New Delhi, March 7 (IANS): The union cabinet Thursday approved in principle a bill for time-bound delivery of public services like passports, certificates and ration cards to citizens, an official said.

"The bill has been approved in principle by the cabinet," the official said.

However, he said the draft bill would go back to the ministries of law, home affairs and personnel and training as it required fresh paraphrasing. This means that it need not go to the cabinet again and can be directly tabled in parliament.

Since the bill involves financial matters, that aspect has to be further examined, the official added.

According to the bill, which aims to bring greater transparency in administration, especially where the citizens have a direct interface with various government agencies, any failure in delivery of services will invite a penalty of Rs.250 per day subject to a maximum of Rs.50,000.

The officials said the bill, once passed by parliament, will be binding on the states.

They said once approved, the services delivery bill would prove much more effective in tackling corruption than the proposed anti-graft Lokpal bill, which was drafted after anti-graft protests of Anna Hazare in 2011 and sent to a standing committee for its consideration and suggestion.

The officials said that most of the recommendations of the panel have been approved, barring two.