The E-Bill Processing System is developed by the Public Financial Management System (PFMS) under the Ministry of Finance. It was announced in the Union Budget speech of 2022-23 and was launched on 1st March 22 by the Union Finance Minister.
The launch date is significant since it was Civil Accounts Day and marks the inception of Indian Civil Accounts Services.
Significance of the E-Bill Processing System
Our Country is on the path of implementing Digital India and Ease of Doing Business initiatives. To this end, it has formulated the E-Bill Processing System to automate billing transactions and replace physical bills.
This system will help vendors upload their bills digitally and track their payment status online. It will save much time and cost and increase efficiency and transparency.
What is an E-Bill Processing System?
Currently, vendors and suppliers submit physical wet signed bills to various departments and track status manually, which is time-consuming. Also, these departments are not interlinked, making it more challenging.
The E-Bill Processing System essentially digitalises the entire process by shunning the physical process. It is time-efficient, eliminates corruption, and creates transparency.
Importance of the E-Bill Processing System in India
The goal of the E-Bill Processing System is to make it easy for the suppliers to work with the government. The current billing system of vendors and suppliers is a paper-based model and is prone to inefficiencies and corruption.
Vendors and suppliers provide paper receipts and wait for the processing to complete with very little status visibility. E-Bill Processing System makes the entire process transparent, where the vendor or supplier can view the real-time status digitally.
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Effects of the E-Bill Processing System
- Removes the time window for submission of bills and allows the vendors and suppliers to submit bills anytime, anywhere digitally.
- Eliminates the need for vendors and suppliers to have a physical interface with officials, especially in financial matters.
- Provides an impartial opportunity for clearance of bills. It is done by creating a queue-based processing system. It also eliminates the possibility of manipulation.
- E-Bill Processing System makes the entire process efficient by creating a lean process by reducing multiple unnecessary stages of processing.
- Demystifies the process for vendors and suppliers by allowing them to know the real-time status.
Objectives of the E-Billing Processing System in India
By introducing the E-Bill Processing System, the country will take a massive forward step in increasing the efficiency of government functioning. It will eliminate the monopoly of a few vendors and suppliers well versed with the internal manual process and allow new and efficient vendors to work with the government.
The E-Bill Processing System will also make all government transactions transparent. It will increase the confidence of the people of the country. The bill also builds trust with the business community and will motivate them to join hands in building the nation.
Moving away from hard-to-track paper-based processes is a huge win for India. The transition toward a fully transparent, efficient, and highly accessible E-Bill Processing System will be a strong step forward for the country.
FAQs on E-Bill Processing System
Q1: Who developed the E-Bill Processing System for the Indian government?
Office of the Controller General of Accounts built the E-Bill Processing System.
Q2: When was the E-Bill Processing System announced in India?
The Finance minister of India announced the E-Bill Processing System during the 2022-23 financial budget session.
Q3: Who will benefit from the E-Bill Processing System?
Vendors and suppliers working with the government will benefit from the E-Bill Processing System.
Q4: How will the E-Bill Processing System reduce corruption?
The E-Bill Processing System will follow a first in, first out system ruling out the possibility of corruption to make a bill jump the queue.
Q5: How will the E-Bill Processing System achieve transparency?
Vendors and suppliers will be able to review their payment status, making the system transparent under the E-Bill Processing System.