Maintenance of Gaon Sabha Area Fund and its transactions

(1) The cash balance of the Funds shall ordinarily be kept in the nearest post office savings bank or a neighbouring Co-operative Bank or with the prior approval of the Deputy Director of Panchayats with a local banker or the person, or invested in the post office cash certificates in the name of the Gaon Panchayat or Circle Panchayat, as the case may be, or it may be deposited and operated upon in any other manner specified by the Chief Commissioner in a general or special order. Permanent Advance Provided that any amount not exceeding the limit of twenty-five rupees may be kept in the custody of the Pradhan or Sarpanch as permanent advance for current expenditure and that such limit may be raised by the Deputy Director of Panchayats in special cases. (2) If such cash balance is kept with a local banker or other person. (i) the solvency of such banker or person shall be ascertained and certified before the fund is deposited with him and verified once a year by the Deputy Director of Panchayats, and (ii) a pass-book shall be maintained in Form No. 33 and it shall be sent with every remittance or withdrawal to such banker or person. He shall enter in the pass-book the amount credited or withdrawn, as the case may be, and sign such entry. The balance shall be struck monthly and noted in words and figures duly signed by such banker or person. (3) The pass-book or post office cash certificates, as the case may be, shall always be kept in the custody of the Pradhan or Sarpanch, as the case may be.