Punjab Government Makes Bank Transfers Mandatory for Employee Salaries, Ends Cash & Cheques

In a significant step towards financial transparency and administrative modernisation, the Punjab government has announced a new policy mandating that all salaries of government employees be paid through direct bank transfers. This move officially ends the practice of disbursing salaries via cash or checks across the province.

The decision, effective immediately, is part of the provincial administration’s broader initiative to digitise financial processes, reduce corruption, and ensure timely, traceable payments to over a million public servants.

According to government officials, the transition to direct bank transfers will help streamline payroll management, improve accuracy in salary distribution, and eliminate the risk of fraud or delays often associated with manual handling of payments.

“This is a crucial reform towards digital governance and accountability,” a spokesperson for the Punjab Finance Department said. “It not only enhances transparency but also safeguards the rights of government employees by ensuring their payments are made efficiently and securely.”

All departments have been instructed to collect and verify the bank account details of their employees and update the centralised payroll system accordingly. Strict compliance has been ordered, and any department found violating the new guidelines may face administrative action.

The move has been largely welcomed by employees and economic analysts alike, who view it as a positive shift toward digital transformation in public sector operations. Experts say it also aligns with Pakistan’s broader vision of promoting financial inclusion and transparency in government processes.