The Ministry of Panchayati Raj in India has urged all states and Union territories to equip panchayats with the necessary infrastructure to accept digital payments for the services they provide. The aim is to make all panchayats ‘UPI-enabled’ by August 15th. In May, the Panchayati Raj secretary, Sunil Kumar, wrote a letter emphasizing the need for UPI-based digital payment acceptance in panchayats. The ministry has also provided states with detailed guidelines to establish a robust UPI-based payment system. By adopting UPI, panchayats can facilitate convenient fund transfers, offer easy payment options to citizens, and enjoy benefits such as transparent financial transactions and cost-effective operations. Additionally, promoting UPI usage will activate PM Jan Dhan Yojana accounts and RuPay cards for rural citizens, ensuring financial inclusion. The Ministry highlights the increasing participation of rural and peri-urban areas in digital transactions, with over 50% of transactions originating from these regions. Furthermore, all PRIs (Panchayati Raj Institutions) currently make digital payments through the Public Financial System-eGram Swaraj interface. Online audits are conducted for more than 90% of PRIs, and a growing number of services are being provided digitally to citizens.
