Bhubaneswar: As part of the 5T Initiative, the Department of Finance has urged all the Departments to make payment of dividends by Public Sector Undertakings (PSUs) and Co-operative Societies electronically through Integrated Financial Management System (IFMS).
Vishal Kumar Dev, Principal Secretary Finance has advised all the Secretaries the Departments in Government in this regard.
The State PSUs/ Co-operatives usually pay dividends through cheques and Demand Drafts (DD)s which are being received in the Finance Department through various channels.
The aforesaid Cheques /DDs are being deposited in banks on the same day or next working day depending upon the time of receipt in the Finance Department. Subsequently, the amount is credited to the consolidated fund of the State on T+1 day basis, Mr.Dev said.
“Since the Cheques/ DDs issued by the concerned PSUs are routed through various channels, there is a time lag between the date of issue of the Cheques/DDs and receipt of the same in the Department of Finance, leading to loss of interest revenue,” he said.
The Principal Secretary also informed that the Accountant General, Odisha has also pointed this out and recommended for receipt of dividend through electronic mode so as to obviate the delay.
“In terms of provision of Rule-6 (1) of Odisha Treasury Code, all monies received by, or tendered to Government servants on account of the revenue of the State without undue delay be paid in full into the treasury or into the banks within three working days. Hence, every public authority is required to remit the Cheque / DD to the Banks/Treasury within the above stipulated time period,” Mr.Dev said in his letter to the officers.
He said the IFMS has been upgraded to IFMS 2.0 for online deposit of taxes and dues as a part of State Government’s constant endeavor for promoting electronic deposit of taxes and dues in consonance with the `5T’ initiative.
Recently, the IFMS 2.0 has been integrated with multiple payment gateway service providers enabling depositors to avail additional options such as Debit Cards/ Net Banking etc. for deposit of Government taxes and dues.
More than 95 per cent of the State’s revenue is now received electronically through IFMS. Hence, State PSUs/ Co-operatives can leverage these facilities for just-in-time remittance of dividend to Government account, he suggested.
Keeping in view the robust IFMS system which can cater the need of the State PSUs, Co-operatives etc. and for seamless electronic transfer of fund directly from the account of the concerned PSUs to the Consolidated Fund of the State, the State Government have decided for payment of dividend by all State PSUs /Co-operatives through IFMS, he further stated.
“The State PSUs/ Co-operatives etc, will have to deposit dividends electronically through IFMS only. In future, no Cheques/DDs towards payment of dividend shall be accepted in the Department of Finance for deposit of the same in Treasury/Banks,” clarified the Principal Secretary.
He requested all Departments to instruct the State PSUs and Co-operatives under their administrative control for electronic payment of dividend through IFMS and to furnish a copy of the challan to the Department of Finance soon after deposit of the amount for record.