Over 1.73 lakh panchayats using UPI for digital payments: Union Minister

New Delhi, Aug 8
As the unified payments interface (UPI) technology continues to empower millions of users, more than 1.73 lakh panchayats in the country are now UPI-enabled, able to collect payments digitally.

According to Union Minister of State for Panchayati Raj, Professor S.P. Singh Baghel, rural citizens can now make tax and non-tax payments digitally, thereby strengthening the financial capabilities and local governance of the Panchayati Raj Institutions (PRIs).

They can pay property tax, water tax, streetlight tax, trade license fee, building permission fee and layout approval fee with the UPI-based platforms.

The Minister said that the UPI platform can also provide a convenient and accessible way for citizens to link their Prime Minister Jan Dhan Yojana (PMJDY) accounts with their UPI IDs, enabling seamless transactions and financial inclusion.

They can easily access their accounts, make transactions, and leverage the benefits offered by the PMJDY programme, such as RuPay Insurance coverage, the minister informed Parliament.

“This streamlined approach encourages the rural citizenry to take advantage of the financial services and insurance benefits provided by the government, ultimately fostering financial empowerment and security among the rural population,” said Baghel.

The contribution of mobile phones and digital banking services in India has lifted 800 million people out of poverty.

Rural farmers, who never had a relationship with a banking system, are now able to transact all their businesses on their smartphones, Dennis Francis, President of the 78th Session of the United Nations General Assembly (UNGA), said earlier this month.

Digital payments have registered unprecedented growth in India during the past 10 years, with the UPI having emerged as the preferred payment mode of the citizens.

Baghel said that the Ministry of Panchayati Raj also supplements the efforts of the states through Central Finance Commission Grants and Revamped Rashtriya Gram Swaraj Abhiyan (RGSA).

The RGSA scheme provides financial and technical support to the states for capacity building and training (CB&T) of elected representatives and functionaries of Panchayati Raj Institutions (PRIs).