The central government announced that beginning on Independence Day. All panchayats in the nation will be required to adopt digital payment services for development projects and tax collection, and they will be recognized as UPI (Unified Payment Interface) users. This information was provided in a letter from the Ministry of Panchayati Raj. The ministry instructed states to “announce and inaugurate” UPI-enabled panchayats in front of important dignitaries including chief ministers, MPs, and lawmakers in a letter to states and union territories.
98 percent of panchayats currently use
According to Sunil Kumar, secretary of the Panchayati Raj Ministry, almost 98% of panchayats have already begun accepting payments through UPI. The Public Financial Management System (PMFS) has distributed over Rs 1.5 lakh crore, according to Kumar. Panchayat payments will now be made digitally. He claimed that UPI was widely distributed throughout the nation and that it was now practically everywhere. Nearly 98 percent of panchayats have now been covered. On June 30, Panchayats are also expected to meet with service providers and “vendors.” The ministry has provided a list with information on the officials and staff of UPI systems like Google Pay, PhonePe, Paytm, Bhim, Mobikwik, WhatsApp Pay, Amazon Pay, and Bharat Pay.
Norms released by the Ministry
According to the Ministry’s recommendations, Panchayats must select the best service provider by July 15 and identify the “Vendor” by July 30. Panchayats are required to choose a single “vendor” to service the entire region. Making a central dashboard to track transactions in real-time has also been advised.
The use of digital transactions will put an end to corruption.
Officer training camps will be planned at the district and block levels. Kapil Moreshwar Patil, a minister of state for Panchayati Raj, stated that introducing digital transactions will aid in reducing corruption. The majority of panchayats now conduct digital transactions, he said. This will support efforts to reduce corruption.
12.98 trillion rupees worth of transactions were made using BHIM.
Government statistics show that in January 2023 alone, BHIM processed 806.3 billion transactions worth Rs. 12.98 lakh crore. About 50% of these transactions happened in rural and neighboring areas.
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