E-bill Processing System | 09 Mar 2022

Why in News?

Recently, the Finance Minister launched the E-bill Processing system on the occasion of 46^th Civil Accounts Day (1^st March).

• It was announced in the Union Budget 2022 to use the technology for facilitating the financial inclusion drive in India.
• The “Civil Accounts Day” is observed every year to mark the anniversary of the inception of the Indian Civil Accounts Service (ICAS) on 1^st March, 1976.
  • The ICAS performs a key role in delivery of financial management services for the Government of India (GoI).

What are the Key Points?

• About:
  • E-bill system is part of Ease of Doing Business (EoDB) and Digital India Eco-System’ to bring in broader transparency and expedite the process of payments.
  • In simple words, e-Bill Processing System is a way of transacting the bills digitally rather than the traditional use of paper.
    • Currently, the suppliers of various goods and services to the Government have to submit physical, ink signed copies of their bills to the respective Ministries/Departments/offices of the Government of India.
  • Customers will be able to get their bills online, via e-mail, or in the machine-readable data forms when billed electronically.
  • Under the newly launched e-Bill system, vendors/suppliers can upload their bills online along with supporting documents from the convenience of their homes/offices at any time through digital signature.
  • At the backend too, the electronic bill received will be processed by the authorities digitally at every stage and finally, the payments will be credited digitally to the bank account of the vendor.
• Developed By:
  • Developed by the Public Financial Management System (PFMS) Division in the office of the Controller General of Accounts in the Department of Expenditure, Ministry of Finance.

What are the Major Objectives of the E-bill Processing System?

• To Provide convenience to all vendors/suppliers of the government to submit their bills/claims at any time, from anywhere.
• Eliminate physical interface between suppliers and government officers.
• Enhance efficiency in processing of bills/claims.
• Reduce discretion in processing of bills through the “First-In-First-Out" (FIFO) method.

What is the Significance of the E-bill Processing System?

• Enhance Transparency:
  • It will enhance transparency, efficiency and faceless-paperless payment system by allowing suppliers and contractors to submit their claim online which will be trackable on a real time basis.
• Trackable on real time Basis:
  • As per the Finance Ministry, the suppliers and the contractors will not be able to submit their claim online which will be trackable on a real-time basis.
• Time Efficient:
  • As e-Billing is time-efficient, this will also be a quick and simplified way that will be better fitted to the Government’s call of making India digital. The E-bill Processing system will also reduce errors.

Source: PIB