Mechanism for efficient & simple financial management system and Online transfer & tracking of funds

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INVC,,

New Delhi,,

The Ministry of Panchayati Raj has worked out a mechanism for efficient management of programmes, funds, and planning functions. The mechanism is based on switch over from the present system of ‘Advances and Disbursement’ to a system of ‘Authorization’. In this framework, each IE would be given an ‘Authorization’ for up to a certain amount based on their entitlement as per the programme guidelines, MoPR has also developed ‘Plan Plus’ software which facilitates integrated (cross-sectoral) District/Sub-District planning and seamless convergence of plethora of schemes and resources. This application will integrate with the new mechanism for fund transfer and provide an unified Planning, Accounting and MIS system.

In addition, to enable final payments to the beneficiaries, the Business Correspondents (BCs) option is being tried under various schemes. With the use of Electronic Benefit Transfer system and biometric based smart-card technology, the new mechanism is capable of integrating the BC model for the disbursal purposes. In fact Govt. of India has mooted BC model for the 97 unbanked Blocks (86 in NE alone) in the country for extending Banking services.

The objective of this entire exercise is to Reflect the changed content of programmes; Enable tracking of actual expenditure (not merely the releases) with necessary details. Provide timely and reliable Management Information, out of the huge magnitude and complexity of transactions, which is useful for monitoring and decision making; Eliminate the large float in the system, due to the Special Purpose Entities (SPEs) created purportedly for efficient transfer of funds and Bring SPEs into the formal structure of accountability, including audit by CAG.

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