E-payment to RSP vendors

Rourkela Steel Plant (RSP), a unit of Steel Authority of India Limited (SAIL) has successfully implemented e-payment to its vendors by using the SBI online internet banking servicer. RSP is the first unit of SAIL to commence e-payment to vendors under inter-bank fund transfer mechanism.

It may be mentioned that RSP processes around 50,000 cheques per annum worth Rs 3,000 crore and the cash section of the steel unit has been making paper cheque transactions since its inception. RSP has gone for e-payment to overcome problems associated with paper cheque transactions like cheques getting misplaced or lost during transit and long time taken for clearance of cheques by banks.

 

With the successful implementation of e-payment, RSP now has a system in place which comprises vendor payment that is both intra-bank and inter-bank, employees’ payments for accounts in SBI, excise and service tax payment, income tax payment and outward freight payment to Railways.

As on August 31 this year, 34 per cent of total payment made by RSP to non-employees has been covered under e-mode and 53 per cent of the employee related payment is also being carried out under the new system.

The various benefits under this system include compliance of directive of the Central Vigilance Commission (CVC), transparency in payments, reduced administrative and distribution cost, reduced human errors and decrease in lead time for delivery of payment to beneficiaries.