What is the full form of PFMS
PFMS: Public Financial Management System
PFMS stands for Public Financial Management System. Formerly, it was known as Central Plan Schemes Monitoring System (CPSMS). It is an online software application developed and implemented by the Office of Controller General of Accounts (CGA). It offers a platform for e-payment of subsidy under Direct Benefit Transfer (DBT) to both Aadhar based & Non-Aadhar based bank accounts through NPCI. Many banks have implemented DBT payments through PFMS for the beneficiaries covered under the schemes.
The main responsibility of PFMS is to facilitate sound Public Financial Management System for Govt. of India by providing a fund flow system and a payment cum accounting network. It offers a real-time, reliable, and meaningful management information system and an effective decision support system as part of the Digital India initiative of Govt. of India.
The biggest advantage of PFMS is its integration with the Core banking system in the Country. Eventually, PFMS is capable of pushing online payments to almost every beneficiary/vendor. At present, PFMS has an interface in addition to the Core Banking System (CBS) of all banks to offer real-time reporting of banking transactions.
Brief History of PFMS:
PFMS was introduced during 2009 as a Central Sector Scheme of Planning Commission with the objective to track funds released under Govt. of India Plan schemes and real-time reporting of expenditure at all levels of the implementation of the scheme. After a few years, in the year 2013, the scope was widened to cover direct payment to beneficiaries under both Plan and non-plan schemes. In late 2014, it was planned that PFMS will do digitization of the accounts and additional features would be added to PFMS at different stages.