Q. With reference to Public Financial Management System (PMFS), consider the following statements:
1. PMFS is a central government institution consisting of a chairman and 2 members.
2. PMFS tracks funds released under all Plan schemes of Government of India.
3. It validates online payments by government to almost every beneficiary/vendor.
Select the correct answer using the codes given below
Statement 1 is incorrect. The Public Financial Management System (PFMS) is a web-based online software application developed and implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, Government of India.
Statement 2 is correct. PFMS started during 2009 with the objective of tracking funds released under all Plan schemes of Government of India, and real time reporting of expenditure at all levels of Programme implementation. Subsequently, the scope was enlarged to cover direct payment to beneficiaries under all Schemes.
Statement 3 is correct. As the backbone of the payment system of the Government of India, PFMS is integrated with the Core Banking system in the Country, and hence, has the unique capability to first validate the account before pushing online payments to almost every beneficiary/vendor. At present, PFMS has interface with the Core Banking System (CBS) of over 300 Banks, including all Public Sector Banks, all Regional Rural Banks, major private sector banks, Reserve Bank of India, India post and Cooperative Banks.
