Mizoram Partners with Eight Banks to Overhaul Public Fund Oversight

Aizawl: Mizoram officials inked a deal with eight banks on September 7 to launch the One Department, One Bank initiative. This system forces tighter control over state money. Chief Minister Lalduhoma and finance adviser TBC Lalvenchhunga oversaw the signing at the CM Conference Hall. The move stems from repeated CAG audit warnings about cash hidden in Drawing and Disbursing Officer accounts.

"When the Finance Department seeks information on such funds, there are occasions when the information cannot be sufficient as desired. To address such difficulties and enable more effective monitoring of government funds, we have decided to implement the 'One Department, One Bank' system," Lalduhoma said. The Finance Department currently lacks a clear view of where these DDOs park government cash.

The policy kicks off with eight specific departments: Public Works, Public Health Engineering, Power and Electricity, General Administration, Urban Development and Poverty Alleviation, Rural Development and Administration, Health and Family Welfare, and Institutional Finance and State Lottery. Authorities will add more departments over time. Mapping each department to its specific bank will finish shortly.

The state partnered with the State Bank of India, Mizoram Cooperative Apex Bank, Mizoram Rural Bank, Axis Bank, HDFC Bank, ICICI Bank, Union Bank of India, and Indian Overseas Bank. Some schemes with existing, rigid standard operating procedures may stay outside the ODOB framework if integration proves impossible.

Lalduhoma also hammered the state's low credit-deposit ratio. Mizoram sat at 55.83% for 2025-26. That lags behind neighbors: Assam at 73.52%, Nagaland at 61.1%, and Tripura at 61%. The government wants to hit 67% by 2028-29. Lalduhoma expects these partner banks to ramp up lending to hit that mark.