RBI/2004/129
DGBA.GAD.No. 989 /42.01.034/2003-04

March 31, 2004

The Chief Executive Officers of all Agency Banks
(as per list enclosed)

Dear Sir,

As you are aware, the Pilot Study of On-line Tax Accounting System (OLTAS) Project is presently being implemented in 14 major cities. Progress in this regard has been reviewed at various meetings across the country and all the banks have expressed their confidence in extending the Pilot to all their branches. We have now been advised by Central Board of Direct Taxes that OLTAS can be commenced from 1.4.2004 on an All India Pilot Basis using the existing Challan formats as also the Accounting Procedure for transmission of challan data. They would like to extend the Pilot to cover all the bank branches with effect from April 1, 2004. They have proposed that the extended Pilot should be based on the existing Accounting Procedures and Challans. The notification in regard to Single Challan and New Accounting Procedures will be issued by the Government in due course.

2. In view of commitment to operationalise OLTAS and as also on account of confirmation of preparedness in various fora by Agency Banks, we advise that the OLTAS Pilot may be extended to all the authorised branches across the country with effect from April 1, 2004 based on the present Accounting, Challan Procedures for transmission of challan data.

3. Please acknowledge receipt.

Yours sincerely,

(Prabal Sen)
Chief General Manager