The Religious Institutions (Custody, Investments and Lending or Borrowing of Moneys) Rules, 1963
The Revenue Department issued the Religious Institutions (Custody, Investments and Lending or Borrowing of Moneys) Rules, 1963 through G.O.P. No. 3584, dated 24 December 1963, to regulate how religious institutions hold, deposit and invest money. The rules were amended by G.O. No. 275, C.T. & R.E., dated 16 July 1997. They require money received from selling immovable property to be deposited separately and restrict its withdrawal without the Commissioner's prior permission.
What the rules govern
The Religious Institutions (Custody, Investments and Lending or Borrowing of Moneys) Rules, 1963 govern the custody, banking and investment of money belonging to religious institutions. The rules apply subject to any scheme settled, or treated as settled, for the institution.
For a math, money is held by its trustee or by an officer appointed by the trustee. For another religious institution, money is held by the trustee or, where there is a Board of Trustees, by its Chairman.
Requirements affecting institution funds
The Religious Institutions (Custody, Investments and Lending or Borrowing of Moneys) Rules, 1963 include the following requirements:
- Money needed for three months of expenses must be placed in a current or savings account with one of the permitted banks or institutions.
- Additional money needed during the fasli must be placed in seasonal or fixed deposits for periods of less than one year.
- Money received as a deposit must be kept separately and withdrawn only when it must be refunded or adjusted.
- Deposits must be made in the name of the religious institution.
- Money received from selling immovable property must be deposited separately in one of the specified securities.
- Sale proceeds cannot be withdrawn without the Commissioner's prior permission.
- The Commissioner may permit sale proceeds to be used for new buildings, repairs to old buildings or other purposes connected with the religious institution. Reasons must be recorded in writing.
Who may be affected
The Religious Institutions (Custody, Investments and Lending or Borrowing of Moneys) Rules, 1963 directly affect trustees, Chairmen of Boards of Trustees and officers responsible for institution money. A buyer of religious institution property should note that the rules control how the institution handles the sale proceeds, but the supplied text does not set out the process for approving or completing the property sale itself.
Related accounting controls in the extract
The accompanying accounting provisions require written trustee approval before expenditure, signed and verified bills for claims, receipts for payments and supporting bills or certificates for purchases. Accounts, registers and relevant forms must follow the Manual of Accounts of the Hindu Religious and Charitable Endowments Administration Department.
Irrecoverable loans, debts, losses, stores and revenue may be written off only after investigation and by the competent authority within the limits stated in the extract. Irregular, illegal or improper expenditure that is surchargeable under the Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959 cannot be written off.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can a temple freely use money received from selling immovable property?
No. The sale proceeds must be deposited separately and cannot be withdrawn without the Commissioner's prior permission.
Can sale proceeds be used to construct or repair temple buildings?
Yes. The Commissioner may permit their use for new buildings, repairs to old buildings or other purposes connected with the religious institution, with reasons recorded in writing.
In whose name must temple money be deposited?
Money lodged under the custody and deposit provisions must be placed in the name of the religious institution.
Do these rules explain how a buyer can purchase temple land?
No. The supplied text regulates the custody and use of money, including proceeds from immovable property sales, but does not describe the approval or sale process for temple land.
