The Government of India has introduced a new digital payment mandate for Limited Liability Partnerships (LLPs) as part of its broader initiative to foster transparency, traceability, and financial accountability in business transactions. Effective from July 1, 2025, all LLPs are now required to maintain and disclose at least one operational digital payment method, such as UPI, NEFT, RTGS, or IMPS, for receiving business payments and making statutory dues. This mandate aims to align LLPs with evolving fintech standards and discourage the use of cash-based systems.

According to the Ministry of Corporate Affairs (MCA), the disclosure of digital payment details must be made in Form 11 (Annual Return) filed every year, along with declarations of partner contributions, registered address, and business activity. In addition, LLPs must prominently display their digital payment options on all invoices and official correspondence, ensuring transparency for clients, vendors, and regulators. The MCA has also confirmed that the digital payment details will be used for cross-verification with GST and income tax filings to enhance financial oversight.

This mandate is expected to significantly impact small and mid-sized LLPs in service sectors, consulting, logistics, and manufacturing, where cash dealings remain common. Government officials noted that the measure supports India’s push toward a cashless economy, reduces compliance risk, and strengthens anti-money laundering frameworks. Industry experts view this as a positive step in standardizing financial practices across all business structures, with special emphasis on LLPs, which were previously subject to fewer financial disclosure requirements compared to companies.