The government has issued a circular allowing private banks to handle transactions in treasury challan from the very first day of September this year.
Currently, only the central bank of Bangladesh and the largest state-owned bank Sonali Bank are allowed to do challan transactions.
The Ministry of Finance issued the circular on Monday last signed by its Deputy Secretary Md Saidul Islam.
People familiar with the matter at the Finance Division told the FE that initially five private commercial banks would be allowed to do such transactions from September 01, and later this year all 59 commercial banks would be able to handle the challan transactions.
Those five private commercial banks are Dhaka Bank, Bank Asia, Premier Bank, Trust Bank and One Bank.
Treasury challan is the biggest instrument in terms of its share to the government exchequer. In the financial year (FY) 2018-19, 14.8 million challan transactions were handled by nine branches of Bangladesh Bank and 686 branches of the Sonali Bank.
Aggregately they handled challan transactions worth over Tk 4.34 trillion a year.
The officials said this time it would be an "automatic challan system" which would help expedite mobilisation of different fees, fines and charges.
Introduction of the new system will help stop fake challan. There were many instances in the past about a such type of challan depriving the government, sources said.
"We're expecting that most of the banks will come under the system from October at a time when e-passport will be introduced," said an official at the Finance Division.
He said the government receives the fund two or three days later after transaction through the challan in the traditional way. But this time it would be "real-time" transaction, he added.
People use challan as the biggest mode of submitting money to the government's consolidated fund to enjoy different services. Its contribution is over 90 per cent to the national exchequer. The other 10 per cent account for adjustments with the donor funds and others.
jasimharoon@yahoo.com
