Operationalisation of CFMS through Nodal Banks Re-allotment of Districts – MGNREGS AP

Government in the reference G.O.Ms No.556, PR & RD (RD-II) Dept, dt.16.12.2006, issued guidelines for the implementation of the Financial Inclusion Pilot Project by using the Smart Card Technology for the payment of wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme  (MGNREGS).

orders were issued for scaling up the Financial Inclusion Project through the Smart Card Technology in Warangal, Karimnagar, Medak, Mahabubnagar, Chittoor and East Godavari Districts and subsequently extended the project to all other remaining Districts of the State under MGNREGS.

with a view to achieve transparency and optimum utilization of the funds under MGNREGS, orders were issued for the implementation of the Central Fund Management System ( CFMS) as a Financial Management package for MGNREGS and the same is being implemented in all the (22) Districts of the State with effect from 15.02.2010.

orders were issued allocating the Districts to Nodal Banks ie., State Bank of Hyderabad, Axis Bank, Andhra Bank, ICICI Bank, Union Bank of India and Corporation Bank under Central Fund Management System.

The Commissioner, Rural Development, in the reference fifth cited has informed that  consequent to the revoking of the area allotted to Andhra Bank, UBI, SBI, Indian Bank, Punjab National Bank, ING Visya Bank and SBH from the Smart Card Project, due to their unsatisfactory performance, he has proposed re-allotment of  area of operation to the  Department of Posts, ICICI Bank, Axis Bank and APGVB for disbursement of wages. Further, the Commissioner, RD after due consultation with the bankers, service providers and other stake holders, to reduce delay in transfer of funds and to facilitate direct credit through INTRA transactions to the wage seekers’ A/Cs, has submitted the following modifications to change the existing procedure of wage payment :

  • The current process of crediting the FTOs in to the pooling accounts of the paying agencies shall be dispensed with. The wage amounts shall be directly credited into wage seeker account from nodal account.
  • Four participating smart card banks, Viz, Andhra Pradesh Grameena Vikas Bank, Axis Bank, Corporation Bank and ICICI bank will be made Nodal Banks to the extent of the area allotted to them.
  • The Department will continue to have its nodal account in State Bank of Hyderabad for remitting funds to HPO accounts of DoP.
  • In the new system multiple credits will take place for one debit.
  • The current naming nomenclatures like pay order, electronic pay order and fund transfer order will be discontinued.
  • For identification of the wage payable to a wage seeker there will be only one unique 16 digit reference number termed as fund transfer order.
  • Single wage seeker payment =1 EPO = 1 FTO
  • Every single payment should be disbursed after separate Biometric authentication and Partial withdrawal option will not be provided to Wage seeker.
  • All disbursement data shall hit directly to MGNREGS server in real-time.

The Government after careful consideration of the proposals submitted by the Commissioner, Rural Development, hereby accord permission for re-allotment of  nodal banks duly aligning the area of operation served by the paying agencies for facilitating direct credit to the wage seekers A/C through the INTRA transactions.   The statement of re-allotment of Nodal banks is enclosed as Annexure-1, and the statement of district-wise allotments made as per the smart card system is enclosed as Annexure-II.

7.   The TCS Hyderabad shall send the Fund Transfer Orders to the Nodal Banks as per the above re-allotment, and care should be taken to see that all the wage payments are sent through INTRA/GRPT only.

8.    The Nodal Banks shall expedite the process of implementation of above revised Electronic Fund Management System (CFMS) in the respective Districts by 01.05.2014.

9.   The Commissioner, Rural Development shall arrange for the software integration and place funds in the Nodal Banks for operationalising CFMS as per the Annexures enclosed


MGNREGS-AP- Operationalisation of Central Fund Management System (CFMS) through Nodal Banks .

Annexure -1

S.N Name of the Nodal bank S.N Districts Allotted No.of GPS Covered GPs covered in District (Full/Part) Total No.of GPS covered by Nodal bank
1 SBH 1 Adilabad 573 Part 11700
2 Chittoor 1380 Full
3 East Godavari 925 Part
4 Guntur 1024 Full
5 Mahabubnagar 548 Part
6 Medak 452 Part
7 Nalgonda 1178 Full
8 Nizambad 719 Full
9 Prakasam 1044 Full
10 Srikakulam 1104 Full
11 Visakhapatnam 946 Full
12 Vizianagaram 534 Part
13 Warangal 385 Part
14 West Godavari 888 Full
2 AXIS 1 Adilabad 302 Part 4343
2 Anantapur 1006 Full
3 Karimnagar 283 Part
4 Krishna 973 Full
5 Kurnool 897 Full
6 Ranga Reddy 704 Full
7 Warangal 178 Part
3 ICICI 1 East Godavari 87 Part 3382
2 Kadapa 818 Full
3 Karimnagar 910 Part
4 Medak 218 Part
5 S.P.S Nellore 962 Full
6 Mahabubnagar 387 Part
4 APGVB 1 Khammam 773 Full 2029
2 Mahabubnagar 416 Part
3 Medak 387 Part
4 Warangal 453 Part
5 Corporation Bank 1 Vizianagaram 407 Part 407

Annexure – 2

S.No District Name Name of the Nodal bank Paying Agency No. of GPS
1 Adilabad SBH DOP* 573
2 Anantapur AXIS AXIS 1006
3 Chittoor SBH DOP* 1380
4 East Godavari SBH DOP* 925
5 Guntur SBH DOP* 1024
6 Kadapa ICICI ICICI 818
7 Karimnagar ICICI ICICI 910
8 Khammam APGVB APGVB 773
9 Krishna AXIS AXIS 973
10 Kurnool AXIS AXIS 897
11 Mahabubnagar APGVB APGVB 416
SBH DOP* 548
12 Medak APGVB APGVB 387
SBH DOP* 452
13 Nalgonda SBH DOP* 1178
14 Nizambad SBH DOP* 719
15 Prakasam SBH DOP* 1044
16 Ranga Reddy AXIS AXIS 704
17 S.P.S Nellore ICICI ICICI 962
18 Srikakulam SBH DOP* 1104
19 Visakhapatnam SBH DOP* 946
20 Vizianagaram SBH DOP* 534
Corporation Bank Corporation  Bank 407
21 Warangal APGVB APGVB 453
SBH DOP* 385
22 West Godavari SBH DOP* 888

* DOP = Department of Post Office

G.O.Ms No. 89  Dated.02.05.2014. 

1. G.O.Ms No.556, PR & RD (RD-II) Dept, dt.16.12.2006.

2. G.O.Ms No.451, PR & RD (RD-II) Dept, dt.04.10.2007.

3. G.O.Ms No.406, PR & RD (RD-II) Dept, dt.29.12.2009.

4. G.O.Ms No.6, PR & RD (RD-II)  Dept, dt.06.01.2011.

 5. Proposals of the Commissioner, RD, Hyd in file No.2485/Fin /EGS/2013 Dt.19.04.2014

Leave a comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.