Cabinet passes ordinance to push digital transaction

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New Delhi : In another move to push digital transaction in the country, the Cabinet has passed an ordinance debarring salary payment in cash on Wednesday.   

The government brought an ordinance to amend the Payment of Wage Act, 1936 for allowing business and industrial establishments to pay salaries through cheques or by using electronic modes.

According to insiders, “The bill was tabled in the Lok Sabha on December 15, 2016. Instead of waiting for the Budget session, the government has issued the ordinance and later it will be passed in both the Houses."

The Bill was introduced by Labour Minister Bandaru Dattatreya amid ruckus over demonetisation issue in the Lok Sabha. It will also allow state governments to specify industrial or other establishments to adopt cashless modes for salary payments.

As per the practice, the government brings ordinance to amend laws for immediate implementation of new rules. An ordinance is valid for six months only. The Government is required to get it passed in Parliament within that period.