Karnataka Bank enabled payment of Government of Karnataka’s Khajane-2 e-receipts through its Internet banking platform. This move strengthens digital public finance infrastructure in the State and reinforces the bank’s focus on secure, convenient, and paperless government payments for citizens and businesses.
Background: Khajane treasury system of Karnataka
- The Government of Karnataka introduced Khajane (K1) in 2001 as an IT platform for computerisation of state treasuries.
- Over time, the system evolved into Khajane-2, an Integrated Financial Management System (IFMS) used for:
- Collection of state taxes and fees
- Accounting, reconciliation, and reporting
- The next upgraded version, Khajane-3, is expected to be launched soon, further strengthening digital treasury operations.
Regulatory approvals and authorisation
- Karnataka Bank received:
- Authorisation from the Reserve Bank of India (RBI)
- Approval from the Department of Treasuries, Government of Karnataka
- These approvals allow the bank to collect State Government revenue receipts through the Khajane-2 IFMS.
What the new facility offers
- Karnataka Bank customers can now:
- Pay state government taxes and fees directly through Internet banking
- Generate Khajane-2 e-receipts in a real-time, paperless manner
- The system ensures:
- Transparency in government collections
- Faster confirmation of payments
- Reduced dependence on physical challans and manual processes
Scale and significance of Khajane-2
- As per data published by the Comptroller and Auditor General (CAG) and the Government of Karnataka:
- Over 1.9 crore challans were processed through Khajane-II in FY 2024–25
- Total value of transactions: around ₹1.14 lakh crore
- This highlights:
- Deep penetration of digital treasury systems in Karnataka
- Central role of Khajane-2 in the State’s revenue ecosystem
Technical preparedness and infrastructure
- Karnataka Bank undertook extensive preparation before launch:
- Used a sandbox testing environment with necessary security guardrails
- Ensured system stability, ease of use, and data security
- The facility is supported by the bank’s:
- Ongoing API infrastructure rollout
- Integration with RBI’s e-Kuber system (the core banking platform for government transactions)
System resilience and continuity
- Government payment volumes typically spike during:
- Quarterly
- Half-yearly
- Year-end tax filing periods
- To handle this surge:
- The system has been made scalable and resilient
- A Disaster Recovery (DR) setup is in place to ensure uninterrupted services if the primary site fails
Why this move is important
For citizens and businesses
- Easier compliance with state tax and fee payments
- Faster receipt generation and record-keeping
- Fully digital, cashless experience
For the State government
- Improved efficiency in revenue collection
- Better transparency and accountability
- Reduced manual workload and errors
For Karnataka Bank
- Strengthens its role in government business and digital payments
- Enhances customer value through integrated public finance services