Govt. to make payments directly into bank accounts of employees to reduce corruption

New Delhi, April 12, 2012: As part of the Government’s efforts towards good governance and elimination of corruption, the Ministry of Finance has amended the rules to enable all the Ministries and Departments to facilitate payments by direct credit to the bank accounts of employees.

An official press release said that orders had also been issued by the Controller General of Accounts(CGA) that, with effect from 1st April 2012, all payments above Rs.25,000 to employees shall be directly credited to their bank accounts.
While the government servants shall continue to have the option to receive their salaries by cash or cheques, they could also opt to receive their salaries by direct credit to their bank accounts. However, all other payments to government servants of the amount of above Rs.25,000 shall be credited directly to their bank accounts. Further, all payments towards the settlement of retirement/terminal benefits of the government servants shall also be directly credited to their bank accounts, it said.
Click here for the above order of the Controller General of Accounts(CGA)