Article 283

Custody of Consolidated Funds, Contingency Funds, and Public Accounts

Official heading: “Custody, etc., of Consolidated Funds, Contingency Funds and moneys credited to the public accounts”

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Source edition: The Constitution of India (as on 1 May 2026)
Source locator: Part XII, Article 283, printed pages 167–168
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1. In One Sentence

Authorizes Parliament and State Legislatures to regulate by law the custody, deposits, and withdrawals of public funds and public accounts.

2. What It Means in Everyday Language

Article 283 provides the statutory and regulatory framework for managing the physical and banking custody of government moneys.

Clause (1) provides that the custody of the Consolidated Fund of India, the Contingency Fund of India, and all public account moneys—including deposits into the Reserve Bank of India and withdrawals therefrom—must be regulated by Act of Parliament, and until then by rules made by the President.

Clause (2) establishes an identical regulatory power for State Legislatures and Governors regarding State Consolidated Funds, State Contingency Funds, and State Public Accounts.

This ensures that the handling of government treasury cash, bank accounts, and digital payment systems operates under strict statutory financial rules.

3. Practical Illustrative Example

Everyday Scenario:

A state finance department issues treasury rules regulating electronic fund transfers, bank authorizations, and security checks for public revenue deposits.

Core takeaway: Under Article 283(2), these treasury and financial rules have direct constitutional authority to safeguard public funds from embezzlement or irregular handling.

Illustrative Notice: Treasury rules cannot authorize withdrawals that violate the fundamental requirement of an Appropriation Act under Article 266(3).

4. Important Limits, Qualifications & Exceptions

Article 283 establishes statutory treasury control and financial custody.

Statutory regulation: Empowered by legislative enactments of Parliament or State Assemblies.
Executive rulemaking: Managed under Presidential or Gubernatorial financial rules until statutory laws are enacted.
Banking and deposit security: Governs institutional arrangements with the Reserve Bank of India and public treasuries.

5. Operative Constitutional Text

(1) The custody of the Consolidated Fund of India and the Contingency Fund of India, the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of India, their payment into the public account of India and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by Parliament, and, until provision in that behalf is so made, shall be regulated by rules made by the President. (2) The custody of the Consolidated Fund of a State and the Contingency Fund of a State, the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of the State, their payment into the public account of the State and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by the Legislature of the State, and, until provision in that behalf is so made, shall be regulated by rules made by the Governor 1*** of the State.

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6. Sources & Historical Assembly Deliberations

Assembly quotations are withheld until wording, dates, and attribution have been checked against the primary record.

Sources & Citation Metadata

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Constitutional TextThe Constitution of India (as on 1 May 2026)Cited PDF page
Government of India (Legislative Department, Ministry of Law and Justice) • Part XII, Article 283, printed pages 167–168 • Human source-link check pending
Primary PDF accessed and transcribed with AI assistance on 14 October 2026. Formatting and amendment annotation markers are omitted; operative wording is retained. This is not human legal review. Later amendments and commencement notifications have not been comprehensively checked.

Human legal review is pending; compare the text with the cited editionNon-partisan educational resource