New Delhi: All government payments exceeding Rs 5,000 to contractors and suppliers would be made electronically, the Union finance ministry said on Monday, a move that will help in the Centre’s goal of moving towards maximum cashless transactions. The earlier limit for all ministries and government departments was Rs 10,000.
The Centre also asked its officials to become “ambassadors” of digital payments, and use plastic money for their day-to-day transactions. All ministries and departments were told to encourage their employees to go for digital transactions. Ministries will liaise with accredited banks and set up camps to ensure all their employees have debit cards.
Similar advisories will be issued to the subordinate offices, PSUs and autonomous bodies of these ministries and departments.
The Centre’s shock move last month to demonetise Rs 500 and Rs 1,000 banknotes has left millions low on cash and hit India’s largely cash-based economy, prompting Narendra Modi to urge Indians to go for digital transactions.
The ministry said that Central government ministries and departments have been crediting salaries and other payments for the majority of its employees electronically, direct into designated bank accounts.
“Ensuring and encouraging government employees to maximise the usage of debit cards for personal transactions instead of cash would go a long way with employees serving as ambassadors for the digital push and also motivating and encouraging the general public in taking up the cause,” said the ministry.
