Several important initiative have been taken in the area of information Technology in order to enhance the efficiency of the day to day functioning of the ZAOs, in which e-payment is one of them. E-payment software package was used in old ZAOs across the country for quick release and monitoring of payments to the concerned. For newly created ZAOs hardware and software procurements were initiated in March, 2013.
In this system, after ZAO passes a bill for payment, the electronic payment file will be digitally signed by the ZAO (using a public key and a private key) and uploaded on ï¿½gepgï¿½ site for making the approved payment to the beneficiary through accredited bank. Each approved payment would carry a unique identification number generated by ï¿½COMPACTï¿½. The accredited bank will transfer the funds to the beneficiary. The bank will send an electronic confirmation of the payment to the ZAO.
Some of the benefits which would ensure are:
- Reduction in the government liability towards Banking Cash Transaction Tax.
- Increased transparency, reduction in delays and the elimination of rent seeking activities in the PAO Office.
- Improved Cash Management.
- Reduction in the number of manual business processes associated with the printing, custody and issue of Cheques.