Government to make payments directly to Bank Accounts to curb corruption!


I am sure you are well aware that, in India, to get any work done from any government department is a nightmare. In most cases you have to bribe every person in the chain – From peon to the top boss. This is especially true if you are contractor or agency or a supplier working for a Government department. You will never get paid for the work you have done unless you pay the bribe.

However, going forward these harassed souls may breathe a little easy. 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 the payees.

Controller General of Accounts(CGA) have released a notification that, with effect from 1st April 2012, all payments above Rs. 25,000 to suppliers, contractors, grantee and loanee institutions shall be directly credited to their bank accounts.


This will definitely help put brakes on corruption to a certain extent which is happening in Government offices, especially where payment to contractors and suppliers is concerned.

The CGA notification also states that – All 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.

The payments will be made using “Government e-payment gateway” which was recently setup by Controller General of Accounts(CGA) to facilitate payments in government departments.

All in all, a great step forward by Finance Ministry of India which is sure to bring down amount of corruption taking place in government departments

"Government to make payments directly to Bank Accounts to curb corruption!", 5 out of 5 based on 1 ratings.
  1. Gopinath Mavinkurve says

    I am convinced that the Government has taken upon itself…….. to beat humour writers like me! Nothing could be more funny than thinking that this measure will curb corruption! Several departments have implemented computerised online submissions to avoid interactions with applicants etc. but they are armed with such tools as "queries" raised, "deficiencies" found and other hurdles that ensure that you meet them in a hotel near that office sometime soon!

  2. Facility management software says

    A smart and very sensible move. At least government has started thinking in right way to curb corruption but need more strict norms because still have lots of discrepancy in the system. This move has already reduced corruption in major government running projects like MNREGA. Its implementation is important.

  3. Bellur Ashwin says

    I don't understand how this helps, even if official payments go through the bank the authority is still with the officer's signature and how does this prevent from him asking for personal fees?

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