Payments above Rs 5000 by govt depts to be now made through e-payments: Finance Ministry

NEW DELHI: In order to attain digitalisation goals of government payments, finance ministry today made it mandatory for government departments to make electronic payment to suppliers and contractors if the order value exceeds Rs 5000.

To attain the goal of complete digitisation of government payments, the ministry has lowered the threshold for making such payments from Rs 10,000 to Rs 5,000, finance ministry said in a statement.

Any Payment of above Rs 5,000 to Suppliers, contractors, grantee/loanee institutions etc by government departments to be made now through e-Payment, finance ministry said.


Ministry of Finance has directed all the ministries and departments to ensure implementation of the same with immediate effect.

Post surprise announcement of demonetisation by Prime Minister Narendra Modi on November 8, the government has taken several steps to promote digital transactions.

As part of the measures, the finance ministry has instructed PSU and private banks to waive the transaction cost for all payments made through debit cards, the road transport ministry has asked vehicle manufacturers to provide a digital tag on all new cars for e-payments at toll plazas and checkposts.