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What is the full form of PFMS?
The word PFMS is an acronym and the full form of the PFMS is “Public Financial Management System”. Earlier it was known as the CPSMS that is Central Plan Schemes Monitoring System and it is an online software application. The office of the (CGA) Controller general of accounts developed and implemented the PFMS.
Public Financial Management System under the direct benefit transfer (DBT) offers a platform for the subsidy e-payment through NPCI (National Payments Corporation of India) to both Non-Aadhar or Aadhar based bank accounts or post office accounts. Most of the Indian banks use PFMS for the DBT implementation.
Responsibilities of Public Financial Management System (PFMS)
The key responsibilities of the Public Financial Management System (PFMS):
- Transaction cum network of accounting and cash flow management is the main function of the PFMS.
- The Public Financial Management System offers reliable and real-time information management system.
- It plays a key role in Digital India initiative as a decision support system.
- It combined the central bank system.
- The core banking system is the most important function of the PFMS in India.
- The Public Financial Management System is working for penetrating online payments to every vendor or beneficiary in the country.
History of Public Financial Management System (PFMS)
In the year 2009, the Planning commission introduced the Public Financial Management System as a central sector scheme with the main goal of fund tracking that is released under the Indian government plans and schemes.
It also reports on the real-time basis of the total expenditure of the fund which is utilized in the scheme implementation. Since 2013 the PFMS has had the responsibility for the direct payment to beneficiaries under non-plan and plan schemes. And the responsibility of account digitization was also given to the Public Financial Management System.
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