Govt tells Depts to make e-payments where order value exceeds `5,000
The finance ministry on Monday asked all government departments to make electronic payments to suppliers, contractors or institutions if the order value exceeds Rs 5,000. To attain the goal of complete digitisation of government payments, the ministry has lowered the threshold for making such payments from Rs 10,000 to Rs 5,000, it said in a statement. “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 5,000 to suppliers, contractors, grantee and loanee institutions etc are made by issue of payment advises only.”
Following the announcement of demonetisation of 500 and 1,000 rupee notes, the government has been taking steps 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 checkposts.