No. HQ/9/2002-Computerization

Government of India

Ministry of Corporate Affairs

5th Floor, A Wing, Shastri Bhavan

Dr. R.P. Road, New Delhi-110001

Dated 9th March, 2011

CIRCULAR

Sub: Payment of MCA fees –electronic mode-regarding 

Ministry 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.

2. 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.

3. 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.

Yours faithfully,

(Nirupama Kotru)

Director

Electronic payments required for MCA services to accelerate transaction confirmation and reduce processing delays for stakeholders. Payment confirmation delays from banks reporting physical challans on a 'T+3' basis, versus online payments on 'T+1', caused slower creation of work items and delayed disposal of MCA 21 applications. The Ministry mandated fees up to a specified threshold to be accepted only in electronic mode from late March 2011, and provided that payments above that threshold could be made either electronically or by paper challan until electronic mode became mandatory from October 2011.