RBI/2008-09/173
DGBA.GAD. No. H.2528/ 42.01.038 /2008-09

September 17, 2008 

The Chairman & Managing Director/Managing Director
State Bank of India and its Associates/
All Nationalised banks/ Axis Bank Ltd/
HDFC Bank Ltd/ ICICI Bank Ltd/ J&K Bank Ltd.

Dear Sir,

Updation of cgt_flg as 'I' in
case of e-payment transactions

As you are aware, as per extant instructions, only one branch which is allotted an exclusive BSR code is the designated branch authorized for collection of e-payment and that branch shall not accept any physical challans. Such designated branch is required to upload challan data with value 'I' in field 36 (cgt_flg) to distinguish e-payment transactions from others. In this connection, we invite your attention to para 7.3 of letter F. No. SW /07 /01 /03 /04 /DIT(S)-11 /16657 dated December 5, 2007 from DIT(Systems) regarding software validations to be introduced in the software of all the branches of respective banks conducting Government business.

2. However, it has been brought to our notice by Income Tax Department that contravening the specific instructions on the subject, many banks have uploaded both e-payment as well as physical challans from same branch resulting in the issue of duplicate Challan Identification Number (CIN).

3. We, therefore, reiterate that all the branches designated for e-payment should not accept physical challans and that the designated branch should upload only e-payment challan data which contain value 'I' in the field 36 (cgt_flg).

4. Necessary instructions may be issued to your branches concerned for prompt compliance.

Yours faithfully,

 (P. M. Rajagopal)
Assistant General Manager