What is the Full Form of PFMS?

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PFMS Full Form

The Full Form of PFMS is a Public Financial Management System. It is a web-based software application, the initiation and execution of which was done by the Controller General of Accounts (CGA) within the Department of Expenditure, Ministry of Finance, Government of India. Over time, PFMS expanded its scope to encompass direct payments to beneficiaries across various schemes. Moreover, the long-term vision includes achieving the digitisation of accounts through PFMS. The Office of CGA enhancing its functionality by incorporating additional financial activities of the GoI, starting with Pay and Accounts Offices payments.

Also Read: PFMS Scholarship 

What is the History of PFMS?

PFMS was originally initiated as the CPSMS (Central Plan Scheme Monitoring System) by the Planning Commission in 2008-09. Additionally, this pilot project took root in four states namely, Madhya Pradesh, Bihar, Punjab, and Mizoram. The project aimed to implement the system for four flagship schemes which are MGNREGS, SSA, PMGSY and NRHM.

Furthermore, after successfully launching a network in Ministries and Departments initially, the decision was made for a nationwide implementation of CPSMS, later rebranded as PFMS. This scheme was a part of the 12th Plan initiative of the Ministry of Finance and the Planning Commission. In December 2013, the Union Cabinet approved the national rollout of PFMS.

Also Read: What is the Full Form of CFMS?

What are the Features and Functions of the PFMS?

The Features and Functions of PFMS are as follows: 

  • PFMS establishes a flow of funds to all schemes and states along with a payment cum account system. 
  • Moreover, as part of the Digital India Initiative, PFMS has a functioning MIS that gives reliable as well as real-time details that aid in effective decision-making. 
  • The establishment of an interface with all 28 states and 2 UTs aids in the exchange of data related to expenditure, budget and allocation for Centrally Sponsored Schemes of GoI.
  • PFMS has the exceptional ability to first verify and validate the account to whom the funds would be transferred online. 
  • All banks operating in India have to have an interface with the PFMS.
  • Additionally, an interface with NPCI facilitates verification for Aadhaar-linked payments. 

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