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Digital Payments Made Mandatory for Panchayat Works

Digital payment

It will be mandatory for all panchayats across the country to use digital payments for all development works and revenue collection after August 15. All panchayats will be declared UPI enabled by Independence Day. The Ministry of Panchayati Raj has issued a letter in this context. In a letter to states and union territories, the ministry said states should announce and inaugurate UPI-compliant panchayats in the presence of key dignitaries such as chief ministers, MPs and legislators.

About 98 per cent panchayats have already started using UPI-based payments, said Sunil Kumar, Secretary, Ministry of Panchayati Raj. About Rs 1.5 lakh crore has been disbursed through the Public Financial Management System (PMFS). Payment to Panchayats will now be done digitally. Payment in check and cash has been almost stopped.

In the letter, panchayats have been asked to hold meetings with service providers and vendors by June 30. The ministry has also shared the list of contact persons of UPI platforms such as Paytm, Paytm, BHIM, Mobikwik, Amazon Pay, Amazon Pay, and Amazon Pay. As per the ministry’s guidelines, panchayats will have to select appropriate service providers by July 15 and finalize the names of vendors by July 30. After this, QR codes will have to be installed in Panchayat buildings. Jan Dhan accounts of villagers should also be linked with UPI so that they can make digital payments.

Training camps will be organized for officers at district and block level. Minister of State for Panchayati Raj Kapil Moreshwar Patil said that enabling digital transactions would help in curbing corruption. He said that most of the Panchayats are now using digital payments. This will help in curbing corruption. He said that everything from planning to transaction is being done digitally. According to government data, in January this year alone, 806.3 crore transactions worth Rs 12.98 lakh crore were done through BHIM. Rural and sub-urban areas account for nearly 50 per cent of digital transactions.

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