In order to attain the goal of complete digitization of Government payments, the Ministry of Finance, Government of India has again reviewed the existing limit of ₹ 10,000/-(Rs. Ten Thousand only) prescribed regarding e-payment to Suppliers etc. It has now been decided to lower this threshold limit from ₹ 10,000 to ₹ 5,000 (Rupees Five Thousand only).The last review in this regard was made only in August, 2016.

Accordingly, all the Ministries/Departments of the Government of India have been now directed by the Ministry of Finance to ensure with immediate effect that all payments above ₹ 5000/- (Rupees Five Thousand only) to suppliers, contractors, grantee/loanee institutions etc. are made by issue of payment advises only.

E-payment mandate for government supplier payments: electronic payment required for payments above prescribed threshold with immediate effect. The Ministry of Finance mandates that all payments to suppliers, contractors, grantee and loanee institutions above the newly prescribed threshold be made through electronic payment mechanisms and issued by payment advises; this directive applies to all Ministries and Departments with immediate effect to advance digitization of Government payments.