Government employees to get E-Payments w.e.f 1st April 2012

Controller General Accounts, Department of Expenditure has issued an order to the effect that all payments to government servants, other than salary, above Rs. 25,000, by issue of payment advices, including electronically signed payment advices only with effect from 1st April 2012.

Further all payments towards settlement of retirement /terminal benefits such as gratuity, commuted value of pension, encashment of leave salary, CGEGIS, withdrawals from General Provident Fund, etc. will also be made to Central Government Employees by issue of payment advices, including electronically signed payment advices with effect from 1st April 2012.

The full text of the Office Memorandum F. No.1(1)/2011/TA/292 dated 31st March 2012 issued by Government in this regard is reproduced below

F. No.1(1)/2011/TA/292
Ministry of Finance
Department of Expenditure
Controller General of Accounts

Dated 31th March 2012

Office Memorandum

Sub:- Payment to Government servants other than salary etc. through e- Payment from 1st April 2012

The Central Government Account (Receipts and Payments) Rules,1983 have been amended, inter alia, to provide for issue of Payment advices to the bank for direct credit by electronic transfer to the specified bank account of the payee. As per the amendments, the Government servants are, permitted to receive their salary by direct credit to their bank accounts through payment advices, at their option Further,
the amendment also provides that all payments to government servants other than salaries exceeding the limits as specified from time to time, shall be through payment advices.

2. In accordance to the above, with effect from 1st April 2012, all Ministries/Departments of the Government of India are directed to make all payments to government servants, other than salary, above Rs. 25,000. by issue of payment advices, including electronically signed payment advices.

3. Further in accordance to the amended rules, with effect from 1st April 2012, all Ministries/Departments of the Government of India are directed to make all payments towards settlement of retirement /terminal benefits such as gratuity, commuted value of pension, encashment of leave salary,CGEGIS, withdrawals from General Provident Fund, etc. by issue of payment advices, including electronically signed payment advices.

4. All Ministries! Departments and Heads of Accounting Organisations are requested to ensure the compliance of above instructions by Pay & Accounts Offices/ Accounts offices and other payment units under their control.

5. Separate orders have been issued in respect of payments to private parties such as Suppliers, contractors, grantee, loanee institutions etc,.

sd/-

(Soma Roy Burman)
Joint Controller General of Accounts