What is Treasury Savings Account (TSA)? What is Single Nodal Agency (SNA) bank accounts:

Why in News ? The  Finance Minister Nirmala Sitharaman ahs recently  said that the government has so far achieved savings of more than 25,500 crore through the treasury savings account (TSA) and the single nodal agency (SNA) bank accounts.

 What is Treasury Savings Account (TSA)?

• A Treasury Savings Account (TSA) is a bank account used by the government to manage funds allocated to autonomous bodies. Introduced in the financial year 2018 (FY18), it works under the principle of “just-in-time” release of funds.

Function:

• Previously, funds allocated to autonomous bodies might remain parked in unused accounts for extended periods.
• TSAs centralize these funds and disburse them only when required. This prevents the unnecessary accumulation of unutilized funds.

Benefits:

Saves Money: The Indian government has reportedly saved over Rs. 25,500 crore through TSAs by eliminating idle funds.

Improves Efficiency: TSAs promote better financial management by ensuring funds are readily available when needed.

Overall Impact:

• TSAs contribute to fiscal prudence and transparency in government spending. They also help streamline the allocation and utilization of funds for autonomous bodies.