Public Financial Management System (PFMS)

Public Financial Management System (PFMS) is a web based application in online management of information and decision support system for the schemes of the Government of India and the State government. The purpose of this system is to track and monitor the fund disbursement and utilization under various Schemes on real time basis. It is a common electronic platform for complete tracking of fund flow from the Government to large number of programme implementing agencies until it reaches the final intended beneficiaries or vendors. It enables real time monitoring of disbursements and utilization of funds and also provides decision support system across departments, institutions and offices. It promotes transparency and tangible improvements in the overall financial management and implementation of various schemes with collateral benefits of plugging leakages and eliminating ghost beneficiaries.

The biggest strength of PFMS is its integration with the Core Banking System (CBS). PFMS has interface with all Public Sector Banks, Regional Rural Banks, major Private Sector Banks, Reserve Bank of India, India post and Cooperative Banks that provides PFMS with unique capability to push online payments to almost every beneficiary and vendors.

Hon’ble Minister for Municipal Administration, Rural Development and Implementation of Special Programme made an announcement in the floor of the Assembly on 04.06.2018 while presenting the demand for grant for the financial year 2018-19 that all accounts maintained by the Rural Local bodies will be brought under PFMS, in order to ensure transparency and real time monitoring of all transactions.

In continuation of this announcement the State government vide G.O.(Ms) No. 133, Rural Development and Panchayat Raj (PR-I) Department, Dated: 18.09.2018 has ordered that all accounts maintained by Village Panchayats and all Grants and Own Source Revenue accounts of the Block Panchayats and District Panchayats shall be brought under Public Financial Management System (PFMS). All the bank accounts maintained by the District Collectors, Assistant Director Panchayats, Rural Local Bodies, District Rural Development Agencies, Block Development Officers and all other RD offices for the amount received for implementation of State Government funded Schemes and release of Grants to PRIs has also been brought under PFMS.