RDPR, SBM ink pact for online fund transfer

The Department of Rural Development and Panchayat Raj (RDPR) has signed a Memorandum of Understanding with the State Bank of Mysore (SBM) for rolling out Electronic Funds Management System (eFMS) on a pilot basis in the State.

The core function of the eFMS project is real time transfer of funds online directly to the MGNREGS beneficiaries’ bank accounts from SBM, the State nodal bank.

The Ministry of Rural Development Department, Government of India, has developed a new software called ‘Electronic Funds Management System (eFMS)’ and integrated it with MGNREGS MIS Soft software, to enable direct payment to the beneficiaries under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

Amita Prasad, Principal Secretary to the Department of RDPR, said: “The initiative will help real time transfer of funds to beneficiaries, reduce delay in payments and implement e-governance initiatives.”

The new system will lead to reduced administrative costs, optimum utilisation of funds released for development programmes and achieve transparency, she added.
The software has been developed exclusively for beneficiaries of MGNREGS and helps online transfer of funds seamlessly to their accounts.

As the nodal bank the SBM will assist job card holder/person/supplier/organisation to open accounts in nationalised/scheduled commercial/Grameena/regional rural banks where core banking system facility is available.

The bank will also ensure effective transfer of funds to beneficiaries’ accounts online within agreed time frame.

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