Direct Benefit Transfer through PFMS


What is Direct Benefit Transfer through PFMS?

The Central Government has announced Direct Benefit Transfer (DBT) under selected Schemes in selected districts across the country w.e.f. 1.1.2013.  This shall result in transfer of amounts due to the beneficiary directly to her/his Aadhaar linked bank account thereby eliminating the existing intervening layers.

Role of PFMS


a.        PFMS can serve as a common central portal for registering implementing agencies and beneficiaries.


b.       E-payments and validation

·         PFMS has an active interface with 90 Banks presently. This includes 26 PSBs, 59 RRBs and 5 large Private Sector Banks.

·         PFMS validates the Bank/ Post Office Account details with beneficiary’s Bank/ Post Office. This ensures that money is transferred to a validated account thereby reducing the risk of misdirected payments.

·         Implementing Agency verifies the details of name, address etc. provided by the beneficiary with the validated information supplied by Bank/Post Office.

·         Thereafter the implementing agency can make e-payments to beneficiaries to their validated bank accounts directly from the same PFMS portal where beneficiary details have already been captured.

MIS and DSS to different Stakeholders

Features of PFMS MIS and DSS/BI

Reports are available with Administrative and Hierarchical based aggregation with slice and dice features

(i)                 The contents covered

a.        Budget

b.      Allocation

c.       Cumulative Expenditure Expenditure

d.      Bank Balances/Allocated Limits

e.      Expenditure, Advances, Transfers on periodic basis with current position

f.        Progress in Physical Activities like number of births, pattern of expenditure

(ii)               Detail and Type of Reports


a.        Comparative position of State Wise, Year Wise releases

b.      State wise and scheme wise/All scheme releases, NER Releases

c.       Monthly/quarterly releases optionally for states under 8/15 Flagship Schemes

d.      Agency wise Releases, scheme types wise releases

e.      Current year month wise releases and total release against BE/RE

f.        Month Wise/Quarter Wise Plan Scheme/8 or 15 Flagship Schemes Expenditure for current year - Department and Scheme Wise

g.       Month Wise/Quarter Wise Millennium Development Goal Allocation & Expenditure

h.      Controller Wise Grant Wise Individual/All Schemes Monthly Expenditure Plan Report


i.         Activity level of agencies in terms of quantitative achievements

b.        PAO Wise Channel Wise Type Of Transaction Wise Transaction Performance Report

i.       Scheme Wise, State Wise Agency Registration Status Report

j.         Exception reports to cover risks like no activity for a period of time or over activity in terms of utilisation of funds by agencies at different hierarchical levels

k.    Channel Performance in terms of success of transactions and Pattern of Failures

l.      Banks Performance in Response Time to Various Requests


m.      Canned/Operational Regular Reports for accounting for each agency like Cash Book

n.      Regulatory and compliance Reports based on business rules like expenditure based on region, gender, class

o.      Statutory Reports like Utilisation Certificate (UC)


p.         Transaction Voucher

q.       Period Wise Payment status Reports

r.        Daily Credit and Debit Transaction Reports at entity and aggregation level

s.      Stage Wise Payment Transactions Details

t.       Rejected/Failed Transactions with reason

u.     Level Based and period based Aggregated/Detailed Payments related debits and credits status

v.       Transactions not delivered and Status Pending

(iii)             Reconciliation of Transactions in PFMS & eLekha

a.        Periodic position of automated reconciled Transactions

b.      Period Based Unreconciled Outstanding Transactions

c.       Reconciliation of ePayment Transactions

(iv)              Dashboards & DSS

a.        Scheme and Agency Score Cards against set parameters –Bank Dashboards for their performance

b.      Performance against Key Performance Indicators (KPIs) based on parameters

c.       Events and Triggers based of critical factors like availability of funds, amount spent more than limits/budget/allocation, cash transactions based on amount of transactions

d.      Dashboard for District Collectors

(v)                Communication & Knowledge Management /Help Desk

a.        SMS to agency/individual for funds transferred and received in account

b.      E-Mail Messages to agencies for transactions

c.       Events based triggers for alerts for action

d.      Sharing of changes in application and availability of new functionalities

e.      Availability of application manuals


Accounting, Reconciliation and Audit trail

PFMS is public financial management system for schemes of Govt. of India which can be also used for state schemes. PFMS is a transaction based system to provide real time utilization of funds released from consolidated fund of India. PFMS has been designed in a way to meet complete end to end requirements of accounting and fund management.

All the transactions initiated for Aadhaar Based Payments from PFMS will be automatically become part of fund utilization. PFMS is under process to integrate with accounting package to provide accounting needs of various departments and implementing agencies.

PFMS has in built Utilization Certification (UC) Module which will be used to track and monitor the UCs from implementing agencies.


The system provides for assigning the Unique Transaction Id called PFMSTransactionId to each of the transaction to be maintained throughout the lifecycle of the transactions till these get reconciled. The transaction status at each stage can be tracked and made available to the related agency for information and corrective actions (if required).

Any event of exception is connected to triggers and alerts depending on nature of such events to various role holders.

Rejected/Exception transactions are tracked with reasons for re-origination to ensure that transactions are not pending for payment and cross references in these transaction are mentioned to satisfy the reconciliation conditions.

Transaction status is appropriately compared with each transaction in batch provided to the sponsored bank to ensure integrity and consistency between origination and responding system.

Wherever there is any missing link, the related parties join hand resolve and reconcile within the prescribed time cycle say 48 hours. Anything beyond this threshold becomes critical to resolve through escalation process.

Audit Trail:

Each transaction once captured is linked to each other by maintaining history and current status. The system provides for back tracking and forward tracking process of transactions.

On enquiry, any transaction observed to be abnormal can give the status from its origination till the time query is made. The transactions capture time, maker, checker, system IPs (MAC) and their actions which appear in the history of transaction.