The Ministry of Corporate Affairs has reviewed the processes involved in delivery of important services to stakeholders, with a view to identify and improve the components causing delay in disposal of applications. Payment confirmation is found to be a major bottleneck in delivery of services in respect of offline payment made by physical challans. It was found that often there was a delay in confirmation of payments by physical challans, as banks have been given a reporting time of ‘T’+3 days, as per payment procedure approved by C&AG,‘T’ being the transaction date. This leads to delay in creation of work item for disposal of an application/e-form, leading to inconvenience of stakeholders. On the other hand, it was found that wherever fees were paid online in the system, the work item was created faster and the approvals were speedier as banks are following’ T’+1 for reporting online payments.

In the interest of stakeholders, with a view to improving service delivery time, Ministry has decided to accept payments of value upto Rs.50,000, for MCA 21 services, only in electronic mode w.e.f 27th March, 2011.

For the payments of value above Rs. 50,000, stakeholders would have the option to either make the payment in electronic mode, or paper challan. However such payments would also be made in electronic mode w.e.f .1st October’2011.

Electronic payments requirement for MCA services speeds processing; phased mandate makes electronic mode compulsory for all fees. The Ministry found that physical challans delayed payment confirmation due to bank reporting at 'T'+3 whereas online payments were reported at 'T'+1, causing slower processing of MCA services. To improve service delivery, electronic payment was mandated for MCA services up to a prescribed threshold from 27 March 2011, with a transitional option for higher payments until a later date when all payments must be electronic; the reform standardises payment channel and accelerates workflow creation.