From July 16, All Government Payments Exceeding ₹75 Crore to Be Routed Through RBI’s e-Kuber

In a move aimed at enhancing transparency and ensuring faster reconciliation, the Indian government has announced that starting July 16, all central government payments exceeding ₹75 crore must be routed exclusively through the Reserve Bank of India's e-Kuber system, as per Economic Times.

Government Mandates e-Kuber for High-Value Transactions

The Department of Expenditure has issued a directive that mandates all central ministries and departments to process payments above ₹75 crore, including to private entities, solely through the RBI’s e-Kuber platform. This transition, effective July 16, is designed to minimise delays in reconciliation and enable near real-time tracking of government expenditure.

Enabling Real-Time Fund Reconciliation and Transparency

By leveraging e-Kuber, payments will bypass traditional bank routes, removing discrepancies between government accounts and departmental bank statements. The system's integration facilitates real-time tracking of funds, enabling government entities to reconcile transactions within 24 hours instead of the current monthly delays.

Future Rollout Plans and System Capabilities

The current ₹75 crore threshold is expected to be further brought down to ₹50 crore from the next financial year. e-Kuber, RBI’s core banking solution, already manages various government financial operations, including securities auction and fund distribution. With this implementation, accredited banks will no longer handle these high-value transactions, ensuring direct oversight by the RBI.

This reform will aid in preventing payment delays to contractors and vendors by allowing seamless monitoring. Additionally, Pay and Accounts Offices will continue to receive electronic scrolls, debit notifications, and account statements from the RBI, streamlining accounting procedures across departments.

Read More: CAMS Launches Next-Gen Payment Gateway to Tackle India’s Evolving Payment Landscape!

Conclusion

Routing all payments above ₹75 crore through e-Kuber is a strategic move by the Indian government to establish a transparent and efficient fund flow mechanism. It ensures better financial control and timely updates for stakeholders involved in large-scale government transactions.

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