On 1st March, marking the 46th Civil Accounts Day and the anniversary of the Indian Civil Accounts Service (ICAS), the Finance Minister launched the E-Bill Processing System. This digital advancement, announced in the Union Budget 2022, aims to facilitate India’s financial inclusion drive by expediting payment processes and adding transparency.
Understanding the E-Bill Processing System
The E-Bill system falls under the Ease of Doing Business (EoDB) and Digital India Eco-System initiatives. It is a digital method for processing bills, paving the way away from the traditional paper-based billing. Until now, suppliers to the Government have had to submit physical, ink signed copies of their bills to the respective Government departments. With the E-Bill system, suppliers can upload their bills and supporting documents online, using a digital signature, and at any time that suits them.
The Processing of Electronic Bills
Having an electronic bill means that customers will receive their bills online, via e-mail or as machine-readable data when billed electronically. Once uploaded by the supplier, the electronic bill is then processed digitally at every subsequent stage. Final payments are credited digitally to the supplier’s bank account.
Development of the E-Bill System
The Public Financial Management System (PFMS) Division, located in the office of the Controller General of Accounts in the Department of Expenditure, Ministry of Finance, developed this E-Bill System.
Objectives of the E-Bill Processing System
The E-Bill system aims to bring convenience to suppliers, reduce face-to-face interaction between suppliers and government officers, and increase efficiency in bill processing. The implementation of the “First-In-First-Out” (FIFO) method will aid in eliminating discretion in bill processing.
Significance of the E-Bill Processing System
The E-Bill Processing System promises to enhance transparency, efficiency and promote a faceless-paperless payment system. Suppliers can submit their claims online, and these are trackable in real-time. The digitisation of the billing process will not only quicken the process but also reduce errors, aligning it with the Government’s vision of a digital India.
About PFMS
Previously known as the Central Plan Schemes Monitoring System (CPSMS), the PFMS is an online web-based software developed by the Office of Controller General of Accounts (CGA), Ministry of Finance. Its main purpose is to facilitate a robust Public Financial Management System for the Government of India through establishing an efficient fund flow system and payment cum accounting network.
Recent Policy Initiative by Government of India
In a bid to stimulate growth in the manufacturing sector, the Government has recently initiated several policies. These include the establishment of National Investment and Manufacturing Zones, providing ‘single window clearance’ benefits, and the establishment of the Technology Acquisition and Development Fund.