Finance Ministry on Monday has issued directives to all ministries and government departments to make e-payments to suppliers,contractors,grantee and for other purposes.
The move aimed at giving a major push to digital payment following the demonetisation move announced by PM Narendra Modi on November 8. The finance ministry has said that all payments above Rs 5,000 will be made via e-payment. The directives will be effective from now onwards.
The order is mentioned in a memo issued by expenditure department on Monday with the approval by Finance Minister, stating that all ministries have been asked to use e-payment facilities to pay all suppliers where the dues are more than Rs 5,000. The order came to achieve the goal of complete digitization of government payments.
Following the announcement of demonetisation of 500 and 1,000 rupee notes on November 8, the government has been taking a slew of measures to promote digital transactions.
While the finance ministry has instructed PSU and private banks to waive the transaction cost for all payments made through debit cards, the road transport ministry has asked vehicle manufacturers to provide a digital tag on all new cars for e-payments at toll plazas and check posts.
Economic Affairs Secretary Shaktikanta Das had last month said all government offices have been asked to use only digital payment method for making payments to stakeholders, contractors and employees.
"Government organisations, PSUs and other government authorities have been advised to use only digital payment methods such as Internet banking, unified payment interface, cards and Aadhaar-enabled payment systems to make payment to all stakeholders and their employees," he added.
(With inputs from PTI)