Chief Postmaster General HP Circle Shimla – 171 009

VOLUME – VI PART-II
INDIAL POSTAL ORDERS

Indian Postal Orders: Indian Postal Orders provide a convenient means of transmitting
small sums of money by post. These are available in the denominations of Rs. 1,2,5,10,20,50,
100 and the commissions for issue are Rs. 1.00 up to denomination Rs. 10.00 and thereafter
Rs. 2.00. 5.00 and 10.00 for denominations 20.00, 50.00 and 100.00 respectively. (PO Guide-
I)

Period of currency:

1. 24 months from last day of the month of issue.

2. Extended period on payment of second commission: - additional 12 months.
3. No. of stamps to be affixed for remitting broken amount: 4 stamps for a value not
exceeding Rs. 3.00.

INDIAN POSTAL ORDER PRESENTED FOR PAYMENT

An Indian postal order presented for payment will be examined to see that: -
a) It is payable at the office.
b) It is genuine and that the amount has not been altered;
c) The order has not been cut, defaced or mutilated.
d) No erasure, alteration or concealment has been made in or of any words, figures,
marks, designs printed or impressed thereon;
e) There has been no erasure or alteration of the name of the payee or of the office of
payment as written in the body of the order or of any crossing;
f) If bears the impression of the round money order stamp or the special postal order
stamp wherever authorized and the signature of the postmaster of the issuing office and
that it also contains payee’s name;
g) It is presented within twenty-four calendar months from the last date of the month in
which it was issued; and that no departmental instructions have been received stopping
payment of the order.
h) Postage stamps, if any, affixed to make up broken amounts do not exceed four, the
value thereof is below Rs. 3 and are affixed in the proper place.

(Rule 189 – Vol. VI (Part-II) and clause 245, PO Guide-Part-I)

PROCEDURE FOR PAYMENT OF INDIAN POSTAL ORDERS

1. THE INDIAN POSTAL ORDER PRESENTED IS NOT PAYABLE AT THE OFFICE AT

WHICH IT IS PRESENTED.

If the order has been made payable at an office other than the one at which it is
presented, it may paid, provided that the person presenting it is known to the
postmaster or any member of the post office staff not below the rank of a postman to be
either the payee or his authorized agent and the name of the office is filled in, before

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payment, by the payee or his authorized agent in addition to the name of the office
originally filled in. If the person presenting the order is the payee himself, the postmaster
must write above his signature the words “payee known to a member of the post office
staff not below the rank of a postman”, and if he is the payee’s authorized agent, the
postmaster must, before payment, require him to write in the postmaster’s presence his
name and address on the back of the order and the postmaster must add the words
‘known to me’ or ‘known to a member of the post office staff not below the rank of a
postman.’

II. WHEN THE ORDER DOES NOT BEAR ROUND M.O. STAMP OF THE OFFICE OF
ISSUE.
When the order does not bear round M.O. stamp or stamp of the office of issue, it will not
be given immediate payment except when presented by banks or by Government
institutions. When presented by an individual, an application bearing full details of the
order, the name and address of the applicant and the place of purchase as known to the
applicant, will be taken, a manuscript receipt will be given to the applicant. The post office
will then verify the particulars from the office of issue (through the H.O.) specified in the
application. If the amount involved is more than Rs. 50, a telegram will be sent for the
purpose of verification and payment will be made only after due verification from the office
of issue through the concerned H.O. in case the I.P.O. was not issued by the office
mentioned by the applicant, he will be asked to ascertain from the sender, the name of the
post office where it was purchased. In such cases a report will also be made to the
Divisional Superintendent who will check whether it is in the list of lost I.P.O.
(Rule 189(2)-Part - II)

DEFECTIVE INDIAN POSTAL ORDERS MAY BE PAID WITHOUT REFERENCE TO THE

HIGHER AUTHORITY.

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a) Where an order has first been erroneously receipted by a person other

than the payee named on it, whose signature has subsequently been
cancelled by the payee and the order is then properly receipted by the
payee himself.
b) Where the receipting signature of the payee has been scored out by
himself either through mistake or because it was defective, and the order
is then again properly receipted by him.
c) Where an order has first been erroneously receipted by the purchaser,
whose signature has subsequently been cancelled, either by himself or
the payee, and the order is then receipted by the payee.
d) Where an order payable to a firm company, society, corporation, etc. has
first been receipted by a member of the firm, etc., in his own name, whose
signature has subsequently been cancelled, and the order is then properly
receipted.
(Rule 191 (3) read with 163(3) Part-II)
PAYMENT OF CROSSED INDIAN POSTAL ORDER
A CROSSED Indian postal order is one on which two transverse lines are drawn
in ink across, or by means of perforation. The crossing may be either: -
 General, in which case two transverse lines are drawn across the order
with or without the words ‘& Co.’ in between the lines, or
 Special, in lwhich case the name of the particular bank will be written in
between the two transverse lines.
Crossed Indian postal orders can be encased only through a bank
including a PO Savings Bank. In the case of an order with special
crossing, payment will be made only through that particular bank entered
therein.
{Rule – 192 Vol. VI (II)}
PROCEDURE PRESCRIBED FOR THE GRANT OF REFUNDS OF THE
VALUE OF INDIAN POSTAL ORDERS.
The office of issue of the Indian postal order may grant refunds of the
value of the orders (but not the commission) to the purchasers in accordance
with and subject to the conditions applicable to the payment of Indian postal
orders. The person claiming the refund should produce the counterfoil or should
be known to the paying postmaster to be the purchaser or his agent. The
purchaser should receipt the order adding to his signature the word ‘purchaser’,
and his permanent address. The counterfoil, if produced, must be destroyed by
the paying postmaster. The paid order must be endorsed by the paying
postmaster ‘counterfoil produced’ or ‘purchaser known’, as the case may be. If a
crossed order is produced, the purchaser should be asked to cancel the crossing
by writing across the face of the order the words ‘ please pay cash’ and add his
initials. If the counterfoil is not produced, or the purchaser is not known to the
paying postmaster or if the purchaser applies for the refund of the value at a
post office other than the office of issue, the case should be reported to the
superintendent of post offices or first class postmaster having jurisdiction over of
issue furnishing the following information :-

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 The serial number and the denomination of the order;

 The date of issue of the order,
 The name of the office of issue.

When the value of the order has been refunded under the orders of the
superintendent or the First Class Postmaster, his letter of authority together with
the order should be forwarded to the Postal Accounts Office.
{Rule 196 Vol VI Part-II}

ACTION TAKEN BY A POST OFFICE WHEN AN INDIAN POSTAL ORDER IS

LOST AFTER PAYMENT.
When an Indian postal order is lost after payment, an application giving the
serial number and the denomination of the order should be made to the Head of
the Circle through the Divisional Superintendent asking for permission to issue a
certificate of payment. On receipt of the permission, a certificate in the prescribed
form should be issued and impressed with the date stamp of the office. It should
be signed by the official responsible for the loss and countersigned by the
postmaster. This certificate together with the authority of the Head of the Circle
should then be treated in the same way as a paid order.
(RULE-200 Vol (II)

MONEY ORDER

DEFINATION; - A “Money Order” is an order issued by the post office for the
payment of a sum of money through the agency of the post office. ‘Remitter’ is
the person who sends money by means of a money order. A ‘payee’ is the
person named in the money order as the person to whom the money is to be
paid.
(PO GUIDE-I)
MONEY ORDER FORMS:-
(a) MO forms are sold at the counter of the post office at 0.25 poise each. The
cost of MO forms is not adjusted from the commission payable by the
remitter.
(b) The forms are available in books of 50 forms each.
(a) The No. of such books that each post office can keep is fixed by the
Supdt. of Posts. It will be indicated in the momo. of authorized balance
issued by the Sr./Supdt. POs.
(b) Each BO should keep only two books.
(c) All offices should maintain a stock register of MO books showing the
particulars of receipt , sale, supply and balances on hand BOs, kept an
account of the forms sold day to day in a rough book.
(d) Post Office will impress the stamp before its sale at the place provided for
the purpose.

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(e) The sale proceeds of MO forms should be credited as soon as 50 forms

are under head ‘sale of MO forms’ in the daily a/c of SO/BO. HO should
supply the book of MO forms to SO its next accounting bag and SO
should supply to BO on receipt from the HO.

ISSUE OF INLAND MONEY ORDERS:

PRESENTATION OF MOS.
a) The remitter must fill up the MO form (MO-8) legibly and sign on the form
when presented for issue. The MO Asstt. may also fill up the form for the
remitter or his agent and require him merely to sign it or if he is illiterate to
affix his thumb mark, but no fee be charged or gratification accepted for
this.
b) The MO presented for issue should be examined whether particulars are
entered properly and clearly and the actual office of payment with PIN is
entered.
c) The name and full address of the payee should be legible. When the
payee is an Indian woman, the entry of her name on the MO should not be
insisted and it can be replaced by adding the name of her husband, son or
father. Thus a MO payable to the ‘wife of Sahib Chandra duta’ should be
accepted.
d) Maximum limit of MO is Rs. 5000/-. The maximum limit is not applicable to
MOs issued by HRO and SRO for payment of salaries and by BSNL
authorities.
e) The particulars to be entered by remitter in a MO form may be written
either in English, Hindi or in the current regional language of the dist.
f) When the entries are in Hindi or regional language, the MO Asstt. must
write an English translation including the amount of MO underneath the
entry in regional language but the entries in the coupon must not be
translated.
g) When the MO Asstt. is satisfied that the particulars furnished by the
remitter are correct and complete, money should be taken for the value of
the MO and the commission either in cash or by cheque.
(See clause 91(a) or (b) of PO guide) (Rule-
8,9 &11)

RECEIPTS TO BE GIVEN TO REMITTER:

a) A receipt should be prepared to be given to the remitter in duplicate by

means of double sided carbonic paper in the book of MO receipts. The
receipt in each book bear printed MOs in a consecutive series; there are
250 receipts in each book and the series is continued from 1 to 10,000.

b) The receipt should show the amount of the order. Commission and the
name but not the address of the payee. The MO Asstt. should sign and

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date stamp both the receipts and hand over the original receipt to the
remitter. The duplicate receipt will remain in the book as the office record.
a) The printed No. of the receipts given to the remitter will be the Sl. No. to
be assigned to the MO and should be written on the form wherever MO is
to be entered by the office of issue.
b) The issue of a receipt upon any but the authorized form will be punished
by dismissal.
c) In HO if a receipt is spoiled the original should be made over to the PM,
who will personally destroy after the word ‘spoiled’ has been written in ink
under his signature across the duplicate in the book. The MO of a spoiled
receipt should be entered in its proper place in the journal of MOs issued
followed by the word spoiled the MO of a spoiled receipt must not be
entered on a MO.
d) In SOs if a receipt is spoiled the word ‘spoiled’ should be written in ink
under SPM’s signature across all the three copies, both the original and
carbon copy of the spoiled receipt, will be sent to HO attached to the SO
daily list of MO issued, the other copy being left on record in the book.
The No. of the spoiled receipt should be entered in its proper place in the
SO daily list of MO issued, followed by the word ‘Spoiled’ the MO of
spoiled receipt must not be entered on a MO.
(Rule-12)
Money Orders From BOs: MOs received from BOs for issue, will be
transferred by the sub Accounts Asstt. to the MO department where they will be
numbered, examined and prepared for issue in the same manner as MO
presented at the window, but the MO receipt for the remitter will be made over to
the Sub Account Asstt. for despatch to the BOs The name of the BO and the No.
of the receipt issued by it will be written at the top of the MO receipt issued by the
account office. Special care should be taken by the MO issue Asstt. to see that
there has been no delay on the part of the BO in issuing the MO by referring to
the date entered on it by the remitter and that the amount date as written by the
remitter have not been altered or corrected and that there is no delay in receipt of
MO form from the BO.
(Rule-16)
JOURNAL OF MO ISSUED : The journal of MO issued is a list in which the
particular of all money order booked in the office and received from BO in direct
account with it for issue, should be entered by the MO Asstt. for the use of Audit
office. It is prepared in duplicate by HOs and in triplicate by SOs by using single
sided carbon paper. The MO number entered in the journal will be the number
assigned to the MO from the book of money order receipts. In receipts of BO MO
the words ‘BO’ should be noted in the remarks column of the journal and in
respect of telegraphic money orders, the letter ‘T’ should be noted before the
number and also in the remarks column.

Now this work is done through the MPCM counters and the counter PA
prepares the summary of all MOs booked and place it before the supervisor
concerned for checking.

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(Rule-17)

PREPARATION OF MOs FOR DESPATCH: The No. of the MO, the date of
issue and the amount payable to the payee should be written in red ink in the
appropriate place on the advice portion of the MO and the name of the office of
payment followed by PIN and the name of the district within the bracket should
be entered in the block letters on the address side of the order. The MO should
then be signed and stamped by the MO Asstt.
(Rule-18)
DESPATCH OF MO:
a) The MO for dispatch should be sorted by the MO Asstt. according to the
due mail and sorting list (from M-9). They should then be folded along the
heavy lines printed on the reverse of the form so as to leave the name of
the office of payment outside. MO for dispatch in each bag should be tied
in a bundle with a MO check slip.
b) Slip (form M-70) placed at the top by passing the thread crosswise. The
total No. of MO in a bundle must be clearly written on the check slip.
c) When MO bundles are made up for a post office, the MO sent to the office
of payment and those sent to it for onward transmission should be placed
in a separate bundle marked ‘sorting ‘ or ‘station’.
d) When MO bundles are made up for post office marked ‘sorting’ or ‘station’,
there should six or more MOs for any particular post office.
(Rule-19)
EXAMINATION BY POSTMASTER OF MO FOR ISSUE:
a) After advising and journalizing all the money order the MO Asstt. should
stamp the money orders in the presence of the post master with oblong
money order stamp and then place them with the following books and
documents before the postmaster.
 Book of MO receipts
 Journal of MO issued
 MO check slips
 BO daily accounts
In HO the following document should also be placed before the Head
Postmaster.

The daily journals of MO issued, received from SOs and the carbonic
copies of MO receipts attached there to the index of receipt Nos.

b) The PM should carefully compare all the entries in all these books and
documents and tick off the corresponding entries in the book of MO
receipts, journals, BO daily a/c and SO daily lists. He should also cross by
red ink the appropriate case in the MO from to denote the amount of the
MO as (‘not above Rs. …… )’, he should then check the daily total of
journal of MO issued and after writing the amount of the total in words
and initializing the entry sign the journal and the MOs. Special care must
be taken to see that the MO issued at the BO have not been delayed in

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the account office, but have been entered in the Book of receipts and
journal on the day on which the transactions of the BO appear in the BO
summary that the amount entered in each MO by the MO Asstt. agrees
with the amount as written by the remitter, and there has been no delay
on the part of the BO in issuing the MO, by referring to the date entered in
it by remitter.
c) In HOs, the PM should also satisfy himself that the first Sl. No. entered
against each SO in the index of receipt Nos. under the date of its daily
journal follows consecutively the last Sl. No. Previously recorded and
initial the index to MO receipt Nos. in token of having carried out this
check.
(Rule-21)
MO PRESENTED IN LARGE NUMBERS: When MOs are presented in
large numbers by a single remitter, the following procedure should be followed:-
a) The MO should be presented before 12 noon or time fixed by the Dvnl.
Supdt.
b) The No. of MOs should exceed 20 or the limit imposed by the Dvnl. Supdt.
c) A list in the prescribed form along with the amount and commission should
also be presented with the MOs.
d) Each list should contain not more than 9999 MO entries and if more than
9999 MOs have to be booked at a time, a separate list should be
prepared.
e) Each page of the list should bear the name of the remitter at the top.
f) The list should be prepared in triplicate or quadruplicate depending upon
the office of booking HO or SO.
g) The MO Asstt. should check the MO with the list and the total struck in the
list.
h) The MO Asstt. should prepare a single receipt in form MO for the total
amount shown in the list and for the commission and issue the same to
the remitter of the MO.
i) The MO Asstt. should write this receipt number on the top of lists in the
space provided.
j) The No. given to the MO will consists of the number of MO receipt
followed by the Sl. No. of the MO as indicated in the list submitted by the
remitter, separated by a ‘dash’ or ‘hyphen’.
k) In HO the MO Asstt. should authenticate one copy of the list and retain it
in the MO issue journal, send the second copy to the Director of Postal
Accounts along with the MO issue list and return the third copy to the
remitter. In SO the MO Asstt. should send the fourth copy to the HO
together with the copy of the issue list.
l) In the journal of MO issued, the MO receipt No. the value and the
commission will be noted treating all the MOs in the list as a single MO,
furnishing in the remarks column of the journal the first and the last serial
No. of the MO used as suffixes.
m) The MO will be prepared and dispatched adopting the usual procedure.
(Rule-13)

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PAYMENT OF INLAND MONEY ORDERS

EXAMINATION OF MO RECEIVED FOR PAYMENT

1. The MO bundles containing MOs intended for payment will be handed
over un-opened by the registration Asstt. to the MO Asstt. The MO Asstt.
himself should open each bundle and verify the No. of MOs in each
bundle with the No. noted on the check slip. He should then examine each
MO to see.
 That it is impressed with the prescribed stamps by the office of
issue.
 That it is signed by the postmaster and the MO Asstt. or other
authorized officer of the office of issue.
 That it is payable at his office or at a BO in direct account with his
office, as shown by the payee’s address entered by the remitter.
 The amount of the MO as written by the office of issue agrees with
lthe amount as written by the remitter.
 That the issue office has punched the order in the appropriate
cage of the MO form to denote the value as ‘Not above Rs. …….. ‘
 That each high value MO is impressed with name stamp on its
reverse on the top portion and noted with its Nos. and that the PM
of the office payment has signed in red ink.
2. If there is a discrepancy of Rs. 10 or more between the amount entered in
a MO by the remitter and by the issue office or if any ground of suspecting
fraud, the irregularity should be brought to the notice of the PM and
payment with held pending the result of a reference by telegraph of less
than Rs. 10/-. The amount entered by the remitter should be paid and the
irregularity reported by the post office to the office of issue. The erroneous
entry in the MO should be corrected under the postmaster initials.
3. The MO with the MO check slip, register of MOs received register of MOs
for payment by village postman and BOs should be placed before the
PM.The PM should compare the entries in the MOs and the registers and
satisfy himself as to the correctness of all entries and the genuiness of the
MOs. He should note the total No. of MOs for payment on the day after
the last entry in the register and at least the note with his signature.
The PM should take special care to see: -
 That the amount for payment as entered in each order by the office
of issue is the same as that specified by the remitter.
 That the total amount to be given to each postman for payment of
MOs does not exceed the prescribed limit.
 That service HVMOs are received duly entered in the list of HVMO.
In case HVMO has been received without entered in the list, it
should not be paid without prior verification.
 That service and family allotment MOs issued for the disbursement
of pay and allowances and marked as ‘Not to be paid before the Ist

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of the following month’ are not given out for payment before the
prescribed date.

He should then get round MO stamp impressed on each MO in his

presence in the space provided for the purpose and return the MO and the
register to the MO Asstt.
(Rule – 23 and 25)

Maximum Limit of Money Orders issued for payment:

1. The total aggregate limit for the valuable viz. MO, issued articles,
money recoverable on VP/custom duty articles that may be entrusted to a
postman, village postman or a GDS is as follows:

Category of staff Normal Power of Power of Head of

SPOs Circle

Postman and Gr. ‘D’ 12000 15000 Unlimited

official doing delivery
work in urban areas.
Village Postman 5000 10000 -do-

GDS Official 5000 10000 -do-

2. There is no separate aggregate limit in respect of MOs that may be

entrusted for payment to a postman or village postman.
3. For GSMD, the individual limit in respect MO is Rs. 2000 can be enhanced
to Rs. 5000 by Divisional Supdt.
4. When the postman is escorted by another official, the limit should not
exceed double that which he could be entrusted with when unescorted.
(Rule-26 & DG Posts letter No. 23-12/89 dated 12.6.2000)

MO FOR PAYMENT BY POSTMAN:

The following procedure to be followed in making over the MO to postman
for payment.
a) The MO should be made over to postman by the MO Asstt. and the
signature of the postman obtained against the entry of the total No. of
orders given to him in register of MOs received.
b) The register of MOs received should be sent to the treasurer who will give
each postman the amount noted against his name in the register. The
postmaster should sign for the amount in the register both in words and
figures. The total amount given to all the postman at one time will be
entered by the treasurer in the cash book which entry should be initiated
by the MO Asstt. before he takes back the register of MOs received.
(Rule-27)

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PAYMENT OF SBMO: SBMO received from field post offices be

examined by the MO paid Asstt. and the PM in the manner laid down for
ordinary MO and impressed with round MO stamp. The MO Asstt. should
enter the SBMO in the register of MO received (MO-3) separately. The
register along with the MO should be sent to SB Branch without cash. A
receipt for the MO should be granted by the APM(SB) in the MO-3 register
and the register returned to the MO paid branch keeping note of the total
amount. The APM (SB) should sign the SBMO as payee impressing his
designation stamp below his signature. The MO paid vouchers duly received
by the APM(SB) and the acknowledgements carrying the counter foils of the
pay in slip should be transferred to the MO paid branch by the SB branch on
the same day by entry in the hand to hand receipt book. The MO
acknowledgements having the counterfoils of pay in slips pasted to them will
be posted in a service envelop to the concerned field PM by the MO paid
branch. The total value of the SBMO should be shown as MO paid by the MO
paid branch. The SB branch will show the total value of SBMO as SB
deposits through SBMO as a separate entry under receipts with a correspond
entry in the payment side in the hand to hand receipt book
(Rule-28)
PAYMENT OF MO AT THE WINDOW:
a) The MO should be paid only after satisfactory proof of the identify of the
claiment with the person named in the MO
b) Ordinarily the payment must not be made unless the claimant is identified
at the post office by some trustworthy person known to the postmaster or
lthe claiment produces other evidence to establish his identity to the
satisfaction of the postmaster.
c) It should be enquired as to how the identifier is acquainted with the
claiment and how long he has known the payee. The permanent address
of the payee as vouched for by the person who identifies him, must be
noted on the MO by the identifier who should add his own address below
his signature under the ‘identifier’s certificate’ printed on the MO form.
d) It should not be considered as evidence of the right of a claimant of a MO
that has been remitted in response to a telegram sent by him.
e) If the PM has any doubt or suspicion in connection with a MO, he should
make a telegraphic reference to the office of issue before effecting
payment.
f) Before the payment of a MO is made to a person other than the payee on
the written the authority of the latter, the PM should satisfy himself about
the authenticity of the written authority produced. The person receiving the
payment of the MO should be required to sign the acknowledgement of
the MO, the following manner.

FOR (name of the payee)

(Signature of the person receiving the payment)

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PROCEDURE OF PAYMENT:- The MO selected for window payment should be

entered in the register of MO received under a heading ‘Window’ and issued in
favour of the counter Asstt. Making the payment. The MO with the register should
be placed before the PM who should impress the MO with round MO stamp and
record the order for the payment of the MO to the counter Asstt. Below the entry
of the MO in the MO register and sign it. The MO paid Asstt. will obtain the
signature of the counter Asstt. Against the entry of the MO and make over the
register and the MO to the counter Asstt. for obtaining the amount from the
treasurer. The treasurer will obtain the counter Asstt. receipt for the amount in
the MO register and retain the MO register> He will show the amount as having
been paid to the MO paid Asst. In the treasurer’s cash book and obtain the later
signature against the entry before the MO register is returned to the MO paid
Asst. After the MO has been paid to the payee (or his agent) it should be signed
and dated by the paying Asstt. and made over by him to the MO paid Asstt.
under receipt to be obtained in the former receipt book.
(Rule-33)
SHORT NOTES

a) VOID MONEY ORDER: - When for any reason a MO remains unpaid,

either to the payee or the remitter, at the end of the month following the
month of issue, it will be treated as void by the office of issue. Such a MO
is termed as ‘void money order’. Void money orders will be listed and sent
to the postal accounts office with the list. Such MO can be paid on
application after re-issue by the postal accountants office. However, such
void MO is still in the office of issue or payment, it may be paid to the
remitter or payee, as the cause may be.
(Rule76 & 77)
b) FAMILY ALLOTMENT MONEY ORDER: A family allotment M.O. is a
money order drawn in India in favour of the dependents of combatants
and non-combatants on field service or services under peace conditions
beyond the limits of India. It will be presented without cash for issue by the
officer commanding to the training Battalion or permanent depots. A
special form of MO printed in red ink on blue paper is prescribed for this
purpose. The letter PA should be placed the No. of the MO.
(Rule-55)
(a) ©FOREIGN MONEY ORDER: Foreign MOs
may be issued by Indian Post Offices for
payment in any foreign country with which an
arrangement exists for the exchange of MOs
or they may be issued by any such foreign
country for payment at Indian Post Offices.
The former are termed ‘outward foreign MO’
and the latter ‘Inward foreign MOs’.
(Rule-88)
(d) TELEGRAPHIC MONEY ORDER AND ADVICE:- A TMO is a MO the
amount of lwhich is advised by telegraph by the post office of issue to the

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post office at which it has been made payable. The telegram advising the
remittance is termed as telegraphic advice. The abbreviation TMO used
for Telegraphic Money Order.
(Rule-103)
REDIRECTION OF INLAND MOs :
a) If the payee of a MO has moved to another place within the limits of India
and to any other country or place outside India with which MOs can be
exchanged, and has left his address at the post office, the MO can be
redirected to his revised address. For this the revised address should be
noted in red ink across the particulars of MO filled up by the remitter.
b) A redirection slip (form MO-12) containing the name of the revised office
or name of the country or place of payment(in case of redirection to
outside India) should be pasted to the address side of the MO form. The
redirection slip should be stamped with round MO stamp in the place
provided for the purpose and securely pasted to the address side of the
MO. If an order is redirected more than once, a fresh redirecting slip
should be attached to it on each occasion, but the previous slip should not
be detached.
c) The office to which MO has been redirected and the date of redirection
should be noted under the postmaster initials in the register of MOs
received.
d) An intimation of redirection in the prescribed form should be sent to the
office of issue. If a MO is redirected more than once, intimation should be
given in each case by the redirecting office to the issuing office.
e) No fresh charge on account of commission is made for redirection of an
inland MO within India. If the inland MO is redirected to a foreign country,
the difference between the commission at the foreign rate and inland rate
already paid should be deducted from the amount of the redirected order
when it is advised to the country of destination.
f) MO redirected to foreign counties should be forwarded to the office of
exchange concerned.
g) The money order should then be disposed of in the same way as money
orders issued.
(Rule – 59)
1. DISPOSAL OF REDIRECTED MO IN THE OFFICE OF PAYMENT:- The
redirected MO in the revised office of payment will be entered as usual in the
register of MOs received and the redirection slip will be impressed, in the place
provided for the purpose with the round MO stamp in the presence of the PM.
The redirection slip must not be detached from the order and after payment has
been made the order should be disposed of in the usual course.

10. UNCLAIMED MOs :

 As soon as it is found that the payee of a MO cannot be found, the MO should
be returned to the office of issue for payment to the remitter.
 The words ‘unclaimed returned to ‘ (name of office) for payment to the
remitter should be written under the postmaster signature across the

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particulars filled up by the remitter. Similar note with the date of dispatch of
the MO should be entered in the register of MO as received. A redirection slip
should be pasted to the MO and disposed of as if it were a redirected order,
but no intimation need to be sent to the office of issue.
 MO issued from field post offices which can not be paid to the payee, should
be redirected to 1 central base post office C/O 56 APO’ or 2 CBPO C/O 99
APO as per the remitter address. Such MOs should not be returned to the
issuing PO.
 When the amount is repaid to the remitter, his signature should be taken on
the receipt portion of the order in the place for the signature of the payee.
Before the MO is given to the postman for repayment to the remitter, the MO
Asstt. should indicate in red ink on the acknowledgement portion there of the
words. ‘To be retained in the office. The coupon portion of the MO will be
detached by the postman and handed over to the remitter along with the
amount. The acknowledgement portion of the MO should be detached by the
paying office and filed with the office copy of the MO paid list.
 If the MO is one that was issued in favour of the sender of a VP article, if will
be treated as void and sent to postal accounts office along with ordinary void
MOs.
 The MO commission will in no case be refunded.
(Rule-61)
MO LOST BEFORE PAYMENT:
a) In the case of a MO which has been received but lost before payment, the
PM of the office of payment should carefully satisfy himself by reference to
the register of MO of received and the error book that the MO has not
been redirected to another office by reference to the journal of MO paid
that it has not been paid. He should then give an intimation to the office of
issue by telegraph.
b) The PM of the office of issue on receipt of intimation from the office of
payment about the loss of MO should examine the receipt book, the
journal of MO issued and the register of MO received to satisfy himself
that the MO has not been repaid to the remitter. He should then prepare a
duplicate MO by reference to the book of MO receipts and the journal of
MOs issued. The name of the remitter of the MO may also be entered if it
is known. The words ‘copy original cancelled’ should be written on the
duplicate MO, which should be sent to the office of payment in separate
cover by Regd. Post. If the intimation of the loss or a complaint regarding
the loss is received otherwise than through the office of payment, the PM
should satisfy himself by telegraphic reference to the office of payment
that the order has not been paid.
c) When duplicate MO is issued, a note of it should be made on the office
copy of the MO receipt as well as in the journal of MOs issued. Before the
requisition for a DMO (duplicate money order) is compiled with it is also
necessary to examine the original receipt in the book of MO receipts to
ascertain if any MO has already been issued. If such a DMO has been
issued, a second DMO should not be issued until it has been already

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established that the first one has been lost. A receipt regarding the issue
of a DMO should be made to the home postal accounts office.
(Rule-74)
MO LOST AFTER PAYMENT:
a) If a MO has been lost after payment has been effected, intimation by post
should be given to the office of issue, which should prepare a memo of
admission of payment in form MO 10(a) and after filling in entries No. 1 to
6 stamp it with its month stamp and postal Accounts office stamp and
send it to the office of payment in a cover registered on service.
b) On receipt of the memo of admission of payment in the office of payment,
it should fill in entry No. 7 and obtain the payee’s signature or thumb
impression, if he is an illiterate, on it is token of his having received the
amount of the original MO. The signature of a witness should also be
taken on the memo when the payee is illiterate or is not known to the post
office or postman or lives in a village outside the post town. It should then
be impressed with oblong MO stamp, countersigned by the PM and
forwarded to the postal accounts office in support of the charge in the list
of MO paid.
c) If the payee refuses to sign the memo or if not possible to obtain his
signature for any reason, the case should be reported by the HO in full
detail for the orders of the Supdt. of Post Offices or 1 st Class PM. If a
completed memo of admission of payment cannot be forwarded to the
postal accounts office along with the MO paid list, a suitable remark
should be made against the relevant entry in the paid list of MOs.
(Rule 75-VI-II)
d) If a TMO receipt is lost after payment, the memo of admission of payment
should be prepared by the office of payment from the TMO advice on
record and disposed of as explained above.

MO PAID BY PAY ORDER:

a) Money order is generally paid in cash at the address given in the MO
form. They are also paid by pay orders at certain post offices specially
authorized for this purpose by the Heads of the Circle. The system is
useful when a single payee receives a large number of MOs everyday.
b) When the no of MOs paid to each payee is less than four, they should be
paid in the ordinary way and not under the ‘Pay Order’ system. However
MOs for large sums may be paid under the pay order system even if the
number of MOs to be paid is less than four.
c) The MO to be paid to each payee will be entered in triplicate list in form
MO 20(a), separate lists being prepared for each postal accounts office for
MOs issued during each month. A pay order for the total amount of each
list will be issued and delivered to the payee together with the duplicate
copy of the list and the MOs or only the lower portions there of containing
the coupons and acknowledgement, or the intimation portions only in the
case of VPMOs as may be convenient to the payee.

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d) The payee must sign the acknowledgement of MOs and the receipt for the
pay order and the list in the list in the form attached to the duplicate copy
of the list and make over the receipt with MO (or the acknowledgements
as the case may be) to the postman. However payees who receive daily a
large number of MOs may be permitted to return acknowledgement the
next day before payment is taken of the pay order.
e) Payee must present the pay order duly receipted by him at the post office.
The PM should examine the pay order presented for payment to see that
no endorsement other than to a bank is made on the back of it and that
the amount entered in it tallies with entered in the original copy of the list,
the pay order should then be pasted on the blank space at the foot of the
original copy of the list and the amount paid to the payee. It should then
be impressed with MO stamp. The payment should be noted in the
counter foil of the pay order and the office copy of the list.
f) The total amount of the MO entered in each lit should be shown as paid in
the accounts and entered in the list of MO paid for the particular month of
issue and the postal accounts concerned as one item. The paid MO and
the original list with the pay orders pasted at the foot will then be
forwarded to the postal accounts office concerned. Each MO will e
impressed with the special stamp showing the date of payment, in the
space provided on the reverse for the signature of the payee
(Rule-45)

MO PAID BY CHEQUE:

a) The MO to be paid to each payee by cheque should be entered in

triplicate lists in the form MO20 (a), separate list being prepared for each
postal accounts office for MO issued during each month.
b) The duplicate copy of each list along with the MO should then be
presented to be payee who should see that all the MO entered in the list
are actually intented for him. The payee will required to strike out the
entries of those MOs which do not pertain to him or which he refuses to
accept payment and alter the total accordingly. He should return the list to
the postman.
c) On receipt back of the list as accepted by the payee, a cheque should be
issued in his favour and sent to him with same duplicate list and the MOs.
The payee must sign the acknowledgements of the MOs and receipt for
the cheque and the list in the form attached to the list and make over the
receipt with the MO to the postman, retaining the coupons, the intimation
portions of VPMO and the duplicate copy of the list for his own use. When
the MOs are received back at the post office, with the acknowledgements
duly signed by the payee, the original copy of the lists will be checked with
the acknowledged MOs.
d) The total amount of the MO, entered in each list, will be shown as paid in
the accounts of the post office and entered in the list of MOs paid, for the
particular month of issue and the postal accounts office concerned as one

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item. The paid MO and the original list will then be forwarded to the PAO
concerned. Each MO will be impressed with the special stamps showing
the date of payment in the space provided on the reverse for the signature
of the payee. The triplicate copy of the list should be kept in the post office
as record.
(Rule-46)

PAYMENTS TO PRESIDENTS AT HOTELS, CLUBS, ETC.: - If the payee of a

MO, who resides at a hotel, club, or other similar institution, is not at home when
the postman brings the MO for payment, the postmaster should fill and sign an
intimation in Form MS-17 and supply it to the postman concerned, who should, at
the next delivery, hand it over to the Manager or Secretary of the Hotel or club,
under receipt to be taken in his book of intimation and notices delivered to the
payee on his arrival. On receipt of a reply from the payee, the MO should be paid
in accordance with his instructions.
(Rule 31)
PAYMENT OF MO AUTHORISED TO MINORS:
a) Where the minor is under years of discretion and is living with his parent
or lawful guardian, payment will be made to the parent or guardian on his
signing the MO on behalf of the minor.
b) Where the minor is under years of discretion and is not living with his
parent or guardian and the parent or guardian cannot be ascertained,
payment will be made to the person in whose care and custody the minor
for the time being is subject to such person signing, in addition to the MO
an agreement of indemnity in Form MO-20(b) undertaking to indemnity the
post office against all adverse claims in respect of the amount of the MO
so paid. In the event of his refusing to sign such an agreement, payment
should be withheld and the MO should be disposed of in accordance with
the instructions of the remitter which should be obtained through the office
of issue.
c) Where the minor is old enough to understand the nature the nature of the
transaction, payment will be made to the minor himself.
d) In HO the agreements of indemnity executed in respect of MO paid by the
HO together with similar agreement received form SO and BO will be kept
by the head postmaster in his personal custody.

Note :- A single agreement of indemnity may be taken in respect of more

than one MO paid at one time by a post office to one and the same person
on behalf of a minor.

In SOs, the agreements of indemnity executed in respect of MO

paid in the SO together with those received from BO in account with it will
be sent to the HO with the daily list of MO paid a suitable remark being
made in the list against the entries of the MO concerned.
{Rule-34 VOL.-VI (II)}

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 Chief Postmaster General HP Circle Shimla – 171 009

PAYMENT OF MO ADDRESSED TO PERSONS WITHOUT HANDS OR

FINGERS
a) where a person suffering from leprosy who has lost his fingers is living in
any asylum, payment will be made to the Head of the Institutions on his
signing the MO on behalf of such a person.
b) Where a person without hands or fingers due to any cause is living with his
parents, relatives or friends, payment will be made to the responsible
person with whom such a person resides, is the presence of an independent
responsible witness who should be required to attest the signature or thumb
impression on the form.
(Rule-35)

PAYMENT OF MO ADDRESSED TO DEPARTMENTAL PENSIONERS:

When pension MO is paid to a departmental pension, the postman should
endorse under his dated signature on the back of the acknowledgement portion
of the MO, a certificate in English or the regional language to the effect that
pensioner is alive on the date of payment. The certificate endorsed by the
postman on the back of the acknowledgement portion of Money Order paid in
January, April, July and October should be attested by at least two respectable
persons in the village.
(Rule 121(7) Vol. VI Part – III.
MO PAID TO WRONG PERSON:
a) If a MO is paid to a wrong person the amount must be recovered as soon
as possible and should be credited in the post office account under the
head “unclassified receipts” and the payment made subsequently to the
proper payee should be charged to “unclassified payment”. In the latter
case, full particulars of MO, the date when and where necessary, the
name of the office by which the recovery was made, should be shown in
the schedule {Form ACG-6(a)}
b) Money recovered from a wrong payee, after being credited in the
accounts, may be paid to the proper payee or to the remitter, if he so
wishes, on the authority of the postmaster concerned. The postmaster
should simultaneously with the issue of the pay order make the remark
‘Pay order issued on amount or if the amount has been credited in
another office, on the intimation of credit received from that office. This
remark should be initialed and dated by him.

NOTE: The term ‘Postmaster’ includes selection grade SPMs as well.

c) In cases where the claim of the proper payee has to be met before the
amount has been recovered from the wrong pay or from the offices at fault
. The sanction of the Sr./Supdt. Post Offices, Ist. Class PM must be
obtained.
d) The procedure prescribed in paragraphs (a) and (b) will be followed in the
case of wrong payment of an inward foreign MO, except that, in cases in
which the amount has been recovered from the wrong payee and payment

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to the correct payee cannot be made within three months from the date of
issue of the MO the previous authority of the Postal Accounts Office
should be obtained before payment is made.

Note – See Rule 233 of the Postal Manual Volume V

Rule-42 Postal Manual Vol. VI (II)
DISPOSAL OF PAYEE’S ACKNOWLEDGEMENTS-
a) The acknowledgements attachment to the paid MO should be impressed
with the date stamp, and placed before the postmaster who will satisfy
himself that there is a signed acknowledgement for every paid MO and
then see that the acknowledgements are cut off and transferred at once to
the sorting department for dispatch.

Note: - in the case of MOs paid by pay orders the MO acknowledgements

should be date stamped and released for transmission only after the pay
order is actually redeemed by he payee.

b) If an acknowledgement is lost during transit and a copy is applied for by

the remitter, the postmaster should furnish him free of charge, with a
certificate of payment in the prescribed form after satisfying himself (by
making enquiries from the payee, if necessary) that the MO has been
actually paid

EXCEPTION – The disposal of acknowledgements relating to MO issued in

favour of officers of Government or of District Local or Municipal Boards, is
governed in some cases by special rules, which provide for the retention of the
acknowledgements by the payees. To these acknowledgements, the procedure
prescribed in this rule does not apply.
(Rule – 43 )

CORRECTION OF OFFICE OF PAYMENT IN JOURNAL OF MOs

ISSUED:
a) When an intimation is received by the office of issue regarding a
misdirected order and when an unclaimed or refused order is received
back from the office of payment, the required note or correction will be
made in he journal of MOs issued.
b) If the office of issue of an unclaimed or refused order is a non-delivery
office, the order will, after a note regarding it has been made in the journal,
be forwarded to the delivery office by which the locality in which the
remitter resides is served.
(Rule-64)

ALTERATION OF PAYEE’S NAME:

a) If the remitter of a MO that has not been paid desires to change the name
of the payee, he should be required to produce, in proof of his identity, the
MO receipt granted to him and to give the postmaster a written application

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 Chief Postmaster General HP Circle Shimla – 171 009

to which postage stamps in payment of second commission must be

affixed. The name of trhe payee on the MO receipt and on the office copy
of it will be altered as desired and the MO receipt will then be returned to
the remitter. The postage stamps on the application will be defaced and it
will be impressed with the round MO stamp in he presence of the
postmaster, who will endorse it to the office of payment for compliance,
forwarding it in a cover registered on service. This procedure applies even
though the MO has not actually been dispatched from the office of issue.
b) In the office of the payment, the name of payee written on the MO will be
altered and a note showing the alteration will be made in the last column
of the register of MOs received. After the order is paid, the letter
authorizing the alteration in the name of the payee will be attached to the
MO and sent to the Postal Accounts Officer concerned.
Note 1.- Second commission must not be demanded from a remitter who
wishes to correct inaccuracies in the payees name entered in a MO. When
such in accuracies are obviously caused by ignorance of the proper way of
spelling the name.

Note 2.- Service stamps offered in payment of second commission for

change in the name of the payee of MO may be accepted from those who are
authorized to use these stamps and MO transactions are adjusted by book
transfer under rule 14, 41 and 55 (a).

Note – In SOs, the letter of authority will be sent to HO attached to the paid
MO.
(Rule-68)
ALTERATION OF OFFICE OF PAYMENT OR PAYEE’S ADDRESS
a) If the remitter of a MO that has not been paid desires to change the office
of payment, or to make any correction in the payee’s address, he should
be required to produce the original receipt granted by the Post Office and
give the postmaster of the office of issue a letter to that effect, which will
be endorsed by the postmaster to the office of payment for compliance,
impressed in his presence with the round MO stamp, and forwarded to the
office of payment, where the desired alteration will be carried out, on such
written authority, in the manner prescribed for the redirection of MOs. The
MO receipt produced by the remitter will be returned to the remitter after
taking necessary action as requested by him. In the office of payment the
application should be securely attached to the office copies of the MO
journals of MOs paid in which the entry of the MO appears.
b) The remitter of a MO returned as unclaimed may alter the office of
payment or payee’s address under this rule, and the order will in such a
case be redirected accordingly by the office of issue.
(Rule –69)
STOPPAGE OF PAYMENT
a) If the remitter of a MO that has not been paid desires to stop its payment
and to have the MO repaid to him, he should be required to submit a

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 Chief Postmaster General HP Circle Shimla – 171 009

written application to that effect and to produce the MO receipt granted to

him. In such case, the amount of the order, but not the commission will be
refunded to the remitter under the ordinary rules for the payment of MO
except that the words ‘payment stopped’ repaid to remitter will be written
across the particulars of the MO filled in the post office along with the
written application of the remitter.
b) If the MO has already been dispatched to the office of payment, intimation
will be given to that office by first post, or by telegraph if the remitter pays
for the telegram. The offices of payment will return the MO registered on
services by first post to the office of issue, noting the fact of return in the
register of MOs received.
(Rule-71)
ATTACHMENTS OF MO BY CIVIL COURT:
1. under section 44 of the Indian Post Office Act (6 of 1998) a person
remitting money by means of MO may require that the amount of the
order, if not paid to the payee, be repaid to him or be paid to any person
other than the original payee. Nevertheless, in cases where MOs are
attached whilst in the hands of the post office on decree against the payee
or if an official order from a competent count is received prohibiting the
payment of a MO to the payee or directing the payment of it to the court,
the post office should obey the courts orders and deposit the money in
court when required, but simultaneously action should also be taken to
inform the remitter as well as the payee or the remitter only if the order is
against him only. If the attachments is ordered by a civil court on a decree
against the remitter the amount should be paid to the court. In all cases
where the amount of MO is paid to the court the signature of the court
should be obtained on the order and acknowledgement. Every case
under this rule should be reported for information of the Head of the Circle.
2. If an official order from a Magistrate or other is received prohibiting the
payment of a MO to the payee or directing the payment of a MO to the
payee or directing the payment of it to the court, the order should be
obeyed provided that the order is against the remitter in a proceeding
against him. If however, the order is against the payee in a proceeding
against him, while the order should still be obeyed, simultaneously action
should also be taken to inform the remitter as well as the payee. If the
prohibitory orders are received by telegraph, the MO should be detained
by the postmaster till they are confirmed by post. In the case of a
prohibitory order, a note should be recorded regarding the same in the
register of MOs received against the entry of the MOs and intimation
should be given to the office of issue which should also make a suitable
remarks in the book of MO receipts on the copy of the receipt relating to
the MO. A copy of the prohibitory or order together with the MO in original
should be sent to the postal accounts office of the office of issue of the
MO on authority being issued by the court for the payment of the MO, the
postmaster should apply to the postal accounts office for its re issue (and
the date of payment should also be intimated to the office of issue).

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 Chief Postmaster General HP Circle Shimla – 171 009

In case the-payment of any such MO is not authorized by a court before

expiry of the currency or the MO (before it becomes void) the Postmaster
concerned should include the MO in the relevant void list quoting therein a
reference to the letter with the MO was sent to the postal account Office.

3. If a VP MO is with held under the orders of court, action should be taken

as prescribed in rule 277(5).
Note :- The above procedure will be followed whenever an order is received
from the income tax authorities under section 46(5-A) of the Indian income tax
Act 1922.
(Rule – 73)
STOPPAGE OF VP MONEY ORDERS:
1) .If the addressee of a VP article complaints that has been defrauded,
the issue of the money order should be stopped and the amount
credited to accounts under ‘Unclassified receipts’, reporting the matter
to the Head of the Circle.
2) If the money has been issued, it should be detained in the office.
2) A note that the issue of the money order has been stopped or the
money order has been detained after issue should be made in the
register of VP articles against the entry of the article.
3) An intimation of the above facts should be given to the office of posting
of the VP article in a registered cover.
4) If the money order has already been dispatched, the office of payment
should be wired to stop payment pending the orders of the Head of the
Circle.
5) The orders of the Head of the Circle and the final disposal of the
money order should be intimated to the office of payment, a note of the
same being recorded in the register of VP articles received.
(Rule-51(5)

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