Government Approves Ordinance To Promote Cashless Economy

Government Approves Ordinance To Promote Cashless Economy

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While the country is still reeling under the effects of demonetization, the central government is taking all possible initiatives to make people at ease. On Wednesday, an ordinance was approved in the union cabinet meeting to modify the section 6 of the Payment of Wages Act, 1936. The regulation directed the states and other industries to make salary payments by either transferring amount into their bank accounts or through cheque.

The amendment was necessary to plummet complaints regarding non-payment of salary due to new currency regulation and encourage cashless transactions. However, the option for cash payments has not been ruled out. The worker can choose the mode of payment as per convenience.

As the decree is valid only for six months, the government will have to get it approved before its expiration. The amendment was supposed to be passed in the winter session in the Lok Sabha but the clearance failed due to conflicts over demonetization. Now, it will be tabled next year in the budget session. The ordinance has been sent to President Pranab Mukherjee for agreement.

Though private companies have already adapted to the cashless mode of payment, this ordinance will formally direct all companies and industries in the rural areas to use electronic mode. This will reduce the chances of delay in payments and forgery. The farmers and labourers can now get their wages on a specific date and can also oppose in the case of postponement.
Various states including Haryana, Punjab, Kerala and Andhra Pradesh have tailored to this new rule. The ordinance is in accordance with the Prime Minister Narendra Modi’s proposal towards a “digital and cashless economy”.




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