Amid cash crunch after the demonetisation of currency notes of Rs.500 and Rs.1,000, the University Grants Commission (UGC) has issued directions to adopt cashless system and grant scholarships through Direct Benefit Transfer (DBT).
In a notification issued by the UGC, the statutory body has given the direction to bring accountability, transparency and to make transfer of grants seamless and easy to the universities, colleges and other stakeholders like students, fellows and researchers.
The UGC had introduced the disbursement of grants through the Public Financial Management System (PFMS).
“In view of ensuring the timely disposal of fellowships and scholarships to the fellows and scholars, the UGC has been vigorously following the policy of disposal of fellowships and scholarships through the DBT mode which also uses the PFMS platform,” the notification states.
The UGC has called on the universities and the colleges to use cashless system of bank transfers for the grants given by it to them and advised them to only make payments through drafts or cash in rare cases.
In Himachal, Governor Acharya Devvrat has called a special meeting with Vice Chancellors of all universities of the state, both private and government on December 7, 2016 in the Raj Bhawan to implement the system in the state.
“The vice chancellors of all universities, heads of the leading banks and senior officers of the Reserve Bank of India would attend the meeting,” a Raj Bhawan official said.
Devvrat also made a clarion call to the universities to adopt cashless system after he launched cashless system in the Raj Bhawan.
The official said another meeting has been fixed on December 17 to impart training to to Vice Chancellors and topper students of these universities on cashless system.
The representatives of leading banks like State Bank of India, UCO Bank, Punjab National Bank and Cooperative Bank etc would give information on cash system to students and encourage them to adopt the cashless system. 
Devvrat said the cashless system would bring transparency besides checking the corruption in the society. He said that this system was prevalent in Gurukul, Kurukshetra for the last eight years.
He said the youth of the country could play a vital role in successful implementation of this system and keeping this in view the university’s students would be imparted training regarding how to make use of this system.
“These students would further train other students of their respective universities and also in the rural areas during the vacation time. Later on, this exercise would be carried out at college level so that Himachal Pradesh could become the leading state in implementation of cashless system in the country,” he added.