Govt Of India Aims For Quicker Payments Through E – Payment Gateway

Taking a cue for State Governments Karnataka & UP, Government of India, seems to be finally waking up to the idea of electronic clearances of dues to it beneficiaries through a newly developed system. Known as Government e-Payment Gateway (GePG) the system enables the successful disbursement from Pay & Accounts Offices (PAOs) into beneficiaries’ accounts in a secured environment.
Jointly developed by The Controller General of Accounts (CGA), Department of Expenditure & Ministry of Finance, GePG will be unveiled today by The Union Finance Minister Shri Pranab Mukherjee. GePG is basically a gateway between COMPACT (Computerized Payment and Accounts) application at PAOs and the Core Banking Solution (CBS) of the agency banks/RBI. The goal seems to be facilitating ‘paperless transaction’, reducing overall transaction cost and promoting green banking.

As usual, the preliminary benefactors of this scheme are the retired Govt. employees whose all benefits like gratuity and provident funds are likely to be credited to the account the next day, and the pension deposited from the next month. However, besides revolutionizing payments to individual beneficiaries, the government’s e-payment gateway (GePG) will link 1.3 lakh agencies down to the level of panchayats & is equipped to capture all data on receipt, payments, borrowings and deficit real time which is likely to enable the Govt. to borrow Rs. 40,000 crore-Rs-50,000 Crores less every year solely due to availability of real time data!

This is expected to save the government more than Rs 5,000 Crores on interest payments annually,” said a senior CGA official. The application will become mandatory for all government departments and ministries from 1st April 2012.

Will this portal ensure transparency & enable Govt. to effectively channelize & plan expenditure on development schemes?

 

No comments yet.

Leave a Comment


7 + two =