What is PFMS Payment?

This is the financial management platform started by the office of the Controller General of Accounts, Ministry of Finance with Planning Commission. PFMS Payment enables the government to distribute various scheme benefit directly to the targeted beneficiary. PFMS full form and PFMS meaning are a Public Financial Management System. It works with the core banking system of banks to provide real-time reporting of banking transactions.

The government uses this platform for e-payment of subsidy under Direct Benefit Transfer(DBT) to both Aadhar and non-Aadhaar based bank accounts through NPCI.

PFMS Full Form

PFMS stands for Public Financial Management System, is the platform designed by the government in association with NPCI to distribute various government scheme’s benefit directly to the beneficiary. By this platform, the government ensures that the benefit is directly received by the actual beneficiary. This platform was designed to bring in efficiency, effectiveness, accountability, and transparency in the government system.

What Is PFMS Payment?

PFMS Payment refers to the process of disbursing funds to beneficiaries, vendors, contractors, and other entities through the PFMS platform. It allows for electronic transfers and payments, reducing the need for physical transactions and paperwork, which can help in minimizing delays and errors in fund disbursement.

PFMS Payment and DBT work hand in hand to achieve faster transactions which reduce delays in payments and accurate targetting of the beneficiary. This also eliminates the requirement of the middle man in the system as the benefit will directly be transferred to the beneficiary’s account.

All the transactions done through the PFMS generated payment platform will be auto reconciled and authenticated by the government.

Today, India is the biggest country who provides government subsidy from central Govt. to states Govt. and from there to direct beneficiary. Looking at the quantum of the beneficiary, India was in a need of the platform/system through which it can handle the Govt. scheme distribution.

PFMS uses NACH (National Automated Clearing House) platform which is designed by NPCI and is being used by all the banks to transfer funds from one account to another account.

Public Financial Management System (PFMS) initially started as a Plan scheme named CPSMS of the Planning Commission in 2008-09 as a pilot in four States of Madhya Pradesh, Bihar, Punjab, and Mizoram for four Flagship schemes e.g. MGNREGS, NRHM, SSA, and PMGSY.

After the initial phase of establishing a network across Ministries / Departments, it has been decided to undertake National rollout of CPSMS (PFMS) to link the financial networks of Central, State Governments and the agencies of State Governments. The scheme was included in the 12th Plan initiative of Planning Commission and Ministry of Finance.

Who is agency in PFMS?

In the context of PFMS (Public Financial Management System), an “agency” typically refers to a government department, ministry, organization, or entity that is responsible for implementing various government schemes, programs, and projects. These agencies are involved in the allocation, disbursement, and management of public funds for specific purposes.

PFMS is an online platform developed by the Government of India to enhance the efficiency and transparency of financial transactions related to government funds. It assists government agencies in managing funds, monitoring expenses, and ensuring the proper utilization of resources.

Different government agencies can use PFMS to manage payments, monitor financial flows, and generate reports related to their respective schemes or projects. This centralized platform helps streamline financial processes and enables better coordination between various government bodies.

PFMS Generated Payment

As I mentioned above, the Government uses this platform for distributing various scheme benefits to direct beneficiary. The PFMS Payment module was launched in India in 3 phases. These phases are as below.

StagesStates/UT with the legislatureLaunch Date
Stage 1Assam, Bihar, Jharkhand, Kerala,
Madhya Pradesh, Maharashtra,
Odisha, Puducherry,
Rajasthan, and Uttar Pradesh
Stage 2Andhra Pradesh, Arunachal Pradesh,
Chattisgarh, Goa, Gujarat, Himachal,
Haryana, Manipur, Meghalaya, Punjab,
Sikkim, Tamil Nadu, Telangana,
Uttarakhand, West Bengal
Stage 3Delhi, Jammu & Kashmir, Karnataka,
Mizoram, Nagaland, Tripura

If you want to know the PFMS payment status click on the below link and provide your bank name and account number details of your bank account.

Check your Payment Status

Objectives of PFMS:

The main objective of the PFMS is to enhance the efficiency and effectiveness of public financial management. The platform has several specific goals, including:

  1. Streamlining financial flows: The PFMS aims to streamline financial flows across different levels of government. It enables electronic transfer of funds, which reduces the time and cost of traditional payment methods.
  2. Improving accountability: The platform enables tracking of funds and monitoring of expenditures, which increases transparency and accountability in the management of public finances.
  3. Enhancing budget execution: The PFMS helps in the efficient execution of the budget by providing real-time information on fund availability and utilization.
  4. Reducing delays in payments: The platform ensures timely payment of bills and reduces delays in the payment of salaries, pensions, and other entitlements.
  5. Enhancing financial reporting: The PFMS helps in the generation of accurate and timely financial reports, which facilitates decision-making and budget formulation.

Features of PFMS:

The PFMS has several features that make it a comprehensive and user-friendly platform. Some of the key features of the PFMS are:

  1. Centralized payment system: The PFMS enables electronic payment of funds to beneficiaries’ bank accounts, which eliminates the need for physical cheques and cash transactions.
  2. Fund tracking: The PFMS enables tracking of funds from the central government to the state and local levels, which enhances accountability and transparency.
  3. Integration with other systems: The platform is integrated with other government systems such as the Goods and Services Tax Network (GSTN), which facilitates seamless financial management.
  4. Dashboard: The PFMS has a user-friendly dashboard that provides a summary of financial transactions and expenditure reports.
  5. Direct Benefit Transfer (DBT): PFMS enables direct transfers of government benefits and subsidies to the bank accounts of beneficiaries. This helps in reducing leakages and ensuring that the intended recipients receive the funds.
  6. Tracking and Monitoring: The system provides real-time tracking and monitoring of fund utilization, enabling government authorities to keep a close watch on the progress of projects and schemes.
  7. Centralized Database: PFMS maintains a centralized database of all financial transactions, making it easier to generate reports, analyze data, and ensure accountability.
  8. Integration with Banks: PFMS is integrated with various banks and financial institutions, allowing for seamless and secure fund transfers.
  9. Enhanced Efficiency: By automating the payment process, PFMS reduces manual intervention and paperwork, leading to increased efficiency and reduced administrative burden.
  10. Transparency and Accountability: The platform enhances transparency by making information about fund allocation, utilization, and payments accessible to the public and government officials.
  11. Cost Savings: PFMS eliminates the need for physical payment instruments, postage, and other manual processes, resulting in cost savings for the government.

Benefits of PFMS:

The PFMS has several benefits for the government, beneficiaries, and taxpayers. Some of the key benefits of the PFMS are:

  1. Increased transparency: The PFMS enables real-time tracking of funds and expenditures, which enhances transparency and accountability in public financial management.
  2. Improved efficiency: The platform reduces the time and cost of traditional payment methods, which improves the efficiency of financial transactions.
  3. Reduced delays in payments: The PFMS ensures timely payment of bills and reduces delays in the payment of salaries, pensions, and other entitlements.
  4. Better financial reporting: The platform enables the generation of accurate and timely financial reports, which facilitates decision-making and budget formulation.
  5. Reduced corruption: The PFMS reduces the scope for corruption in public financial management by enabling better tracking and monitoring of financial flows.

How do I link my bank account to PFMS?

Linking your bank account to the PFMS (Public Financial Management System) involves a process that might vary based on the specific scheme or program you are associated with. However, I can provide you with a general guideline on how to link your bank account to PFMS:

  1. Contact Relevant Authorities: You would usually need to get in touch with the authorities responsible for the particular scheme or program for which you are receiving benefits or payments. This could be a government department, agency, or organization.
  2. Provide Required Information: You will likely need to provide certain information such as your Aadhaar number (if applicable), bank account details (account number, bank name, branch, and IFSC code), and other relevant personal information.
  3. Submit Documents: Depending on the scheme, you might need to submit documents that verify your identity, eligibility, and bank account details. These documents could include Aadhaar card, PAN card, address proof, and others.
  4. Form Submission: You might be required to fill out a form provided by the relevant authorities. This form could be available online or in physical format, depending on the scheme’s procedures.
  5. Verification: Once you have submitted the necessary information and documents, the authorities will verify the provided details.
  6. Confirmation: Upon successful verification, your bank account will be linked to PFMS for the specific scheme or program. You will start receiving benefits or payments directly into this linked bank account.

What happens if PFMS is rejected?

If a transaction through the PFMS (Public Financial Management System) is rejected, it means that the funds transfer request or payment has not been successfully processed. There can be various reasons for a PFMS transaction to be rejected, and the subsequent steps will depend on the specific cause of the rejection. Here are some common scenarios and their potential outcomes:

  1. Incorrect Details: If the provided bank account information, beneficiary details, or other relevant data are incorrect or mismatched, the transaction could be rejected. In this case, you will likely need to correct the erroneous information and resubmit the transaction.
  2. Insufficient Funds: If the account from which the funds are supposed to be debited lacks the necessary balance to cover the transaction, it could lead to rejection. You might need to ensure sufficient funds in the account and then resubmit the transaction.
  3. Technical Issues: Sometimes, technical glitches or connectivity problems can cause transactions to be rejected. If this is the case, you might need to retry the transaction after the issue is resolved.
  4. Invalid Beneficiary: If the beneficiary’s account is inactive, closed, or otherwise invalid, the transaction might be rejected. You should verify the beneficiary’s account details and make sure they are accurate.
  5. Unmet Criteria: For certain schemes or programs, there could be specific eligibility criteria that must be met for a transaction to go through. If you don’t fulfill these criteria, the transaction might be rejected.
  6. Verification Failures: If the submitted documents or details fail to pass the required verification checks, the transaction might be rejected. You might need to provide valid and accurate documentation to proceed.
  7. Network or System Issues: Sometimes, network outages or system maintenance can lead to transaction rejections. In such cases, you might need to wait until the issue is resolved and then attempt the transaction again.

When a PFMS transaction is rejected, it’s important to identify the reason for the rejection, rectify any errors, and then follow the appropriate steps to resubmit the transaction. If you’re unsure about the rejection cause or how to proceed, you might need to contact the relevant authorities or customer support for assistance.

Eligibility for PFMS Scholarship

PFMS scholarship is the government scheme wherein the government is giving a scholarship of a total of 82000 eligible candidates. The benefits will be equally divided between boys and girls as 41000 each for boys and girls.

The scholarship amount will directly be deposited into the candidate’s bank account. I will take you through the eligibility criteria and the process of applying for the scholarship by yourself.

For the PFMS scholarship, you must apply online through the portal. There is no offline form will be accepted at any of the offices.

The eligibility criteria for PFMS scholarship for 2019 is as below.

  • The student must have passed 12th class.
  • The student should be in the top 20% of the candidates.
  • The age of the student should be between 18 and 25 years.
  • The annual income of the parents should be less than Rs. 6 Lakhs per annum.

For the year 2019, there are total 82000 scholarship will be given 41000 each for boys and girls. The scholarship will be given for:

  • Scholarship to Universities/College Students
  • Post-Matric Scholarship for SC Students
  • Pre-Matric Scholarship for SC Students
  • National Means cum Merit Scholarship
  • National Scheme for Incentive for the girl child for secondary education
  • Top Class Education Scheme for SC
  • Up-gradation of Merit of SC Students
  • Post-Matric Scholarship for OBCs

Documents requirement for PFMS Scholarship

  • Passport size photo of the student in jpeg, jpg format
  • Scanned signature of the student in jpeg format not more than 1 MB in size
  • Marksheet copy in PDF format
  • Fee receipt in PDF format

PFMS Scholarship Application Process

  • Login to the PFMS portal
  • For the first time user, they need to register themselves by providing simple details.
  • Find the suitable link for PFMS scholarship application form
  • Check the eligibility criteria first, if you find yourself eligible then
  • fill in all the details in the form
  • Upload necessary documents as mentioned above
  • Click on the submit button once you have filled in all the details
  • It is suggested to take a print out of your application form for the future reference.


Can I submit the PFMS scholarship application through offline mode?

No, you cannot apply for the PFMS scholarship through offline mode. You must get yourself registered through the PFMS portal and apply for the scholarship.

What should I do if forget the PFMS password?

You can easily reset your password by clicking on the “Forget Password” option available on the right side corner of the login page.

What should I do if my institute is not registered with PFMS?

In such a case, you need to go to the homepage of the PFMS portal and click on the Register/Track Issues. You are required to fill in the details and select category as scholarship and sub-category as Institute not found. You also need to mention your institute name in the description box.

Is there any prerequisite for uploading documents?

Yes, there are some prerequisite for documents uploading. The size of the photo and signature must not be bigger than 1 MB. Also, the mark sheet and fee receipt should be in PDF format only.

What to do if the bank details I entered is found invalid?

If the bank detail is found invalid, an SMS and auto email alert will be sent to the applicant. The applicant needs to log in and change the bank details in order to receive the scholarship amount in the bank account.

What is the last date for applying for PFMS scholarship?

There is no last date, but you need to apply immediately if you found yourself eligible for the scholarship.

What should I do with the Unique PFMS code?

This is the unique registration code sent by PFMS to your email ID. Keep this code with you for future reference until you get the scholarship amount in your bank account. This code will be required in case of any dispute or query in your scholarship application.

Is PFMS mandatory?

Yes, Ministry of Finance, under the Central Scheme for Treasury Modernisation has mandated compulsory interface of State Treasury Systems with PFMS.

How many days does PFMS take?

The PFMS system facilitates transfers with a minimum threshold of Rs. 1,000 and a maximum cap of Rs. 1 crore per transaction. Swiftly responding to requests from both employers and pensioners, the funds are expediently credited to your account within just two days. This efficient process ensures that your finances remain fluid and accessible, promoting timely and hassle-free transactions.

DBT and PFMS Payment System

Direct Benefit Transfer (DBT) is the way of distributing government subsidy directly to the beneficiary. DBT was launched by Government of India on 1st January 2013.

Under this program, the government aims to transfer subsidy directly to the beneficiary without need of any middle man. This makes the process much faster and transparent.

In DBT, the benefits will directly be transferred to the citizens living below the poverty line. PFMS payment system is the platform for running DBT schemes and processing money transfer transactions. As we discussed above, the PFMS is being implemented by the office of the Controller General of Accounts. PFMS is used to generate the beneficiary list, approving transactions digitally and processing the payment directly to the beneficiary’s account.

The Modi government has thus put extra weight on the Aadhar card activation for all the citizens in India. The second biggest campaign by Modi government was to open Jan Dhan Account (bank account for all). The idea behind running these two campaigns was to cover each and every citizen of India under the DBT scheme.

The PFMS is the processing platform for DBT for various government schemes. All relevant orders related to the DBT are available on the PFMS website. Below is the screenshot of the payment processed for FY 2019-20 as on 27th July 2019 at 06:30 P.M.

PFMS Payment
payment processed for FY 2019-20 as on 27th July 2019 at 06:30 P.M.

You might have heard about the LPG subsidy and student scholarship available in India. These are the two major schemes running on this PFMS platform right now.


PFMS Payment system is a fantastic step by the government to ensure the benefit will go to the RIGHT people directly and faster. There is great transparency in all the transaction done through this portal. So now we can say that the government subsidies are actually reaching and helping the eligible people. The PFMS transactions figures tell it all that it is now reaching to the right people on time. With this Public Financial Management System, India becomes the first county in the world to distribute government subsidy to this large extent.

The Public Financial Management System (PFMS) is a powerful tool that the Government of India has implemented to improve financial management at the central, state, and local levels. The platform has several benefits, including increased transparency, improved efficiency, reduced delays in payments, better financial reporting, and reduced corruption.

However, it also faces several challenges, including limited connectivity, limited digital literacy, resistance to change, data security, and technical issues. The government needs to address these challenges to ensure that the PFMS functions effectively and achieves its objectives of enhancing the efficiency and effectiveness of public financial management.

5 thoughts on “What is PFMS Payment?”

  1. Sir mare nsp scholarship pfms agency rejected hogi plzzzzzzzz sir my name MOHD ZAFAR KHATANA state Jammu and Kashmir application id JK202021003901118 ACC no 0122040800012372 branch pahalgam ifscode JAKA0PHLGAM post matric scholarship

  2. I was very curious about PFMS Thankyou for the great piece of informative content. I really appreciate your content and efforts. I am sure this is helping tons of people out there just as it helped me. Lots of Best wishes to you.


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