Depts to open A/c with RBI for Rs 100 cr plus fund transfer

Seeking to facilitate electronic fund transfers, the Finance Ministry has asked other ministries and departments to immediately open e-FPB accounts with the RBI for receipt or payments exceeding Rs 100 crore.

The e-FPB (Electronic Focal Point Branch) account will be used by the government to receive non-tax revenue payments like dividends from PSUs and banks, and to make fund transfers for plan schemes.

According to sources, all ministries and departments have been asked to "immediately open an e-FPB account with the RBI for collection of non-tax revenues of the government exceeding Rs 100 crore".

The non-tax revenue portal (NTRP) has been made operational by the Public Financial Management System (PFMS) for collection of non-tax revenues of the government.

"The NTRP has been made operational. All Pay and Accounts offices are expected to be integrated with the NTRP shortly for collection and accounting of non-tax revenue," an official said.

The government has budgeted to collect over Rs 3.22 lakh crore in current fiscal from non-tax revenues, which includes interest, dividends and grants.

E-FPB accounts collate e-payment receipts received through the banks' Internet portal and sends challans to respective ministries.

The official further said inter-Accountal Adjustment Advice (IAAA) would be made operational shortly by PFMS for payment exceeding Rs 100 crore to PSUs and others, including private parties.

PFMS, under the Department of Expenditure, provides a unified platform for tracking releases and monitoring the last mile utilisation of government funds.

The Finance Ministry had last month directed all the ministries and departments to bring central sector schemes on the PFMS platform.

Central sector schemes such as MGNREGA, Sarva Shiksha Abhiyaan and MPLAD are fully supported by the central government and are being implemented by various departments.

Central ministries and departments have been directed to complete the full roll-out of PFMS by October 31, 2016, and for all grantee institutions by 31st March 2017.