In a drastic move to transform the administration into digital, the Government departments will now use the e-payment mode to make a payment of over Rs 5,000 to suppliers, contractors and others.

The Union Finance Ministry has directed all other ministries and departments to start doing the same. It said, they may also issue similar advisories to their attached and subordinate offices, PSUs and Autonomous bodies.

This decision has been taken in order to attain the goal of complete digitization of Government payments. With this decision, the limit for e-payment earlier was Rs 10,000, which has now been brought down by half.

The ministry is hopeful that this step was taken to move towards achieving the “complete digitisation of government payments”. In addition, the government has asked its employees to “take the lead” and maximise the use of debit cards “for personal related transactions instead of cash”.

Meanwhile, all toll plazas in national highways will receive payments through credit or debit cards and e-wallet henceforth besides accepting old currency notes of Rs 500 till December 15.The Home Ministry has also asked the states to deploy adequate police so that no potential law and order problem arises across the toll plazas.