Electronic payments are growing these days. To Pay digitally, we need to use digital means of technology. It doesn’t require paper and cheques to pay.

Earlier, cash payment was common. To know the journey of the development of electronic payment, click here.

Governments are also using digital payments. Digital India has led the revolution of e-Governance. The government enables electronic payment and receipt wherever possible in their sectors. The main aim of implementing Electronic payment and Receipt in Government is to enable 100 per cent electronic payment. This applies to all the department’s transactions, whether internal or external.

• To provide guidance for the broad acceptance of electronic payment modes. EPR is for each type of service (The services are mentioned below). It uses various payment channels.
• To provide a protocol for different payment service providers.
• Evaluate many services such as payments and receipts by types of services or by the condition of digital payment.

According to the services provided to other departments, businesses, and residents, departments collect and receive fees. The services offered by the government departments are distinguished in the following progressive levels of IT.

The services of this level are:

• In the case of C2G payment, the bill generation process for service is manual.
• Records for the Assignee (citizens/business) in G2C payments and the Payer in C2G payments are entirely based on sheets.
• Payments and receipts are accepted in form of either cash or cheque.

This level deals with digital records and IT-enabled processes without payment integration. This level includes service with

• Digitized record of G2C/G2B payments (citizens/business) and payers in case of C2G/B2G payments.
• The billing process is automated and implemented electronically.
• Payments and receipts are accepted in form of cash and cheque. There is no option for electronic payment.

This level handles electronic records management. The service of this category includes

• Entire records of payment in case of G2C/B2G payments and payers in case of C2G/B2G payments.
• The approval and billing process is electronic.
• For payments and receipts, there is more than one option and they are:
  • For Over-the-counter payments/receipts

Card-based/IMPS/Wallet

• • For Web-based payments/receipts

Card-based/Net banking/RTGS/IMPS/NEFT/mWallets

• • For mobile phone-based payments

1. Payment Systems: Central and state departments are suggested to adopt systems that receive online payments.
2. Payment Channels: Central and state departments are advised to adopt multiple channels so that they can receive online payments.
3. Payment Modes: Departments are suggested to offer either Debit Cards, Credit Cards, PPI or IMPS in counter-based services.

1. Payment System: Central and State Departments are suggested to follow either Bank or Non-Bank Payment Service providers which are authorized by RBI.
2. Payment Channels: Central and State Departments are suggested to accept multiple channels to receive payments.
3. Payment Modes: Central and State Departments are allowed to make payments via different electronic modes such as Debit Card, Credit Cards, IMPS or PPI.

1. Payment System: Central and State Departments are suggested to follow either Bank or Non-Bank Payment Service providers which are authorized by RBI.
2. Payment Channels: Central and State Departments are suggested to accept multiple channels to receive payments.
3. Payment Modes: Central and State Departments are allowed to make payments via different electronic modes such as Debit Card, Credit Cards, IMPS or PPI.

Source

The payment and receipts in the government are categorised into 5 different parts and they are:

The government provide many types of services to citizens and businesses. The government collects payments against these services by these modes:

• Cash
• A payment that depends on the paper
• Cheque to the department
• Demand draft in favour of departments
• Challan to the department

These are the olden method of collecting payment.

Source

The government is rapidly shifting to electronic methods of payment like

• National Electronic Fund Transfer (NEFT)
• Net Banking
• IMPS

Under different heads, departments pay participants in government plans and non-plan programmes. Central government offices use Public Finance Management System (PMFS) for making G2C payments.

These procedures are used by the government to pay the recipient:

• Cash
• Paper-based Cheque

In addition, the government is even indulging in the following electronic payment mode:

• Direct benefit transfer to citizens through NEFT/RTGS
• Aadhaar-enabled payments (AEPS)

Under this scheme, Government organisations either induce goods or services to external agencies and make payments. The payment is made in any of the mentioned modes:

• Paper-based (Cheque)
• Cash in PFMS

Electronic-based (NEFT/RTGS) business is widely adopted by government organisations.

The General Provident Fund (GPF), salary, and pension payments of the employees are done through electronic means. Central Governments officers use digital systems named as e-Lekha. They also use COMPACT. Both of them are developed by the Controller General of Account (CGA).

Central Government pays using Public Finance and Management (PFMS) against planned and non-planned schemes. Generally, Central sector and Central sponsored schemes used PFMS. To make G2G payment, State Government use developed digital systems.

In the field of business, Digital or electronic modes of payment and receipt makes transfer easy. It helps in instant transfer and provides data security.