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Home / Politics / Policy /  Rural development ministry agrees for online fund transfers

New Delhi: The rural development ministry has agreed to begin online fund transfers to local implementing agencies to speed up the payment process, said a draft National Advisory Council committee report proposing the “new fund flow mechanism".

This will curb delays in payments to beneficiaries for which the government’s flagship jobs guarantee scheme has been criticized.

Rural development minister Jairam Ramesh declined to immediately comment on the matter.

The proposed system will allow implementing agencies in districts, blocks and panchayats to get funds released once they upload vouchers online to show what they need, replacing the “file-based system by an Internet-based system".

To be sure, the report said such a transition can take place only when there is reliable Internet connectivity and the relevant entities have access to it.

This system, if implemented, will reduce the “float" of unused funds at different levels of government “that have been known to give rise to myriad malpractices and misutilization", the report said.

The draft report was posted on the NAC website for comments on Thursday, along with reports of other working groups on the pre-legislative process and universal health coverage.

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