Introduction

The Controller General of Accounts (CGA) under the Ministry of Finance has issued a formal Office Memorandum detailing the Standard Operating Procedure (SOP) for reinitiating failed electronic Payment Advice (ePPA) payments under the Treasury Single Account (TSA) Hybrid framework.

This directive is highly relevant for Principal Chief Controller of Accounts (Pr. CCAs), CCAs, CAs, Program Divisions, and Implementing Agencies tasked with disbursing funds under Central Sector Schemes. The SOP aims to ensure "Just-in-Time" fund flow by providing a clear technical pathway when a scheduled commercial bank fails to process a transaction that has already received funds from the Reserve Bank of India (RBI).

Official Order Details

Quick Summary

• Trigger for Reinitiation: The process is specifically used when funds are successfully received from the RBI, but the transaction fails at the scheduled commercial bank.
• ePPA Validity: Claims signed through ePPA remain valid for exactly 15 days from the date of e-signing by the Data Approver (DA) of the Child agency. Once this period expires, the ePPA is treated as expired.
• Funding Agency Bypass: When reinitiating a failed claim, the demand file does not return to the Funding Agency level because the funds are already situated in the Recipient Agency's Savings Account.
• Final Physical Submission: Even though the process involves digital e-signing (ePPA), the final step requires the user to download and submit a hard copy of the Payment Advice (PPA) to the bank for processing.

Detailed Explanation in Simple Language

The official document provides a multi-step system workflow within the Public Financial Management System (PFMS) for handling payments that bounce or fail at the commercial bank level. Here is the breakdown of the established procedure:

1. Initiating a Failed Claim (Action by Data Operator)

What the document states: The Agency Data Operator (DO) must locate the failed transaction using the path TSA > TSA Hybrid > Reinitiate Failed Claims. Bank failures can be confirmed by checking the HTSA-02 report.

What this means: The clerk or official functioning as the Data Operator must log into the PFMS portal, select the specific scheme and bank account, and search for failed credits/debits. They must then select the failed transaction, reinitiate the claim, add necessary remarks (narration), and submit it for approval.

Important Condition: If the vendor's account is inactive or frozen, the Agency DO has the ability to change the vendor account number during this process.

2. Approval of Reinitiated Claim (Action by Data Approver)

What the document states: The Agency or Sub-Agency Data Approver (DA) navigates to TSA > TSA Hybrid > Manage Claims Reinitiate.

What this means: The reviewing officer (DA) finds the claim submitted by the DO, selects the transaction, and chooses to either approve or reject it. Approving it successfully generates the claim for the next stage.

3. E-Signing the Payment File (Action by Child Agency Checker)

What the document states: The checker logs into PFMS, goes to the TSA Hybrid Dashboard, and selects Pending for Digital Signature.

What this means: The authorized checker must digitally sign the reinitiated payment file. This is done by selecting the scheme and account, reviewing pending claims, and applying an eSign. The signature can be authorized using Aadhaar authentication (via OTP) or a Digital Signature Certificate (DSC).

4. Final Bank Submission

What the document states: The PPA will be directly available for download under the Implementing Agency DA login after generation. The user must submit a hard copy of the PPA to the bank.

What this means: Despite being an electronic process on PFMS, the agency must physically print the final digitally signed Payment Advice (PPA) and hand it over to their scheduled commercial bank to release the funds.

Applicability and Effective Dates

• Covered Entities: Implementing agencies, Central Ministries, Departments, Central Nodal Agencies, and Autonomous/Sub-Autonomous Bodies disbursing funds under Central Sector Schemes using the TSA Hybrid framework via PFMS.
• Validity Timeline: An e-signed ePPA claim is strictly valid for 15 days from the date the Data Approver electronically signs it. Agencies must submit the printed PPA to the bank within this window.

Practical Implications for Employees and Agencies

For administrative and accounts staff handling PFMS disbursements, this SOP establishes clear operational boundaries:

• No Re-funding Delays: Because the funds do not revert back to the main Funding Agency upon a commercial bank failure, the reinitiation process is confined to the Recipient Agency's level. This significantly speeds up the correction of failed payments.
• Tracking Failures: Agencies cannot rely solely on successful RBI transfers; they must actively monitor the HTSA-02 report to catch transactions that fail at the commercial bank level.
• Physical Documentation: Accounting divisions must ensure they have a runner or procedure in place to physically deliver the hard copy PPA to the bank immediately after e-signing, as the digital file generation alone will not disburse the money.

Frequently Asked Questions (FAQs)

Download Official Document

For complete procedural screenshots and official verification, please download the original Office Memorandum using the link below: