Govt cuts its cash spending limits, says expenditure over Rs 5000 to be made via e-payments
Finance Minister, Arun Jaitley at a press conference. Image Source: IANS
The government on Monday announced that any payments to suppliers, contractors, grantee/loanee institutions by government departments to be made through e-payments.
“…all the Ministries/Departments of the Government of India have been now directed by the Ministry of Finance to ensure with immediate effect that all payments above Rs 5000/- (Rupees Five Thousand only) to suppliers, contractors, grantee/loanee institutions etc. are made by issue of payment advises only,” the Ministry said.
Any Payment of above Rs.5,000 to Suppliers,contractors,grantee/loanee institutions etc by Govt Departments to be made now through e-Payment.
— Ministry of Finance (@FinMinIndia) December 5, 2016
The earlier threshold for e-payments by the government was in excess of Rs 10,000.
“In order to attain the goal of complete digitization of Government payments, the Ministry of Finance, Government of India has again reviewed the existing limit of Rs 10,000/-(Rs. Ten Thousand only) 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 (Rupees Five Thousand only).The last review in this regard was made only in August, 2016,” the Ministry added.
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Written By: ZeeBiz WebTeam
Updated: Mon, Dec 05, 2016
Mumbai, ZeeBiz WebDesk