Govt depts’ payments above `5K to be digital

All government payments exceeding `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 `10,000.

The Centre also asked its officials to become “ambassadors” of digital payments, and use plastic money for their dayto-day transactions.

All ministries and departments were told

Continued from Page 1 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 `500 and `1,000 banknotes has left millions low on cash and hit India’s largely cash-based economy, prompting Prime Minister 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.

The last review in this regard was made only in August.

Meanwhile, toll fees on National Highways can be paid through credit, debit cards and e-wallets, while the old `500 notes will be accepted till December 15, the Union home ministry said.

The ministry also asked states to deploy adequate police personnel and duty magistrates at tollbooths on National Highways to avoid law and order problems.