Automated Challan under Treasury

Challan Management System

Presentation by
Tapon Kumar Ghosh

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 Good News!
• Good news for Janata Bank Limited!
• New source of income(revenues)
• Non-funded income
• Commission income on Treasury Challan
receipts
• No default
• Exploit the opportunity
• Earn commission and maximise profit
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 Agency Arrangement
• CGA : Controller General of Accounts : Mr. Md.
Zahurul Islam.
• CGA is responsible for compilation and
consolidation of Government accounts.
• C&AG : Comptroller & Auditor General of
Bangladesh : Mr. Mohammad Muslim
Chowdhury

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 Sources of Revenue of Govt.
Tax Revenue :
 Income Tax
 VAT
 Customs
 Excise Duty
Non-Tax Revenue
 Fees
 Fines etc.
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 Agency Arrangement…
• Bangladesh Bank is the Banker of the
Government.
• Currently, under an Agency Arrangement, Sonali
Bank Limited acts as Agent of Bangladesh Bank
for conducting treasury work ( Govt. Receipts
and Govt. Payments).
• Bangladesh Bank is the Principal and Sonali Bank
Limited is the Agent.
• Agency Arrangement for 5-year term.
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 Agency Arrangement…

• Commission is paid by Bangladesh Bank on

total receipts and payments on Government
account.
• Commission is claimed by the Agent Bank on
half-yearly basis and paid by the Principal -
Bangladesh Bank
• Current rate of commission is .20% i.e, Tk.
2.00 /Thousand.
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 Agency Arrangement…
Under the Agency Arrangement, Sonali Bank
Limited performs following functions :
 Maintenance of Currency Chest and Sub-
Chest;
 Receipts and Payments on behalf of
Government;
 Issue and Payment of Sonali Bank Govt. Drafts;
 Encashment of Bangladesh Bank Drawings.

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 Bangladesh Bank branches
Receipt of Treasury Challan :
• Currently, 10 branches of Bangladesh Bank and
642 branches of Sonali Bank Limited (out of
total 1217) receives Challan in respect of
Government revenues and service-related fees.
• Branches of Bangladesh Bank are – Motijheel,
Sadarghat, Chattogram, Khulna, Rajshahi,
Bogura, Sylhet, Barishal, Rangpur and
Mymensingh.
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 Sonali Bank Branches
Receipt Treasury Challan :
 Chest Branch 58
 Sub-Chest Branch 08
 Non-Chest Treasury Branch 430
 Only Challan receiving Branch 146
• In FY 2018-19, No. of Challans received 1.48
Crore, involving Tk.4,34,000 Crore.

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 Current Problems
Current Problems :
 Fake Challans were detected.
 Delay in reporting receipts and payment
transactions to Bangladesh Bank.
 Reconciliation of accounts between Banks and
Accounts Office with the concerned Government
department becomes difficult.
 Big differences in the amount poses a real
problem.
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 Automated Challan…
• To alleviate these problems, Finance Division
of Ministry of Finance has developed a new
software – ‘Treasury Challan Management
System’.
• Four Divisions under MoF (FD, FID, IRD and
ERD)
• Under the system, ‘Automated Challan’
a-Challan will be generated.

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 Implementation Process
• ‘Automated Challan’ System will be
implemented in three phases.
• First Phase: All branches of Sonali Bank
Limited in Dhaka city;
• Second Phase: All branches of all commercial
banks in Dhaka City ;
• Third Phase : All branches of all commercial
banks throughout the country.

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 Automated Challan…
Objectives :
 Simplification of procedure.
 Prevent Government revenue evasion.
 Deter fake Challan.
 Establish financial discipline and transparency.

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 Treasury Rules And Subsidiary Rules

Revised Treasury Rules 1998 :

• Treasury Rule 10, Chapter 2, Subsidiary Rules
22 to 46 are applicable for Treasury Challan.
• Treasury Rule 16, Chapter 3, Subsidiary Rules
55 to 271 are applicable for Government
Payments.

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 Treasury Rules And Subsidiary Rules

Challan:
 SR 41: Shall present money for deposit along
with memorandum or Challan.
 SR 42 : Challan marked ‘Original’ shall be
returned to the tenderer duly signed as a
receipt.
 SR 43 : The amount of Challan should be
written both in figures and in words.

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 Deposit of a-Challan Money
Steps :
 Fill in Challan Form No. 6
 Deposit Challan with any branch of any
commercial bank.
 Challan may be deposited either in cash or by
cheque.
 Obtain money receipt slip from the bank.
 Obtain copy of Challan receipt from the bank.
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 Deposit of a-Challan Money…
• In case of Cheque, Challan receipt will be
handed over only when money is actually
credited into Govt. account.
• The copy of ‘Challan receipt’ meant for service
providing (Government)office will be
deposited to that office by the service
receiver.

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 Deposit of a-Challan Money…
• Bangladesh Bank , on receipt of information
from TCMS will debit concerned bank’s
‘Principal Account’, a current account
maintained with Bangladesh Bank and credit
Government Account.

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 Challan Receipt : Current Procedure

• Fill in Challan Form (TR Form No. 6)

• Required Information:
 Code No(13 digit);
 Applicant’s Name, Designation and Address;
 Depositor’s Name and Address;
 Purpose for which money is deposited ;
 Description of Notes, Draft, Pay Order and
Cheque;
 Amount.
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Challan Receipt : Current Procedure…
• Make entry in the Software
 Challan Code (13 digit)
 Serial No.
 Transaction No.
 Account Code (Ministry-Wise : 4 digit)
 Scroll No. (Challan No.)
 Transaction Mode (Cash/Transfer)
 Name of Depositor
 Amount
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 Challan Receipt : Current Procedure…

• Three copies of Challan are deposited

marked 1st Copy(Original), 2nd Copy and 3rd
Copy.
• The 1st Copy to be signed in full while the 2nd
and 3rd Copy to be initialled by the
designated Bank Officer.
• Print Challan Validation Printout at Day
End
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 Online Challan Verification
• The specific Government office will verify the
authenticity of Challan by using ‘Online
Challan Verification’ software
**www.cga.gov.bd

• The Tracking No. will be available in the

relative Money Receipt Slip of Challan.

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 Online Challan Verification…
Online Challan Verification
• Challan Date ……
• Deposited In Cash Cheque, Transfer,
ePayment
• Bank …… Branch ……
• Challan No. …. Verify Print

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 Automated Challan Verification

Automated Challan Verification

• Challan No. …… Verify Print

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 e.Challan
• Enter in e.Challan Portal : www.echallan.gov.bd
• Purpose :
 Passport Fee
 NID Fee
 Police Clearance Fee
• Mode of Payment :
 Debit Card, Credit Card ,Visa Card, Master Card,
Amex Card,bKash,Rocket ,Ucash.
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 Govt. Payments
Payments :
Treasury Rule 16, Chapter 3, Subsidiary Rules 55
to 271 are applicable.
SR 79 :
 Cheques written in words - a sum a little in
excess of that for which they are granted.

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 Govt. Payments…
Payments:
 Under Taka Eight Hundred Only’ will mean
that it is for less than Taka 800 but not less
than Taka 700.
 No abbreviations such as ‘Eleven Hundred’ for
‘One Thousand and One Hundred’ is
permissible

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 Govt. Payments…
Payments :
SR 80 :
 Cheques be crossed ‘Account Payee Only – Not
Negotiable.’
SR 81 :
 Every Cheque must be made payable to order only.
SR 82 :
 Advices regarding issue of Cheque for Taka 15000
and above should be sent to the Bank.
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 Govt. Payments…
Payments :
SR 85 :
 Cheques shall be payable within three months
after the month of issue; thus a Cheque
bearing date any time in January is payable at
any time upto 30 April.
 If expired, the drawer should destroy it and
issue a new Cheque in lieu of it.
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 Govt. Payments…
Checklist :
1. Has the Bill been drawn in specified form?
2. Does the Payee’s signature appear in the Bill?
3. Has the Payee’s signature been attested?
4. Date of Passing the Cheque or Bill? Is it valid
(Not expired)?
5. Does the amount of Bill / Cheque expressed
in words and figures agree?
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 Govt. Payments…
Checklist …
6. Is the Passing Officer’s signature genuine?
7. Compare the amount of the bill / cheque
with the advice of passed bills received from
Accounts Office.

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 Govt. Payments…
• Cheques issued by the following Govt.
Departments do not require to be passed by
the Treasury Officer or Accounts Officer :
 Roads and Highways
 Public Health Engineering
 Public Works
 Post and Telegraph
 Controller of Military Accounts etc.
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 Govt. Payments…
• These Cheques are paid by the Bank on the
basis of advice of Cheques Issued by the
concerned department.
• The paid Cheques are sent to the Accounts
Office along with other paid bills.

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 Reporting of Government Transactions

Daily Reporting
For receipts :
Send on daily basis to Accounts Office -
 Daily Memo(Summarized)
 Challan Validation Print (100% transaction) and
 Two copies of Challan (marked Duplicate and
Triplicate).

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 Reporting of Government Transactions

Daily Reporting
For payments:
Send on daily basis to Accounts Office -
 Daily Memo (Summarized)
 Payment Validation Print (100% transaction)
and
 Paid cheques and bills.

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 Reporting of Government Transactions

Monthly Reporting :
Send on monthly basis to Bangladesh Bank –
 Monthly Memo (Consolidated)
Send on monthly basis to Accounts Office –
 Monthly Memo (Consolidated)

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 Mistakes/Lapses
Common Mistakes/Lapses :
 Wrong Code No.(13 digit)
 Wrong Account Code (4 digit)
 Depositor’s name not correctly spelled

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General Ledger Accounts :
For Government Transactions :
 Settlement Account(Government
Transactions).
For Transaction in Currency Chest :
 Currency Settlement Account.

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