Ref No. NB.DFIBT/24282-24677/DFIBT-23/2017-18
28 February 2018
Circular No. 36 / DFIBT- 04 / 2018
The Chairman / Managing Director / CEO
All State Cooperative Banks
All District Central Cooperative Banks
Direct Benefit Transfer through Public Financial Management System (PFMS) - Universal Roll-out of PFMS
The Public Financial Management System (PFMS), earlier known as Central Plan Schemes Monitoring System (CPSMS), is a web-based online software application developed and implemented by the Office of Controller General of Accounts (CGA). PFMS was initially started during 2009 as a Central Sector Scheme of Planning Commission with the objective of tracking funds released under all Plan schemes of GoI, and real time reporting of expenditure at all levels of Programme implementation. Subsequently in the year 2013, the scope was enlarged to cover direct payment to beneficiaries under both Plan and non-Plan Schemes. The primary objective of PFMS is to facilitate sound Public Financial Management System for Government of India (GoI) by establishing an efficient fund flow system as well as a payment cum accounting network.
Role of PFMS
a. PFMS can serve as a common central portal for registering implementing agencies and beneficiaries.
b. E-payments and validation
• PFMS has an active interface with 90 Banks presently. This includes PSBs, RRBs and large Private Sector Banks.
• PFMS validates the Bank/ Post Office Account details with beneficiary’s Bank/ Post Office. This ensures that money is transferred to a validated account thereby reducing the risk of misdirected payments.
• Implementing Agency verifies the details of name, address etc. provided by the beneficiary with the validated information supplied by Bank/Post Office.
• Thereafter the implementing agency can make e-payments to beneficiaries to their validated bank accounts directly from the same PFMS portal where beneficiary details have already been captured.
Post migration to CBS, most of the cooperative banks have onboarded to DBT through the Aadhaar Payment Bridge System (APBS) of NPCI. Cooperative Banks are a very essential part of the rural financial ecosystem. Therefore, it is required that these banks onboard the PFMS platform so that they are in a position to facilitate their customers to receive grant/support/subsidy for Central/State Sector Schemes which run on DBT through PFMS. Hence, we advise you to onboard to PFMS platform immediately and keep our Regional Offices informed of the progress in this regard.
More information about PFMS may be accessed at the following weblinks:
https://pfms.nic.in and https://doe.gov.in
(Chief General Manager)