Govt aims to make all panchayats UPI-enabled soon | Fusion - WeRIndia

In a significant move, the Ministry of Panchayati Raj has issued a letter. In that letter, it stated that all panchayats across India will be required to use digital payments for development work and revenue collection starting from Independence Day.

The ministry has also emphasized the need for these panchayats to become UPI-enabled.

States have been urged to announce and inaugurate the UPI-compliant panchayats in the presence of prominent dignitaries such as chief ministers, MPs, and MLAs.

According to Secretary Sunil Kumar, almost 98% of panchayats have already begun using UPI-based payments. He said that payments worth approximately ₹1.5 lakh crores were made through the Public Financial Management System.

The transition to digital payments has significantly reduced the reliance on cheques and cash.

Mr Kumar noted that the coverage of UPI-based payments is nearly universal, with almost 98% of panchayats already onboard.

The ministry has directed panchayats to hold meetings with service providers and vendors on June 30.

A list of contact persons from various UPI platforms such as GPay, PhonePe, Paytm, BHIM etc., has been shared with the panchayats.

By July 15, panchayats are required to select suitable service providers. They have to finalize vendors by July 30.

The ministry has also recommended opting for a single vendor that can cover the entire area to achieve economies of scale.

Additionally, it has suggested the creation of a centralized dashboard for real-time transaction monitoring.

To facilitate the transition, training camps will be organized at the district and block levels for officials.

Minister of State for Panchayati Raj, Kapil Moreshwar Patil, expressed confidence that enabling digital transactions would help curb corruption.

He highlighted that most panchayats have already adopted digital payments, streamlining processes from planning to payment.

Government data reveals that in January 2023 alone, BHIM recorded 806.3 crore transactions worth ₹12.98 lakh crores.

Panchayati Raj Institutions are utilizing the PFMS-eGram Swaraj interface for digital payments.

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