Overview

The Office of the Controller General of Accounts (CGA) has issued an Office Memorandum (OM) regarding the mandatory and disciplined reporting of penal interest. The directive emphasizes adherence to the established guidelines in Para 4.6.7 of the Civil Accounts Manual (Fourth Edition), 2024 to prevent procedural delays in remitting Government revenue.

Key Directives & Reporting Framework

• Targeted Authorities: The circular applies to all Principal CCAs, CCAs, CAs of Civil Ministries/Departments, as well as the Heads of Departments (Accounts) for Non-Civil Ministries, including the Department of Post, Department of Telecommunications, Defence, and Railways.
• Reporting Target: These entities must submit detailed reports concerning penal interest to the Head Office of their respective accredited banks.
• Report Deliverables: Each report must clearly outline the total volume of Government revenue delayed beyond prescribed timeframes, the specific penal interest due on that revenue, and granular particulars of individual cases.
• Submission Schedule: These statements must be compiled and submitted on a quarterly basis. The deadline is the 15th day of the month following the close of the quarter (for example, reports for the quarter ending June must be delivered by July 15th), alongside all relevant supporting files.

New Submission Channel to O/o CGA

In addition to notifying the accredited banks, all concerned Ministries and Departments are now explicitly requested to forward a copy of these quarterly penal interest reports directly to the Office of the Controller General of Accounts (O/o CGA).

The compliance report must follow the newly prescribed template, Annexure-A, which monitors financial year quarters, beginning balances, interest levied, interest recovered, outstanding amounts (calculated in thousands of Rupees), and actionable remarks. Reports are required to be sent digitally via email to sao-rbd@nic.in by the identical 15th-of-the-month deadline.