Bangladesh Bank (BB) is set to introduce the Real Time Cash position (RTCP) system to ensure transparency in government transactions, according to sources in the central bank.
The new system will help strengthen the Treasury Single Account (TSA) account, automatically finalise the monthly account and show the Daily Cash Position on time, said the sources.
BB has taken the initiative to rearrange the existing structure to properly store information about government account transactions. RTCP will ensure the transparency of government transactions related to receipts and payments on various ministries and departments.
To make timely and appropriate decisions regarding the government’s financial activities, this will be an important part of efficient and modern public financial management. In this case, it is possible to achieve this goal by strengthening the TSA account and knowing the government’s real-time cash position, sources said.
From July 2021, MICR check, EFT and Automated Challan System have been introduced at all CAFO, DCA and DAFO offices under the Office of the Controller General of Accounts including Controller General Defence Finance, Bangladesh Railway and Department of Posts.
The window-based accounting system is not functional because of the introduction of the uniform MICR check.
Moreover, the introduction of the new 56-digit class format chart and Automated Challan System introduced in FY2018-19 has eliminated the need and functionality of window-based data storage.
Currently, all receipts and disbursement accounts of the government are stored centrally through the electronic Integrated Budget and Accounting System (iBAS).
In the existing structure, ministries and departments use sub-accounts for their transactions. It often delays the finalisation of monthly accounts and the data regarding the daily cash position.
Moreover, all receipts and payments of the government are paid centrally by TSA, but the receipts and payments of various ministries can be obtained from the monthly accounts of the respective ministries.
In this situation, it has been decided to cancel the circular dated February 2, 2006, to facilitate the automatic finalisation of ministry and department-wise monthly accounts and timely learning of the daily cash position.
Bangladesh Bank has prepared a draft circular for reorganising the data storage framework for government transactions and it will be issued soon, according to sources.
