Standard Operating Procedure (SOP

)
Modules for Direct Benefit Transfer (DBT)

DBT Mission
Cabinet Secretariat

Website:
h p://cabsec.nic.in/dbt/origin.html

CONTENTS
4 List of Abbrevia ons ........................................... 4

4 Sec on 1 - DBT Framework ........................................... 5

4 Sec on 2 - Classifica on of Government
Schemes/Components ........................................... 8

4 Sec on 3 - Standard Opera ng Procedures
(SoPs) for DBT schemes ............................................10

4 Sec on 4 - SoP I: Cash Transfer from
Government to Individual Beneficiary ............................................13
Illustra ve example: MGNREGA,
Ministry of Rural Development ............................................18

4 Sec on 5 - SoP II: In-kind transfer from
Government to Individual Beneficiary ...........................................19
Illustra ve example: Food PDS ,
Department of Food & Public
Distribu on ............................................25

4 Sec on 6 - SoP III: Other Transfers ............................................26
Illustra ve example: Anganwadi
Workers (AWW)/Anganwadi Helpers
Integrated Child Development
Services (ICDS) ............................................32

4 Sec on 7 - Architecture of Fund Transfer
under the DBT Framework ............................................33

3

List of Abbrevia ons
A/C - Account NPCI - Na onal Payments
APBS - Aadhaar Payment Bridge Corpora on of India
System NSAP - Na onal Social Assistance
ASHA - Accredited Social Health Program
Ac vist OMMAS - Online Management,
BD - Beneficiary Database Monitoring and Accoun ng System
CAS - Common Applica on So ware PAHAL - Pratyaksh Hastantarit Labh
CBS - Core Banking Solu on PAO - Pay and Accounts Office
CHC - Community Health Centre PD - Program Division
DBT - Direct Benefit Transfer PDS - Public Distribu on System
DHS - District Health Society PFMS - Public Financial Management
DRD - Department of Rural System
Development PHC - Primary Health Centre
FMG - Financial Management Group PIP - Program Implementa on Plan
ICDS - Integrated Child Development PIU - Program Implemen ng Units
Services PMGSY - Pradhan Mantri Gram Sadak
IFD - Integrated Finance Division Yojana
IFSC- Indian Financial System Code Pr. AO - Principal Accounts Office
IT – Informa on Technology RGI - Registrar General of India
JSY - Janani Suraksha Yojana SC - Sub health Centre
MGNREGA - Mahatma Gandhi SFDA - State Forest Development
Na onal Rural Employment Agency
Guarantee Act SFT - Secure File Transfer
MIS - Management Informa on SOP - Standard Opera ng Procedure
System SRRDA - State Rural Roads
NACH - Na onal Automated Clearing Development Agency
House UC - U liza on Cer ficate
NAEB - Na onal Afforesta on and UIDAI - Unique Iden fica on
Eco-development Board Authority of India
NAP - Na onal Afforesta on Program ULB - Urban Local Body
NGO - Non Government Organisa on UT - Union Territory
NHM - Na onal Health Mission
NIC - Na onal Informa cs Centre

4

DBT Framework .1.

1 Stakeholders Involved in DBT Framework 6 . Direct Benefit Transfer (DBT) framework has a mul -stakeholder architecture which capitalises on the competencies of various departments and ins tu ons to deliver benefits to beneficiaries in a mely and effec ve manner. The figure below explains how different stakeholders work together to facilitate a holis c environment for successful implementa on of DBT system. Fig. Ministries & Departments IT Team Iden fica on & Digi sa on of authen ca on Beneficiary Database of Beneficiaries PFMS to act as a pla orm for DBT $ Banks/ India Post/ UIDAI Payment Banks RGI PFMS as a Pla orm for DBT Ul mate objec ve Cash subsidies to be transferred directly to beneficiaries' respec ve accounts and in-kind benefits to be delivered directly to beneficiaries a er they have been duly authen cated.

done by maker and payment authority of Implemen ng Agency Ÿ Sharing final payment response with the concerned Ministry/State Department/Implemen ng Agency within the me limit as prescribed by banks. IT Team of Ministry/Department · Digi za on of verified beneficiary data · Crea on and maintenance of real me MIS portal · Timely update and maintenance of data 3. Banks/ Post Offices Ÿ Opening of bank accounts/postal accounts/Jan Dhan accounts. Ÿ Issue automa c U liza on Cer ficates (UC) to the Ministries/Departments which have u lised their funds under a scheme. Ÿ Provide training and hand-holding support to user departments. Examina on of all schemes to iden fy specific schemes and/or their components which are suitable for DBT.done by DDO/PAO of concerned Ministry/Department b) For DBT payments by implemen ng agency. · Crea on of payment files for disbursements to end beneficiaries. · Seeding of Aadhaar into beneficiary database. Ÿ Processing of payment files to the sponsor bank of Ministry/ State Department/ Implemen ng Agency for disbursal of benefits: a) For DBT payments by Ministry/Department. Ÿ Generating payment status response files with PFMS. . Ministries/Departments · Crea on of a DBT Cell to facilitate smooth transi on of different schemes to DBT. 2. Ÿ Dissemina on of payment informa on to beneficiaries through SMS alerts about credit/debit of the fund transfer under a scheme. Ÿ Verifica on of bank account details of beneficiaries by maker/checker using PFMS pla orm.metric authen ca on to establish iden ty of individual 4. PFMS Ÿ Facilitate mapping of schemes to bank accounts of different stakeholders by Program Divisions involved in fund flow under various schemes. Ÿ Carrying out payments to beneficiaries' accounts within the prescribed me limits. Ÿ Dissemina on of informa on about payments to beneficiaries through SMS alerts based on reverse informa on on credit success from Banks. 5.ROLES & RESPONSIBILITIES OF STAKEHOLDERS 1. 7 . Ÿ Upda ng Beneficiary data (Upda ng bank account numbers and linking them with Aadhaar). UIDAI/Registrar General of India · Ensure Aadhaar enrolment · Enable Bio. · Maintenance of database containing scheme wise beneficiary details. Ÿ Establishment of reverse feedback loop to Ministries/Departments. · Iden fica on and authen ca on of beneficiaries for respec ve schemes.

Classifica on of Government Schemes/Components .2.

II) In-kind Transfer to Individual Beneficiary . medicines. are not beneficiaries themselves but they are given wages. the schemes/components can be classified into two broad categories based on the type of benefit given to the beneficiaries: I) Cash Transfer to Individual Beneficiary – This category includes schemes or components of schemes wherein cash benefits are transferred by Government to individual beneficiaries. The difference represents the consumer subsidy for the PDS. etc. and is paid to the Corpora on by the Government of India. in Public Distribu on System (PDS).This category includes schemes or components of schemes where in-kind benefits are given by the Government to individuals through an intermediate agency. FCI issues the food grains at subsidised rates. vaccines. Individual beneficiaries receive these goods or services for free or at subsidised rates. The rates so fixed do not cover the full economic cost incurred by the Corpora on. incen ves.ASHA workers under NHM. for their service to the beneficiaries/community. Aanganwadi workers under ICDS. Similarly. For example PAHAL. This transfer of cash benefits from Ministry/Department to beneficiaries happens through different routes as given below: a) directly to beneficiaries (from Consolidated Fund of India) b) through State Treasury Account to beneficiaries (from State Consolidated Fund) c) through an Implemen ng agency ( as appointed by Central/State Governments) to beneficiaries. incen ves. movement. etc.To facilitate be er understanding of which scheme or component of scheme can be considered as DBT compliant. teachers in Aided School. books. as fixed by the Government. training. storage and distribu on of food grains to Fair Price shops. fer lisers. etc. Government incurs internal expenditures for provision of in-kind subsidies on other products like kerosene. To cite an example. NSAP etc. etc. 9 . Typically. MGNREGA. the Government or its agent incurs internal expenditure to procure goods for public distribu on and to provide services for targeted beneficiaries. Food Corpora on of India (FCI) is the Government agent responsible for procurement. etc. Sanita on staff in ULBs. who are the enablers of government schemes for successful implementa on of the schemes. to community workers and NGOs. For example . and to spearhead the transi on process of schemes to DBT. Other Transfers This category includes transfers made in the form of honorariums.

Standard Opera ng Processes (SOP) for DBT Schemes .3.

namely Cash Transfer to Individual Beneficiary. 6 and 7 respec vely. The sub process 'Payment and Feedback Loop' listed at E is discussed elaborately in Sec on 8 tled 'Architecture of Fund Transfer Under the DBT Framework'. These sub processes include: A.Valida on of Beneficiary Details (for SOP I and SOP III) / Distribu on of in-kind benefits (for SOP II) E.Preparatory Steps B. Sec on 8 is applicable only for SOP I and SOP III.Registra on on PFMS C. In- Kind Transfer to Individual Beneficiary and Other Transfers/Processes within the program design in Sec ons 5.Crea on of Beneficiary Database D. These sub processes are described with the help of a general process map below: 11 .The process of direct benefit transfer to beneficiaries comprises various sub processes at different levels in the overall structure.Payment and Feedback Loop Sub processes A to D are enunciated for two scheme categories.

State Ministry/Department/State PFMS and components Department/Implementing and verify Department to create treasury users. Implementing Agency to create two users -Maker of scheme Agency to register on PFMS registration and Checker on PFMS portal (C ) Beneficiary Database Ministry/Department/State Department/ Ministry/Department/State Ministry/Department/State Field functionaries of Ministry/Department/ Implementing Agency to upload Creation Department/ Implementing Department/ Implementing Agency State Department/ Implementing Agency to Bank/Postal account and Aadhaar to digitise Beneficiary Database collect Bank /Postal A/c & Aadhaar details of beneficiaries on PFMS after manual/ Agency to identify beneficiaries (BD) after verification of Beneficiaries and seed Aadhaar in BD physical verification (D) Beneficiary's Data and bank A/C PFMS to send Bank/postal A/c and Banks and NPCI to share validation response with PFMS and PFMS Ministry/Department/State Department/ Validation Aadhaar details of beneficiaries to to share the same with Ministry/ Department/State Department/ Implementing Agency to rectify data for unvalidated beneficiaries banks and NPCI for validation Implementing Agency and resend the same to PFMS (E) Payment & Refer to Section 8 – 'Architecture of fund flow under DBT Framework' Feedback Loop 12 . SOP I: CASH TRANSFER FROM GOVERNMENT TO INDIVIDUAL BENEFICIARY (A) Preparatory Steps DBT Cell to identify DBT DBT Cell to develop IT based Ministry/ Department to schemes or DBT components System/MIS. create a Grievance create a DBT Cell of schemes and study process/fund flow Redressal Unit and train officials (B) Registered Ministry/Department to Registration on PD to define hierarchy PD and Pr. AO to approve create PAO/DDO/CDDO.

4. SOP I: Cash Transfers from Government to Individual Beneficiaries .

However. Officers from CCA/CA and IT experts fund flow (NIC). It should DBT Cell will study the exis ng process flow and fund also be compa ble with PFMS. Development which will capture data at process ini a on points and provide an intui ve user interface in local Indian languages. DBT cell will cons tute a dedicated body to deal with complaints and grievances of beneficiaries in a fair and mely manner. The System U lity/MIS flow under each scheme and reengineer the same may be like NREGA-SOFT of Ministry of Rural wherever necessary. Thus. Process re-engineering may be undertaken to simplify procedures wherever necessary. DBT Cell will train all stakeholders including officials of States and UTs on usage of MIS. DBT Cell may provide a user manual/guide and organise workshops/seminars. 14 . officials and iii) Other Transfers/Processes beneficiaries and enable report genera on. suitable grievance redressal mechanisms need to be established at different layers to address grievances pertaining to various stakeholders in the system. The grievances may be pertaining to various issues like delays in receiving subsidy amount in the bank account of beneficiaries. Preparatory Steps Ministry/Department to create a DBT Cell 1 Each Ministry/Department will create a DBT Cell which will be headed by an officer not below the rank of Joint Secretary and comprise of officials handling the DBT Cell to iden fy DBT schemes or DBT iden fied Schemes. dynamic update of data and daily tracking of progress. A. incorrect set of en tlements received by the end beneficiary. etc. components of schemes and classify them in the following categories. incorrect or delayed feedback. create a Grievance Redressal unit and train officials 3 I) Cash Transfer from Government to Individual Beneficiary DBT cell will develop an IT based System U lity/MIS for ii) Transfer In-kind from Government to Individual its schemes that will provide a coherent centralized Beneficiary workflow engine for field func onaries. The system may be designed with func onal modules to enable easy maintenance and provide space for all stake holders for their share of work. officials from Integrated Financial 2 components of schemes and study process/ Division (IFD). management and implementa on of schemes. Responsibility of DBT Cell Ministry/Department may consider outsourcing the IT DBT cell will iden fy DBT schemes or DBT solu ons as per requirements. each Ministry/Department will have in place a comprehensive System U lity/MIS for effec ve monitoring. Data once entered should be usable in all subsequent opera ons to reduce data duplica on and re-entry at different stages. DBT Cell to develop IT based System/ MIS.

register itself through the link available on home page of PFMS.me ac vity to be 2 Department/Implemen ng agency to register on PFMS carried out for each scheme to ensure PD will register the concerned Ministry/ monitoring of flow of funds. Components may Department/State Department/ need to be configured each year. etc. PFMS portal AO via PAO acknowledging that it has verified The registered Ministry/Department will the details. also process or se le payment files online. and the same may be accepted by create PAO/DDO/CDDO as users on the Pr. For State Department. It is impera ve that the Integrated Finance Division (IFD)/ PAOs. Registra on on PFMS PD to define hierarchy and components of scheme 1 PD will define hierarchy and components of Ministry/Department/State each scheme on Public Financial Management System (PFMS). AO to approve and verify registra on 3 accounts/IFSC codes. need to be ensured. B. In Implemen ng agency along with the details case the hierarchy/components get changed of the sponsor bank. 15 . the for a par cular scheme. if required. The agency may create two users . State Department/Implemen ng agency at the me Department to create treasury users. Department/Implemen ng agency will Implemen ng Agency will get a login ID and register the sub-agency(ies) whose bank password from the Ministry/Department details will be approved post verifica on by the a er its registra on is approved on PFMS. This is a one. of registra on. Integrity of data captured and veracity of bank PD and Pr. Checker/Authoriser will use PFMS pla orm for approval of payment file by providing digital signature. the PFMS Pla orm. users . The Authoriser can also be the PAO or State Nodal Officer.Maker and Checker/Authoriser. Ministry/Department/State treasury users will be created on PFMS. it is required that the concerned Ministry/Department/State changes be incorporated for the next financial Department/Implemen ng agency can year in advance. PD will approve the registra on by verifying the 4 d e t a i l s f u r n i s h e d b y t h e Registered Ministry/Department to Ministry/Department/State create PAO/DDO/CDDO. Maker will be responsible for crea ng payment files for beneficiaries (e-Sanc on) and Checker/Authoriser will verify the payment files. The Authoriser will enrol Digital Signature on PFMS and configure it.Maker and Checker on A er approval. AO. The bank account details will be Implemen ng agency to create two verified using the PFMS-CBS interface. PFMS-CBS interface. etc. PD will send a statement to Pr. In case there are sub-agencies. Alterna vely.

Beneficiary Database Crea on Ministry/Department/State Department/ Implemen ng Agency to iden fy beneficiaries 1 Ministry/Department/State Department/ Implemen ng agency will iden fy beneficiaries for e a c h s c h e m e . Based on the beneficiary files. One. Digi sa on of verified State/UT officials or field func onaries will collect data may be carried out in the System U lity/MIS t h e b a n k / p o s ta l a c c o u n t d e ta i l s o f t h e as per the prescribed e-Governance standards beneficiaries and seed them in the database as per incorporated in NIC's Common Applica on the parameters/format prescribed by PFMS. demographic details of seed Aadhaar in BD beneficiaries.). Ministry/Department will digi se BD using MIS Field func onaries of Ministry/Department/State which will have scheme-wise beneficiary details Department/ Implemen ng Agency to collect Bank/ Postal A/c & Aadhaar details of Beneficiaries and 3 such as name. trained Officer/ Ins tu ons etc. C. 16 . S tate / U T o ffi c i a l s o r fi e l d func onaries will prepare beneficiary files as per Ministry/Department/State Department/ prescribed parameters/format provided by Public 2 Implemen ng Agency to digi se Beneficiary Database (BD) a er verifica on Financial Management System (PFMS). numbers. Aadhaar etc. need to be ensured. Obtaining meaningful data is essen al to reduce the itera on for account valida on.me consent of the individual beneficiaries for use of their Ministry/Department/State Department/ Aadhaar numbers may be obtained. Ministry/Department/State Department/ Implemen ng Agency will send/upload the beneficiary files to/on PFMS for verifica on of Bank/Postal account details and Aadhaar. Integrity of data captured and veracity of bank accounts/IFSC 4 Implemen ng Agency to upload Bank/Postal account and Aadhaar of beneficiaries on PFMS codes. etc. They So ware (CAS) provided to States/UTs. The beneficiary details will be verified by concerned authori es (State Nodal A er digi sa on of beneficiary database. will also collect the Aadhaar details of beneficiaries and seed them in the database.

unvalidated beneficiaries and resend the 3 These response files will contain informa on on same to PFMS account holder's name as per record. However. PFMS again. D. 2 response with PFMS Ministry/ Department/ State Department/ Banks and NPCI will share the valida on Implemen ng Agency to rec fy data for responses for the beneficiary files with PFMS. This will con nue ll data of all beneficiaries is accepted/ validated from Banks /NPCI. Several rounds of data pushing may occur ll data is 100% correct. the Ministry/Department/State Department/Implemen ng Agency can s ll prepare payment files for par al list of validated beneficiaries. will send beneficiary files to banks/ India Posts for account valida on and Aadhaar details to NPCI Banks and NPCI to share valida on for verifica on of Aadhaar. through its automated processes. 17 . PFMS will Ministry/Department/State send these response files for all beneficiaries Department/Implemen ng Agency will check (both for those whose details are validated and the response files and rec fy beneficiaries' data not validated) to Ministry/Department/State wherever required and send the rec fied files to Department/Implemen ng Agency. Beneficiary’s Data and Bank A/C Valida on PFMS to send Bank/postal A/c and Aadhaar details of beneficiaries to banks and NPCI for 1 valida on PFMS.

Officials of option on NREGA portal available for NIC-DRD Informatics Cell. Ministry of Rural Development NREGA MIS/NREGA-soft developed by NIC (A) team. validation of the Beneficiary's data and Bank Account and bank A/C details are done by field functionaries themselves to save time. (E) Payment & Refer to Section 8 – 'Architecture of fund flow under DBT Framework' Feedback Loop 18 . State/District NIC Centres Ministry of Rural Development grievance redressal from all stakeholders (B) Registration on PD to define Approval of agency Field functionaries appointed PFMS hierarchy and Registration of by PD. An Illustra ve Example of SOP I: MGNREGS. The central team trains the State NIC team who will act as master trainers for Preparatory Steps District NIC team and District NREGA staff. However. Project coordinator. as illustrated in the generic diagram on 'Processes for DBT' for 'Cash Transfers from Government to Individual Beneficiary on page 9. Data entered is sent by offline/ online mechanism to the details of workers and seed them files of beneficiaries to PFMS after verification by higher level field identified central server at New Delhi. in the database officials (D) Beneficiary's Data As MGNREGS entails payments to beneficiaries on a daily basis. validation of beneficiary details including bank Validation accounts are to be done through PFMS. Feedback Directors. AO (C ) Beneficiary Database Worker database maintained on Field functionaries collect Ministry sends Aadhaar + Bank a/c Bank A/c and Aadhaar Creation Beneficiaries NREGA-soft. verification as Maker and Checker.Technical Identification of schemes by NREGA staff and Data entry staff. components of scheme agency on PFMS by Pr. The District NIC team has trained Block Central NIC team in Ministry of Rural Development may be considered as the DBT Cell .

5. SOP II: In-Kind Transfers to Individual Beneficiaries .

SOP II: IN-KIND TRANSFER FROM GOVERNMENT TO INDIVIDUAL BENEFICIARY (A) Preparatory Steps DBT Cell to identify DBT DBT Cell to develop IT based Ministry/ Department to schemes or DBT components System/MIS. AO to approve PFMS and components Department/Implementing and verify of scheme Agency to register on PFMS registration (C ) Beneficiary Database Field functionaries of Ministry/Department/ Ministry/Department/State Ministry/Department/State State Department/Implementing Agency Creation Department/ Implementing Department/ Implementing Agency to collect Aadhaar details of Beneficiaries to digitise Beneficiary Database Agency to identify beneficiaries (BD) after verification and seed Aadhaar in BD (D) Distribution of In-kind benefits Ministry/Department/State Allocation of in kind benefits Department/Implementing Agency Delivery of In-kind benefits to to States/ UTs beneficiaries after authentication at to develop mechanism for distribution of goods PoS (preferably Aadhaar enabled) 20 . create a Grievance create a DBT Cell of schemes and study process/ flow Redressal unit and train officials (B) Registration on PD to define hierarchy Ministry/Department/State PD and Pr.

Data once entered should be usable in all subsequent opera ons to reduce data duplica on and re-entry at different stages. The grievances may be pertaining to various issues like delays in receiving en tlements. create a Grievance Redressal Unit and train officials 3 I) Cash Transfer from Government to Individual Beneficiary DBT cell will develop an IT based System U lity/MIS for ii) In-kind transfer from Government to its schemes that will provide a coherent centralized Individual Beneficiary workflow engine for field func onaries. A. DBT cell will iden fy DBT schemes or DBT components of schemes and classify them in the following categories. Development which will capture data at process ini a on points and provide an intui ve user interface in local Indian languages. Thus. officials and iii) Other Transfers/Processes beneficiaries and enable report genera on. DBT Cell to develop IT based System/ MIS. and will comprise officials handling the DBT Cell to iden fy DBT schemes or DBT iden fied schemes. Process reengineering may be undertaken to simplify procedures wherever necessary. DBT Cell may provide a user manual/guide and organise workshops/seminars. fund flow Ministry/Department may consider outsourcing the IT Responsibility of DBT Cell solu ons as per requirements. management and implementa on of schemes. DBT Cell will train all stakeholders including officials of States and UTs on usage of MIS. It should DBT Cell will study the exis ng process flow and fund also be compa ble with PFMS. However. dynamic update of data and daily tracking of progress. Preparatory Steps Ministry/ Department to create a DBT Cell 1 Each Ministry/Department will create a DBT Cell which will be headed by an officer not below the rank of Joint Secretary. officials from Integrated Financial 2 components of schemes and study process/ Division (IFD) and IT experts (NIC). suitable grievance redressal mechanisms need to be established at different layers to address grievances pertaining to various stakeholders in the system. DBT cell will cons tute a dedicated body to deal with complaints and grievances of beneficiaries in a fair and mely manner. The System U lity/MIS flow under each scheme and re-engineer the same may be like NREGA-SOFT of Ministry of Rural wherever necessary. each Ministry/Department will have in place a comprehensive System U lity/MIS for effec ve monitoring. etc. incorrect or delayed feedback received by the end beneficiary. The system may be designed with func onal modules to enable easy maintenance and provide space for all stake holders for their share of work. 21 . incorrect set of en tlements received by the end beneficiary.

need to PD will approve the registra on by verifying be ensured. A er approval. Department/State Department/ Components may need to be configured Implemen ng agency along with the each year. AO to can register itself through the link approve and verify registra on 3 available on home page of PFMS. Registra on on PFMS PD to define hierarchy and components of scheme 1 PD will define hierarchy and components of Ministry/Department/State each scheme on Public Financial 2 Department/Implemen ng Agency to register on PFMS Management System (PFMS). Ministry/Department/State Department/Implemen ng Agency will register the sub-agency(ies) whose bank details will be approved post verifica on by PFMS-CBS interface. AO via PAO acknowledging that it has verified the details and the same may be accepted by Pr. the details furnished by the Ministry/Department/State Department/Implemen ng Agency at the me of registra on. B. PD will send a statement to Pr. In case there are sub- agencies. Alterna vely. AO. This is a one- me ac vity to be carried out for each PD will register the concerned Ministry/ scheme to monitor the flow of funds. 22 . Bank account details will be verified using the PFMS-CBS interface. etc. if required. details of the sponsor bank. the concerned Ministry/Department/ State Department/Implemen ng Agency PD and Pr. Integrity of data captured and veracity of bank accounts/IFSC codes.

State/UT officials or field Ministry/Department/State Department/ func onaries will prepare beneficiary database in a standard format. Integrity of So ware (CAS) provided to States/UTs.me consent of prescribed e-Governance standards the individual beneficiaries for use of their incorporated in NIC's Common Applica on Aadhaar numbers may be obtained. Beneficiary Database Crea on Ministry/Department/State Department/ Implemen ng agency to iden fy beneficiaries 1 Ministry/Department/State Department/ Implemen ng Agency will iden fy beneficiaries for each scheme. demographic Aadhaar in BD details of beneficiaries. numbers. Based on the beneficiary files. data about beneficiaries including Aadhaar need to be ensured. C.). Ministry/Department will digi se BD using MIS Field func onaries of Ministry/Department/State which will have Scheme-wise beneficiary Department/Implemen ng Agency to collect Aadhaar details of Beneficiaries and seed 3 details like name. The beneficiary details will be verified by concerned A er digi sa on of beneficiary database. trained authori es (State Nodal Officer/Ins tu ons State/UT officials or field func onaries will etc. as decided by the DBT Cell of 2 Implemen ng Agency to digi se Beneficiary Database (BD) a er verifica on the Ministry/Department. etc. One. Digi sa on of verified data may be collect the Aadhaar details of beneficiaries and carried out in the System U lity/MIS as per the seed them in the database. 23 .

The beneficiary will approach the nearest outlet and receive the en tled quan ty a er authen ca on. preferably Aadhaar enabled. D. 2 Implemen ng Agency to develop mechanism for distribu on of goods The Ministry/ Department/ State Department/ Implemen ng Agency will develop a robust infrastructure/ mechanism to distribute goods Delivery of In-kind benefits to beneficiaries a er authen ca on 3 to channels/outlets from where they can be easily delivered to the end beneficiary. the Central Government will allocate fixed quan es of goods for public distribu on to Ministry/Department/State Department/ States/UTs. at the point of sale/distribu on. Distribu on Of In-Kind Benefits Alloca on of In-kind benefits to States/UTs 1 As per s pulated regula ons under each scheme. 24 .

Department of Food & Public Distribu on (A) Preparatory Steps Department of Food and Public DBT Cell to study process/fund DBT Cell to develop MIS for State/ Distribution to create a DBT cell flow of Food-PDS UTs. create Grievance Redressal Unit & train officials (B) Registration on PFMS PD to define hierarchy Agency appointed for PD and Pr. 25 . preferably Fair Price Shops Aadhaar based authentication. An Illustra ve Example of SOP II: Food PDS. AO (proposed) and components of implementation of PDS to approve and verify Food PDS to register on PFMS the registration (C ) Beneficiary Database State/UT to identify Beneficiary database maintained on Field functionaries to collect Creation beneficiaries as per MIS. Ration Card (RC) details Aadhaar details and seed them Regular review of RC details for in the database updation by State/UT eligibility to be digitised (D) Distribution of Food Grains Food grains allocation to FCI to deliver food grains to designated depots in States/ Fair Price Shops distribute States/UTs UTs and then to Fair Price Shops ration as per entitlement Food grains delivered to beneficiaries based on ration amount after PoS device to be installed at authentication.

SOP III : Other Transfers .6.

State hierarchy and Department/Implementing approve and verify Department to create treasury users. AO to PFMS PD to define Ministry/Department/State create PAO/DDO/CDDO. create Grievance Redressal Unit and create a DBT Cell study process/fund flow train officials (B) Registration on Registered Ministry/Department to PD and Pr. Implementing Agency to create components of scheme Agency to register on PFMS registration two users -Maker and Checker on PFMS portal (C ) Service provider Ministry/Department/State Department/ Database Ministry/Department/State Ministry/Department/State Department/Implementing Agency Field functionaries of Ministry/Department/State Department/Implementing Agency Implementing Agency to upload Bank/ Department/ Implementing Postal account and Aadhaar of Service Creation Agency to identify service providers to digitise Service Provider Database to collect Bank/Postal A/c & Aadhaar details of Service Providers and seed Aadhaar in BD Providers on PFMS after manual/ (SD) after verification physical verification (D) Service Provider's Data and bank PFMS to send Bank/postal A/c and Banks and NPCI to share validation response Ministry/Department/State Department/ with PFMS and PFMS to share the same with Implementing Agency to rectify data A/C Validation Aadhaar details of Service Providers Ministry/Department/State Department/ for unvalidated Service Providers and resend to banks and NPCI for validation Implementing Agency the same to PFMS (D) Payment & Refer to Section 8 – 'Architecture of fund flow under DBT Framework' Feedback Loop 27 . SOP III: OTHER TRANSFERS (A) Preparatory Steps DBT Cell to develop IT based System/ DBT Cell to identify DBT schemes or Ministry/ Department to DBT components of schemes and MIS.

DBT Cell may provide a user manual/guide and organise workshops/seminars. create Grievance Redressal Unit and train officials 3 I) Cash Transfer from Government to Individual Beneficiary DBT cell will develop an IT based System U lity/MIS for ii) In-kind transfer from Government to Individual its schemes that will provide a coherent centralized Beneficiary workflow engine for field func onaries. management and implementa on of schemes. incorrect set of en tlements received by the end beneficiary. fund flow Responsibility of DBT Cell Ministry/Department may consider outsourcing the IT solu ons as per requirements. incorrect or delayed feedback received by the end beneficiary. Process re-engineering may be undertaken to simplify procedures wherever necessary. officials and iii) Other Transfers/Processes beneficiaries and enable report genera on. Thus. The grievances may be pertaining to various issues like delays in receiving subsidy amount in the bank account of beneficiaries. etc. DBT Cell will train all stakeholders including officials of States and UTs on usage of MIS. The system may be designed with func onal modules to enable easy maintenance and provide space for all stake holders for their share of work. Preparatory Steps Ministry/ Department to create a DBT Cell 1 Each Ministry/Department will create a DBT Cell which will be headed by an officer not below the rank of Joint Secretary. It should DBT Cell will study the exis ng process flow and fund also be compa ble with PFMS. dynamic update of data and daily tracking of progress. DBT Cell to develop IT based System/ MIS. each Ministry/Department will have in place a comprehensive System U lity/MIS for effec ve monitoring. 28 . DBT cell will iden fy DBT schemes or DBT components of schemes and classify them in the following categories. However. A. Data once entered should be usable in all subsequent opera ons to reduce data duplica on and re-entry at different stages. The System U lity/MIS flow under each scheme and re-engineer the same may be like NREGA-SOFT of Ministry of Rural wherever necessary. officials from Integrated Financial Division 2 components of schemes and study process/ (IFD) and IT experts (NIC). DBT cell will cons tute a dedicated body to deal with complaints and grievances of beneficiaries in a fair and mely manner. and comprise officials handling the iden fied DBT Cell to iden fy DBT schemes or DBT schemes. Development which will capture data at process ini a on points and provide an intui ve user interface in local Indian languages. suitable grievance redressal mechanisms need to be established at different layers to address grievances pertaining to various stakeholders in the system.

Integrity of data captured and veracity of bank accounts/IFSC codes. Ministry/Department/State users will be created on PFMS. The Authoriser can also be the PAO or State Nodal Officer. PD will send a statement to Pr. B. etc. In case there are sub. payment files. 29 . AO via PAO acknowledging that it has The registered Ministry/Department will verified the details and the same may be create PAO/DDO/CDDO as users on PFMS accepted by Pr. Maker will Department/Implemen ng Agency will be responsible for crea ng payment files register the sub-agency(ies) whose bank for Service providers (e-Sanc on) and details will be approved post verifica on by Checker/Authoriser will verify the PFMS-CBS interface. For State Department. State me of registra on. Pla orm. The bank account Department to create treasury users. AO to can register itself through the link approve and verify registra on 3 4 available on the home page of PFMS website. the concerned Ministry/Department/ State Department/Implemen ng Agency PD and Pr. Alterna vely. Checker/Authoriser will use PFMS pla orm for approval of payment file by providing digital signature. need to be ensured. if required. details of the sponsor bank. also process or se le payment files online. It is impera ve that the Integrated Finance Division (IFD)/ PAOs. PD will approve the registra on by verifying etc. AO. the details furnished by the Ministry/Department/State Registered Ministry/Department to Department/Implemen ng Agency at the create PAO/DDO/CDDO. treasury agencies. The Authoriser will enrol the Digital Signature on PFMS and configure it. Registra on on PFMS PD to define hierarchy and components of scheme 1 PD will define hierarchy and components of Ministry/Department/State each scheme on Public Financial 2 Department/Implemen ng Agency to register on PFMS Management System (PFMS). users -Maker and Checker on PFMS portal A er approval. Department/State Department/ Components may need to be configured Implemen ng agency along with the each year. details will be verified using the PFMS-CBS Implemen ng Agency to create two interface. This is a one- me ac vity to be carried out for each PD will register the concerned Ministry/ scheme to monitor the flow of funds.

Based on the service provider files. Ministry/Department will digi se SD using MIS Field func onaries of Ministry/Department/State which will have scheme-wise service providers Department/ Implemen ng Agency to collect Bank/ Postal A/c & Aadhaar details of service providers 3 details like name. trained State/UT officials or field func onaries will Digi sa on of verified data may be carried out in collect the bank/postal account details of the the System U lity/MIS as per the prescribed e- Service Providers and seed them in the database Governance standards incorporated in NIC's as per the parameters/format prescribed by Common Applica on So ware (CAS) provided PFMS. Service Provider Database Crea on Ministry/Department/State Department/ Implemen ng Agency to iden fy Service Providers 1 Ministry/Department/State Department/ Implemen ng Agency will iden fy service providers for each scheme. C. need on PFMS to be ensured. etc. Service Providers and seed them in the database. One. demographic details and seed Aadhaar in SD of service providers. 30 . Integrity of data captured and veracity 4 Implemen ng Agency to upload Bank/Postal account and Aadhaar of service providers of bank accounts/IFSC codes. Obtaining meaningful data is essen al to reduce the itera on for account valida on. ( S tate N o d a l O ffi c e r / I n s t u o n s etc . The service providers details will be verified by concerned authori es A er digi sa on of service provider database. numbers.me consent of the individual service Ministry/Department/State Department/ provider for use of their Aadhaar numbers may be obtained. State/UT officials or field func onaries will prepare service providers Ministry/Department/State Department/ files as per prescribed parameters/format provided by Public Financial Management System 2 Implemen ng Agency to digi ze Service Providers Database (SD) a er verifica on (PFMS). Aadhaar etc. Ministry/Department/State Department/ Implemen ng Agency will send/upload the service provider files to/on PFMS for verifica on of Bank/Postal account details and Aadhaar. They will also collect the Aadhaar details of to States/UTs. ) .

1 r e p e a t s . t h e Ministry/Department/State Department/Implemen ng Agency can s ll prepare payment files for par al list of validated service providers. Service Provider’s Data and Bank A/C Valida on PFMS to send Bank/postal A/c and Aadhaar details of service provider to banks and NPCI 1 for valida on PFMS will send service provider files to banks/posts for account valida on and Aadhaar details to NPCI for verifica on of Aadhaar. H o w e v e r. This will con nue ll data of all service providers is accepted/ validated from Banks /NPCI. Step D. D. unvalidated service providers and resend 3 These response files will contain informa on on the same to PFMS account holder's name as per record. files to PFMS again. PFMS will Ministry/Department/State send these response files for all service providers Department/Implemen ng Agency will check (both for those whose details are validated and the response files and rec fy service providers not validated) to Ministry/Department/State data wherever required and send the rec fied Department/Implemen ng Agency. Banks and NPCI to share valida on 2 response with PFMS Ministry/ Department/ State Department/ Banks and NPCI will share the valida on Implemen ng Agency to rec fy data for responses for the service provider files with PFMS. 31 . Several rounds of data pushing may occur ll data is 100% correct.

An Illustra ve Example of SOP III: ANGANWADI WORKERS (AWW)/ANGANWADI HELPERS INTEGRATED CHILD DEVELOPMENT SERVICES (ICDS) Ministry of Women and Child Development (A) Preparatory Steps Creation of DBT Cell in Ministry of Women & Identification of schemes by DBT Cell to develop an Child Development the Ministry MIS and train officials (B) Registration on Agency to create two users -Maker PFMS PD to define hierarchy Registration of Agency Approval of Agency by PD. Maker can be State and components of ICDS verification by Pr. AO Program Officers/District Program on PFMS Officers/Block CDPO (C ) Service providers' Database Creation Digitise AWWs' Collection of Identification of AWWs Bank A/c/Postal A/c + Send Aadhaar + Bank/Postal database after verification Aadhaar details a/c to PFMS after verification (D) Service Provider's Data and bank Verification of A/c Rectification of AWW's A/C Validation and Aadhaar details Identification of discrepancies data and resending for validation in name and A/c of AWWs to PFMS (E) Payment & Refer to Section 8 – 'Architecture of fund flow under DBT Framework' Feedback Loop 32 . and Checker.

7. Architecture of Fund Transfer Under the DBT Framework .

Fund transfer through any implemen ng agency (as appointed by Centre/State Governments) to beneficiaries. This necessitates the flow of funds from a parent Ministry/Department to the beneficiaries through different routes. old age pension in UP.Almost all schemes of the Government of India involve transfer of benefits.g. In general. the Ministry/Department must ensure that fund transfers.g. Fund transfer through State Treasury Account to beneficiaries. I. Schemes of the D/o Sports through SAI. iii. The architecture of fund flow process under the DBT framework is illustrated in the diagram below followed by a detailed descrip on of each step. Fund transfer from parent Ministry/Department to the accounts of beneficiaries directly e.g.defined fund transfer mechanism is thus. viz. at various levels are captured on the PFMS pla orm. Scholarships of the D/o Higher Educa on through UGC. This sec on explains the fund flow mechanism to be followed under DBT. which preferably should be Aadhaar enabled. A structured and well. The previous sec ons 5. It is to be observed that this fund flow mechanism is par cularly applicable to schemes involving Cash Transfers to Individual Beneficiaries (SOP I) and Other Transfers to enablers of Government schemes (SOP III). 34 . while disbursement of In-kind benefits to beneficiaries is done post authen ca on. there are three different routes through which fund transfers can take place under various schemes. MGNREGS. in either cash or kind to the iden fied beneficiaries. but also compliance with accoun ng requirements. important to ensure not only the successful implementa on of schemes on the DBT pla orm. for e. 6 and 7 focussed on the DBT processes to be established. if any. ii. For e. With regard to In-Kind Transfers (SOP II). Implemen ng agencies may also include Special Purpose Vehicles (SPVs) created by Ministries/Departments for disbursement of benefits (in cash or kind) to intended beneficiaries. scholarships by different Ministries/Departments.

be re-initiated by Ministry/Department/ Screenshot of SMS alert State Department/Implementing Agency from PFMS to beneficiary after rectification. 120. ARCHITECTURE OF FUND TRANSFER UNDER THE DBT FRAMEWORK (E) Payment & Authorizer appointed by Ministry/ Maker of Ministry/Department/State Department/State Feedback Loop Department/Implementing Agency Department/Implementing Agency PFMS to validate and send payment files to create payment files after verification to approve the payment files to the corresponding sponsor bank of Ministry/ and place on PFMS and digitally sign them on PFMS Department/State Department/Implementing Agency All transactions to be routed through NPCI. All Aadhaar based transactions to Non Aadhaar based transactions be routed through NPCI's APBS to be routed through NPCI's Bank of Ministry/Department/ Amount transferred to all (Aadhaar Payment Bridge NACH (National Automated State Department/Implementing individual accounts of System) Clearing House) Agency to transfer payments to beneficiaries beneficiaries' accounts Feedback Bank of Ministry/Department/ PFMS to share the payment response I) Feedback to beneficiaries State Department/Implementing through SMS alerts-credit/debit Loop file status with respective Ministry/ information by corresponding Bank Agency to share payment status Department/State Department/ ii) Scheme wise information response file with PFMS Implementing Agency by PFMS/PD Your bank account credited for PDS Subsidy on 03 May 2016 for Rs. 35 . Repeat Steps 1 to 6.25 for the period 01 May 2016 to Payment for failed transactions to 31 May 2016.

and failed transac ons along with reasons for the failure. the sponsor bank be routed through Aadhaar Payment Bridge 6a of Ministry/ Department/ State Department/ System (APBS) of NPCI and all non-Aadhaar based Implemen ng Agency will share the payment transac ons will be routed through Na onal status response files with PFMS. Ministry/Department/State Department/ Bank of Ministry/ Department/ State Implemen ng Agency Department/Implemen ng Agency to Once approved and digitally signed by the transfer payments to beneficiaries' Authoriser. the Ministry/Department and there shall be no intermediary accounts. etc. All transac ons to be routed through NPCI 5 Bank of Ministry/Department/State Department/Implemen ng Agency to share payment status response file with PFMS The sponsor bank will route all transac ons through NPCI. E. An Off-us (interbank) files with Ministry/ Department/ State transac on is one where there is movement of Department/Implemen ng Agency. The payment files will be processed in PFMS. Reverse informa on loop i)Directly from Ministry/Department to on failed/successful transac ons will be beneficiaries. given to the beneficiaries through SMS alerts The above men oned Steps 1 to 6 can be further regarding transac on by corresponding bank. An On-us (intrabank) with respec ve Ministry/ Department/ State transac on is one where an Aadhaar ini ated Department/ Implemen ng Agency transac on has effects only in accounts within one and the same Bank and does not necessitate an PFMS will then share the payment status response interbank se lement. All Aadhaar based transac ons will Through an automated process. payment files. Steps 1 I) Feedback to beneficiaries through SMS to 6 repeat. The funds will be maintained at the Central level. PAYMENT & FEEDBACK LOOP Maker of Ministry/Department/ State Department/Implemen ng Agency to create payment files a er verifica on and send to PFMS 1 Authoriser to approve the payment files 2 and digitally sign them on PFMS Maker appointed by Ministry/Department/State Department/Implemen ng Agency will create Authoriser will verify and approve the payment payment files on PFMS for beneficiaries and send files by digitally signing either through Ministry them to Checker using PFMS with or without digital Portal interfaced with PFMS or or directly on signature. the payment files will be sent by PFMS accounts t h ro u g h a n a u t o m a t e d p ro c e s s t o t h e corresponding sponsor bank of 4 Amount will be debited from the sponsor bank of Ministry/Department and beneficiaries' bank Ministry/Department/State accounts will be credited through the appropriate Department/Implemen ng Agency. There can be mul ple Authorisers for to the corresponding sponsor bank of 3 approval of payment. payment bridges. Automated Clearing House (NACH) of NPCI. Payment for failed transac ons to be re-ini ated by a er rec fica on. On-us and off-us transac on charges laid down by NPCI 6b PFMS to share the payment response file status will be accounted for. elucidated for each of the three routes of fund Scheme wise payment amount details will be transfer. This informa on on payment status will also be readily available in PFMS reports on DBT. The 7 integral part of the IT pla orm. 36 . alerts-credit/debit informa on by Payment for failed transac ons will be re-ini ated 6c corresponding Bank ii) Scheme wise informa on by PFMS/PD by the Ministry/Department/State Establishment of feedback loop has to be an Department/Implemen ng Agency a er carrying out the required modifica on / rec fica on. These funds from one Bank to another necessita ng an response files will contain the details of successful interbank se lement. Feedback will be whole process from Steps 1 to 6 will be repeated. In case of any error or inaccuracy in the mul ple batches. the Authoriser will reject the en re payment file (batch) by ci ng the appropriate reason from the drop down list of reasons for PFMS to validate and send payment files rejec on. funds would be transferred directly Cer ficates (UCs)/accoun ng to the bank/postal accounts of beneficiaries from purpose/informa on loop to beneficiaries. the details of which are explained below.Under this channel of important for genera ng electronic U liza on disbursement. in mated to beneficiaries by PFMS/Program Division through SMS.

04.Grants-in-aid to State Govt. Ÿ Banks/India Posts will send response files to PFMS. Odisha.An illustra ve example: NeFMS project under MGNREGS Na onal Electronic Fund Management System (NeFMS) is a pilot project launched by the Central government on 01. The fund flow process under N-eFMS takes place as follows: Ÿ Department of Rural Development sends Fund Transfer Orders (FTOs) for wage component to PFMS daily. Karnataka. 37 . Rajasthan. Ÿ Payment for validated beneficiaries will be transferred directly into the accounts of the beneficiaries. Ÿ These response files will be subsequently shared with the Department. Ÿ PFMS sends the FTOs to respec ve Bank/ India Post Accounts. Bihar. Punjab. Ÿ Payment for failed transac ons will be re-ini ated. Kerala.2016. Tripura. U arakhand and U ar Pradesh for direct and faster disbursal of wages (excluding material component and administra ve component) under the Mahatma Gandhi Na onal Rural Employment Guarantee Scheme (MGNREGS). The expenditure on wage component is debited to the Major Head of Account 2505 – Rural Employment while the expenditure on material cost and administra ve component are debitable to the Head of Account 3601 . Haryana. namely Assam. (Major Head). This has been implemented in 11 states.

e. FUND FLOW VIA MINISTRY/DEPARTMENT Illustra ve example- DESIRED FUND FLOW PROCESS NeFMS project (MGNREGS) Under N-eFMS. payment files for wage component and sends them to PFMS daily PFMS validates the NREGA workers’ details STEP Authoriser appointed by Ministry/ with the respec ve Banks/Postal Accounts. Valida on of a new beneficiary bank account for a scheme is a one.Feedback to Payment for failed transac ons to be 06 beneficiaries through SMS alerts-credit/debit informa on by beneficiary's bank ii. All Aadhaar based Sharing of payment status response (success/failure back to PFMS server) file 05 transac ons to be routed through APBS and all Non Aadhaar based transac ons to be routed through NACH by sponsor bank of Ministry/Department with PFMS Sponsor bank to share payment status response STEP file with PFMS.me ac vity STEP PFMS to validate and send payment Sending of payment file by PFMS to 03 files to the sponsor bank of Ministry/ Department sponsor bank of DoRD STEP Sponsor Bank to transfer payment Transfer of amount by sponsor bank 04 to beneficiaries' accounts of DoRD into NREGA workers' accounts Sponsor bank to route all transac ons STEP through NPCI. PFMS to share the response files with Ministry/Department i. *The illustra ve example may not follow the desired fund flow process exactly 38 . the Department of Rural STEP Maker appointed by Ministry/ Development ( DoRD) creates Fund 01 Department to create payment files a er verifica on and place them on PFMS Transfer Orders (FTOs) i. Scheme wise informa on by PFMS/PD re-ini ated by Ministry a er rec fica on STEP Payment for failed transac ons 07 to be re-ini ated by Ministry/ Department a er rec fica on and repeat Steps 1 to 6. 02 Department to approve the payment shares the same with DoRD which is approved and digitally signed by the files and digitally sign them on PFMS Authoriser.

Presently. on the basis of Socio-Economic Caste Census (SECC) data. A er receipt of Central share in the State Consolidated Fund and matching State share. Funds for IGNOAPS are released to the Consolidated Fund of the State Government of U. where the payment file is verified and based on availability of funds under the appropriate head to which the old age pension corresponds. this file is sent to the State Treasury.P. The payment files are electronically generated by the Department of Rural Development of the State government and placed on PFMS for payment. The pension scheme is part of the Na onal Social Assistance Programme (NSAP) that was launched by the Ministry of Rural Development in August. 1995. 39 . The bank/postal account details of the end beneficiaries are sent to PFMS for valida on of bank accounts. The detailed fund flow is explained henceforth. Illustra ve Example: Indira Gandhi Na onal Old Age Pension Scheme in U ar Pradesh The Indira Gandhi Na onal Old Age Pension Scheme (IGNOAPS) is a non-contributory old age pension scheme that covers Indians who are 60 years and above and live below the poverty line. funds are allocated to the States / Uts. However.ii) Through State Treasury Account Under this channel of disbursement. funds are released directly into the account of the beneficiary through PFMS. funds from the Central Government will be transferred to beneficiaries' accounts through the State Treasury Account. funds are transferred to Districts/Panchayats from the State Consolidated Fund and then to the beneficiaries. The payment file is then digitally authorised by the concerned finance officer and nodal officer of the State department. A er receiving the share from the centre. it may also be possible that the State may use an electronic Fund Management System of its own for payments in which case the funds will be transferred from the State Consolidated Fund directly into the beneficiaries' accounts. Finally. the state withholds its share and transfers the fund to individual beneficiaries from the State treasury. This route is generally adopted in Centrally Sponsored Schemes which are largely funded by the Central Government with a defined share of State Government. The fund flow from the Ministry to the State treasury and from the State treasury to the end beneficiary is mapped en rely to the centralized PFMS.

Feedback 06 to beneficiaries through SMS alerts-credit/ debit informa on by beneficiary's bank ii.P* STEP Maker appointed by State Department of Rural Development. DoRD for digital authorisa on STEP PFMS to validate and send payment State Treasury of U.P DoRD). U. Verified files are sent to 02 Department to approve the payment files and digitally sign them on PFMS the concerned finance officer and nodal officer of U. i.P receives payment 03 files to the sponsor bank of State Department files from the department via PFMS and digitally signs the payment files STEP On receiving payment files. All Aadhaar based Sharing of payment status response file 05 transac ons to be routed through APBS and all Non Aadhaar based transac ons to be routed through NACH by sponsor bank of State treasury of U. PFMS to share the response Payment for failed transac ons to be files with Ministry/Department. a er rec fica on STEP Payment for failed transac ons to 07 be re-ini ated by Ministry/ Department a er rec fica on and repeat Steps 1 to 6 *The illustra ve example may not follow the desired fund flow process exactly 40 .P. Scheme wise informa on by PFMS/PD re-ini ated by State Treasury of U.P.P will 04 to beneficiaries' accounts ini ate payments to beneficiaries' accounts Sponsor bank to route all transac ons STEP through NPCI. FUND FLOW VIA STATE TREASURY Illustra ve example- DESIRED FUND FLOW PROCESS IGNOAPS in U. The payment files are sent to be placed on PFMS PFMS sends e-files to banks for STEP Authoriser appointed by State valida on. sponsor Sponsor Bank to transfer payment bank of State Department of U.P (U. electronically 01 Department to create payment files a er verifica on and place on PFMS generates payment files.P with PFMS Sponsor bank to share payment status response STEP file with PFMS.

Ÿ A er valida on of beneficiary list by PFMS. Ÿ These payment files are digitally signed by authoriser appointed by UGC and then sent to PFMS through the UGC portal. Ÿ The sponsor bank. funds will be transferred by Ministry/Department to an iden fied implemen ng agency as nominated by Ministry/Department as per the budget allocated to such implemen ng agencies.iii) Fund Transfer through Implemen ng Agency Under this channel of disbursement. payment files are generated by the UGC's sponsor bank. Example:. Ÿ UGC iden fies the beneficiaries/scholarship holders. on the receipt of payment files from PFMS. Ÿ Payment for failed transac ons to be re-ini ated by UGC a er rec fica on. The fund flow mechanism is as under: Ÿ UGC receives the amount of funds allocated for scholarships under the department's budget. These implemen ng agencies will be responsible for further transfer of funds to banks/postal accounts of the iden fied beneficiaries. ini ates the process of fund transfer. The list of such iden fied beneficiaries is uploaded on the web portal maintained by UGC. 41 .UGC as an implemen ng agency for various scholarship/fellowship schemes UGC is an implemen ng agency for various government schemes rela ng to scholarship programs. Ÿ Payment status response file of the fund transfer is shared by the sponsor bank with PFMS which in turn shares the same with UGC.

All Aadhaar based Sponsor Bank shares payment status 05 transac ons to be routed through APBS and all Non Aadhaar based transac ons to be routed through NACH response files with PFMS. PFMS shares the same with UGC Sponsor bank to share payment status response STEP file with PFMS. i. the Implemen ng Agency 01 Department to create payment files a er verifica on and place on PFMS electronically generates payment files which are then placed on PFMS STEP Authoriser appointed by State Authorising officer of UGC to approve 02 Department to approve the payment files and digitally sign them on PFMS the payment files and digitally sign them on PFMS STEP PFMS sends validated payment PFMS to send validated payment 03 files to the sponsor bank of Implemen ng Agency files to sponsor bank of UGC STEP Sponsor Bank of Implemen ng Sponsor Bank transfers scholarship 04 Agency to transfer payment to amounts to scholarship holders' accounts beneficiaries' accounts Sponsor bank to route all transac ons STEP through NPCI. PFMS to share the response Payment for failed transac ons to file with Ministry/Department. FUND FLOW VIA IMPLEMENTING AGENCY Illustra ve example- DESIRED FUND FLOW PROCESS UGC Scholarship Schemes* STEP Maker appointed by State UGC. Feedback 06 to beneficiaries through SMS alerts-credit/ debit informa on by beneficiary's bank ii. Scheme wise informa on by PFMS/PD be re-ini ated by UGC a er rec fica on STEP Payment for failed transac ons to 07 be re-ini ated by Ministry/ Department a er rec fica on and repeat Steps 1 to 6 *The illustra ve example may not follow the desired fund flow process exactly 42 .

50/. The banks and post offices not only provide financial facili es in terms of bank/postal accounts to the beneficiaries of schemes. This incen ve is provided to promote last mile delivery of financial services. 32(07) /PF-II /2011.02.would be payable for every transac on that happens between the sponsor banks. They are thus required to devote addi onal resources in terms of financial. 5/. 5/.Vol. To ensure an adequate incen ve mechanism for the financial intermediaries.Transac on Charges to Financial Agencies for DBT Transac ons The banking and postal networks in the country have a pivotal role to play in the successful implementa on of schemes on the DBT pla orm. 100 (transac on amount rounded up to the next hundred) subject to a maximum of Rs. These transac on charges are however subject to changes in future as per requirements.2016 s pula ng transac on charges/cash out incen ves for DBT transac ons carried out by banks and post offices.50/. but also bear the responsibility of ensuring last mile connec vity and accessibility to benefits provided in the bank accounts of beneficiaries.per Rs. II) dated 26.per transac on and an available component of Rs. as described below: i) Transac on charges A transac on cost of Rs. As per the Government Order.would be payable. a fixed component of Rs. Maternity Benefits (ICDS) and Pension Schemes. the Ministry of Finance has issued a Government Order (No. 0. 0. this commission is paid in two parts. 43 . ii) Cash out incen ves For MGNREGA. des na on en es and NPCI in accordance with the extant NPCI circular. physical and human resources for this purpose.