Finance Minister Arun Jaitley Finance Minister Arun JaitleyThe Finance Ministry on Monday made it mandatory for all government departments to make payments above Rs 5,000 through e-Payment facility and not cash. In a statement, the ministry has directed all the departments to implement the fresh order with immediate effect. “Any payment above Rs 5,000 to suppliers, contractors, grantee/loanee institutions etc by government departments to be made now through e-Payment,” reads the statement. With Prime Minister Narendra Modi strongly advocating for a cashless economy to weed out corruption and black money, the latest move could be seen as a move in that direction. In a bold and sudden move, the government had last month demonetised Rs 500 and Rs 1,000 notes in an attempt to flush out black money from the market.

Source: Indian Express December 05, 2016 10:03 UTC