Press Information Bureau
Government of India
Ministry of Finance

28-October-2011 17:06 IST

The Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance has developed a fully secured Government e-payment system for direct credit of dues from the Government of India into the account of beneficiaries using digitally signed electronic advice (e-advice) through the ‘Government e-Payment Gateway’ (GePG). The Union Finance Minister Shri Pranab Mukherjee will inaugurate the Government e-Payment System on Monday. Government e-Payment Gateway (GePG) is a portal which enables the successful delivery of payment services from Pay & Accounts Offices (PAOs) for online payment into beneficiaries’ accounts in a seamless manner under a secured environment. GePG serves as middleware between COMPACT (Computerized Payment and Accounts) application at Pay & Accounts Offices and the Core Banking Solution (CBS) of the agency banks/RBI to facilitate paperless transaction, reducing overall transaction cost and promoting green banking.

This system will bring transparency and expedite direct payments from central paying units relating to subsidies to the users and consumers of fertilizer, kerosene and cooking gas which is already a declared objective of the government. This will increase the adoption of other e-services due to its efficiency and ease-of-use for all Central Government Ministries and Departments for online payment transactions. The digitally signed e-advices uploaded by the PAOs on GePG portal is downloaded by the concerned banks to credit the beneficiaries’ accounts through CBS/NEFT/RTGS as applicable. The e-payment system will save time and efforts in effecting payments and will facilitate elimination of physical cheques and their manual processing. Further the constraints of manual deposit of cheque by the payees into their bank account would also be eliminated. The system will also have online reconciliation of transactions and efficient compilation of payment accounts.

Under the traditional system of government payments, paying units in central government are using cheque, cash, DD or in few ministries ECS for payments to employees and vendors. In the past few years RTGS and NET faculties provided by RBI are also being utilized for central government payments in various ministries through the banking channel.

DSM/SS/GN

Electronic payment gateway implementation increases transparency and enables paperless direct credit to beneficiaries' bank accounts. The Government e-Payment Gateway creates a secured electronic mechanism whereby PAOs upload digitally signed e-advices that banks download to credit beneficiaries through CBS/NEFT/RTGS, replacing physical cheques, enabling online reconciliation, reducing transaction costs, expediting central payments (including subsidies), and promoting paperless, green banking across Central Government ministries and departments.