PFMS Public Financial Management System Full Details in Gujarati

PFMS stands for Public Financial Management System. Formerly, it was known as Central Plan Schemes Monitoring System (CPSMS). It is an online software application developed and implemented by the Office of Controller General of Accounts (CGA). It offers a platform for e-payment of subsidy under Direct Benefit Transfer (DBT) to both Aadhar based & Non-Aadhar based bank accounts through NPCI. Many banks have implemented DBT payments through PFMS for the beneficiaries covered under the schemes.

The main responsibility of PFMS is to facilitate sound Public Financial Management System for Govt. of India by providing a fund flow system and a payment cum accounting network. It offers a real-time, reliable, and meaningful management information system and an effective decision support system as part of the Digital India initiative of Govt. of India.

PFMS was introduced during 2009 as a Central Sector Scheme of Planning Commission with the objective to track funds released under Govt. of India Plan schemes and real-time reporting of expenditure at all levels of the implementation of the scheme. After a few years, in the year 2013, the scope was widened to cover direct payment to beneficiaries under both Plan and non-plan schemes. In late 2014, it was planned that PFMS will do digitization of the accounts and additional features would be added to PFMS at different stages.

The main functions of PFMS are the cash flow method and a transaction cum network of accounting.As part of Govt’s Digital India initiative, PFMS provides a reliable, efficient decision support device, real-time and meaningful information management system.

The most significant benefit of PFMS in the nation is the combination with the central bank system.

Pretty soon, PFMS can move the online payment to almost every beneficiary or vendor. PFMS currently has an interface to provide real-time financial payment documentation, in addition to all banks’ CBS (Core Banking System.

It offers a platform for electronic-payment of subsidy under Direct Benefit Transfer (DBT) to both Aadhar based & Non-Aadhar based bank accounts through National Payments Corporation of India (NPCI).

Many banks have implemented DBT payments through Public Financial Management System for the beneficiaries covered under the schemes. To facilitate sound Public Financial Management System for Govt. of India is the main responsibility of PFMS by providing a fund flow system and a payment cum accounting network. It offers a reliable, real-time, and an effective decision support system and a meaningful management information system as a part of the Digital India initiative of Govt. of India. Integration with the Core banking system is the biggest advantage of PFMS in the Country.

File Created By Sujay Patel