The Karnataka Municipalities Accounting and Budgeting Rules, 2006.State Rules of Karnataka · 1964
(1) Crossed cheques on local banks or demand drafts may be accepted in payments of municipal dues or in settlement of other transactions with the Municipality. On receipt of cross cheque or demand draft, a receipt in KMF NO.14 .shall be issued, specifically indicating there in, that the amount is “subject to realisation".
(2) The Municipality shall maintain a Register of Cheques Received in KMF NO.15 in respect of all cheques or demand drafts and bank instruments received.
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