e-mode of payments from Apr 1

In a major initiative to ensure transparency and avoid any disruption in the Government payments to the beneficiaries, the State Finance Department has ordered enforcement of Electronic Mode of Payment System with effect from commencement of the new financial year.
From Ist April 2016, the Drawing and Disbursing Officers (DDOs) shall make payments to beneficiaries by directly affording credit to their bank accounts at the stage of drawal of the bill itself from the Treasury.
According to an official circular in this regard, issued today by the Director General Accounts and Treasuries, the practice of first affording credit to the DDOs and then making payment through cheques shall be stopped and the DDOs are therefore barred to use Bank Cheque Books with effect from April 1, 2016.
With these directions, the DDOs have been advised to close the cheque books available with them and return the same to the J&K Bank under proper receipt. Further, the Chairman/ Chief Executive Officer, J&K Bank has been requested to issue instructions to the Business Units that they will not issue Cheque Books to any DDO without specific authorization from the Finance Department.
The significant directions have been issued in the wake of reports in notice of the Finance Department that DDOs after drawing bills from Treasuries, get the amount credited to their official bank accounts and thereafter make payments to the beneficiaries as per their convenience through cheques, resulting in delayed payment to the beneficiaries. The delays so caused at times, compromise transparency and integrity of the Payment System besides severe inconvenience to the beneficiaries.
The circular has also made it clear that the concerned Administrative Secretaries/ Head of Departments/DDO, shall be responsible for putting in place Electronic Mode of Payment System on or before Ist April, 2016.

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