Written by The Banking Post
The government has made the automated “A-Challan” system mandatory for all government revenue and receipt collections from July 1, 2026, officially ending the use of manual challans.
In a circular issued Tuesday, the Ministry of Finance said the move is aimed at improving transparency in public fund management, ensuring real-time digital deposits, strengthening cash management and reducing the government’s borrowing costs caused by idle funds parked outside the treasury system.
Under the new directive, all government revenues and receipts must be deposited through the Treasury Single Account (TSA) maintained at Bangladesh Bank, in line with the Constitution and Treasury Rules.
The ministry said the online A-Challan system, introduced in FY2018-19 using five-digit economic codes, was designed to ensure real-time transfer of government revenues into the state treasury.
However, several ministries, departments and subordinate offices have continued using outdated manual challan codes and maintaining separate bank accounts with commercial banks outside the TSA framework.
According to the Finance Division, the practice has created hidden liquidity pools, making it difficult for the government to determine its actual cash position in real time.
As a result, the government has often been forced to borrow from domestic and foreign sources at high interest rates despite having substantial idle funds scattered across commercial banks.
To address the issue, the ministry issued three key directives.
First, the manual challan system will be completely abolished from July 1, making the A-Challan platform mandatory for 100 per cent of government revenue and receipt transactions.
Second, all independent revenue collection and deposit arrangements currently operating across ministries, departments, directorates and subordinate offices must be discontinued immediately.
Third, all funds currently held by government offices in commercial banks must be transferred to the TSA at Bangladesh Bank through the A-Challan system by June 30, 2026.
Officials said the move is expected to improve fiscal discipline, enhance transparency in public finance management and reduce unnecessary interest expenses on government borrowing.
