With an aim to eliminate any corruption in government payments,all the departments will henceforth credit payment of over Rs 25,000 directly into the account of payees.
“As part of the government’s commitment to good governance and elimination of corruption,the Ministry of Finance has amended the rules to enable all the Ministries and Departments to facilitate payments by direct credit to the bank accounts of the payees,” an official statement said.
Controller General of Accounts (CGA) has issued orders stating that from April 1,2012,all payments above Rs 25,000 to suppliers,contractors,grantee and loanee institutions will be directly credited to their bank accounts,it added.
“The measure is expected to streamline the process of making payment by government departments while minimising the interface of the payees with government offices to receive their dues,” the Finance Ministry statement said.
While the government servants would continue to have the option to receive their salaries by cash or cheques,they could also opt to receive their salaries in bank accounts.
The release also said that all other payments to government servants of above Rs 25,000 would be credited directly to bank accounts.
“Further,all payments towards the settlement of retirement/ terminal benefits of the government servants shall also be directly credited to their bank accounts,” it added.
Finance Minister Pranab Mukherjee had recently inaugurated a ‘Government e-payment gateway’ for central civil ministries and departments for payment to bank accounts.
The Controller General of Defence Accounts (CGDA) would also be progressively using this e-payment gateway. It further said that this e-payment measure will enhance transparency and accountability in public dealings of the Central Government and also usher green banking by the Government,the ministry added.