PFMS Processes

The PFMS process is the way the Public Financial Management System (PFMS) works to facilitate sound public financial management for the Government of India by establishing an efficient fund flow system and a payment cum accounting network. 

The PFMS process involves the following steps.

1. The government agencies prepare and submit their sanctions for various schemes and programs through the PFMS portal.
2. The sanctions are approved by the competent authorities and the funds are allocated to the agencies.
3. The agencies can make payments to the beneficiaries or vendors through the PFMS portal, which is integrated with the core banking system of over 300 banks and the National Payments Corporation of India (NPCI).
4. The payments are validated and processed by the PFMS system and credited to the beneficiary’s account directly or through Aadhaar-linked payments.
5. The agencies can monitor and track the fund disbursement and utilization through the PFMS portal, which provides real-time data and reports on various aspects of financial management.
6. The PFMS system also facilitates accounting of receipts (tax and non-tax), compilation of accounts and preparation of fiscal reports for the government.

Resources:

1. Public Finance Management System, Office of CGA, Finance Department, GoI 

2. MANNUAL FOR REGISTRATION OF USERS AND PAYMENT PROCESS FLOW IN PFMS, CONTROLLER GENERAL OF ACCOUNTS DEPARTMENT OF EXPENDITURE MINISTRY OF FINANCE NEW DELHI, 2015