Education ministry pushes for UPI-based school fee payments; check details

In a major digital reform, the Ministry of Education has urged all states and Union Territories to adopt Unified Payments Interface (UPI) for school fee collections — a move aimed at streamlining and securing the financial transactions that millions of parents make each academic year. The directive, sent to states, UTs, and key educational bodies including NCERT, CBSE, Kendriya Vidyalaya Sangathan, and Navodaya Vidyalaya Samiti, calls for replacing outdated cash and manual processes with digital payment systems.

Officials said the initiative would bring greater speed, transparency, and accountability to the education system while reducing the burden on parents and school administrations. “Transitioning from cash-based to digital payments will make school fee transactions faster, safer, and more reliable,” the ministry stated in its communication.

While many schools already offer some digital payment options — such as NEFT, RTGS, or ECS — the ministry noted that these systems remain limited. Expanding the scope to UPI, mobile wallets, and net banking aligns school administration practices with India’s thriving fintech ecosystem and supports the broader Digital India agenda.

By encouraging the use of UPI, the ministry hopes to reduce physical visits to schools, eliminate manual record-keeping, and lower the risk of human error. Parents will be able to pay admission, examination, and tuition fees directly from their smartphones, cutting down paperwork and streamlining reconciliation for institutions.

The digital shift is expected to help schools standardise accounting practices, improve financial audits, and create a uniform trail of transactions — all of which are vital for transparency and compliance with education and finance regulations.

A central benefit of the move lies in enhanced security. With UPI’s real-time verification and traceability, payments become harder to misplace or manipulate. The Ministry believes this will significantly curb errors, leakages, and delays, while allowing better monitoring of school finances.

The initiative also promotes digital literacy, encouraging students, parents, and teachers to become more comfortable using secure digital tools — a goal in line with India’s national push for financial inclusion and digital empowerment.

Legal and digital rights organisation SFLC.IN welcomed the proposal but cautioned that implementation must address transaction failures, system outages, and technical glitches. “As long as the Government ensures tighter controls and better monitoring for system reliability, this step will make life easier and stress-free for parents and students, not more complicated,” the organisation said.

Smooth transition, shared responsibility

The ministry’s advisory does not mandate an immediate switch but strongly encourages schools to upgrade their payment infrastructure. States and education boards have been asked to work with fintech partners and banks to ensure smooth integration, user-friendly design, and support for parents across urban and rural areas.