Para 10.13 — The Treasury Single Account (TSA) system ensures g
Original Rule Text
10.13 TREASURY SINGLE ACCOUNTS (TSA) SYSTEM: 10.13.1 The Treasury Single Account (TSA) system is intended to
(i) facilitate release of government funds to Autonomous Bodies (ABs)/ Implementing Agencies including Statutory Bodies and Central Public Sector Enterprises (CPSEs) 'just in time' principle to enhance the efficiency of fund flows to them and thereby ensuring better Cash Management in Government of India;
(ii) decrease the interest burden of the Government by decreasing the quantum of borrowings; and
(iii) avoid parking of funds released by the Government to ABs/IAs in their bank account(s).
10.13.2 Opening Bank accounts in RBI: In order to bring ABs/Implementing agencies under TSA system, each AB/IAs need to open an Assignment Account at RBI, New Delhi for receiving Assignment from Ministry/Department and issuing sub-assignments to their sub-ABs/. Transfer of Assignments only up to 2nd tier Autonomous bodies i.e. upto sub-autonomous bodies just below main ABs are covered under the TSA system.
10.13.3 Financial Advisers with the assistance of Head of Accounting Organization i.e. Pr.CCAs/CCAs/CAs(i/c) as the case may be (who should act as nodal officers for PFMS), should ensure that guidelines/instructions issued on PFMS are followed/implemented and resolve issues relating to efficient running of PFMS. (Para 18.5 of Charter for FAs).
10.13.4 Issuing of sanctions by Programme Division and submission of Bill by DDO: Based on the Monthly Expenditure Plan (MEP), requirement of the ABs/IAs and expenditure trend of the Autonomous Bodies/IAs, the Programme Division of the Ministry will process the release and issue sanction for releasing the funds to AB concerned. The terms and conditions regarding TSA
shall be mentioned. The DDO will prepare a bill on the basis of the sanction and submit the same to PAO.
10.13.5 Issuance of Assignment Advice on PFMS: PAO of the concerned Ministry/Department will configure the ABs/IAs and Sub-ABs bank account in PFMS. In order to ensure that the funds are available with the Government till actual utilization, PAO, based on sanction order, will issue an ‘Assignment Advice’ to RBI through PFMS to honour payment instruments issued by the AB concerned up to the limit assigned in the advice. The 'Assignment Advice' will contain data relating to the PAO responsible for accounting of the funds assigned to AB/IA, Unique identifier for Sanction, heads of account and Bill prominently. A copy of the sanction order and Assignment Advice will seamlessly travel to the AB/IA concerned.
10.13.6 Crediting in Public Account by PAO and related accounting procedure: Simultaneously, to account for the issue of advice for assignment in favour of AB/IA in Government account, the amount under ‘MH-8454- Funds under Treasury Single Account (TSA) System’-Sub-Major Head (Each Department will be a sub-major head) in the Public Account would be credited by contra debit to expenditure head under the concerned functional head. Minor Head under Major Head 8454 would be opened corresponding to the Section “Expenditure Heads (revenue account). PFMS and e-Kuber of RBI will capture the details as contained in the ‘Assignment Advice' for reference, reporting and reconciliation purposes.
10.13.7 Payment Advice by AB/IA on PFMS: ABs/IAs would issue the ‘Payment Advice’ in PFMS against the receipt of ‘Assignment Advice’ from PAO. Only e-payments are to be made by the ABs/IAs. No cheques shall be allowed to be issued against the ‘Assignment Account’. Authorized Signatory of the ABs/IAs after ensuring the genuineness of expenditure with reference to the relevant 'Assignment Advice will digitally sign and issue the payment advice using PFMS. The payment advice will contain all the related details of the PAO and heads of accounts. Fund transfer to AB/IA’s commercial bank accounts are allowed only for the specified purposes authorized from time to time. ABs/IAs would ensure not to make any expenditure on or after 1st April against the assignment of previous year.
10.13.8 Accounting of RBI Scrolls: RBI will honour the payment instruments issued by the ABs/IAs and on the basis of the information embedded in the payment advice, prepare payment scrolls PAO-wise for each account for debiting the Government account with an amount equivalent to the total of the payment scroll and crediting the AB’s/IA’s assignment account. Below the entries relating to PAOs own payments, payments made by ABs/IAs against assignment will be inserted. A copy of the scroll will also be sent to the PAO concerned. Based on the scrolls received from RBI, the aforesaid head in Public Account will be relieved by an equivalent amount by the PAO concerned in his account by per contra credit to the head '8675 Deposit with Reserve Bank -101- Central Civil- Reserve Bank (HQ)'.
10.13.9 Accounting of unutilized balances: Unutilized Balances at the close of the year will lapse to the Government and hence written back in Government Account by minus debiting concerned functional head of account and minus crediting to the head in Public Account. Ministries releasing funds to the AB/IA concerned will have to explain the saving in the related Appropriation Accounts.
10.13.10
Note on second tier Institutions in proposed model: Since the new system envisages just in time releases i.e. debiting Government accounts when the payment is released to the end beneficiary, there should not be any adjustment in Government account when an AB/IA transfers funds to the account of its subsequent level units. Payment Advices issued by the subsequent level units against that government fund needs to contain the details of the PAO and heads of accounts. Till such time, when the amount is actually spent, the balances in account of the subsequent level units will be considered as a balance under assignment with the parent AB.
10.13.11 Assignment to the second tier AB by the Autonomous Bodies: ABs to issue ‘subAssignment Advice’ to sub-ABs through PFMS. When an Assignment against grants-in-aid
received by an AB is released by it further to its subsidiary AB (sub-AB), the sub-assignment advice will be digitally signed by the authorized signatory of the AB and contain details of the Assignment Advice issued by the PAO. This assignment will be treated as a sub assignment of the AB and treated as a normal assignment i.e. account of the AB will not be debited.
10.13.12 Issuing Payment Advice by sub-AB: The payment advice issued by the second-tier autonomous body will contain the details of the assignment advice issued by the PAO concerned.
10.13.13 Sending of scroll from RBI to sub-AB, AB and PAO: Consequent upon making payment to the beneficiary, RBI will prepare scrolls and send original to the second tier AB and copies to the AB and PAO concerned and debit the Government Account with an equivalent amount by per contra credit to the account of the AB.
10.13.14 Scheme-wise collation of scrolls by PFMS and reconciliation of Public Accounts: Since an AB/IA may be sanctioned funds for different schemes, the scrolls so received from the RBI will be collated scheme wise by PFMS and necessary accounting entries passed to relieve the concerned heads of accounts in Public Account.
10.13.15 The following actions need to be strictly watched by the concerned PAOs in TSA system:
(I) Accounting of e-scrolls received from RBI in respect of transactions (payments) made by ABs/IAs through their TSA accounts in RBI regularly (II) Regular monitoring of balances under MH-8454-Funds under Treasury Single Account (TSA) and reconciliation of balances there under on monthly basis.
(Authority: Para 5 of User Manual issued by CGA Office vide OM No.10(3)/TA-II/2020/TSA/244 dated 17th June, 2020 and subsequent orders issued by office of CGA from time to time. Revised instructions under TSA issued by DoE vide their OM NO.26(119)/EMC Cell/2016 dated 24.2.2022)
What This Means
The Treasury Single Account (TSA) system ensures government funds reach Autonomous Bodies and Implementing Agencies only when they actually need the money (just-in-time), reducing idle funds and the government's borrowing costs. Instead of releasing funds directly to their commercial bank accounts, PAOs issue an Assignment Advice through PFMS to RBI. The agency can only draw from this assignment when making actual payments. Unutilized balances lapse at year-end. Sub-assignments to second-tier agencies are also managed through this framework.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1TSA releases funds on just-in-time basis to Autonomous Bodies and Implementing Agencies through RBI
- 2PAO issues Assignment Advice through PFMS instead of transferring funds to commercial bank accounts
- 3Only e-payments allowed — no cheques permitted against Assignment Accounts
- 4Unutilized balances lapse to Government at the close of the financial year
- 5Sub-assignments allowed up to 2nd tier (sub-autonomous bodies) under the TSA system
Practical Example
The Ministry of Education needs to release Rs 50 crore to an Autonomous Body for a scholarship program. Instead of transferring money to the body's bank account, the PAO issues an Assignment Advice through PFMS to RBI for Rs 50 crore. When the Autonomous Body needs to pay scholarship amounts to beneficiaries, it issues a Payment Advice on PFMS, and RBI honors the payment from the assignment. At year-end, any unspent assignment lapses back to the Government.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can Autonomous Bodies issue cheques under the TSA system?▼
What happens to unused funds at the end of the financial year under TSA?▼
What is the accounting head for TSA transactions?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.