New Guidelines: Multiple Bank Authorization for Government Ministries
Summary of Office Memorandum File No: R-13001/1/2026-GBA-CGA
The Government of India, through the Office of the Controller General of Accounts (CGA) in the Ministry of Finance, has released updated instructions concerning the authorization and accreditation of banks for various Ministries. Issued on April 8, 2026, this directive aims to modernize how government banking operations are handled.
Core Objectives
Following deliberations with several Ministries, the CGA established these guidelines to achieve the following:
- Enhanced Efficiency: To boost the performance and service delivery of authorized banking partners.
- Equitable Load Sharing: To ensure government operations are distributed fairly among multiple banks rather than being concentrated.
- Risk Management: To promote risk diversification and improve service quality through a broader banking base.
Key Policy Changes
The new memorandum introduces flexibility for large-scale administrative structures:
- Authorization for Multiple Banks: Ministries overseeing multiple Departments or attached offices are now permitted to engage more than one bank to meet their functional requirements.
- Specific Eligibility: This facilitation is designed for large Ministries that possess strong administrative systems and handle high transaction volumes.
- Departmental Restrictions: While a Ministry can utilize multiple banks, the policy mandates that each individual Department within that Ministry should engage with only one specific bank.
- PAO Integration: For payment purposes, a single bank will continue to be mapped to a specific Pay and Accounts Office (PAO).
Implementation & Approval
This policy has been issued with the formal approval of the competent authority and signed by Sanchita Shukla, Joint Controller General of Accounts. The memorandum has been circulated to all major financial authorities, including the Financial Commissioner for Railways, the CGDA, the Reserve Bank of India (RBI), and all public and private sector banks.
Access the full official document below:
Download Official PDFEducational Purpose Only: The information provided in this article is for general informational and educational purposes only.
Accuracy & Mistakes: While every effort has been made to ensure accuracy, human errors or omissions may occur.
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