New Delhi: The Union Ministry for Finance, on Monday said that any payment above Rs.5,000 by government departments to suppliers, contractors, grantee/loanee institutions etc will be made through e-Payments.
To attain the goal of complete digitization of government payments, the Union Ministry of Finance has again reviewed the existing limit of Rs. 10,000 prescribed regarding e-payment to suppliers etc.
It has now been decided to lower this threshold limit from Rs. 10,000 to Rs. 5,000.
The last review in this regard was made in August, 2016.
Accordingly, the Finance ministry has directed all the central Ministries/Departments to ensure with immediate effect that all payments above Rs. 5000 to suppliers, contractors, grantee/loanee institutions etc. are made by issue of payment advises only.
To encourage cashless/electronic transactions, the central government has asked its employees to take the lead and maximize the usage of debit cards.
India Blooms News Service