Overview
The Excess Cash Balance (ECB) memo is a mandatory document required for A, B, and C-class offices when excess cash is retained. This memo helps maintain transparency and accountability in cash management.
When to Prepare ECB Memo
1. Excess Cash: When the cash balance exceeds the authorized minimum cash balance, the Sub Postmaster (SPM) must note the amount of liabilities in their Daily Account.
2. Excess Maximum Cash Balance: When the cash balance exceeds the authorized maximum cash balance, the SPM must prepare an ECB memo in PA-20 and submit it to the Head Office (HO).
ECB Memo Requirements
For Sub Offices
1. Monthly Serial Number: Assign a monthly serial number to the ECB memo.
2. Authorized Cash Balance: Mention the authorized cash balance.
3. Closing Balance: Record the closing balance of the particular day.
4. Excess Cash: Specify the amount of cash kept in excess of the minimum authorized balance.
5. Reasons for Excess Cash: Provide detailed reasons for retaining excess cash, including:
- SB account number details
- EMO payment details
- Particulars of late collection
- Particulars of late receipt of remittance from other offices
- Any other relevant reasons
For Branch Offices
1. BO ECB: Prepare a separate ECB memo for Branch Offices.
2. Reasons for Excess Cash: Furnish detailed reasons for retaining excess cash, including SB account number details and EMO payment details.
3. SPM Remarks: The SPM must provide remarks justifying or otherwise explaining the excess cash retention.
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