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4,041 Urban Local Bodies asked to shift to cashless transactions

4,041 Urban Local Bodies asked to shift to cashless transactions
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The Ministry of Urban Development, as a part of the ongoing efforts to move towards cashless transactions of all kind, 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 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.

Gauba emphasised that all transactions relating to both income and expenditure of urban local bodies need 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.

Officials from Madhya Pradesh informed that the major seven 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.

Source : Urbannewsdigest



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