Monday, 8 January 2018

Banks gradually integrating with FCRA-PFMS

Ministry of Home Affairs has confirmed that Standard Chartered Bank is now “integrated with FCRA-PFMS in all respects”. Quite a few other banks too are likely to be added to the list of 32 Banks earlier issued by MHA. Readers may recollect that in our Blog Post of 28th December 2017, we had suggested: “Don’t make haste in changing your FCRA Bank Account”.

We have at hand a letter dated: 5th January 2018 signed by Mr. Ravinder Kumar, Director (MU) and addressed to the General Manager of Standard Chartered Bank stating: “As per report received from PFMS (FCRA) integration team at NIC, it has been confirmed that your Bank is integrated with FCRA-PFMS in all respects. Therefore, no FCRA accounts in your bank are now required to be transferred to any other Bank in terms of this Ministry’s Notice No. 2/21022/58(951)/2017/FCRA(MU) dated 21.12.2017 circulated on FCRA web portal dated 21.12.2017."

CAP's Advisory
To reiterate what we have stated earlier on 28th December 2017, if you are satisfied with the services of your current bank which is not currently in the MHA’s list, please talk to them first if they are already in the process of getting PFMS compliant. If not, please move your FCRA account to any of the 32 banks listed by MHA.

Finally, even if your bank assures you that they will join the Public Financial Management System, please don’t be complacent or wait beyond another week. If your Bank fails to provide evidence of having joined the PFM System, please change your bank before 21st January 2018 and notify the change to MHA in Form FC 6.

What is PFMS?
PFMS is a Central Sector Plan Scheme implemented by the Office of the Controller General of Accounts in partnership with National Informatics Centre (NIC). The scheme has established a common transaction-based on-line fund management and payment system and MIS for the Plan Schemes of Government of India. The platform has now been extended to State Governments for effecting payments of plan funds received directly at the State Treasuries.

What PFMS can do?
1. PFMS can track the utilization / transfer of funds up to end user spread across the country.
2. The MIS generated through PFMS can track availability of funds, unspent balances (live balance in account of the implementing Agency.
3. PFMS supports fund management and e-payment through a secure integration with Core Banking Solution (CBS) of banks.
4. The PFMS system has been configured to facilitate all payments either Plan or Non-Plan based on creation of sanctions through PFMS.
5. PFMS establishes a common transaction-based on-line fund management and payment system.
6. PFMS can provide MIS for all the expenditure both Plan and Non-plan Schemes of Government of India.




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1 comment:

  1. If any informations on UNION BANK OF INDIA added in new with32 bank list

    ReplyDelete