Public Finance Management System PFMS | The full form of PFMS is the Public Finance Management System, which is a unified web-based system launched by the Government of India that promotes end-to-end monitoring of funds, distributed to various programs or schemes by their respective agencies of the Central and State governments.
Public Finance Management System PFMS
It promotes the real-time distribution of funds and ensures a comprehensive Financial Management Information System. This Portal also ensures that various schemes’ objectives are accurately achieved and prompt service delivery. PFMS in Hindi means सार्वजनिक वित्तीय प्रबंधन प्रणाली. This is why it is often called “PFMS Know your Payment”
It is implemented at both central and state levels by the Ministry of Finance. It is being supervised by the Controller General of Accounts (CGA). Read on to find out more about PFMS or visit the official PFMS NIC IN Portal.
What are the Functions of the Public Finance Management System PFMS Portal?
Following are the functions of the PFMS NIC IN Portal:
- PFMS Know Your Payment programme acts as a crucial monitoring system for tracking the flow of funds to all of its beneficiaries, tracks the level of implementation of schemes and programmes, and ensures the on-time release of funds through effective fund management.
- PMFS Know Your Payment deals with State and Centrally Sponsored Schemes, miscellaneous expenditures, and Finance Commission Grants.
- It is the principal IT platform for payments, receipts, accounting, expenditure control, management of the provident fund, and pensions by the CAG.
- PM KISAN Samman Nidhi Yojana, announced in the Interim Budget presented in Parliament in 2019, is one of the successful schemes under PFMS.
- It is consolidated with the core banking and finance systems of India.
- It monitors the fund flow, interface modules, and the Direct Benefit Transfer module.
What are the Objectives of the Public Finance Management System PFMS Portal?
Following are the objectives of the Public Finance Management System PFMS NIC IN Portal:
- To provide a single platform for managing the budget and accounts of all schemes, departments, agencies, and beneficiaries and plan and manage their expenses.
- To Integrate the finance and banking system in India for management of funds, and make use of Direct Beneficiary Transfers.
- To make the distribution of benefits of funds faster and more efficient.
- To provide real-time metrics and info on Govt. expenditure to various agencies who enrol in it.
- To make the system digitalized and advanced, thereby receiving accurate outputs.
- To track the changes, events and benefits in each policy through technology and display the results with the help of automated computation.
- To lessen the time taken for fund transfer from 180 days to 3 days.
- To track financial leakage with digital footprints (Reducing the leakage from 30% to 1 %).
- To enable account verification validation and Transaction validation with banking systems.
- To enable Direct Beneficiary Fund Transfer Mechanism with the use of Digital Signature based payment.
What is the Importance of the Public Finance Management System PFMS Portal?
Following are the reasons why India needs a PFMS Know Your Payment portal:
- To ensure transparency in the finance, accounting, and banking systems.
- To reduce inconsistency, make the system organized, solve the problems related to accountability, and bring clarity.
- It keeps a check on funds by providing state, district, and lower-level agencies to ensure proper utilization of funds.
- It has improved public financial management by accurate and efficient utilization of funds instead of just spending it on nothing.
- It has improved financial debt management by keeping a check on fund flow.
- To make the system transparent to the public.
- It depicts all the transactions to banking channels.
What are the Benefits of PFMS NIC IN Portal?
The benefits of the PFMS NIC IN Portal are as follows:
- It reduces typing, data entry, and errors in preparing Draft Sanction Modules.
- The sanction modules are easy to trace.
- We can view the sanction modules of the previous year and compare them with the current year.
- There is a detailed report for effective monitoring of pending sanctions, sanctions issued, and sanctions settled.
- All sanctions are transferred to DDO for bill payment. Then it is shifted to PAO, and then further it is transferred to banks with the cheque and advise details.
- It can distinguish between the transfer of funds, fund releases, and final investments.
- There is a regular generation of fund releases, investment statements, and percentile utilization.
- A single online platform provides details of schemes, agencies, states, and ministries with their respective sanctions that are issued and released.
- It keeps a check on every agency and NGO that withdraws funds from more than one scheme or department.
What is the information presented in the Citizenship PFMS Know Your Payment Portal?
- List of State releases
- List of Districts releases
- List of Agency releases
- List of Scheme releases
- Details of registered agencies
- Investment in development goals
- List of sector investments
- Flagship scheme investment
What are the benefits of PFMS NIC IN Portal to state governments?
- This Portal provides the government with detailed information about the funds received through treasury transfers, autonomous bodies, special purpose vehicles, NGOs, societies, individuals etc. that are registered within the state.
- It ensures proper implementation, monitoring and management at all levels. It also showcases the development metrics via digital channels.
- It provides thorough details about the funds received by the state from the central govt. under various schemes.
- Various agencies, NGOs, districts, states, and blocks create sanction IDs and component-wise investment in this system. It tracks the investments efficiently and keeps a digital record.
What is the procedure for PFMS Registration For Agency?
The PFMS Registration portal (CPSMS) cga.nic.in enables various agencies to register under the system. Agencies must be registered under CPSMS before they start receiving sanctions under any scheme. Information required to register includes:
- Type of Registration
- Agency Name
- Act/Registration Number
- Date of Registration
- Registering Authority
- State of Registration
- TIN Number
- TAN Number
- Phone No
- Unique Agency Code
- Bank Details, etc.
Public Finance Management System PFMS Portal is an extraordinary platform launched by the Government of India to transfer and monitor funds for various schemes and programmes. The transactions are transparent and trackable. The PFMS transaction figures signify that the funds are being utilized efficiently. With the Public Financial Management System, India has become the first among many countries to distribute various funds via digital channels and keep a track record of financial and accounting systems.
The Implementing Agency has an account with a bank that is not integrated with PFMS. How to make payments using this Account?
You can’t as the Bank is not integrated with PFMS. Suggest Agency to open an account in a Bank Integrated with PFMS.
I have registered my agency from the home page of PFMS. Who will approve my agency? And How to know whether my agency has got approved or not?
You have registered your agency as State level agency. You need to get it removed from PFMS Technical Team. In case it is not a State-level agency. If it is a State level agency, then it will get approved by the PD in the ministry.
I have registered my agency for one scheme and Now I want to add one more scheme. What is the process for the same?
After login, go to My Scheme>Register New Scheme.
The location of some health villages is not mapped on the PFMS System due to which I am unable to register many of the VHSNC presents there.
The State is asked to provide a list of Villages that are not appearing in the PFMS portal. So that same can be get mapped from PFMS Technical Team.
There is some spelling mistake in the name of the agency. How do correct the same?
You can’t, the Maker of the Agency can edit the same.