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New AAO-Level Payment Vertical to Speed Up PAO Bill Processing - CGA

New AAO-Level Payment Vertical to Speed Up PAO Bill Processing

New AAO-Level Payment Vertical to Speed Up PAO Bill Processing

The Controller General of Accounts, under the Ministry of Finance, has issued a new Office Memorandum to streamline and speed up the processing of bills in Pay and Accounts Offices (PAOs). This order introduces a new payment vertical to reduce workload and prevent delays.

Department: Ministry of Finance, Department of Expenditure, Controller General of Accounts

Order/OM Number: F. No: TA-2-01002/2/2026-TA-CGA/e-20551/431

Date: 05.10.2026

Subject: Constitution of an additional Assistant Accounts Officer (AAO) level Payment Vertical and DSC authorization in PAOs

Applicability: PAOs handling over 800 bills per month, Sr. AOs/ACAs, and designated AAOs

What Has Changed?

Under the previous system, a single designated officer was responsible for applying their Digital Signature Certificate (DSC) to authorize all payment files. Due to a recent increase in the volume of bills, this caused a heavy workload, accumulation of bills, and difficulty in meeting the standard T+3 timeline for processing.

To fix these bottlenecks, the government has approved the creation of an additional Assistant Accounts Officer (AAO) level Payment Vertical with a two-level pre-check mechanism.

Now, designated AAOs will also be authorized to use their DSC for final-stage bill passing and transmitting payment files to the bank.

Key Change: An additional AAO-level Payment Vertical has been introduced in eligible PAOs, allowing designated AAOs to undertake specified bill-processing and payment-file transmission functions.

Which Bills Can the New AAO Vertical Process?

The designated AAOs are authorized to process specific categories of bills. According to Annexure-I of the Office Memorandum, these include:

  • Personal Claims: Reimbursement for Newspaper, Conveyance allowance, Telephone charges, Overtime Allowance (OTA), Hospitality, Children Education Allowance (CEA)/ Hostel subsidy, and Leave encashment on LTC.
  • Short-term Advances: Traveling Allowance (TA) for Tour and Transfer, LTC, and Medical advances.
  • Other Bills: General bills up to Rs. 25,000/-, excluding bill types covered under RPR 29 and RPR 49.
  • Health Claims: Ayushman Bharat CAPF claims preferred in RPR 29 up to Rs. 1,000/-.

Important Points for Employees

  • Criteria for New Setup: This new vertical will only be implemented in PAOs where the average volume of bills has exceeded 800 bills per month during the last three months.
  • Faster Processing: The change is designed to ensure bills are passed efficiently within the prescribed T+3 timeline.
  • Role Limitations: Handing over these duties does not make the AAO a "PAO" for all purposes. All other normal PAO functions will still be handled by Senior Accounts Officers (Sr. AOs) or Assistant Controllers of Accounts (ACAs).
  • Checks and Balances: The new system will be strictly monitored with post-check reviews, system-generated audit trails, and regular checks by the Internal Audit Wing.

Frequently Asked Questions (FAQ)

Q: Why did the government issue this order?

A: To reduce the workload on single designated officers in PAOs and prevent delays in bill passing caused by high bill volumes.

Q: Will my TA or Medical advance be processed faster now?

A: Yes, short-term advances like TA, LTC, and Medical claims are specifically assigned to this new AAO vertical to ensure quicker, T+3 timeline processing.

Q: Is this implemented in every PAO?

A: No, it will be set up only in PAOs that process an average of more than 800 bills per month.

Download Official Office Memorandum

Readers can download the official Office Memorandum issued by the Controller General of Accounts from the official website.

📄 Download Official PDF

Disclaimer

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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