State Bank of India: e-payment Solution

Around 5.8 Lacs employees are employed in M.P. State Govt. to which the

salary payments are handled manually by 56 treasuries. As these 56 treasuries

are spread across the MP and were given the salary list with a cheque

physically, so a lot of risks were involved in it. For instance, incorrect

credit posting in the employee accounts, delay in payments, tampering of data,

etc. So, SBI together with Mahindra Satyam came up with the project to automate

the salary payment process with a file upload system that was provided to the

paying authority. An e-payment solution was deployed that allows the State

government in making payments electronically. There were provisions made that

helped in uploading the encrypted file after their decryption in order to

maintain confidentially and data integrity. Upon successful transactions SMS/e-mail

advices are also sent to the beneficiaries and a customized MIS containing the

details of each transaction is also being made available to the designated

officials.

It removes the physical cheque and other paper related work. Over a period of 10

months 2.10 lac postings have been made in to the accounts of employees and as

the cost of issuance comes to Rs.5 per cheque if the State Government issues 1.6

lac cheques in a year. So migrating to the e-Payment system would help State

Govt in saving Rs. 8 lac directly. Also the MIS files contain the status of each

transaction of the files thus the reconciliation of job is made easy through it.