Big decision of CBSE: From school fees to canteen, campus will be cashless, new advisory issued for payment through UPI and RuPay cards.

The Central Board of Secondary Education (CBSE) has taken a major step towards strengthening the Digital India initiative and financial transparency. The Board has issued a detailed advisory to all the government and private schools affiliated to it across the country and advised them to compulsorily encourage cashless transactions (Digital Transactions) in the entire school campus. According to the new instructions, now a plan has been prepared to shift all types of payments of students from tuition fees, admission charges, library fine, school canteen, sports activities to purchase of uniforms and books to digital mediums. The main objective of this step is to minimize the use of cash in school premises and to connect students and parents with a secure and transparent financial system.

The circular issued by CBSE specifically emphasizes on giving priority to indigenous digital payment systems like Unified Payment Interface (UPI), BHIM App and RuPay debit and credit cards. The board has directed schools to install clearly visible interoperable QR codes and point-of-sale (PoS) machines in their administrative offices, fee counters, sports complexes and school canteens. This will free parents and senior students from the hassle of carrying change or cash for small and big payments and will ensure direct bank-to-bank secure transactions.

CBSE believes that cash transactions involve time-consuming accounting, as well as the risk of audit discrepancies and cash loss or theft. With the implementation of digital payments, the financial system of schools will be completely computerized and transparent.

• Instant Digital Receipt: As soon as the fees are deposited, an e-receipt will be issued immediately on the registered mobile number and email of the parents, which will eliminate the hassle of losing paper receipts.

• Time Saving: This will save the time of parents standing in long queues at banks or school counters to deposit fees.

• Ease of Audit: Having accurate real-time records of income and expenditure of schools will make the annual audit process very smooth and transparent.

In the CBSE advisory, special attention has been paid to the school canteen and the stationery and book counters running in the campus. Students usually use cash to buy snacks and stationery in the canteen, where there is often a problem with change. The board has suggested that the school management should make arrangements for digital payment gateway, smart ID card (Prepaid Campus Cards) or UPI QR code in the canteen. Additionally, it has also been advised to organize ‘Digital Payment Awareness’ campaigns and workshops in schools to make students aware of financial literacy, so that they can understand the basic rules of cyber fraud and safe banking.

Although CBSE has made a clear call to promote digital payments, it has also made it clear that schools located in rural or areas with limited internet connectivity should not cause any inconvenience to parents. Until the digital infrastructure is fully strengthened, alternative mechanisms such as traditional payment methods (such as net banking, demand drafts or limited cash options) will also be available in parallel. The Board has directed all regional offices to ensure that school managements implement this change in a smooth and collaborative manner so that it proves to be a positive experience for parents and students.