All panchayats across the country will be required to employ digital payments for all development activity...
Digital Desk: All panchayats across the country will be required to employ digital payments for all development activity and revenue collection starting this Independence Day and will be designated as UPI-enabled, a letter released by the Panchayati Raj Ministry said.
The ministry stated in a letter that states and union territories, states should "announce and inaugurate" UPI-compliant panchayats in the presence of significant dignitaries such as chief ministers, MPs, and MLAs.
Secretary, Panchayati Raj Ministry, Sunil Kumar stated that nearly all panchayats have already begun receiving UPI-based payments.
"Payments totaling nearly Rs 1.5 lakh crore have been made through the Public Financial Management System (PMFS). Payments to panchayats will now be made digitally. Cheque and cash payments have almost stopped," Kumar said.
"It now has almost universal coverage. We have already covered nearly 98% of panchayats," he said.
Panchayats have also been asked to organize meetings with service providers and vendors on June 30. The government has given a list of contact persons from UPI platforms GPay, PhonePay, PayTm, BHIM, Mobikwik, WhatsApp Pay, Amazon Pay, and Bharat Pe.
According to the ministry's advice, panchayats must select eligible service providers by July 15 and approve vendors by July 30.
Training camps for officials will be held at the district and block levels. Minister of State for Panchayati Raj Kapil Moreshwar Patil stated that permitting digital transactions will aid in the fight against corruption.
"Most panchayats now accept digital payments. It will help to combat corruption. From planning to payment, everything is digital," Patil told PTI.
According to government statistics, BHIM processed 806.3 crore transactions worth Rs 12.98 lakh crore in January 2023 alone.. Around 50% of all digital transactions take place in rural and periurban areas.
According to the ministry, Panchayati Raj Institutions (PRIs) are making digital payments through the PFMS-eGram Swaraj interface, and over 90% of PRIs have been audited online.
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