CGA issues guidelines to update bank account details of government ministries and departments

Taking a dim view of recent cases of fraud in banks accounts of government departments, the Controller General of Accounts (CGA) has underlined the need to strengthen protocols and has issued fresh guidelines to prevent such misappropriation in the future.

The CGA, which is responsible for the accounts of the Union and state governments, in a recent circular, brought attention to the need for strengthening security and communication protocols in government bank accounts maintained by ministries and departments and their subordinate offices.

“It has been observed that in certain cases, e-mail IDs registered in Government Bank accounts are not official Government domain e-mail IDs. Such practice may increase the risk of unauthorised changes, compromise communication channels and expose Government accounts to potential fraud and financial loss,” it said.

Accordingly, it has directed all government ministries and departments to review the details of their bank accounts maintained with accredited banks. The e-mail ID registered with such accounts must be an official government domain e-mail ID of the concerned office or authorised official and all communications with banks must be through such accounts it has said.

The CGA has also directed that the mobile number of the authorised signatory or official should be correctly updated in the account records; and any outdated, personal or non-government e-mail IDs registered should be replaced with appropriate government domain e-mail IDs at the earliest.

The updation of accounts must be completed by July 31, the CGA has said, adding that ministries and departments must also give similar instructions to field offices for strict compliance.

The circular comes soon after separate alleged misappropriation of funds of the Haryana government entities deposited with banks including IDFC First Bank, AU Finance Bank and Kotak Mahindra Bank came to light earlier this year.