What is e-challan?
Obtaining goods and services has been there from the initial times of human existence. But paying for those has started only after the currency has come into existence. However, it would be incorrect to say that there were no payments before the currency got into usage. There were off course payments, but they were not monetary. ‘Goods in exchange of goods and services’ was the popular practice in those days known as the ‘Barter system’. But as we all know, time brings many changes in every form of life and the payments system has also evolved from the barter system to today’s Unified Payments Interface (UPI), an instant real time payment system. Convenience, necessity, proof and quantification are the key elements driving the modern day’s payments. One such a format of payment is e-challan and what is e-challan’s role in today’s life is important to understand to get into today’s financial activities.
Contents of e-challan: We have been using the challan from long time and most of us visiting banks are aware of its concept. Precisely, a challan is a format of payment which specifies the details of the payer, receiver, purpose of payment, date of payment, name of the bank or the authority etc. Similarly, an e-challan is an electronic format of our very old challan which is a formatted document used for depositing or sending a stipulated payment amount to a bank or an authority’s treasury containing the details of the payment.
Uses of e-challan: E-challan proved to be an innovative idea to eradicate the hassles of the hard cash usage in an attempt to reduce the cash usage and hope this answers the question ‘what is e-challan’ in an easy manner. A challan is usually popular with traffic policing system. The police officials would issue this document to the violators of the traffic rules as a penalty to be payable in the form of cash instantly. Though this was meant to regularize traffic with a fear of penalty, this has not been a fool proof method in imbibing discipline in people. However, this was definitely instrumental in increasing the bribery as people started bribing the officials for violation of rules. The advent of e-challan has brought tremendous reformation in the penalty system for violation of traffic rules as the violator pays the fine through an online transaction which is a valid proof making it a cashless transaction with the officials.
How is an e-challan generated: A device is in place to generate an online receipt bearing a unique identity number, amount of fine, date and other details which makes it simple to pay online fine. The system brings transparency in the system undoubtedly.
E-challan’s Introduction: Few of the Indian states which are technically ahead than other states have initiated the e-challan system and Andhra Pradesh and Tamil Nadu are amongst the top states to introduce the facility across masses. The states have also facilitated their people with respective websites to help them check the documented traffic violation incidences registered against them. People can find the offence description, the amount of penalty they need to pay etc. on the official website.
E-challan’s Existence: Indian Traffic police have brought the e-challan into existence to regulate the traffic violation in order to pave a way for the smooth flow of traffic. It apparently tried to bring awareness across the general public as to what is e-challan and how it works! Hand held machines are being used for spot fining the violators of traffic rules and these machines operate on VIOLET (Violation Prevention and Regulation Enforcement), an android based economic platform. Vijayawada, Hyderabad, Chennai, Bangalore, Delhi, Lucknow, Ahmadabad are the initial cities to host this feature and are being evaluated at Mumbai and Pune.
How does an e-challan work: The electronic challan system in place traces the traffic violation ticket issued by the local traffic police when public violates the traffic rules. The e-challan service uses hand held machines for instantly fining the violators and issue a printed receipt to the individuals. A person violating traffic rules will be penalized by the traffic police by taking a picture of the violation at the time of the incident. The violators can find their challan online and can pay their fine through the official website at the convenience of being at home.
Experts suggest the government to introduce the challan system in many other departments considering its ease of usage and success. In this world of pace and technology, the e-challan can be considered as a boon to many. Insurance companies also evaluate the e-challans issued by the traffic police department while evaluating the driver’s history in fixing up a premium. With this, one can understand the that what is e-challan and what it can set in the payments’ domain.