KOHIMA, APRIL 25 (MExN): The Department of Treasuries and Accounts (DoTA) has responded to the Mangkolemba Ao Tanur Telongjem (MALT), regarding shifting of the treasury functioning from Mokokchung Treasury to the newly completed Sub Treasury at Mangkolemba. The department, in a press note, stated that the decision to commence functioning of a treasury or sub treasury requires the prior clearance of the RBI. Without this clearance, it stated that a treasury or sub treasury cannot make any payments, even if notified as open by the state government.
It further clarified on the official order from the Principal Director, Department of Treasuries & Accounts dated February 13, 2014 wherein it was stated that “the Sub-Treasury Office building at Mangkolemba has been already completed and the functioning of the Sub-Treasury and its transactions will start with effect from April 1, 2014.” In this, the department informed that the order was addressed to the Branch Manager of the State Bank of India Mangkolemba, copies of which were also endorsed to the RBI Regional Office Guwahati, and the SBI Local Head Office, Guwahati. The DoTA informed that the letter was issued to inform the Branch Manager of SBI Mangkolemba that construction of the Sub-Treasury office building has been completed, and the department plans to commence functioning from the-Sub-Treasury with effect from 1-4-2014. It was also to request the SBI to explore the feasibility of taking over government transactions from the date indicated, from the ground floor of the new building.
The Department of Treasuries and Accounts informed that Mangkoremba Sub-Treasury was placed under suspension with effect from June 13, 1994 and transactions were shifted to Mokokchung Treasury, when a robbery occurred at the sub treasury on May 10, 1994. The sub treasury at the time was functioning as a Non-Banking Sub-Treasury, in which the Treasury acts as the custodian of the RBI currency chest. It stated that the RBI has now stopped issuing new permits for such Non-banking Treasuries, and that the Sub-Treasury can commence functioning from Mangkolemba only after SBI takes over government transactions with a currency chest at their Mangkolemba branch. This requires prior clearance of the RBI. It further said that RBI clearance is given only after the currency chest is inspected and prescribed specifications are satisfied.
Department of Treasuries and Accounts informed that the department has been pursuing the matter with the RBI and SBI since 2004, the year in which the Reserve Bank of India had intimated its decision to close all currency chests attached to Sub Treasuries. It stated that the Finance Department had on May 4, 2011, authorized SBI Mangkolemba to conduct State Government transactions, following which a request was made by the Directorate of Treasuries & Accounts to the SBI Regional Office, Dimapur, to expedite the process. Subsequently, the RBI on January 9, 2012, gave its clearance to the SBI Branch of Mangkolemba to transact State Government business. Since then, it stated that the Department of Treasuries & Accounts has been regularly reminding the SBI to expedite taking over transactions by conversion of their branches to currency chest branches.
The DoTA reiterated that resuming functioning of the Sub-Treasury will depend on the steps taken by SBI to obtain RBI approval for a currency chest and that the decision to resume transactions from Mangkolemba Sub-Treasury does not lie with the state government.
