Getting paid in cash? Government likely to bring ‘Go Cashless’ ordinance to ban salary in cash

Getting paid in cash? Government likely to bring ‘Go Cashless’ ordinance to ban salary in cash

The Central government, following the conclusion of a high-level meeting, that is underway is expected to pass an ordinance to amend Wages Act for payment to labour. In another major step by the central government, with its ambitious dream of achieving a complete cashless economy, will be encouraging to make salary payments in cheques. Although some reports suggest that cheque payments might not be compulsory. According to India Today, this move by the government would not phase out cash payments. Reports suggest that quite often employers do not declare the apt number of their employees and the government’s cashless move is expected to bring transparency to the system. According to CNN TV18, the government also wanted to include private employees and the cabinet was yet to finalise modality. The Central government also reportedly stated that the of the state government wanted they could notify and make payments by cheques or move the salary directly into accounts.

It has to be noted that ordinance is currently only liable to government employees, although the thought of extending it to the private sector might also be discussed during the meeting. The move is aimed at preventing the exploitation of labourers. The government might also encourage to make payments in a cheque to the first graft. It has to noted that the cheque option was not compulsory to pay salary. One of the other possible reasons for the passing of the ordinance might also be to ban the under-reporting the number of employees.