2% bank charges make govt depts opt for cash payments

Amit Khajuria

Tribune News Service

Jammu, June 15

Just to save bank charges of two per cent, the J&K Government departments are shying away from installing point of sale (POS) machines for treasury payments. The result is that more than 90 per cent payments are being received by the departments in cash only.

The state government seems to have done nothing for the convenience of the people and the Centre’s bid for a cashless economy.

As the banks have announced to charge a fee after more than five cash withdrawals, people are left with no other option but to use debit or credit card more, rather than using cash. However, the government departments neither take cheques nor have an option to take payments via POS machines.

“To receive a payment through a card, the department needs to install a POS machine for which the bank charges two per cent for every transaction. None of the departments has any policy to pay such charges, so they refused to install the machines,” a source.

Though the departments claimed that they had the option for cheque and e-payment through net banking, many customers do not opt for it as the department gives receipt of the cheque payment three to four days after the payment.

“The cheque payment forces us to visit the office twice or thrice to check the status of money transferred and collect the receipt,” said Ramesh Chander, a lessee of the Estate Department.

“Cash is the only option left with us. It would have been convenient for everyone had the department installed POS machines. Not only will it boost cashless economy but also reduce the problem of keeping small denomination notes which is a major problem at government offices,” he said.

The Accounts and Treasuries Department, which claimed that the treasuries of the state had gone online, also said the system of payment through net banking or cheques was not working properly in the state and the POS machines were the need of the hour.

“People can pay via cheque and Internet banking, but the receipt cannot be generated unless the departments receives payments in their account. The POS machine is the instant way of payment and the proposal in this regard is in the pipeline,” said Lochan Dass, Director, Accounts and Treasuries, Jammu.

“As it is a policy matter, it may take some time to install POS machines at all departments for payment, but we are working on it,’ he added.