The Pay & Accounts Office was established under the control of State Government on 1st April, 1955, to deal with all Government financial transactions arising in Greater Mumbai and to maintain accounts. Prior to Departmentalization on Accounts in respect of Central Transactions with effect from 1st October 1976, this office was dealing with all financial transactions and doing accounting functions in respect of Central Government Transactions. This office is responsible for making Payments and also for the maintenance of accounts of the transactions of all Government departments and offices, except those relating to P.W.D. and Irrigation Department. The payments are made after applying cent percent checks, on the same lines and to the same extent as would be conducted by any audit office. Monthly accounts of such payments including transactions recorded in the accounts of the Reserve Bank of India are compiled and are rendered to the Accountant General, Maharashtra-I, Mumbai. All payments in respect of government transactions in the offices in Mumbai are being made through the Reserve Bank o India.

Consistant with distinctive functions of in respect of State Transactions arising in Greater Mumbai, this office is divided into several branches.

Gazetted Audit Branch – Deals with salaries and alloawances of Governor, Ministers, Speaker, Chairman & members of both the Houses of Legislature, Judges of the High Court, etc. as well as personal claims of certain specific Gazetted Officers, issues salary slips, reports on title  of leave etc.

Departmental Audit Branch – Deals with payment of the Pay & Allowances, of gazetted & non gazetted establishment, contingent expenses, grants-in-aid, refund of deposits and payments authorized by the Accountant General, Maharashtra-I, Mumbai. This branch also deals with payments and maintenance of detailed accounts of loans.

State Accounts Branch – Deals with  compilation of accounts of the State transactions and submission of compiled accounts to the Accountant General Maharashtra-I, Mumbai. Maintenance and submission of accounts of Central Transactions (Pension) to the Accountant General (Central), Verification of Credits, issue of Credit Certificates, issue of consolidated certificate of receipts to the Public Work Departments, is also done by this branch.

Pension Branch – Deals with payments to Pensioners of Central Government / State Government and of other State Governments.

Cash & Cheque Branch – This section receives bills and issues cheques of passed bills.

Accounts are prepared on computers and submitted to the Accountant General. The whole process from receipts of bills to payment through cheques or ECS and preparation of accounts is computerized. Daily figures of receipts and payments are available due to the computerized system. Similarly, pension payments of all state pensioners and same of the other state pensioners are computerized and actual payment is made through the Electronic Clearing System. Payment of salaries is also being done through the Electronic Clearing System.

Establishment, Control, Record Branch – Deals with establishment matters of this office. Control branch ensure co-ordination between various sections and verifies orders issued by Government, as well as Accountants General, etc.

The pay & Accounts officer is the Head of this Office. He is assisted by Assistant Pay & Accounts Officers, Assistant Accounts Officers & Senior Clerks, etc.