Education Ministry’s Digital Push: NCERT, CBSE, KVS Asked to Adopt UPI, other Digital Payments methods for Fee Collection

byPaytm Editorial TeamOctober 13, 2025
Key Takeaways:
  • Digital Fees: Schools are now encouraged to accept UPI for fee payments.
  • Parent Convenience: Pay school fees easily from anywhere, anytime.
  • Less Admin Work: Simplifies fee management for schools.
  • Promotes Digital Skills: Helps families get better with online payments.
  • National Goal: Supports the vision of a "Digital India."

Source: PIB

The Ministry of Education is encouraging schools across India to adopt digital payment methods like the Unified Payments Interface (UPI) for collecting fees, in a major push to make the schooling process more convenient and modern.

The Department of School Education and Literacy issued a formal letter on October 11, 2025, to all states, Union Territories, and central autonomous bodies—including the NCERT, CBSE, Kendriya Vidyalaya Sangathan (KVS), and Navodaya Vidyalaya Samiti (NVS)—urging them to implement secure digital payment systems.

This initiative is part of the government’s broader “Ease of Schooling” reforms, aimed at simplifying administrative tasks for both schools and families.

What This Means for Parents and Students:

For parents and students, this move means an end to the hassle of paying fees in cash. They will be able to pay for admissions, examinations, and other school-related expenses from the comfort of their homes using familiar digital platforms like UPI, mobile wallets, or net banking. This promises greater convenience and transparency in transactions.

Aligning with a Digital India:

The Ministry highlighted that transitioning from cash to digital payments aligns with the government’s larger goal of digital transformation. This step is not just about convenience; it is also seen as a way to boost financial literacy among students and parents, preparing them for a world increasingly reliant on digital transactions.

This initiative is considered a significant contribution towards the vision of “Viksit Bharat by 2047,” which aims to create a digitally empowered and citizen-focused nation.

FAQs

Is it mandatory for all schools to adopt UPI for fee payments?

No, the communication from the Ministry of Education currently "encourages" the adoption of digital payments. It is not a mandatory directive at this stage, but a strong recommendation to states, UTs, and educational bodies to begin implementation.

Besides UPI, what other digital payment methods are included?

The government's letter encourages a broad range of digital platforms, including mobile wallets and net banking, in addition to UPI, to provide flexibility and choice to parents.

Will cash payments be stopped completely?

The official communication does not state that cash payments will be stopped. The goal is to provide a digital alternative to enhance convenience and transparency. Schools will likely transition over time, and may continue to accept cash in the interim.

When is this change expected to happen?

The Ministry has not set a specific deadline. The implementation will depend on how quickly states, UTs, and individual school administrations can put the necessary systems in place.

How does this benefit the school's administration?

Digital payments help schools by automating the fee collection process, reducing paperwork, ensuring better and more transparent financial records, and minimizing the security risks associated with handling large amounts of cash.
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