What is PFMS in Bank?

The Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, Government of India, created and implemented the web-based software program is Public Financial Management System or you can say PFMS meaning in bank. It allows electronic payments. The Indian government uses it to handle accounting, reconciliation, and payments. Here are a few functions of PFMS.

• Exchequer & Payment Command

• Accounting for Both Tax and Non-Tax Receipts

• Accounts Compilation and Fiscal Report Preparation

• Connectivity with State Financial Management Systems

I hope you understand what is meant by PFMS in bank account.

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How Can I Check My PFMS Balance?

Let me help you with what is PFMS in bank. PFMS (Public Financial Management System) is a web-based platform in India developed by the Controller General of Accounts (CGA) under the Ministry of Finance.

What is Meant by PFMS in Bank Account?

It is designed to monitor and manage the flow of funds in government programs and ensure efficient financial reporting. PFMS is used by banks to facilitate payments under government schemes and subsidies directly into the beneficiaries’ bank accounts. Some other factors of PFMS are as follows, 

1. PFMS enables direct credit of subsidies, pensions, and other benefits into beneficiaries' bank accounts under various government schemes like MNREGA, PM-KISAN, and scholarships.
2. PFMS is integrated with over 300 banks, including public, private, cooperative, and regional rural banks. This integration ensures seamless fund transfers.
3. It allows real-time tracking of funds from the central government to the implementing agencies, ensuring transparency and accountability.
4. Banks use PFMS for electronic payment processing, ensuring accuracy and speed while reducing manual errors.
5. PFMS verifies the beneficiary’s bank account details to prevent fraud and ensure that payments reach the intended recipients.

Banks act as intermediaries, processing transactions and providing information to PFMS about fund transfers. They also help validate account details during DBT transfers to ensure successful payments. Your query about what is PFMS in bank should be solved. Enjoy Quick Approval of Personal Loan at Low Interest Rate through NB Instacash Read More: How Can I Check My PFMS Balance?

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 The Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, and Government of India developed and implemented the Public Financial Management System (PFMS), a web-based online software programme. In order to track money issued under all Plan programmes of the Government of India and to report expenditures in real-time at all stages of programme execution, PFMS was launched in 2009. 

The scope was later broadened to include direct beneficiary payments made under all Schemes. It has been planned that PFMS will be used to digitise accounts gradually. Starting with payments made by Pay & Accounts Offices, the O/o CGA added value by including additional financial activities of the Government of India in the scope of PFMS.

The following are just a few examples of the outputs/deliverables for the various modes/functions of PFMS:

• Payment and Exchequer Management

• Receipts must be recorded (Tax & Non-Tax)

• Account compilation and fiscal report creation

• Adaptation to state financial management systems

The main goal of PFMS today is to help the Government of India implement a strong public financial management system by developing a network for payments and cost accounting and an effective fund flow system. As part of the government of India's Digital India effort, PFMS offers a real-time, trustworthy, and useful management information system as well as an efficient decision support system to diverse stakeholders.

The 28 States and the two Union Territories with legislatures that have treasury systems have all built interfaces with PFMS. This makes it easier to exchange information on budget, allocation, and spending related to the central transfer of funds for the government of India's centrally sponsored schemes.

Since PFMS serves as the foundation of the government of India's payment system and is integrated with the country's Core Banking system, it has the unique capacity to confirm the account before sending online payments to practically every beneficiary or vendor.

The Core Banking System (CBS) of over 300 banks, including the Reserve Bank of India, India Post, and Cooperative Banks, as well as all Public Sector Banks, Regional Rural Banks, and Major Private Sector Banks, is currently interfaced with PFMS. With time, the integration must become universal, i.e., an interface with every Indian bank must be built. For the purpose of facilitating validation for Aadhaar-linked payments, an interface with the National Payments Corporation of India (NPCI) has also been developed.

The Direct Benefit Transfer payment, accounting, and reporting channels are all through PFMS. As a result, every Department/Ministry of the Government of India uses PFMS to electronically transfer funds to beneficiaries (individuals or institutions). Additionally, the cash components are distributed to beneficiaries through PFMS by State Governments and the Implementing Agencies.

The PFMS has interfaces with more than fifty Beneficiary management programmes and systems from various Ministries and Departments, including PM-KISAN, NSAP, MNREGASoft, MCTS, AwasSoft, and Kanyashree, to make the aforementioned processes easier.

As more functionalities have been added over the past few years, along with the ever-increasing depth and width of its operations, PFMS has faced issues with scalability and performance. PFMS was designed utilising an architecture that was anticipated in 2009.

I would like to conclude my answer here about what is PFMS in bank account. I hope this helps:)

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