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E-Government

India launches e-payment gateway

By Xinghui Guo | 2 November 2011

Pranab Mukherjee, India’s Finance Minister, launched the Government Electronic Payment Gateway (GePG) on Monday, 31 October 2011, a system that will serve as a single window for all transfers and payments from the government.

The system, covering all central government departments and ministries, is expected to eliminate almost twenty million cheques. When fully operational, it is expected to cover a total payment of over Rs6,00,000 crore (US$122 billion).

GePG will facilitate direct credit of dues from the government into the account of beneficiaries using digitally signed electronic advice (e-advice).

“This is likely to impact the working of a large number of government and bank employees involved in the government payments,” he said. In the entire process, it will spare valuable human resources, which could be re-deployed to perform other important functions of the organisations.

Mukherjee said the e-payment system will reduce the citizen interface by eliminating beneficiary dependency on government office and officials to hand over the cheque since the payments would be effected directly into their accounts. The entire payment process is trackable and delays can be monitored online, he said, adding that it would be a major initiative for reducing corruption and ensuring good governance.

The GePG, which could be used for interacting with banks for enabling the payments and payment scroll receipt, is also scalable, capable of handling all government payments. The system has been developed by the Controller General of Accounts (CGA), Department of Expenditure, and Ministry of Finance.

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