The Government of India decided to transfer all pension, Provident fund refund and gratuity of all retired government employees through electronic payment to individual bank account of the employees. This will be open from o1st April, 2011 to all retired government employees. The PF and gratuity will be transferred the next day of retirement and the pension will be transferred from the next month of onwards.
A fully developed e-payment gateway has been developed by the controller General of Accounts (CGA) and will be inaugurated on 31st October, 2011 by the union finance minster. This e-payment gateway will be linked to all government offices from panchayat level onwards.
According to the CGA this new e-payment system may save more than 5,000 crore on interest payments to government a year. It is mandatory to all government offices to be linked with this e-payment system within 01st April, 2012 and the payment should be transferred through this e-payment system.
This new payment gateway will help to monitor all the disbursement of government offices. At present all payments are made through cash, cheque or demand draft. This new system help to deliver the payments successfully to all beneficiaries accounts under secured e-payment method.
The new e-payment method is transparent and can ensure that the amount has been credited the employees account itself and the employees will get an immediate credit of the amount. There may be an SMS alert also to their mobile phones which inform them the transfer at once. The cost of cheques and related paperwork will be very less when compare with the traditional system of payment.