As a part of the ongoing efforts to move towards cashless transactions
of all kind, the Ministry of Urban Development has asked all the
statutory 4,041 Urban Local Bodies to shift to e-payments at the
earliest. These cities and towns account for about 75% of the total 40
crore urban population in the country.
Central Government’s message to the officials of these 4,041 urban local
bodies was conveyed by Shri 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.
State and city level officials were asked to promote internet banking
(RTGS/NEFT), online banking using credit and debit cards for cashless
transactions besides using Public Finance Management Systems(PFMS)
developed by the Ministry of Financing for fund transfer, accounting and
reconciliation up to the level of cities and towns.
Shri Gauba emphasized that all transactions relating to both income and
expenditure of urban local bodies needs to be shifted to e-payment mode.
These include payment of Property Tax, Professional Tax, all user
charges like water and power bills, all kinds of fee and license
charges, online booking of community halls, issue and renewal of birth
and death certificates, registration of shops and other establishments,
enrollment of library membership etc.
Expenditure to be made cashless include payment of salaries and wages to
all regular and contractual employees, all contract and work relate
payments, procurements, beneficiary payments like social security etc.
City governments were asked to take up necessary infrastructure and
capacity building, awareness campaigns for opening of accounts for
employees of all categories and their family members.
States have been asked to adopt Public Finance Management systems (PFMS)
up to city level to enable transfer, accounting, reconciliation and
monitoring of transfer of funds under various government schemes.
To illustrate the transaction volumes, 59 cities have collected tax
revenues of Rs.1,722 cr during November so far including dues payable.
These include; Ahmedabad-Rs.187 cr, Bhopal-Rs.27 cr, Chennai-Rs.80 cr,
Faridabad- Rs.17 cr, Guwahaty-R.s. 14 cr, Hyderabad-Rs.208 cr,
Indore-Rs.32 cr, Kakinada (AP)-Rs.20 cr, Kalyan(Maharashtra)-Rs.170 cr,
Lucknow-Rs.23 cr, Raipur-Rs.17 cr, Visakhapatnam-Rs.16 cr,
Amritsar-Rs.12 cr, Kanpur-Rs.30 cr, Mumbai-Rs.167 cr and New Delhi
Municipal Council-Rs.84 cr.
Officials from Madhya Pradesh informed that the major 7 cities have
already enabled cashless transactions and all the 378 cities and towns
would do so by March next year. Uttar Pradesh and Goa have reported
using PFMS up to city level and found it to be very useful.
Minister of Urban Development Shri M.Venkaiah Naidu inaugurated such
cashless payment system introduced by the Visakhapatnam Municipal
Corporation and orientation camps for educating citizens on e-payment.
Pib
