GOVT PAYMENT THROUGH DEBIT/CREDIT/NET BANKING FACILITY-CGA

No.1(1)/2006/ECS/TA/165

Government of India Ministry of Finance Department of Expenditure Controller General of Accounts 7th Floor, Lok Nayak Bhawan, Khan Market New Delhi-110511 Date: 28/03/2016

OFFICE MEMORANDUM
Subject: Guidelines for payment of Government money into the accredited bank branch of the Ministry/Department through Debit/ Credit Cards and Net Banking facility.

The facility to public for crediting the Government receipts directly into the accredited bank of the Ministry/Department has been provided under Rule, 7 of Central Government Account (Receipts and Payments) (Amendment) Rules, 2012.

At present, the, Government receipt is realized in cash or by Cheque or Demand Draft or by Money Order or Postal Order, or, in such other forms as may be prescribed by the Government‘in terms of Rule 18 of Central Government Accounts (Receipts and Payments) Rules, 1983.

The transfer of funds through electronic mode has also been prescribed by the Government under the Payment and Settlement Act, 2007. Payments through Debit/ Credit Cards and Net Banking have also gained popularity across the country. It has, therefore, been decided to introduce the facility of Debit/CreditCards and Net Banking also for payment of Government receipts into the accredited bank branch of the Ministry/Department.

2. The Debit/Credit Cards and Net Banking facility will be available to the‘public subject to the following conditions:-

2.1 The Ministries/Departments will make necessary banking arrangement through their accredited banks authorized by RBI for handling Government transaction under Section 45(1) of RBI Act,. 1934.
2.2 The engagement of accredited bank and any other intermediary by the accredited bank as gateway for Debit/Credit Cards and Net Banking shall be governed by ‘The Payment and Settlement Systems Act, 2007 (No.51 of 2007 dated 20-12-2007)

23 The intermediaries will follow the directions for Operation of Accounts and settlement of payments for electronic_-.transactions as issued by the RBI vide letter No. RBI/2009-10/231(DPSS.CO PD. No.1102/02.14.08/2009-10) dated 24-11-2009 (Annexure-I).

They will be responsible for collection of money, its payment to the accredited bank and refund of failed/disputed transactions to the customers within the period prescribed by the RBI in theaforesaid letter.

2,4 The commission to the intermediaries on the transaction Will be charged from the enstomer along with the transaction as per the prei/ailing practice and rates. The Government will not be responsible for any such payment to the intermediaries.

2.5 The Ministries/Departments and their respective accreditedbanks Shall create facilities for the public for payment of money through Debit/Credit Cards and Net. Banking.

The electronic challan form, to be filled up electronically with such details of the transaction which are necessary for reporting, reconciliation and. accounting purpose; will be facilitated online at the payment gateway by the Ministries/Departments.

2,6 The accredited-hank will be responsible for cellating, scrolling and reporting transaction-wise all aforesaid. payments to Pay and Accounts Office and remittance of the same into the Government Account in the RBI within the time limit i.e.
T+1 working day as prescribed by the RBI in consultation with Controller General of Accounts vide letter No. RBI/2014715/416 (DGBA.GAD.NO.H 3203/42.01.01 172014-15) dated 21-01-2015 (Annexure-II)

2.7 The accredited bank will function as acquirer bankrfor all cards and follow the instructions issued by the RBI-for handling Government transactions through e-payment and provide challans, scrolls and DMS of such transactions in the electronic form to the Pay and Accounts Office. The Govennnent account and scrolls-should give transaction-wise details.

2.8 For successful card payment; the accredited bank will generate a unique challan number linked to the branch code with clear identifier for the mode of payment that is provided on the cyber receipt instant receipt.

2.9 The payment of Government money, once credited to Government Account trough Debit/Credit Cards and Net Banking, will be refunded as per the departmental procedure for refund of revenue and payment will be made by the Payand Accounts Office through normal mode of payment.

2.10 Ministries/ Departments may utilize Services available on ‘Non-Tax Receipt Portal’- bharatkosh.gov.in for non-tax receipts. 3. , All the Ministries/Departments may keep the above guidelines in View While introducing the Debit/Credit Cards and Net Banking facility for payment of Government money into bank account by the public. The Ministry/Department desirous to introduce such facility may do so 'in consultation with their Pr. CCA/CCA/CA or head of accounting organization.

(Shankari Murali) Joint Controller General of Accounts

Encl.: As above.

Source:http://cga.nic.in/writereaddata/GuidelGovtMoneyintoBanksOM165dt28032016.pdf