Economy

No cash payments over Rs 5000: Jaitley to ministries

Union Finance Minister Arun Jaitley   | Photo Credit: V.V. Krishnan

Union Finance Minister Arun Jaitley has ordered all government departments to stop cash payments to vendors and contractors for amounts above Rs 5,000, effectively halving the Rs 10,000 cap for such cash payments set in August this year.

In a memo issued by the expenditure department on Monday, with the approval of the Finance Minister, ministries have been asked to use e-payment facilities to pay all suppliers where the dues are more than Rs 5,000 ‘in order to attain the goal of complete digitization of government payments.’

“All ministries and departments of the government shall ensure with immediate effect that all payments above Rs 5,000 to suppliers, contractors, grantee/loan institutions, etc are made by issue of payment advices only,” the finance ministry has said.


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Printable version | Jan 16, 2022 1:15:51 PM | https://www.thehindu.com/business/Economy/No-cash-payments-over-Rs-5000-Jaitley-to-ministries/article16763470.ece

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