Electronic fund management system (e-FMS) is being used in MNREGA.

Steps are being initiated by banks to link their respective core banking
software with MNREGA. So far, State Bank of India, Bank of India and
Central Bank of India have completed entire preparations. Other banks are
also moving towards this direction.
Main objective of e-FMS is to end disruption in flow of funds in various
implementation agencies including Gram, Janpad and Zila Panchayats.
Through this, delay due to banking system will end and funds for wages,
material and administrative expenses will reach beneficiaries bank accounts
directly through electronic system. All the Gram Panchayats and
departments associated with MNREGA will be able to transfer funds to
accounts maintained under core banking service. There is no need now to
maintain separate accounts with Gram Panchayats and line departments.
Errors in records will also be eliminated through e-FMS. Besides, getting
accounts audited will also be easy. The situation of funds remaining
unutilised due to disruption of fund flow at various levels and process of
withdrawing unutilised funds from agencies will come to an end. With this,
agencies will also be free from doing top-up with demand of funds under
minimum revolving funds.
It has been decided with effect from April 1, 2013 to implement e-FMS for
MNREGA-related payments throughout the state. All the banks in the state
have been asked to link their respective core banking systems with MNREGA
software.
Under e-FMS, works, their measurements etc. will be fed through MNREGA
software. On its basis, fund transfer order (FTO) will be issued under
competent officers digital signatures, which will reach banks through core
banking to concerning bank. After tallying digital signatures of persons
authorised by banks, funds will be transferred to accounts of beneficiaries.
This system will be adopted for payment of works being undertaken by
departments under MNREGA.