CGA Office Memorandum: Clearance of Outstanding Balances under Cheques & Bills
The Government of India, Ministry of Finance, Department of Expenditure (Controller General of Accounts) has issued a vital Office Memorandum on 01.09.2026. This document directs all Principal Chief Controller of Accounts (Pr.CCAs), Chief Controller of Accounts (CCAs), and Heads of Accounting Organisations to urgently review and clear outstanding balances under the Major Head 8670- Cheques & Bills.
Key Highlights
- Audit observations of the Draft Union Government Finance Accounts (UGFA) 2025-26 highlighted outstanding balances under minor heads below Major Head 8670.
- Outstanding balances primarily represent the value of cheques that have been issued but not yet accounted for as encashed.
- The standard validity of a government cheque is three months from its date of issue.
- No balances should remain outstanding at the end of the financial year for cheques issued prior to 31st December of that relevant financial year.
Main Details and Accounting Procedure
According to the prescribed accounting procedure, when the Government issues a cheque, the respective expenditure head is debited, and the relevant minor head below Cheques & Bills is credited. Once the banks provide payment scrolls confirming the cheques have been encashed, the corresponding amount is cleared from the Cheques & Bills head. The Controller General of Accounts notes that ideally, these balances should be settled before the close of the financial year or shortly thereafter.
Ministries and Departments are requested to urgently review the outstanding balances and take immediate action for their clearance. Furthermore, a specific report must be furnished to the CGA office for audit appraisal, indicating the outstanding cheques as on 31.03.2026 for any cheques issued on or before 31.12.2025.
Document Summary Table
| Particulars | Details |
|---|---|
| Issuing Authority | Controller General of Accounts, Ministry of Finance |
| Date of OM | 01.09.2026 |
| File Reference | O-13013/1/2022/Finance A/c-CGA/C. No. /7008/358 |
| Relevant Major Head | 8670 - Cheques & Bills |
| Reporting Deadline Requirement | Report outstanding cheques as on 31.03.2026 (for those issued on/before 31.12.2025) |
Conclusion
All relevant accounting organizations and ministries must review their records under Major Head 8670 to clear encashed cheques. Prompt compliance and submission of the requested report regarding cheques issued before December 31, 2025, are crucial for the timely appraisal of the Draft UGFA 2025-26 audit.
Educational 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.
No Liability: Under no circumstances shall the author or this website be held liable for any loss arising from the use of this information.
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