The government has decided to make the A-Challan (Automated Challan System) mandatory for the collection of all types of government revenue and receipts from July 1 this year, aiming to enhance transparency in government financial management. The Finance Division issued a circular on the matter on Tuesday.
According to the circular, all ministries, divisions, directorates, autonomous bodies, and subordinate offices will be required to collect and deposit government revenue and receipts through the A-Challan system. It further states that any other system currently being used for collecting government funds must be discontinued.
The circular also directs all government funds currently deposited in various accounts of commercial banks to be transferred to the government's Treasury Single Account (TSA) by June 30 this year. Furthermore, the Finance Division said that this initiative has been taken to ensure the immediate deposit of government funds into the state treasury, make cash management more transparent and efficient, and completely eliminate the risk of generating fake challans.
The circular further states that the full implementation of the A-Challan system will provide immediate and accurate information on the government's actual cash position. It will also reduce the amount of government funds lying idle in various bank accounts.
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