Bengaluru implements digital reforms for contractor bill payments

Bengaluru Development Minister Krishna Byre Gowda has announced comprehensive reforms to the contractor bill payment system to increase speed, transparency, and accountability. These new regulations will apply uniformly to both government-funded projects and works funded by municipal corporations.

The reform aims to eliminate long delays and uncertainty in public works payments by replacing manual, handwritten verification processes with a digital system. Under the new framework, bills will be processed through the Integrated Financial Management System (IFMS) software. The workflow involves verification by Project Management Consultants, inspection by local engineers, and pre-audit approval by Chief Engineers.

To ensure security and eliminate middlemen, payments will be made directly to contractors' registered bank accounts using OTP-based authentication via the IFMS. This digital transition is intended to replace the manual RTGS method, improve financial discipline, and ensure work quality across Bengaluru’s five city corporations.