The Finance Ministry has amended the rules to enable all the Ministries and Departments to facilitate payments by direct credit to the bank accounts of the payees. This will help bring transparency in payment system and elimination of corruption in the country. The order to this effect has also been issued by the Controller General of Accounts on 1st of this month. According to an official release, under the new rules, all payments above 25 thousands rupees to suppliers, contractors and loanee institutions will be directly credited to their bank accounts. However, the government servants shall continue to have the option to receive their salaries by cash or cheques. They can also opt to receive their salaries by direct credit to their bank accounts. Further, all payments towards the settlement of retirement benefits of the government servants will also be directly credited to their bank accounts. The initiative will streamline the process of making payment by government departments while minimising the interface of the payees with government offices to receive their dues.
News On AIR | April 11, 2012 6:01 PM
Govt. amends rule, payments above Rs 25K to be credited directly in accounts of payees<br/>