Finance Ministry Mandates All Government Departments to Make Electronic Payments above Rs 5000

Finance Ministry Mandates All Government Departments to Make Electronic Payments above Rs 5000. The Finance Ministry made it mandatory on December 5, 2016 for all Government Departments to make Electronic Payments to suppliers, contractors or institutions if the order value exceeds Rs 5,000, to give a boost to Digital Payment System. To attain the goal of complete digitization

of government payments, the ministry has lowered the amount for making such payments from Rs 10,000 to Rs 5,000. Ministry of Finance has directed all the ministries and departments to ensure implementation of the same with immediate effect. The Finance Ministry has instructed PSU and private banks to waive the transaction cost for all payments made through debit cards.