Tamil Nadu: Why Is Chennai Making Digital Payments Mandatory For Liquor Purchases Above ₹1,000 From November 1?

(MENAFN- Live Mint) Liquor buyers in Chennai, Tamil Nadu, will have to switch to digital payments for purchases above ₹1,000 from November 1 and above ₹500 from January 1, 2027, according to news agency PTI. The Tamil Nadu State Marketing Corporation (Tasmac), which currently operates 4,048 retail liquor shops, is pushing for greater transparency, stronger financial accountability, and operational efficiency.

Why is Tasmac pushing for digital payments?

PTI, quoting an official, reported that the administration had received multiple complaints about retailers charging prices higher than the Maximum Retail Price (MRP).

The official said digital payments would ensure that all transactions were recorded in real time, along with their exact amounts and timestamps. This would help prevent overcharging and ensure that sales revenue was transferred directly to official bank accounts.

"While options for UPI, debit, and credit card are already available, a vast majority of transactions continue to happen in cash," he said, adding, "Handling large amounts of physical currency daily has created significant operational hurdles for shop staff, including safety risks during cash transit, account discrepancies, and the risk of counterfeit currency."

Customers making purchases below these limits will retain the option to pay in cash or through digital means. To maintain strict control, Tasmac has banned staff from accepting payments through personal QR codes or individual bank accounts, the official added.

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As part of the implementation plan, all TASMAC outlets will be required to display prominent notice boards measuring 2 feet by 3 feet, informing customers about the new payment rules.

The notices are intended to ensure that customers are aware of the digital payment requirement before making purchases.

The corporation has directed district managers to oversee preparations and ensure that outlets comply with the new guidelines.

District managers have been assigned responsibility for auditing point-of-sale (POS) machines at liquor outlets and checking whether the equipment is functioning properly.

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They must also ensure adequate network connectivity so that digital transactions can be processed without disruption.

Weekly reviews will be conducted to monitor implementation and address operational issues arising during the transition.

"To ensure smooth implementation, all shops will display prominent 2x3 feet notice boards informing customers of the rules," he said, adding that district managers had been tasked with auditing POS machines, ensuring proper network connectivity and conducting weekly reviews to oversee the transition.

What happens if staff violate the new rules?

The official stated that violations of the new rule would lead to disciplinary action against the employees concerned. Every shop will also be required to issue physical bills for every purchase and hand over liquor bottles only after verifying the transaction on official point-of-sale (POS) machines.

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