Payment to suppliers etc. above Rs. 25000 by Government Departments through e-Payment from 1st April 2012

F. No. 1(1)/2011/TA/291
Ministry of Finance
Department of Expenditure
Controller General of Accounts
Lok Nayak Bhavan, Khan Market New Delhi-110011
Dated 31st March 2012 
Office Memorandum

Sub:- Payment to suppliers etc. above Rs. 25000 by Government Departments through e-Payment from 1st April 2012.
The Central Government Account (Receipts and Payments) Rules, 1983 have been amended, inter alia, to provide for issue of Payment advices to the bank for direct credit by electronic transfer to the specified bank account of the payee. The amendment also provides that all payments to suppliers, contractors, grantee, loanee institutions etc. exceeding the limits as specified from time to time, shall be through such payment advices.
2. Pursuant to the above amendments, with effect from 1st April 2012 all Ministries/Departments of the Government of India are directed to make all payments to private parties such as suppliers, contractors, grantee, loanee institutions etc. above Rs. 25,000 by payment advices, including electronically signed payment advices.
3. All Ministries/ Departments and Heads of Accounting Organisations are requested to ensure the compliance of above instructions by Pay & Accounts Offices/ Accounts offices and other payment units under their control.
Source/Order: http://www.cga.nic.in/pdf/pmnttosuppliers.pdf


  • The ECS Payment circular is only for more than 25000/- to supplier or any amount of Invoice can get through ECS payment from Govt Office. Pl. if you have a any clarification circular pl.send me a copy of circular. In Govt. Office they insist of cheque for less than 25,000/-instead for ECS Payment. Pl. send me a copy of latest circular notification on ECS Payment. email id contact[at]milantradingcompany[dot]com