Gyan Sangam Ripple-Electronification of Bank Payments in India

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            The word ‘Electronification’ refers to conversion of a paper based transaction to an electronic transaction.
            The paper can be physical cash or a banker’s instrument like Cheque/Demand Draft.
            As a step towards Safe Transactions, India's Central Vigilance Commission way back in 2004 has advised all institutions under its jurisdictions to switch over to ECS/EFT mechanism instead of payments through cheques/demand drafts.

            One of key takeaways for Public Sector Banks from Gyan Sangam 2015 is to digitize top 30 processes of the banks.

            In the top 30 process, one process which has to be included is processing payments to Vendors/Suppliers/Agencies/Utility Providers.

            The whole processing cycle can be digitized. As this process exists in all the Banks, it will be feasible to adopt a common processing platform.

            This will also be a forerunner to assist their customers to move from paper based transactions to electronic transactions.

            Another advantage is the learning’s can be adapted to the proposed Bharat Bill Payment System which is expected to take shape in 2015.


            The institutions under Central Vigilance Commission jurisdiction are:

01)  Public Sector Enterprises
02) Public Sector Banks
03) Insurance Companies
04) Autonomous Organisations / Societies

Majority of the PSEs have already switched over to Electronification of their vendor payments.


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