What is PFMS? Significance, How to Apply, & Benefits of PFMS in 2021

Full-Form of PFMS PUBLIC FINANCIAL MANAGEMENT SERVICES

Public Financial Management System. In the past, it was called Central Plan Schemes Monitoring System (CPSMS). It is a software program that can be downloaded online created and operated by the Controller General of Accounts (CGA).

It is a platform that allows the electronic payment of subsidies through Direct Benefit Transfer (DBT) for both Aadhaar as well as non-Aadhaar-based bank accounts using NPCI. Numerous banks have also implemented DBT payments using PFMS for beneficiaries who are covered by the schemes.

PFMS is the acronym in the form of a Public Financial Management System. In the past, it was called Central Plan Schemes Monitoring System (CPSMS). This is an internet-based software program designed and developed in the Office of Controller General of Accounts (CGA). 

It provides a platform for the electronic payment of subsidy in Direct Benefit Transfer (DBT) to both Aadhar as well as non-Aadhar banks through NPCI. Numerous banks have implemented DBT payments via PFMS for beneficiaries who are of the programs.

The primary task for PFMS is to provide a sound Public Financial Management System for Govt. of India by offering a fund flow system as well as a payment cum network. It is live reliable, reliable, and useful management information and an efficient decision-support system that is part of the Digital India initiative of Govt. Digital India initiative of Govt. of India.

The most significant benefit for PFMS has to do with its integration into the core banking system of the country. In the future, PFMS is capable of making online payments available to nearly every vendor/beneficiary. As of now, PFMS has an interface with that of the Core Banking System (CBS) of all banks. It provides immediate reporting of transactions made to banks.

An Overview of PFMS

PFMS was established in 2009 as a Central Sector Scheme of Planning Commission in order to keep track of the release of funds under Govt. of India Plan schemes and real-time reporting of expenditures at all levels of operation of this scheme. 

In the following years, in 2013 the scope of the scheme was extended to include direct payments to beneficiaries in plans and non-plan schemes. Plan or non-plan scheme. In the final quarter of 2014, it was decided that PFMS will begin digitizing accounts and that additional features will become available to PFMS in various phases.

What is PFMS
What is PFMS

List Of Scholarships Under PFMS 

The following scholarship is offered in the PFMS Scholarship 2021:-

  1. PFMS Scholarships for Universities and College Students
  2. PFMS Post Matric Scholarship for SC students
  3. The PFMS Scholarship Pre-Matric Scholarship is available to SC students.
  4. PFMS Students Scholarship The National Means cum Merit Scholarship
  5. PFMS The Scholarship National Scheme for Incentive for girls to pursue secondary education
  6. pfms.nic.in scholarships Top Class Educational Schemes for SC
  7. The pfms.nic.in awarding scholarships for the up-grading of Merit of SC Students
  8. pfms.nic.in post-matric scholarship for OBCs

Responsibilities of PFMS

  • The principal purposes of PFMS is the cash flow system and an operation cum network for accounting.
  • As part of the government’s Digital India initiative, PFMS offers a reliable and efficient decision-support system that is real-time and a valuable Information Management System.
  • The biggest benefit of PFMS for the country is its integration in the system used by the central banks.
  • In the near future, PFMS can move the online payment to virtually every vendor or beneficiary. PFMS currently has an interface for providing documents for financial transactions in real-time and is in addition to every bank’s CBS (Core Banking System).

The Significance of PFMS

The Central Government of India releases vast amounts of funds, programs, and invests huge amounts of capital to ensure that all Citizens in India can get the most of it. 

However, the government considers it necessary to ensure that the capital is being invested in a way to fulfill the goal and requires budgeting for this. Therefore, it created PFMS to be the one to appoint this task.

As MISs did not give an accurate report about where the funds were utilized and left the government by giving an incomplete scenario of the unutilized funds. PFMS made the government felt the lack of a system with immediate fund transfers, bank balance across districts, and integrated utilization details.

This resulted in the creation of PFMS which has been able to achieve the mandated objectives and is now its own Backbone of our Nation. Thus, PFMS plays a vital part in running the country. Its responsibilities include the following:

  • To ensure transparency in accounting, it has taken steps to ensure that banks are required to meet the investment of the implementing agencies , and then keep an eye out for any indications from Central Government. Central Government.
  • PFMS Ventures to remove inconsistency delays, inconsistencies, and issues with regard to accountability and clarity.
  • In order to make the most of funds, it has its own established agencies at the district, state and lower levels to capture the lucrative funding utilization.
  • It has made available funds to obtain releases from all non-governmental organizations , autonomous institutions and Central civil ministers as well as to the agencies that are able to access these releases.
  • PFMS has improved the area of public financial management, by moving away from a booking system to release of funds and moving to a system that books actual utilization.
  • It has redressed the issues of public finance management by reducing float with banks, thereby allowing for an improved financial debt management.
  • It also ensured that all relevant information into the public domain.
  • It has discovered a wonderful approach to create a more effective decision-making system, by providing online status on the utilization of funds.
  • It tracks all transactions to the maximum profit through the banking channels.

PFMS Objectives

  1. Real-time, reliable, and relevant MIS as well as an effective decision support System(DSS).
  2. Creates a streamlined flow of funds system and an Accounting for Payments system.
  3. It serves as a platform to facilitate accounting, payment and transfers of funds and DBT Tracks funds from top to the bottom
  4. Finds and reduces float(unutilized funds)
  5. Aids in transitioning from the basis of cash to utilization-based accounting
  6. Facilitates the transition from post-facto accounting into real-time accounting
  7. Standardizes processes and report for every scheme and the various stakeholders
  8. It facilitates transparency and auditability

PFMS Main Modules

  1. Payment and Sanction module for central levels
  2. Agency Registration Module for Agency Registration
  3. Funds Transfer/E-payment, and Advance. Modules for
  4. States/IA
  5. Direct Benefits Transfer (DBT)
  6. Post-facto accounting/expenditure filing modules
  7. Modules for Funds Management
  8. Monitoring modules and reports

The Benefits of using PFMS

PFMS offers benefits at the district and state levels as well as to the citizens of India on a daily basis.

  • The draft Sanction Modules are produced by this system that reduces typing processes and the possibility of making mistakes when preparing sanctions.
  •  Orders issued by PFMS can be obtained from profitable states, companies, implementing agencies, and individuals for tracing their release.  
  • It offers a concise overview of all the news releases from the past year.
  • Each user is provided with reports on pendency, sanction issued, Sanctions settled and the still pending sanctions. Additionally, these tools can be employed to ensure effective monitoring.
  • All sanctions are transferred to DDO to pay bills from then it’s moved to PAO for payment . Payment then sends cheques to banks and the advice detail.
  • It is able to distinguish between transfers of funds , releases and investments that have been made.
  • The release, the investment statement and the percentile utilization are generated on a monthly or daily basis by BE.
  • It has designed the platform that provides information on scheme wise agency wise, state wise, and ministry wise sanctions and releases issued through the special purpose vehicle route as well as the Treasury route.
  • PFMS may draw attention to any agency, not just non-governmental organizations, that are removing funds from multiple schemes or department.

Benefits to State Government

  • The government is provided with complete information on the plan grant that was made through treasury transfers Special purpose vehicles, organizations, autonomous bodies such as NGOs, individuals, etc. Registered in the state.
  • PFMS provides full execution, monitoring and control at all levels. It can be inspected to verify the program’s progress online.
  • It provides information on all grant money received by the state from central ministries in different programs.
  • District and state levels, as well as block level develop sanction IDs as well as component smart investments in the PFMS system. They will be able to track in real-time online connected to banking transactions.

The Eligibility Criteria in order to apply for PFMS Scholarship 2021

  1. To be eligible to be eligible for the PFMS scholarship , the applicant must meet the requirements for eligibility as laid out below to be eligible for the scholarship:
  2. First, the applicant must first be first of all an Indian citizen.
  3. The family earning for the PFMS applicant must be less than Rs.6 lakh.
  4. Age of the applicant If you’re considering seeking a PFMS then the applicant’s age should be in the range of 18-25 years old.
  5. The applicant must be at least 10th grade pass.
  6. Maintenance and all fees incurred under this scheme are covered to the programme.

PFMS Scholarship Registration 2021 Online

  • To complete PFMS registration, you must visit the official website of the organization pfms.nic.in. Click here to access PFMS.
  • Once you have logged in to the website and go to the homepage you will find the option to register for PFMS Students who are eligible for scholarships. click the link to sign up.
  • The next step is to choose the scheme you want to use here, for instance the Scholarships for College and University Students
  • You must now fill in the following details
  • Input the date you completed your 12th grade and the board you took it from.
  • Enter Bank account number and Bank IFSC code.
  • Then you’ll see a the drop-down menu, where you need to select the category you want to use. Select the category you want to search for and then hit the Search button.
  • Once you’ve submitted the required information, your details will be posted on the portal, and the request form is completed automatically through the application system. If you find information that is not correct or requires correction You can make the correction here.
  • Enter your mobile number here , and OTP will be sent to that number. OTP will be sent to that mobile
  • Enter the OTP that was sent to the mobile and continue.
  • Now that your mobile number is verified. Now you need to fill in your email address here.
  • Now you must create an user ID and password.
  • Choose the username and password Enter the captcha code, and then proceed. Now, you must send the final.

How do I login PFMS?

  1. PFMS Login Process
  2. Follow the Steps Below to PFMs login
  3. To begin, click the official link that is provided here.
  4. From the home page, choose which year you want to choose from the drop-down menu.
  5. Log in with your username and password.
  6. Click on the Login Button

How can I Check PFMS Payment Status?

  • Visit pfms.nic.in and follow the below steps to verify pfms.nic.in List
  • Click here to view PFMS account balance ( the pfms balance in the bank )

What is the procedure to verify the status of the UP Scholarship by visiting PFMS Website?

  • Students can now verify the status of bank payments on PFMS official website. Follow the steps below to check the record of payment on PFMS website.
  • First , the beneficiary must visit the official site of PFMS.
  • When you visit the official website the homepage will appear before your eyes.
  • On the home page, you will find the option to know your payment and you must select this option. Once you have clicked on the button, the next page will be displayed before you.

In this section, you will need to complete the requested information regarding the bank account such as the bank’s account number, the code for captcha, etc. Then, you must hit”Search. If the information you entered is correct, then you’ll see your information in the following page.