Excess Cash Balance (ECB) Memo Guidelines

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.