The Central Board of Secondary Education (CBSE) issued a circular on October 1, 2026, advising school heads and managers to promote the adoption of digital payments for various financial activities across their institutions. The communication followed guidance received from the Department of Financial Services (DFS), Ministry of Finance, Government of India, as part of its comprehensive Digital Payments Promotion Plan.
The initiative aimed to expand access to digital payments, increase their usage and encourage safe digital payment practices across the education ecosystem, including schools, students and parents.
Key Measures Recommended by CBSE
1. Enable Digital Payments Across School Services
CBSE advised schools to enable digital payment options, including UPI and RuPay cards, across different payment points, such as school fees, canteens, libraries and other services. Schools in areas with limited connectivity were encouraged to consider options such as UPI Lite, UPI LiteX and UPI 123PAY. Demonstrations and assisted payment facilities were also recommended to help users adopt these systems more easily.
2. Integrate Fee Payments with BBPS
Schools were encouraged to onboard the Bharat Bill Payment System (BBPS) to support standardised, secure and interoperable fee collection. The circular also recommended integrating payment processes with school ERP systems to streamline recurring financial transactions, including staff salary payments.
3. Promote Digital Awareness and Financial Literacy
The Board recommended incorporating digital payment awareness into teacher training programmes and school-level campaigns. Schools were also encouraged to promote financial literacy modules, organise awareness drives on campus and during school events, and educate parents about the safe and convenient use of digital payments through parent-teacher interactions.
The circular was issued with the approval of the competent authority of CBSE and was circulated to relevant education authorities and regional offices for dissemination among affiliated schools.
What This Means for Schools
The circular highlighted the importance of making school-related financial transactions more accessible and convenient through digital payment systems. Schools were encouraged to strengthen digital payment infrastructure while helping teachers, parents and other stakeholders understand how to use these facilities safely.
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