Civic bodies gear up for cashless transactions

PUNE: Civic bodies across the state will shift to cashless transactions completely following the Union urban development department’s orders.
As part of the efforts to move towards cashless transactions, the ministry has told all the statutory 4,041 urban local bodies to shift to e-payments at the earliest. These cities and towns account for about 75% of the total 40 crore urban population.
Urban development secretary Rajiv Gauba recently held an interactive video-conferencing with civic officials about cashless transactions.
“Pune Municipal Corporation (PMC) has already provided online transaction facility for citizens to pay various taxes while contractors are paid by cheques. We plan to make extensive use of internet banking (RTGS/NEFT) to minimize cash transactions,” additional municipal commissioner Rajendra Jagtap said.
The Centre wants civic bodies to promote online banking using credit and debit cards for cashless transactions besides using public finance management systems developed by the finance ministry for funds transfer, accounting and reconciliation up to the level of cities and towns.
All transactions relating to both income and expenditure of urban local bodies must be shifted to e-payment mode. These include payment of property, professional taxes, all user charges like water and power bills, all kinds of fees and licence charges, online booking of community halls, issue and renewal of birth and death certificates, registration of shops and other establishments and enrolment of library membership.
Expenditure that should be made cashless include payment of salaries and wages to all regular and contractual employees, all contract and work-related payments, procurements, beneficiary payments like social security etc.
The Centre has also asked the state governments to adopt the public finance management systems up to the city level to enable transfer, accounting, reconciliation and monitoring of transfer of funds under various government schemes.
“Every year, Pimpri Chinchwad Municipal Corporation (PCMC) is making cash transactions of about Rs 50 lakh while other transactions are cashless. We are planning to minimise cash transactions as much as possible,” PCMC accounts officer Rajesh Lande said.
“I attended the video conference where the Union government has emphasised on the need for an e-transaction system for cashless mode of payments and receipts. At present, around 4% to 5% of the tax receipts made by the citizens are through the online mode or RTGS facility. The property tax and water tax bills can be paid through net banking. Also, the expenses made such as TDS, VAT or service tax and the payments of the contractors are made through online mode. The amount is instantly transferred to the KMC's account and the e-transaction mode help accounting simple,” chief accountant of Kolhapur Municipal Corporation Sanjay Sarnaik said.
Nashik Municipal Corporation (NMC) has decided to issue smart cards to property-holders to become cashless. Moreover, they will also be able to use smart cards while shopping in malls and markets. Deputy municipal commissioner Rohidas Dorkulkar said, “It is a step towards a cashless municipal corporation.”
Abdul Bari, systems manager in Aurangabad Municipal Corporation, said, “Most systems in the corporation are online and only civic hospitals and gardens are accepting cash. The zonal offices of the corporation are equipped with swipe machines to facilitate cashless transactions while paying civic taxes.”
The Centre has asked local bodies to take up necessary infrastructure and capacity building, awareness campaigns for opening of accounts for employees of all categories and their family members.