to the Secretary, Board of Revenue or the Head of Department as the case may be. The sanctioning authority will also simultaneously inform the concerned Registering Officer to register the same and report details of registration to the sanctioning authority. The date of execution of the deed will be noted in the Register of Recoveries maintained by Heads of Departments against the entry of the concerned Officer. 

The Life Insurance Policy/Policies shall also be released and re-assigned to loanee(s) in Form 52 B and forwarded to the Divisional Manager, Life Insurance Corporation of India in Form 52 C. 

2. The release deeds to be executed by Government are exempt from stamp duty vide Section 3 (b) (1) of the Kerala Stamp Act. Fees for registration of the documents under the Registration Act will be borne by the loanees in respect of the release deeds. 

🆀The authority to release the mortgage deed to the borrower is

(A) Registrar of the area of the borrower 

(B) The Accountant General after obtaining approval from the sanctioning authority 

(C) The Finance Department 

(D) Sanctioning Authority /Head of the Department after obtaining approval from AG

Correct Answer:-Option: (D) Sanctioning Authority /Head of the Department after obtaining approval from AG

🆀The request for release of mortgages after complete repayment If the loan and interest will be recommended to the sanctioning authority by 

(A)Director of Treasuries 

B) Finance Department 

(C) Head of Department 

(D) Accountant General

Correct Answer:-Option: (D) Accountant General

🆀Draft release deed in Form No.52 is valid for. ....months from the date of execution.

(A) One year

(B) Six months

(C) Four months

(D) One month

Correct Answer:-Option: (C) Four months

🆀Is Stamp duty payable for the release deed to be executed by the Government in respect of property mortgaged by Government Servant for availing House Building Advance

(A)Has to be paid by the Government Servant

(B) 50% of the stamp duty has to be paid by the Government Servant

(C)Stamp duty has to be paid if the loanee is a Gazetted Officer

(D)No stamp duty need to be paid

Correct Answer:-Option: (D)No stamp duty need to be paid

C. CYCLE ADVANCES 

245. (a) Advances for the purchase of bicycles may be sanctioned to Government servants (Gazetted or non-Gazetted) whose pay does not exceed *`1219 with effect from 1-4-1990. The advance may be sanctioned to pensionable employees of Government owned industrial concerns and to Work Establishment staff also. Full-time contingent employees are also eligible for the advance provided the sanctioning authority is satisfied that the duties attached to the post to which the applicant belongs are of a permanent nature and that the applicant is likely to continue in service till the repayment of the advance is completed. Application for advances should be addressed to the sanctioning authority (Form 40).

  (b) The Heads of Department are competent to sanction advances for the purchase of bicycles. They are empowered to delegate to their subordinate controlling officers, subject to the following general conditions and also subject to such special conditions as may be fixed by them in this regard, the power to sanction advance for the purchase of cycle in accordance with the rules and within the limit of the funds placed at their disposal:¬

  (i) The power to sanction the advance to any Government servant or class of Government servant should not be delegated to any authority lower than the authority competent to appoint the Government servant or class of Government servants. 

(ii) The power may be delegated only with the prior approval of the Government in the Finance Department.

 General conditions under which the advance is sanctioned 

  (c) (i) No advance will be sanctioned to a Government servant unless the sanctioning authority considers that the possession of a cycle would increase his efficiency. As a general rule no advance will be sanctioned to any Government servant unless he is in permanent service. The sanctioning authority may, however, sanction an advance to an officiating or temporary employee who has put in a minimum continuous service of 3 (three) years and who is not likely, as far as can be foreseen, at the time of sanctioning the loan, to be ousted from service. The sanctioning authority can reject any application without assigning reasons therefor. 

  (ii) No second advance will be granted within three years of a previous advance unless satisfactory evidence is produced by the Government servant concerned to the effect that the conveyance purchased with the help of the previous advance has become unserviceable. The sanctioning authority should furnish a certificate with the orders sanctioning the advance that the advance sanctioned is either a first advance or a second advance sanctioned after a period of three years of the previous advance. 

(iii) An advance shall not exceed 1000 (Rupees One thousand only) or the anticipated price of the †conveyance whichever is less. (This amendment will be deemed to have come into force with effect from 1-4-1993). 

(iv) The principal of the advance should be recovered in equal instalments by compulsory deduction from the pay of the borrower beginning with the first payment of a full month’s pay after the advance is drawn provided that the borrower may repay two or more instalments at the same time. The maximum number of monthly instalments in which the advance may be permitted to be repaid will be twenty in the case of permanent and non¬permanent Government servants. In the case of non-permanent Government servants the number of instalments should when necessary be fixed with reference to all the circumstances at a suitable number lower than the permissible maximum. 

The whole amount of advance should be completely recovered within the period originally fixed unless the sanctioning authority extends the period. The amount of monthly instalments should not be changed by reason of the borrower going on leave or his drawing subsistence allowance. In special circumstances, the Head of the Department may recommend that the Government should reduce the monthly instalments in a particular case for the duration of the period during which the borrower does not draw any pay. 

(v) The recovery of the interest will begin with the pay of the month subsequent to the month in which the repayment of the principal is completed. Interest should be calculated on the balance outstanding on the last day of each month. If the total amount of interest does not appreciably exceed the amount fixed for the equal monthly instalments for recovery of the principal, it should be recovered in a single instalment; otherwise it should be recovered in instalments not appreciably exceeding that amount. 

(vi) The advance when sanctioned should be drawn within a period of 2 (two) months from the date of sanction. 

(vii) A Government servant who takes an advance should within one month after drawing the advance furnish the Head of Office with a certificate stating the particulars of the conveyance purchased with the advance and the cash receipts obtained for the amount actually paid. 

(viii) Within one month after the purchases of the cycle, the loanee should also furnish the Head of Office with the licence obtained/transferred in his name in respect of the cycle purchased, for verification. 

  (ix) The cycle bought with an advance paid by the Government shall be the property of the Government until the advance is completely repaid (together with the interest due in it). 

  (x) Every recipient of an advance shall give (in Form 41) an undertaking written in three rupees stamp paper, to the effect that the conveyance will not be disposed of either by transfer or by sale until the whole amount of the advance together with interest is repaid. 

  (d) Before sanctioning an advance the sanctioning authority should satisfy itself that the grant of the advance does not involve any departure from the rules, and that no recovery against previous advances is outstanding against the applicant. A copy of the order sanctioning the advance should be communicated to the Accountant General. 

The Head of Office should furnish a certificate to the audit office that he has verified the voucher for the purchase of the cycle and the excess amount, if any, has been refunded furnishing particulars of such refund. A copy of such certificate should be furnished to the sanctioning authority also. 

#(e) The detailed accounts in respect of the advance sanctioned to non-gazetted Government Servants should be maintained by the Departmental Officers responsible for disbursement and recovery of the advice.

 The Head of Department will be the Chief Controlling Officer for the purpose of reconciliation of accounts. 

🆀The maximum number of monthly instalments in which the cycle advance to be repaid by the Government servants will be

(A)15 

(B) 20 .

(C) 25

(D) 30

Correct Answer:-Option: (B) 20

🆀KFC Form 40 is relating to ______________. 

 A:-Cycle Advance 

 B:-Housing Loan 

 C:-Onam Advance 

 D:-Motor Cycle Advance 

 Correct Answer:- Option- A:-Cycle Advance 

 🆀The cycle advance when sanctioned should be drawn within aperiod of ............... from the date of sanction 

(A) Fifteen days

(B) One month 

(C) Two months

(D) Three months 

Correct Answer:- Option: (C) Two months

സൈക്കിള്‍ അഡ്വാന്‍സ് 13.08.2019 മുതല്‍ നിര്‍ത്തലാക്കി. എങ്കിലും പരീക്ഷയ്ക്ക് ചോദ്യങ്ങള്‍ ചോദിച്ചുകാണുന്നു. എച്ച്ബിഎ,മോട്ടോര്‍ കാര്‍, മോട്ടോര്‍ സൈക്കില്‍ അഡ്വാന്‍സുകള്‍ നിര്‍ത്തലാക്കിയിട്ടും അതില്‍ നിന്നും ചോദ്യങ്ങള്‍ ചോദിച്ചുകാണുന്നു.

D. MARRIAGE ADVANCE 

245A.  

Marriage Advance:

An advance amount equal to 15 times of the basic pay subject to a

maximum of Rs. 1,50,000/- and Rs.. 1,00,000/- shall be sanctioned respectively

to Class IV employees and Part time contingent employees to meet the

marriage expenses of their female children. The amount will be released in one instalment. 

[G.O.(P)No.l99/2018]

🆀 Class IV employees are eligible for marriage advance of their female children up to 

 A:-15 times of basic pay or Rs. 1,50,000 whichever is higher 

 B:-10 times of basic pay or Rs. 20,000 whichever is higher 

 C:-25 times of basic pay or Rs. 1,00,000 whichever is higher 

 D:-30 times of basic pay or Rs. 1,00,000 whichever is higher 

 Correct Answer:- Option-A 

Eligibility for the  Advance 

'All class IV and Part time contingent employees' who have put in continuous service of not less than five years and have at least two years service for superannuation. Second Advance will be sanctioned on completion of the previous advance and any one of the parents only is eligible for the advance, in cases where both husband and wife are
employed as Class IV / Part time contingent employees. 

[G.O.(P)No. 200/2018]

Interest

 Interest will be  6% per annum as in the case of House Building Advance. Penal interest at the rate of 2.5% per annum will be charged in the case of default in repayment. 

🆀Penal interest for the default of repayment of advance to Class IV employees is 

(A) 12%

(B) 2.5% 

(C) 5% 

(D)18% 

Correct Answer:- Option: (B) 2.5% 

Repayment

 Repayment will be fixed based on the length of the remaining service. The maximum number of instalments (Principal) admissible will be 60. Recovery will commence from the pay and allowances for the next month onwards after the month of drawal of the advance. The recovery should be completed (both principal and interest) before the date of retirement. Balance if any outstanding at the time of retirement will be adjusted from the D.C.R.G. 

Mode of Sanction

 The competent authority to sanction the advance will be the Heads of Departments. The Heads of Department should obtain and keep the original applications in their office and a detailed proforma as in the case of House Building Advance and Motor Conveyance Advance should be forwarded to Finance Department for allotment of funds. The Heads of Departments should assess the requirement of fund in every three months and details of application should be forwarded to Government for funds. 

Accounts 

The Heads of Departments should keep a detailed account of loan and repayment in the loan register in a way susceptible to internal and statutory audit. 

🆀Rate of interest chargeable for marriage advances to eligible categories  is 

A:-6 percent 

B:-7.5 percent 

C:-8 percent 

D:-6.5 percent 

Correct Answer:- Option-A 

E. ADVANCES  TO JUNIOR I.A.S. OFFICERS FOR THE PURCHASE OF FURNITURE 

     (Article.246)

🆀Advance for Junior IAS officers for the purchase of Furniture is as per ________ KFC Vol.I. 

 A:-Art 312 

 B:-Art 330 

 C:-Art 80 

 D:-Art 246 

 Correct Answer:- Option- D:-Art 246

246.(i) A Junior Indian Administrative Service Officer, on appointment as Assistant Collector, may, on application to Government through the Accountant General, be granted for the purchase of furniture and other necessary equipments an advance of ` 500. The advance shall be sanctioned only if applied for within three months of the Assistant Collector’s joining duty in this State on completion of *either the first lap or second lap of training. The application made by an officer who is on leave will not be entertained. In case an officer who applies for the advance while on duty, is on leave when the sanction is issued, payment will be made only on his return to duty. 

(ii) The advance shall bear interest at the same rate as is charged on advances for the purchase of motor conveyances.

 !(iii) The advance shall be classified under the head of account ‘766 –Loans to Government Servants, etc.- Other advances’- Advance for the purchase of furniture to Junior I.A.S. Officers. 

( iv) The advance shall be recovered by deduction at ` 50 per mensem from his monthly pay commencing with the pay bill for the second month following the month in which the advance is drawn. For example, if the advance is drawn in January, the recovery should commence in the pay bill for March. The recovery should continue every month, whether, the officer is on duty or leave until the recovery of the entire amount of the advance plus the interest thereon is completed. 

(v) An Officer who draws the advance shall certify on the bill in which the first instalment of recovery is effected that the whole amount of the advance was utilised for the purposes for which it was sanctioned. If the whole or a part of the advances has not been so utilised by the due date of recovery of the first instalment the unutilised amount should be refunded to the Government forthwith. 

🆀Advance for the purchase of furniture will be given to 

        A:-District Collectors 

        B:-Junior IAS officers 

        C:-Gazetted officers 

        D:-All NGOs 

        Correct Answer:- Option-B

F. OTHER ADVANCES

247. These include advances such as those occasionally granted to Government servant who go abroad to pursue higher studies. Special advances of this kind are granted by the Government only in exceptional cases and for specially strong reasons. When the Government grant a special advance, they specify in their order the conditions subject to which it is granted. 

An Officer deputed for training abroad may be granted a recoverable interest-free advance of rupees five hundred for the purchase of equipment/warm clothing subject to the following conditions:

  (i) If the duration of the stay of the Government servant abroad as 6 months or less, recovery will be in 10 equal monthly instalments. 

  (ii) If the duration of the stay of Government servant abroad is more than 6 months, recovery will be in 20 equal monthly instalments.

🆀Number of equal monthly instalments of recovery in the case of special advances granted by Government to an officer deputed for training abroad for a period exceeding six months is : 

(A) Ten 

(B) Twelve 

(C) Fifteen 

(D) Twenty 

Correct Answer:- Option: (D) Twenty 

 (iii) The recovery will commence from the salary for the month following the month in which the advance is drawn. 

*(iv) The advance will be debited to the head of account ‘766 – Loans to Government Servants, etc.- Other advances’ under a distinct sub-head ‘Advance for the purchase of warm clothing’. 

#(v) The detailed accounts in respect of advance givento the non-gazetted Government Servants are to be maintained by the Departmental Officers responsible for disbursement and recovery of the advance. The Head of the Department will be the Chief Controlling officer for the purpose of reconciliation of accounts. 

3. Advance Repayable 

248. The transaction of Government business often necessitates the placing of funds at the disposal of Government servants as temporary cash advances for public purposes. These are subsequently adjusted as expenditure under the appropriate heads of account or recovered from the parties concerned. When such advances are free of interest, they are shown in the accounts as “Advances Repayable”, under the following minor heads:¬

(i)    Civil Advances. 

(ii)  Special Advances. 

(iii)  Revenue Advances.

(iv)   Forest Advances.

 The rules applicable to each of these classes of advances are contained in  the following Articles. Clauses (1) and (4) (b) of Article 239 also apply to 

these advances. 

(i) Civil Advances 

249. These include
(a) Advance for Thiru Onam festival; 
(b) Other festival advances; 

(c) Advances on transfer;  
(d) Mosquito net advances;and 
(e) Medical Advances. 

🆀Advance on transfer is _________ advance. 

 A:-Civil 

 B:-Permanent 

 C:-Special 

 D:-Revenue 

 Correct Answer:- Option-A 

🆀Mosquito net advance to a govt. employee comes under 

 A:-Civil advance 

 B:-Special advance 

 C:-Revenue advance 

 D:-Medical advance 

 Correct Answer:- Option-A 

🆀Onam festival advance is included in _____________Advance.

A:-Civil 

B:-Special 

C:-Permanent 

D:-Miscellaneous 

Correct Answer:- Option-A 

🆀Which of the following is a civil advance ? 

(A)Cycle Advance

(B) House Building Advance 

(C)Transfer Advance

(D) Motor Cycle Advance 

Correct Answer:- Option: (C)Transfer Advance

🆀State the advance which is not included in Civil Advance :

(A) Advance for Thiru Onam festival

(B) Mosquito Net advance 

(C) Advance on transfer

(D) Advance for minor irrigation

Correct Answer:- Option: (C) Advance on transfer

(A). ADVANCES  FOR THIRU ONAM FESTIVAL 

250. Advance to Government servants for Thiru Onam festival will be governed by the following rules:¬

1. An advance of one month’s pay or * `175 whichever is less will be paid to all officers under Government drawing a pay of ₹20000 and below. 

Note 1:— In the case of officers holding purely temporary and provisional appointments, the payment of the advance will be subject to the condition that they will continue in service until the expiry of the period of repayment. 

Note 2:— Employees paid from contigencies including part-time contingent employees and those borne on the work-charged establishment will also be given the advance provided they will continue in service till the repayment of the advance is over. 

Note 3:— In the above cases, the drawing officers will certify that the incumbents for whom the advance is drawn will continue in service till the repayment of the advance is over.

🆀What is the maximum amount payable to a Government employee as an advance for the Thiru Onam Festival? 

(A) ₹ 20,000

(B) ₹ 10,000 

(C)₹  5,000

(D) ₹  7500 

Correct Answer:- Option:  (A) ₹ 20,000

2 The advance will be drawn and disbursed on the last three working days prior to Onam holidays. 

🆀Advance for Thiru Onam Festival will be drawn and disbursed on the last......................days prior to Onam holidays 

(A) Five working

(B) Ten working 

(C) Two working

(D) Three working

Correct Answer:- Option: (D) Three working

3 The advance will be recovered in five equal monthly instalments, the first instalment being recovered from the salary drawn in October. The amount of each instalment should be rounded off to the nearest rupee, any balance being recovered in the last instalment. In the case of Hindu/Christian/Muslim Non-Gazetted Officers the recovery of Thiru Onam advance will be deferred from the salary for the month in which the holiday(s) of Deepavali/Christmas/ Ramzam occur(s), irrespective of whether they have drawn festival advance as provided in Article 76 (b) or not, and the recovery so deferred will be effected in the pay for February to be drawn in March. 

🆀Advance for Thiru Onam festival will be recovered in .........equal monthly instalments. 

(A) Three 

(B) Five 

(C) Eight 

(D) Four

Correct Answer:- Option: (B) Five 

4 *The advances will be debited to the head of account “766 – Loan to Government servants, etc., (d) Festival Advances” under respective detailed heads, “1. Onam Advance to Gazetted Officers and 2. Onam Advance to Other Officers” in respect of regular Government employees. In respect of teaching and non-teaching staff of aided schools, private colleges and polytechnics the advance will be debited to the head of account “677 – Loan for Education, Art, and culture” and in respect of N.M.R./C.L.R. workers the advance will be debited to the head of account “Miscellaneous Public Works Advances”]. Recoveries will be credited to the corresponding receipt head. The drawing officers will maintain a Recovery Register of ‘Onam Advance’ in Form 53. 

🆀Onam Advance paid in respect of N.M.R./C.L.R. workers the advance will be debited to the head of account. 

 A:-Miscellaneous Public Works Advances 

 B:-766 loans and advances 

 C:-677 - Loan for Education 

 D:-3054 salary to PWD 

 Correct Answer:- Option- A:-Miscellaneous Public Works Advances  

Note:— ! In the case of work establishment staff, the advance will be debited to the head ‘Miscellaneous Works Advances’.

5 The teachers and members of the non-teaching staff of Aided Primary and Secondary Schools will also be given this advance, by debit to the minor head ‘Primary Education’ or ‘Secondary Education’, as the case may be, below the major head ‘677 – Loans for Education, Art and Culture’. 

6 The employees of the local bodies will be granted the advance at the option of the local bodies if the financial position of the local bodies concerned will admit of this course. 

7 The Head of the Office or the officer to whom the Head of the Office has delegated the power of drawing establishment pay bills will sanction the advance. In the case of Gazetted Officers who are entitled to this advance, the Head of the Office under whom he works or his immediate superior officer if the Gazetted Officer is himself the Head of the Office, will sanction the advance and the advance will be drawn by the officer himself without specific authorisation by the Accountant General. 

8 *(a) The detailed accounts in respect of the advance given to the non-gazetted Government Servants are to be maintained by the Departmental Officers responsible for disbursement and recovery of the advance. The Head of the Department will be the Chief Controlling Officer for the purpose of reconciliation of accounts.]

 (b )(i) **Every Gazetted Government Officer should furnish the monthly deduction schedule towards Onam Advance in Form 53 C to be attached to the salary bill.] 

(ii) The abstract should be furnished on the reverse of the recovery schedules of one of the bills every month. Reference to the bill in which recovery schedule containing the monthly abstract upto the end of the previous month is attached should, however, be quoted on the reverse of the schedules appended to other bills.† Every Gazetted Government Officer should furnish the monthly deduction Schedule towards Onam Advance  in Form 53 C to be attached to 

the salary bill.

 (iii) The opening balance to be furnished in the monthly abstract should include balance outstanding at the beginning of the previous month including outstanding balance, if any, relating to the previous year. 

(B). OTHER FESTIVAL ADVANCES 

251. (1) Advances may be sanctioned to Government servants for religious festivals like Easter, Ramzan, Bakrid, Deepavali and Christmas.

*(2) The advances will be drawn and disbursed based on the orders issued by Government. 

(3) The advances will be recovered in lump in the same months. 

*(4)        Such advances will be treated as advances of salary, and debited to the same head of account to which the pay and allowances of the Government servants are debited. 

🆀Advance may be given to Government employees for religious festivals. Some of such festivals are         

(A) Karuthavavu 

(B) SreekrishnaJayanthi 

(C) Onam 

(D) MannamJayanthi 

Correct Answer:- Option-(C)Onam 

🆀Advance sanctioned to Government servants for religious

festivals is called : 

(A) Festival Advance

(B) Special Advance 

(C) Civil Advance

(D) Revenue Advance

Correct Answer:- Option:(D) Revenue Advance

(C). ADVANCES  ON TRANSFER 

(Article.252)

252.These advances are granted in accordance with  the following rules

(a) Eligibility for Government servants for an Advance.— Advances of pay and/or travelling allowance are granted to a Government servant who receives an order of transfer during duty or leave. 

(b) Sanctioning authority.— The authorities shown below have power to sanction these advances to the extent indicated against each :

Name of advance	Authority competent to grant sanction
(i) Advance of pay and travelling to a Government servants in permanent employ.	All Government servants, whoare to authorised to draw payand travellig allowance bills of establishments
(ii)Advances of pay and travelling allowance to a Temporary or officiating Government servant who has no substantive  post but who is not likely to be discharged within four months,and an ad- vance of travelling allowance only to any other temporary or officiating Government servant who has no substantive post	-do-

Note:—The Government servants authorised to draw pay and travelling allowance bills of establishments may sanction advances of pay and travelling allowance to themselves. 

🆀The govt. servants authorised to draw pay and travelling allowance bills  of establishment __________ advances of pay and travelling allowance to themselves. 

A:-may not sanction 

B:-may sanction 

C:-may sanction with the approval of controlling officer 

D:-none of the above 

Correct Answer:- Option-B 

(c) (i) Conditions on which an advance is granted.— An advance should not exceed one month’s pay plus the travelling allowance to which the Government servant is expected to become entitled under the rules in consequence of the transfer. 

Note 1:—The advance of pay will be limited to the extent of the pay the Government servants is in receipt of immediately before transfer or the pay that he will be entitled to after transfer, whichever is less. 

Note 2:— If a Government servant holds a temporary post, or officiates in a post without a lien on a permanent Post or officiates in a higher post but has lien on a permanent lower post only, his pay for the purpose of this rule will be his pay in the temporary post or his officiating pay, as the case may be. 

(ii) An advance on account of a transfer should invariably be recorded on the Government servant’s last pay certificate.

 [See also Rule 168 (d) of Part V of the Kerala Treasury Code.] 

(iii) The advance pay should be recovered from the Government servant’s pay in three equal monthly instalments, and the first instalment should deducted from the first full month’s pay drawn after the transfer. The first two instalments should be fixed in whole rupees, and the remaining balance including any fraction of a rupee should be recovered as the third instalment. The advance of travelling allowance should be recovered in full in the Government servant’s travelling allowance bill for the journey in question. The Government servant should present this bill as soon as possible after the close of the month in which the journey was performed, and if the amount of the bill is less than the advance, he should refund the balance in cash at once. When recoveries have to be made from the same Government servant on account of more than one advance of pay drawn on transfer, the recoveries should be made concurrently. Any amount recovered from the Government servant in excess of the advance drawn should, if it remains unclaimed for one year from the date of the last recovery, be credited as revenue to the Government. 

🆀Advance pay given to a Government servant on transfer will be recovered in :

(A) 2 equal monthly instalments

(B) 3 equal monthly installments 

(C) 5 equal monthly instalments 

(D) 10 equal monthly instalments 

Correct Answer:- Option: (B) 3 equal monthly installments

(iv)     If any member of a Government servant’s family does not accompany him but follows him within six months from the date of his transfer a separate advance may be granted at the time on account of the travelling expenses of that member, provided that no advance has already been drawn for the same purpose. 

When a single advance is drawn for the travelling expense of both the Government servant, and his family, it may be adjusted by submitting more than one bill, if the members of the Government servant’s family do not actually complete the journey with him. The Government servant should, however, certify on each adjustment bill that he will submit a further bill in due course for the travelling allowance admissible on account of the members of his family (to be specified) who have not yet completed the journey and that he expects the amount claimed in that bill to be not less than the balance left unadjusted. If necessary he should refund a part of the balance in cash before signing this certificate. 

252A.Travelling allowance advance to the family of officers who die while in service is regulated by the following rules :-

  (i) The advance may be sanctioned by the authority which would have been competent to countersign the T.A. claims if the officer was alive;

  (ii) The amount of advance may be limited to ¾ of the probable amount of T.A. admissible under Rule 99(2), Part II, K.S.R.

🆀What is the maximum T.A. advance that can be granted to the family of the officer who died while in service ?

 (A) Full T.A. admissible 

(B) ½ of the T.A. admissible 

(C)90% of the T.A. admissible 

(D) ¾  of the T.A. admissible

Correct Answer: Option: (D) ¾  of the T.A. admissible

 (iii) The advance will be admissible to only one member of the family of the deceased Government servant on behalf of all. It should be the widow/ widower or any other member of the family (within the definition of term “family”) who is a major and of sound mind. The decision of the sanctioning authority as to whom the advance may be given shall be final. 

After the advance is sanctioned by the competent authority, it may be drawn by the head of the office and paid to the member of the family authorised in this behalf. 

  (iv) Only one advance will be admissible irrespective of the fact that the members of the deceased Government servant’s family travel in separate batches from the same or different stations. 

  (v) The account of the advance drawn should be rendered within one month of the completion of the journey, if the family travels in one batch. In case the family travels in more than one batch, the account may be rendered within one month after the completion of the journey by the last batch. In any case the journey must be completed before the stipulated period of three months and the account of the advance rendered within one month of the expiry of the stipulated period at the latest. The advance should, however, be refunded forthwith, if the journey is not completed within the stipulated period.

  (vi) The surety of a permanent State Government servant of status comparable to or higher than that of the deceased Government servant should be obtained in Form 54 before the advance is sanctioned. The person receiving the advance should also give an undertaking in the above form in writing to the effect that he/she would abide by the provisions contained in clause (a) above. 

(vii) The advance will be interest-free and will be treated as “an advance recoverable”. [* ] 

(viii) The fact of the payment of the advance should be noted in the L.P.C of the deceased Government servant. 

🆀Which of the following is not an interest bearing advance ?

(A) Computer purchasing advance* 

(B) Transfer pay advance

(C) House building advance 

(D) Marriage advance 

Correct Answer:- Option: (B) Transfer pay advance

🆀 What is the eligible amount of transfer pay advance to a Government servant on promotion transfer ? 

(A)Pay of the Government servant before or after transfer whichever is less

(B) Pay of the Government servant after transfer 

(C) Highest of the above

(D) 10,000.00 (Rupees ten thousand only)

Correct Answer:- Option: (A)Pay of the Government servant before or after transfer whichever is less

Advance for the payment if immediate relief to families of officers

 who die in harness 

253. An advance equal to **(five month’s basic pay or two thousand rupees) whichever is less will be sanctioned to the family of a deceased Non-gazetted/ 

Gazetted Officer who dies; while in service (including members of the Work Establishment and full-time contingent employees) for meeting the immediate requirements, if in the opinion of the Head of the Department/Office, the family has been left in indigent circumstances upon the death of the employee on whom it was dependent and is in immediate need of financial assistance (for detailed rules See Appendix 10). 

🆀Who is the authority to sanction advance for the payment of immediate relief to the families of employees who die in harness? 

(A) Head of the Department / Office 

(B) Minister in charge of the Department

 (C) Secretary to Govt. in charge of the Department 

(D) Secretary to Govt., Finance Department

Correct Answer:- Option: (A) Head of the Department / Office 

Advance for the Purchase of Mosquito Nets 

🆀Rule for giving advance for purchase of mosquito nets to a govt. servant. 

 A:-Art. 90 KFC Vol-1 

 B:-Art. 300 KFC Vol-1 

 C:-Art. 254 KFC Vol-1 

 D:-No Rule 

 Correct Answer:- Option-C 

254.(1) The advance will be paid to all Government servants drawing a pay not exceeding ! ` 599 per mensum, resident or working in places where there is risk of filariasis, provided, however, that the grant of this advance will be restricted to officers who have put in a minimum continuous service of twelve months under Government. In the case of officers holding temporary or provisional appointments, and those who are on the verge of retirement, the payment of the advance will be subject to the condition that they will continue in service till the expiry of the period of repayment of the advance. Full-time contingent employees are also eligible for the advance provided they are likely to continue in service till the expiry of the period of repayment of the advance. 

Note:— Mosquito net advance will be paid during the month of April and May only and on no account will this advance be paid during the remaining months. But this restriction will not apply to cases of refund of excess recovery of the advance. 

(2) The advance will be interest-free. 

(3) The amount of advance will be limited to the amount actually required in each case for the purchase of mosquito nets for the use of the Government servant and his family subject to a maximum of * ` 200 (‘family’ includes wife/husband, children and step-children solely dependent on the officer). 

(4) The Head of the Office or the Officer to whom the Head of the Office has delegated the power of drawing establishment pay bills will sanction the advance. In the case of Gazetted Officers who are entitled to this advance, the Head of the Office under whom he works or his immediate superior officer if the Gazetted Officers is himself the Head of the Office, will sanction the advance, and the advance will be drawn by the Officer himself without, specific authorisation by the Accountant General. 

#(5) The advance will be debited to the head of account ‘766. Loans to Government servants, etc,- Other Advances–advance for the purchase of mosquito nets for the gazetted and non-gazetted officers. 

(6) A list of places in the State where there is risk of  filariasis is given as Appendix8. 

 (7) The advance will be recovered in ten equal monthly instalments by deduction from pay bills. The recovery will commence from the month subsequent to that in which the advance is drawn. Recovery will be made during periods of leave with allowances also. 

  (8) The advance should be used only for the purchase of mosquito nets. The officer who takes the advance should furnish to the sanctioning authority within one month after drawing the advance a certificate stating (a) that he has utilised the full amount of the advance for the object for which it was granted or (b) that he has refunded the balance of the advance in excess of the actual price paid for the mosquito nets. 

  (9) The Gazetted Officer or the Head of the Office who draws the pay bill will attach a certificate to the first pay bill cashed after the advance has been drawn and utilised, that he has checked the vouchers for the purchase of the net. If the officer draws his own salary bill the certificate should be furnished by the Gazetted Officer under whose immediate control he is working. The vouchers should contain information regarding the name of the officer concerned and the shop-keeper from whom the nets were purchased.

  (10) In cases where the advance has not been utilised wholly or in part within one month, steps will be taken to recover the whole or portion of the advance from the next pay/salary bill of the Officer.

  (11) In cases where excess recovery of the advance has been made, refund may be ordered by the authorities mentioned in clause (4) above. The sanction order must invariably specify the lump sum credit in which the excess recovery was included. The claim for refund should be preferred in Miscellaneous Bill Form No. T.R. 42 to which a copy of the sanction order should invariably be attached. 

  (12) A subsequent advance will be sanctioned only after the expiry of five years from the date of sanction of the previous advance. A certificate will be recorded in the order sanctioning the subsequent advance that the net purchased with the previous advance has become unserviceable.

 *(13) The detailed accounts in respect the advance given to the non-Gazetted Government Servants are to be maintained by the Departmental Officers responsible for disbursement and recovery of the advance. The Head of the Department will be the Chief Controlling Officer for the purpose of reconciliation of accounts. 

🆀What is the maximum time limit specified under the rules for adjusting advances granted to families of employees who die in harness

 (A) 3 months 

(B) 4 months

 (C) 2 months 

(D) 6 months

Correct Answer:- Option: (D) 6 months

🆀Mosquito net advance will be paid during the month of:

 (A) January

(B) December 

(C) June & July

(D) April and May

Correct Answer:- Option:(D) April and May

GO(P) 100/2019 പ്രകാരം മോസ്ക്വിറ്റോ നെറ്റ് അഡ്വാന്‍സ് നിര്‍ത്തലാക്കി.

ADVANCE FOR MEDICAL PURPOSE 

254 A.1. 100 % of the estimated cost for undergoing the treatment/procedure for the diseases/procedures listed in the Annexure I as certified by the Institution where the treatment is to be taken will be sanctioned to Government servants as Interest free Loan subject to the availability of budget provision and alsosubject to the following conditions: 

(i) There will not be a ban on referring the patients to a centre outside the State for taking treatment for the disease listed in the Annexure I  as there is a long waiting list and cosiderable delay at the centres in Kerala. 

(ii) When a patient is referred to another institution outside collegiate hospital/Government hospital it should be with the permission of the Unit Chief or Head of the Department of the Institution. For taking treatment outside the State the Government Servant has to obtain prior permission from the Director of Health Services. A prescribed pro forma in Annexure II will be filled in for cases which require reference to centres outside the State. 

(iii) The Utilization Certificate/claim for reimbursement should be fuenished to the loan disbursing authority within three months of receipt of the loan. The amount of interest Free Loan granted will be adjusted in the final/part medical reimbursement claim with 3 months from the date of drawal. 

(iv) The balance amount of the medical reimbursement claim admissible will be sanctioned only after adjusting the Interest Free Loan. 

  (v) The facility of giving Interest Free loan will also be available to those patients getting treatment for the diseases listed in the Annexure I from the collegiate hospital/Government hospital within the state also as the treatment has become expensive. 

Note:— This amendment shall be deemed to have come in to force with effect from 18- 02- 1977 

🆀Advance for Medical purpose bears interest @ _________. 

 A:-12% 

 B:-18% 

 C:-6% 

 D:-No interest 

 Correct Answer:- Option-D

🆀What is the rate of interest for Medical Advance given for Pacemaker implantation ?

(A) It is an interest - free loan

 (B) 18%

 (C) 12%

(D) None of the above 

Correct Answer:- Option:(A) It is an interest - free loan

🆀In the case of repayment of medical advance loan, the utilization certificate/claim for reimbursement should be furnished to the loan disbursing authority within a period of ..............months of receipt of the loan
(A) Six
(B) Four

 (C)Three

(D) Two

Correct Answer:- Option: (C)Three

 

2. SPECIAL ADVANCES 

General 

255. This head includes the following :— 

(i) Advances for minor irrigation works; 

(ii) Advances for the eradication of plant pests; 

(iii) Advances for erecting temporary sheds in plague affected areas; 

(iv) Advances for the purchase of cattle feed in the farms and  research stations of the Agricultural Department; and 

(v) Any other interest-free special advances, not classifiable under the other heads. 

Note:— For advances for law suits which are debited to the service head concerned as contingent charges— See Article 102. 

The general or special orders of the Government governing each class of the advance mentioned above contain the special conditions that apply to them. The more important provisions are set out in Articles 256 to 260.

🆀Advance for eradication of plant pests is _________ advance. 

        A:-civil 

        B:-forest 

        C:-revenue 

        D:-special 

        Correct Answer:- Option-D:-special 

 (i) Advances for Minor Irrigation Works 

256.(a) When a minor irrigation work is constructed, *restored or repaired by an Irrigation Officer authorised by the Government in this behalf under the provisions of the Irrigation Act, the Government may remit, under provisions of the Act, a portion of the cost of such works, but the balance of the cost shall be recovered from the proprietors of the lands benefited by such work pro rata according to the extent of the lands held by them in such number of equal annual instalments as Government may determine from time to time. 

Note:— The term “minor irrigation works” shall mean and include all works irrigating an area of land exceeding five acres but not exceeding 200 acres but shall not include lift irrigation work. 

(b) When any minor irrigation work has been constructed or completely restored or repaired, wholly or partly at the cost of Government, it shall be the duty of the proprietors of the land benefited by such work to maintain it under the provisions of the Act.

 If the proprietors concerned fail to maintain any minor irrigation work, the Irrigation Officer authorised by the Government in this behalf may cause such maintenance to be carried out at Government cost, the expenditure being recovered from the proprietors of the land benefited by the work. 

 + (c) The cost of any minor irrigation of maintenance work executed under the Act will be initially borne full by the Government , and debited to the head ‘306. Minor Irrigation’. On completion of the work, the amount recoverable from the beneficiaries will be transfer-debited to the head ‘706. Loans for Minor Irrigation, Soil Conservation, and Area Development’, by operating the sub head ‘Deduct–Amount transferred to other heads of account’. The recoveries, when effected, will be credited to this loan head]. 

(ii) Advances for the Eradication of Plant Pests 

257.          Under the provisions of the Kerala Agricultural Pests and Diseases Act, 1958 (Act 17 of 1958), the Government in the Agriculture Department may take preventive or remedial measures to eradicate or to prevent the introduction or reappearance of any pest, decease or weed in any local area which they consider dangerous or injurious to crops, plants, trees, etc.The expenditure on this account will be debited to the head ‘850. Civil Advances – Other departmental advances’, under a distinct sub-head. The recoveries made from the beneficiaries–full cost of the measures taken or a percentage thereof, as may be determined by Government— will likewise, be credited to the same head]. 

Where the Government happen to be occupier of any notified area, the occupying office or department should carry out the preventive and remedial measures and debit the charges incurred in that connection to its contingencies. When owing to default of any occupying office or department, the Department of Agriculture carries out the remedial measures, the expenditure incurred should be debited finally to the contingencies of the office or department concerned. 

🆀Advance for eradication of plant pests is .................. advance.

(A) Civil

(B) Forest

(C) Revenue 

(D) Special

 

(iii) Advances for erecting temporary sheds in plague  affected areas 

258. Subject to the provisions of clause (2) of Article 239, the Head of a Department (See Appendix 1) may grant an advance not exceeding one month’s pay to each non-Gazetted Government servant (including menials) of his department employed in a plague affected area for erecting a temporary shed. The advance should be recovered in six equal monthly instalments.

 3. REVENUE ADVANCES 

     (Article.259)

259. The following advances fall under this head.— 

(i) Advances for demarcation purposes. 

(ii) Advances for replacing missing boundary marks. 

(iii) Advances for the removal of encroachments. 

🆀Advance for removal of encroachment is ____________. 

 A:-Civil Advance 

 B:-Forest Advance 

 C:-Revenue Advance 

 D:-Permanent Advance 

 Correct Answer:- Option- C:-Revenue Advance  

(i) Advances for Demarcation Purposes

260. The detailed rules regarding the grant of these advances and their subsequent adjustments are contained in the Kerala Survey Manual and several orders on the subject issued from time to time. 

🆀Advance for demarcation purpose is contained in the : 

.(A) Kerala Registration Act 

(B) Kerala Land Use Act

(C) Kerala Survey Manual 

(D) Kerala Revenue Recovery Act . 

Correct Answer:- Option:(C) Kerala Survey Manual 

(ii) Advances for Replacing Missing Boundary Marks 

*261. The detailed rules governing the replacement of missing boundary marks by the Survey Department are contained in the several orders on the subject, issued by Government from time to time, and in the standing order of the Board of Revenue. The expenditure will, in the first instance be incurred by the Superintendent of Survey and Land Records, debiting the share of expenditure chargeable to Government account to the detailed head ‘Cost of survey marks’ and that recoverable from the ryots to the detailed head ‘Cost of boundary marks recoverable from land holders’, below ‘850. Civil Advances–Revenue Advances – Advances for Survey Operations’. After the work is completed, the expenditure chargeable to Government account will be transfer-debited to the head ‘229. Land Revenue Survey and settlement operations and the cost of stones recovered from the ryots or local bodies credited to the head ‘850. Civil Advances–Revenue Advances – Advances for Survey Operations–Cost of boundary marks recoverable from landholders’. The gain on account of such recovery will, however, be booked under the revenue head ‘029. Land Revenue Other Receipts—Receipts in connection with survey and settlement operations’. 

A bill in support of these adjustments should be prepared, with a certificate thereon to the effect that the proportionate cost of survey marks charged to Government account has been checked and found correct. Bills for advances for replacing missing boundary marks should be drawn by the Director in Form 42. The bill for the cost of stones should be supported by the stone contractor’s receipts, the original pass list, and the acknowledgements of the Village Officers taking charge of the stones. 

(iii) Advances for the Removal of Encroachments

261A. This advance is drawn by the Tahsildars and paid in lump sums to the Village Officers of the taluk on their own receipts, for expenses in connection with the removal of encroachments in cases in which the parties fail to remove the encroachments of their own accords. 

The Village Officers will recover the amounts, spent, from the parties concerned and remit the same into the treasury. 

The Tahasildars should forward to the Accountant General a monthly detailed statement of expenditure and a monthly memo of advances and recoveries to enable him to see that the money was spent for the purpose for which it was drawn, that the unexpended balance is refunded promptly and that the expenditure is also recovered from the ryots promptly. 

🆀Advance for the removal of encroachments are drawn by 

        A:-Village Officer 

        B:-District Collector 

        C:-Revenue Divisional Officer 

        D:-Tahsildar 

        Correct Answer:- Option-D

For what purposes, the advances for the removal of encroachments are used ?

(A) To remove the encroachments in case the parties fail to remove themselves on Government property by the parties. 

(B) To remove the encroachments of Government departments on private parties 

(C) To give the value of land acquired by Govt. 

(D) To remove the unserviceable articles from the sites acquired by Government

Correct Answer:- Option:(A) To remove the encroachments in case the parties fail to remove themselves on Government property by the parties. 

🆀The advance drawn by Tahasildars and placed at the disposal of Village Officers for meeting expenses in connection with the removal of encroachments is termed as

(A) Revenue expenditure 

(B) Imprest money need not be recouped 

(C) Revenue advance to be recouped from encroachers 

(D) Encroachment allowance

Correct Answer: Option: (C) Revenue advance to be recouped from encroachers

🆀Who will recover the amount spent in connection with the removal of encroachment :

(A) Sub - Inspector of Police 

(B) Circle Inspector of Police 

(C) Revenue Divisional Officer 

(D) Village Officer

Correct Answer: Option:(D) Village Officer

Demand, Collection and Balance Statement (DCB Statement)

262.The Tahsildar shall maintain in his office a register in the prescribed form showing the amounts drawn and the recoveries made, and shall also submit monthly Demand, Collection and Balance Statements to the District Collector. The District Collector shall get the statement scrutinised in his office and get them verified by the District Treasury Officer before the 15th of each month. 

He shall then prepare consolidated statements in the prescribed forms review them and send a copy of his review together with copies of his statement to the Revenue Board. The Revenue Board shall examine the statement and send a consolidated statement in the prescribed form to the Accountant General. The Revenue Board shall also review the statements at the end of each quarter,  and send a copy of the review to the Government and the Accountant General, together with copies of the consolidated statements. 

As soon as the accounts for a month are closed, the Accountant General shall send a consolidated statement to the Revenue Board showing the opening balance, debits, credits and closing balance under “Advances, for replacing missing boundary marks” and “Advances for the removal of encroachments” during the month and the Revenue Board shall see that differences, if any, between the departmental and the Accountant General’s office figures are reconciled. 

A Demand, Collection and Balance Statement for the whole year in the prescribed form shall also be appended to the Administration Report of the Department. 

🆀DCB statement means :

(A) Dividend Collection Balance Statement 

(B) Demand Collection and Balance Statement 

C) Dividend Certificate Balance Statement 

(D) Dividend Certificate Book Balance Statement 

Correct Answer: Option:(B) Demand Collection and Balance Statement 

(iv) Forest Advances 

263. A Government servant in the Forest Department who is not in charge of a Divisional Forest Office may, in accordance with Departmental regulations, be entrusted with a sum of money not exceeding a specified amount as an advance for executing works or for meeting current expenditure including contingent expenses and petty disbursements under travelling allowances.

 The responsibility for the repayment of an advance rests primarily with the Government servant who receives it, but the Divisional Forest Officer is also responsible for the recovery of all advances made to his subordinates. 

 🆀Forest Advances may be utilised for :

(A) As advance for executing works 

(B) For contingent expenses 

(C) For petty disbursements under travelling allowances 

(D) All of the above 

Correct Answer: Option:(D) All of the above 

4. PERMANENT ADVANCES 

264. The rules relating to permanent advances are contained in Articles 95 to 99.

(i) Demand, Collection and Balance Statement of  Loans/Advances 

264A. All the loan disbursing officers should forward to the concerned Heads of Department a monthly D.C.B. Statement in a suitable form as prescribed by the Head of the Department/the Chief Controlling Officer administering the loan on or before the 10th of the succeeding month. Certificates in the following form should also be appended to the D.C.B.

 “Certified that Demand Notices have been issued in all cases a month before they fall due and that the account given above represents the true statement of Demand, Collection and Balance according to the registers of loans maintained in this office”.

 “Certified that out of the arrears of `........................ (here specify the amount of arrears as at the end of the preceding financial year) outstanding collection at the end of March 19.... a sum of `................. has been collected at the end of ................. 20..... (here specify the month to which the D.C.B. Statement relates)”

 The Heads of Departments should watch whether the D.C.B statements together with the certificates are received from their subordinates promptly and review them regularly. 

(ii) Periodical Review of Loans 

The Accountant General will furnish the government with the annual statement of all outstanding loans to enable the government to review the transaction.

 The major loan disbursing departments should forward to government in the Finance Department half-yearly statements as on 30th March and 30th September in the following pro forma so as to reach government not later than the 30th April and 31st October every year. 

Review of the progress of recovery of loans and advances................................

Total Amount collected during the half year Balance pending collection 

Serial Number Head of Department and Name of loan/advance Arrears pending collection at the beginning of thehalf year Fresh demand falling due for payment during thehalf year Dues as per Col. 3 Dues as per Col. 4 Dues as per Col. 3 Dues as per Col. 4

🆀________ will furnish the Govt. with the annual statement of outstanding loans to enable the Govt. to review the transactions.         

A:-Head of depts. 

B:-Controlling officers 

 C:-Disbursing officers 

D:-Accountant General 

Correct Answer:- Option- D:-Accountant General 

(iii) Utilisation Certificates of Loans 

(a) The sanctioning authority should stipulate in every order sanctioning loans and advances, a time limit of not exceeding one year from the date of final drawal of the loan, for the utilisation of the loans and advances as also for the period within which the certificate of utilisation is to be furnished by the loanee provided, however, that in respect of loans and advances covered by specific rules, the time limit for the utilisation of such loans and advances and for the furnishing of certificates of utilisation thereof will be as prescribed in those rules. The authority to whom the utilisation certificate is to be furnished should also be specified in the order. The utilisation certificate should clearly state that the amount of loan/advances has been utilised for the specific purpose for which it is granted. 

A register should be maintained by the authority who is responsible for watching the utilisation of the loans and advances, in Form *55B. 

The register should be inspected at regular intervals by the sanctioning 

authority or the Head of the Department to satisfy himself that appropriate 

action is taken at proper time. 

(b)    Loans: the detailed accounts of which are maintained by the Accountant General–vide items (a) to (d), (i) and (j) of Art. 133. 

The sanctioning authorities should furnish the utilisation certificates in respect of each individual case where the accounts of the loanees are audited by the departmental auditors (e.g., loans to local bodies by the E.L.F.A., etc.). The utilisation certificates may be furnished by such departmental auditors for the total amount of loan distributed to each loanee for the various purposes during each year.

 (c) Loans: the detailed accounts of which are kept by the Departmental officers 

– vide items (f) to (h) and (j) of Art. 233. 

In such cases consolidated utilisation certificates should be furnished by the Head of the Department or the Chief Controlling Officer administering the loan. The certificate should cover the total amount of loan disbursed by the department under each detailed head of account and should indicate the year-wise break up of the loan disbursed and the year-wise break up of the amount for which the utilisation certificate is given. In respect of loans to co-operative societies, etc., the accounts of which are audited by departmental auditors (eg., the Registrar of Co-operative Societies), the utilisation certificate should be given by the auditors (as in the case of loans to Local Bodies) to the Head of the Department/the Chief Controlling Officer concerned who in turn will furnish the consolidated certificate to Audit.

🆀KFC Form 55B is _____________. 

 A:-Register of Guarantee 

 B:-Register of watching utilisation of loan/advances 

 C:-Register of watching audit recoveries 

 D:-Register of watching insurance payment 

 Correct Answer:- Option-

B:-Register of watching utilisation of loan/advances 

🆀Who will furnish the Government the closing balance report of loans so that the Government can conduct a proper review? 

(A) Accountant General 

(B) Heads of Departments 

(C) Director of Treasuries

(D) District Collectors 

Correct Answer: Option:(A) Accountant General 

🆀The major loan disbursing department should forward to Government in the Finance Department :

 (A) Monthly statement

(B) Quarterly statements 

(C) Half yearly statements 

(D) Annual statement

Correct Answer: Option:(C) Half yearly statements 

Utilisation certificate of loans to local bodies are issued by :

(A) Accountant General

(B) Director State Audit Dept 

(C) Directorate of Panchayat

(D) None of the above

Correct Answer: Option:(B) Director State Audit Dept 

Irrecoverable  Loans and Advances–Duties and Powers of Officers to Write off 

     (Article.265)

265. In respect of advances, for the detailed control, accounting and supervision of which the departmental officers, are responsible it is the duty of the departmental authorities concerned, when any advance is ascertained to be irrecoverable to take the necessary steps to get it written off the accounts under the sanction of the competent authority, and to advise the Accountant General when it is written off in order that he may make necessary adjustment in the accounts. Irrecoverable advance written off will be registered by the departmental authorities concerned in a separate record in order that any recovery eventually found to be possible may be made. 

The authorities who are authorised to remit or write off loans and advances and the extent the powers delegated to them are contained in the “Book of Financial Powers”. Any such remission or write off not covered by the powers specified therein requires the sanction of Government. 

🆀The authorities were authorised to remit or write off loans and advances to the extent of the powers delegated to them are contained in the : 

(A) KSR

(B) Kerala Account Code 

(C) Kerala Treasury Code 

(D) Book of Financial Powers

Correct Answer: Option:(D) Book of Financial Powers

🆀Irrecoverable advance written off will be registered in a separate record :

(A) To avoid the person from further advance 

(B) In order that any recovery eventually found to be possible may be made (C) To get statistics of written off amount

 (D) To claim the written off amount from central fund

Correct Answer: Option:(B) In order that any recovery eventually found to be possible may be made (C) To get statistics of written off amount

🆀Who makes necessary adjustments in the accounts when an irrecoverable loan or advance is written off will be registered by the departmental authorities? 

(A) Finance Department 

(B) Head of Department 

(C) Revenue Department 

(D) Accountant General

Correct Answer: Option:(D) Accountant General

Write Off liabilities of Government Servants who die in Harness 

265A. Liabilities due to Government up to ₹5 lakhs in the case of Government employees/All India Service officers dying-in-harnes, will be written off subject to the following conditions:¬

🆀What is the maximum extent of liabilities of Government Servants who die in harness that can be written off ?

(A) Up to Rs. 5 lakhs

(B) Up to Rs. 3 lakhs

(C) No limit

(D) Up to Rs. 2 lakhs

1. ‘Liabilities’ will include House Building Advance, Motor Conveyance advance and interest Free Advance drawn for the treatment of the employee. In case where there is more than one advance outstanding, priority shall be given to older cases. the facility would be available even where State Government  Employees or All India Service Officers were on deputation at the time of demise or where the loan outstanding was sanctioned by some other Government including State Government or Central Government. 

2 The outstanding balance exceeding Rs 2 lakhs shall be recovered as usual as per the existing rules 

3 Outstanding liabilities shall be the liabilities outstanding as on 17-06¬1997 or thereafter while the remittances of instalments were going on in usual course as per the conditions of the sanction order and the amount to be so written off shall be determined after deducting the amount already repaid. 

4 The applicant/applicants who submit application for waiver of liabilities shall furnish an affidavit duly certified by a Notary Public of the locality to the effect that the loan amount has been fully utilized for the purpose of House. Building/Purchase of vehicle/treatment of the employee for which it was sanctioned. 

Note:— The Scheme shall be deemed to have come into force with effect from 17-06-1997. 

Annual Certificate

 

🆀What is the maximum liability due to Govt. by a last grade employee, that can be written off in cases of dying -in-harness?

 (A) 1 lakh

(B)  entire amount due to Govt. 

(C) 2 lakh

(D) 5 lakh 

Correct Answer: Option:(D) 5 lakh 

🆀Applications from the All India Service Officers for advance can be sanctioned by 

 A:-Govt. of India 

 B:-Government in the Finance Department 

 C:-Secretary to Government, Legislative Department 

 D:-The President of India 

 Correct Answer:- Option-B 

🆀When a Govt. employee died while he is in service, his liabilities can be written off as per prevailing rules in force by the Government. These liabilities include 

 A:-House Building advance 

 B:-Motor Cycle advance 

 C:-Interest free medical advance 

 D:-All of the above 

 Correct Answer:- Option-D 

     (Article.266)

266. With regard to the advances repayable, the departmental officers concerned should furnish annually to the Accountant General by the 15th July certificates of balances under each kind of advance as they stood in their administrative accounts on the 31st of March preceding. 

🆀The Government servant who has taken advance for the purchase of motor car should insure the car against full loss, theft or damage within one month from the date of purchase of car. If he fails to-do so 

        A:-He should pay the whole amount of interest in one lump sum 

        B:-He should pay penalty @ fixed by government 

        C:-He has to remit a penal rate of interest 

        D:-He should refund the whole advance with interest due 

        Correct Answer:- Option-D 

🆀Repayment of House Building Advance shall commence for the first installment after the expiry of __________ months from the date disbursement of last installment or completion of building whichever is earlier.

A:-12

        B:-9 

        C:-6 

        D:-3 

        Correct Answer:- Option-B

🆀The encumbrance certificate for land and property furnished by an employee towards mortgage of House Building Advance should be at least for

        A:-12 years 

        B:-6 years 

        C:-3 years 

        D:-10 years 

        Correct Answer:- Option-A

🆀The mosquito advance will be given once in a period of 

 A:-Six years 

 B:-Five years 

 C:-10 years 

 D:-Yearly 

 Correct Answer:- Option-B 

-🆀____________ leave salary will be paid in advance to govt. employee proceeding on leave.

 A:-15 days 

 B:-7 days 

 C:-one month 

 D:-two months 

 Correct Answer:- Option-C 

🆀Who is the competent authority to sanction an advance of travelling allowance for non gazetted officers?

 A:-Head of Dept 

 B:-Head of office 

 C:-Treasury Officer 

 D:-Govt. 

 Correct Answer:- Option-B