India implements Government e-payment gateway

India’s Ministry of Finance has passed
regulation mandating that all governmental ministries to make
payments above INR25,000 (USD485) electronically, replacing cash
and cheques with transfers direct to recipients’ bank accounts.

A spokesperson for the Ministry of Finance
told Electronic Payments International that:
“Orders have been issued and all payments above INR25,000 to
suppliers, contractors and individuals must be directly credited to
their bank accounts”

Civil servants, though, are entitled to opt
out of e-payments for salary payments. “Government employees can
continue to receive their salaries by cash or cheques,” the
spokesperson confirmed.

This option, however, only applies for wages,
with all other payment above the INR25.000 threshold to be
processed through the Government e-payment gateway (GePG).

By expanding electronic payments, the Ministry
of Finance expects to bring about increased transparency and
promote good governance in the public sector. 

Following the Ministry of Finance’s lead, one
local government body – the Municipal Corporation of Bhubaneswar –
has also announced that all of its payments will be made
online. 

The nearly two million citizens of
Bhubaneswar, capital of the Indian state of Orissa, will now be
able to trace all payments made the municipality online.