UPI Transaction: All panchayats across the country will compulsorily use digital payment service from this Independence Day for development works and revenue collection and will be declared as UPI (Unified Payment Interface) users.
UPI Transaction: All panchayats across the country will compulsorily use digital payment service from this Independence Day for development works and revenue collection and will be declared as UPI (Unified Payment Interface) users. The Ministry of Panchayati Raj issued a letter giving this information. In a letter to states and union territories, the ministry said states should “announce and inaugurate” UPI-enabled panchayats in the presence of key dignitaries such as chief ministers, MPs and legislators.
98 percent panchayats are already using
Panchayati Raj Ministry Secretary Sunil Kumar told PTI that around 98 per cent panchayats have already started making UPI-based payments. Kumar said, “Around Rs 1.5 lakh crore has been disbursed through the Public Financial Management System (PMFS). Now the payment to panchayats will be done digitally. Payment by check and cash has almost stopped.
UPI has reached across the country
He said, “Now it has reached almost everywhere. We have already covered almost 98 per cent panchayats.” Panchayats have also been asked to hold meetings with service providers and ‘vendors’ on June 30. The list containing details of officers and employees of UPI platforms like Google Pay, PhonePe, Paytm, Bhim, Mobikwik, WhatsApp Pay, Amazon Pay and Bharat Pay has been shared by the ministry.
Ministry issued guidelines
According to the ministry’s guidelines, panchayats will have to choose a suitable service provider by July 15 and name the ‘vendor’ by July 30. Panchayats have been asked to select a single ‘vendor’ that covers the entire area. It has also been recommended to create a centralized dashboard to monitor transactions in real time.
Digital transactions will stop corruption
Training camps for officers will be organized at district and block level. Minister of State for Panchayati Raj Kapil Moreshwar Patil said that starting digital transactions will help in curbing corruption. He said, “Now most of the panchayats are doing digital transactions. This will help in curbing corruption…’
Transactions worth 12.98 lakh crore done through BHIM
According to government data, in January 2023 alone, 806.3 crore transactions worth Rs 12.98 lakh crore were done through ‘BHIM’. Out of this, about 50 percent transactions took place in rural and surrounding areas.
