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Tuesday, December 6, 2016

Demonetisation effect: Government asks all departments to make e-payments for amounts above Rs 5000

In a bid to attain the goal of complete digitisation of government payments in the country, the Union Ministry of Finance on Monday directed all government departments to make e-payments for amounts above Rs 5,000.

A Ministry of Finance release said, the existing limit of Rs 10,000 prescribed regarding e-payment to suppliers etc has been reviewed. It has now been decided to lower this threshold limit from Rs 10,000 to Rs 5,000.The last review in this regard was made in August 2016.

Accordingly, all the ministries and departments of the government of India have been now directed by the Ministry of Finance to ensure with immediate effect that all payments above Rs 5000 to suppliers, contractors, grantee/loanee institutions etc. are made by issue of payment advises only.

The Central government has taken a number of initiatives since the announcement of demonetisation of old Rs 500 and Rs 1000 notes on November 8 to promote cashless digital transactions. In this regard, the government has instructed, all public sector and private sector 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 said last month that all government offices have been asked to use only digital payment methods for making payments to stakeholders, contractors and employees.

On Monday, the government also asked its employees to become ambassadors for promoting digital payments, starting from themselves.

“Ensuring and encouraging government employees to maximise the usage of debit cards for personal related transactions instead of cash would go a long way, with the employees serving as ‘ambassadors’ for the digital push, and also motivate, encourage the general public in taking up the cause,” the ministry said.
(With PTI inputs)
Source :  http://www.financialexpress.com

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