Madhya Pradesh Leading State to Make Aadhaar Based Payment in Treasuries

• 14 Jan 2023

Why In News?

• On January 13, 2023, Madhya Pradesh Finance Minister Jagdish Deora launched a new system to facilitate payment to beneficiaries through Aadhaar-based payments in treasury, making the state one of the leading states in the country that provide this facility.

Key points

• Speaking on the occasion, Finance Minister Jagdish Deora said that new dimensions are being added for some time to make the Integrated Financial Management Information System implemented in the treasury more efficient. Digital accounting dispatches, e-sign in passing bills, all payment options have been provided in e-invoice to pay tax/revenue to the common citizen. This has not only made financial dealing easier but has also succeeded in bringing financial discipline.
• Now, in order to make the financial system more simple, strong and beneficiary oriented, the new system of Aadhaar-based payment will be implemented in all the treasury of the state from January 16, 2023. With the new system, double benefit can be identified and prevented. At the same time, unsuccessful payments will also decrease.
• The Finance Minister said that under the Integrated Financial Management Information System (IFMIS) of the state, all the beneficiaries are being made e-payment directly in their bank account since the year 2010. In view of the need of the hour and the changes in financial management, it has now become possible to make Aadhaar based payments to the beneficiaries along with the bank account, making the e-payment system effective.
• The Finance Minister said that now bank account based e-payment along with Aadhaar based payment is being started directly in the entire treasury from January 16, 2023 through the e-Kuber system of the Reserve Bank of India.
• With the implementation of e-Kuber, all e-payments of the state will be received rapidly in the bank account of the concerned beneficiary. This system will be available 24 hours on all working days.
• The Finance Minister said that with the implementation of the new system, the matching of data will be easier. In the past, the information of receipts and payments by banks was physically given to the treasury, which was sent to the Reserve Bank of India and the Accountant General, in which there were many problems of data variation. With the introduction of e-Kuber, the Reserve Bank of India will be directly treated and the problem of matching the data of financial transactions will end.
• Moving forward in this direction, the contribution of the state in the Digital India program will be further increased. IFMIS Next Gen is being developed in place of the present Integrated Financial Management Information System (IFMIS) with the objective of implementing faceless, paperless, contactless and cashless financial transactions and developing a user friendly system incorporating modern technological innovations.