New Delhi: All government departments have now been directed to make e-payments for amounts above Rs 5,000.

"In order to attain the goal of complete digitization of government payments, the Ministry of Finance has again reviewed the existing limit of Rs 10,000 prescribed regarding e-payment to Suppliers etc. It has now been decided to lower this threshold limit from Rs 10,000 to Rs 5,000. The last review in this regard was made only in August, 2016," the finance ministry said in a statement.

"All the ministries and departments of the government of India have been now directed by the Ministry of Finance to ensure with immediate effect that all payments above Rs 5,000 to suppliers, contractors, grantee and loanee institutions etc are made by issue of payment advises only," the statement said.

Any Payment of above Rs.5,000 to Suppliers,contractors,grantee/loanee institutions etc by Govt Departments to be made now through e-Payment. — Ministry of Finance (@FinMinIndia) December 5, 2016

Following the announcement of demonetisation of 500 and 1,000 rupee notes on November 8, the government has been taking a slew of measures to promote digital transactions.

While the finance ministry has instructed PSU and private banks to waive the transaction cost for all payments made through debit cards, the road transport ministry has asked vehicle manufacturers to provide a digital tag on all new cars for e-payments at toll plazas and checkposts.

With PTI Inputs