Over 1.73 Lakh Panchayats Now Using UPI for Digital Payments: Union Minister

The unified payments interface (UPI) technology is rapidly expanding across India. Over 1.73 lakh panchayats are now UPI-enabled, allowing them to collect digital payments.

Union Minister of State for Panchayati Raj, Professor S.P. Singh Baghel, highlighted the benefits of this development. Rural citizens can now make both tax and non-tax payments digitally. This shift strengthens the financial capabilities and governance of Panchayati Raj Institutions (PRIs).

Through UPI, people can pay for services such as property tax, water tax, streetlight tax, trade license fees, building permission fees, and layout approval fees. The UPI platform also offers an easy way to link Prime Minister Jan Dhan Yojana (PMJDY) accounts with UPI IDs. This integration facilitates seamless transactions and enhances financial inclusion.

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Citizens can access their PMJDY accounts, perform transactions, and benefit from features like RuPay Insurance coverage. Baghel emphasized that this streamlined approach promotes financial services and insurance benefits among the rural population. It fosters greater financial empowerment and security.

Digital banking and mobile phones have significantly impacted poverty reduction in India. Dennis Francis, President of the 78th Session of the United Nations General Assembly (UNGA), noted that 800 million people have been lifted out of poverty due to these advancements. Rural farmers, who previously had no banking relationships, are now conducting all their transactions via smartphones.

UPI has seen unprecedented growth in the past decade and has become the preferred payment method in India. Baghel also mentioned that the Ministry of Panchayati Raj supports state efforts through Central Finance Commission Grants and the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA).

The RGSA scheme provides financial and technical support for training and capacity building of PRIs’ elected representatives and functionaries.