The procedure to be followed for the accounting of Loans and advances received & made by the State Government is as under:

• In case of loans received by the State Government from sources other the Central Government, the terms and conditions imposed thereupon are invariably mentioned in the Subsidiary Loan Register (SLR) along with necessary entries to be entered in the loan module of VLC package of the Accountant General’s office. All such loans would be booked under Major Head 6003- Internal Debt of the State Government.
• In case of Loans and Advances received from the Government of India, the details of such loans advances are entered in the Subsidiary Loan Register (SLR) mentioning therein terms and conditions imposed and the same be entered into the VLC module of this office. These loans and advances are booked under the Major Head 6004- Loans from the Central Government.
• In case of Loans and Advances made by the State Government, the Accountant General (A & E)’s office consolidates the data of Loans and Advances on the basis of monthly accounts submitted by the treasuries. The terms and conditions mentioned in the sanctions are to be adhered to while maintaining the ledger of the loans.

Time schedule, as adhered to, in case of loans and advances is as under:

• Sanction entry is made within a week as and when sanction is received.
• The amount lying under “8658-CAO RBS” is cleared through Transfer Entry as and when sanction is received.