Urban Development Ministry asks all 4,041 cities to go cashless

The Dollar Business Bureau

As part of the government’s ongoing efforts to shift towards cashless transactions, the Urban Development Ministry has asked all the 4,041 statutory urban local bodies to move to e-payments as early as possible. These towns and cities make up for around 75% of the 40 crore population in urban areas of the country.

“The Government of India’s message to the officials of these 4,041 urban local bodies was conveyed by Rajiv Gauba, Secretary - Urban Development, through interactive video-conferencing. Senior officials of concerned states also participated during the half day long interaction on various aspects of ensuring cashless transactions,” said an official release on Sunday.

The officials at State as well as city level were asked to encourage internet banking (NEFT/RTGS), online banking through debit and credit cards for cashless transactions along with using Public Finance Management Systems (PFMS), which is developed by the Finance Ministry for transferring funds, accounting and reconciliation up to the level of towns and cities, it said.

The Urban Development Secretary emphasised that all the transactions with regard to income as well as expenditure of urban local bodies required to be moved to e-payment method.

These transactions include payment for Professional Tax, Property Tax, all user charges such as water and power bills, all types of fee and license charges, issue and renewal of birth and death certificates, online booking of community halls, enrollment of library membership, registration of shops and other establishments, etc.

Expenditure such as payment of wages and salaries to both regular and contractual workers, all contract and work related payments, payment for procurements, beneficiary payments such as social security etc, to be made cashless.

The governments at city level were asked to take up required steps for infrastructure and capacity building, to organise awareness campaigns to open bank accounts of all employees and their family members.