PFMS Integration Protocol for CFC Grants

📢 PFMS Integration for CFC Fund Utilisation in Panchayats

To ensure transparency and effective use of Central Finance Commission (CFC) grants by Panchayats, the Ministry of Panchayati Raj has mandated the integration of eGramSwaraj with PFMS (Public Financial Management System) through the eGSPI interface.

Key payment protocol guidelines for stakeholders (eGramSwaraj, PFMS, empanelled banks, and end users) are:

1. DSC Registration: All PRIs must register Digital Signature Certificates (DSC) for their Maker and Checker roles in eGramSwaraj and obtain approval from the higher authority.
2. DSC Specifications: Grade 2 or above DSCs with signing and encryption features are required for both Maker and Checker.
3. Account Booking: PRIs must:
   • Close the 2019-20 Yearbook
   • Close the Month Book for April 2020
   • Close the Day Books for May 2020 up to the current date
   Only after this, real-time payments will be enabled.
4. Bank Accounts: GPs must use PFMS-integrated banks that support DSC-enabled payments. As of March 16, 2021, 176 such banks are available.
5. Turnaround Time for FTO Processing:
   • T0: FTO generation (after signing by Maker and Checker)
   • T0+1: FTO transfer from eGS to PFMS
   • T0+3: PFMS to Bank (via NPCI/NEFT)
   • T0+5: Bank to PFMS - Success/Failure status
   • T0+6: PFMS to eGS - Success/Failure update

These steps are essential to facilitate smooth and timely disbursal of funds to Panchayats across India.

🔗 View Official PDF Reference: PFMS Payment Protocol