In a move aimed at boosting the use of cashless transaction methods in the country, the Ministry of Urban Development has directed 4,041 urban local bodies in the country, which represent 75 per cent of India’s total urban population, to shift to e-payments at the earliest. The local bodies were informed about the government’s decision through video conferencing attended by Secretary (Urban Development) Rajiv Gauba and various senior officials of the states concerned .

According to Press Information Bureau, the ministry has directed city and state level officials to promote internet banking (RTGS/NEFT), online banking using credit and debit cards for cashless transactions. The task of developing necessary infrastructure, capacity building and organising awareness campaigns for opening of accounts for employees has been given to city administration. To enable transfer, accounting, reconciliation and monitoring of transfer of funds under various government schemes, the state governments have been asked to adopt Public Finance Management systems (PFMS) up to city level.

To demonstrate the volumes of transaction, 59 cities have collected tax revenues of Rs.1,722 crore during the month of November so far. In Madhya Pradesh, seven major cities have enabled cashless transactions and the facility will be made available in 378 cities and towns by March next year. Uttar Pradesh and Goa have reported using PFMS up to city level.