E-Kuber Portal: Fund Disbursement System Redesigned by Central Government
New Delhi, 29th March 2024: The central government has announced plans to redesign the Centrally Sponsored Schemes (CSS) disbursement system using the E-Kuber platform. Funds for CSS will now be channelled directly through the E-Kuber platform under this new arrangement, which will streamline the procedure and improve transparency. The Finance Department is working to prepare for the system’s implementation, which is expected to start in the 2024–2025 fiscal year.
The ruling suggests that the Central Government will now have to deposit the money that was previously issued for CSS into the Central Consolidated Fund, and the States will have to deposit the money into the State Consolidated Fund. The departments that have been selected for the pilot project are directed to deposit the appropriate amounts into their respective Consolidated Funds.
The redesign would initially impact CSS from several significant departments, such as Social Welfare, Education, Rural Development, Health, and Environment, Forest, and Climate Change.
All State and Central Government ministries will work together under the new system by creating accounts on the Reserve Bank of India’s E-Kuber platform. The Public Financial Management System (PFMS) will then onboard all schemes onto the new E-SNAPS (Speedy Transfer Integrated System) system.
To provide a cohesive approach to financial management, the Centre has mandated that the funds be deposited into the Consolidated Fund, addressing the need for financial management.
Furthermore, the Centre has released guidelines for the return of interest earned on the CSS funds. States are required to verify the amounts of the interest collected in bank accounts and the amount received from the Centre to repay the interest.
Through the utilisation of solid systems like E-SNAPS and digital platforms like E-Kuber, the government hopes to ensure efficient resource utilisation for the welfare and development of the country while streamlining funds disbursement procedures.
