Service charges for Smartcard Operations – e-FMS

Government of Andhra Pradesh have issued orders for implementation of the electronic Fund Management System (e-FMS) for Social Security Pensions in order to improve the timely service delivery of pensions. All the Pension Disbursing Agencies (PDAs) have been released funds through e-FMS from 1st February, 2012 onwards. As per the orders at para no.5 of the G.O read above, the service charges for smartcard operations shall be released by generating a separate Fund Transfer Request (FTR).

2. In order to implement the Government orders issued in the G.O read above for payment of service charges by generating FTRs, the Chief Executive Officer, SERP, Hyderabad has sent proposal for transfer of the 2% service charges by generating FTRs and requested to issue orders on the following:

a. Acceptance of electronic Utilization Certification for payment of 2% service charges to Banks/ DoP.

b. Payment of 2% service charges on disbursement of pensions from the month of January, 2013 onwards applying levying penalties @ 0.1% per day reckoning from 16th of every month, if any by generating FTR from SSP SNA Account.

Government after careful examination of the matter hereby accord permission to the Chief Executive Officer, SERP, Hyd., to initiate necessary action as per the request at (a) & (b) of para 2 above.

The implementation of the electronic Fund Management System (eFMS) for social security pensionsin order to improve the timely service delivery of pensions as per the following details:

a)  All funds shall be located in State Nodal Bank(s)as identified by Chief Executive Officer (CEO) SERP, which have enabled electronic transfer of funds in such a way that funds can be transferred within 24 hours to the destination disbursal accounts. The banks identified as Nodal Banks under  eFMS  will  upgrade  their  IT  system  to  allow  for  a  seamless transfer of the funds from the State Nodal Account to the Destination Accounts. The Chief Executive Officer, SERP shall enter into MoU with the identified nodal banks to operationalize the eFMS.

b)  All the MPDOs (in rural areas) and Municipal Commissioners (in urban areas) shall ensure that the signed acquittances are obtained from the villages before 10th of each month; and based on that, shall update the disbursement data electronically in the facility provided for this purpose on or before 15th of each month. In case of pensions being paid through the Smartcard system, the disbursement details will be automatically captured in the central server.  The system of manual acquittance will however, continue for audit purpose.


c)  The State Office, based on this data and after due verification if need be, shall generate the Proceedings, acquittances and PDA-wise releases in electronic format and sent to the Districts as mandated in GO 6th cited for obtaining approval of the District Collector concerned on or before 17th of each month.

d)  On securing the approval of the Collector, the Project Director, DRDA shall arrange to enter the Funds Transfer Request (FTR) on after securing it through the digital signature key provided to him on or before 20th of each month.

e)  This FTR shall  trigger the movement of funds from the State Nodal Account to the relevant Destination Accounts of smart cards; or to the accounts of MPDO/Municipal Commissioners (in areas which are not yet converted to smart card system) in such a way that the funds are received at the destination account before 25th of each month.

f) In case of  disbursements through the  PDAs, MPDOs/Municipal Commissioners shall ensure that:

i.  The amount is withdrawn from their accounts and handed over to the PDAs along with the acquittances before the last day of the month so that disbursement is done in the villages on the 1st of every month (even if 1st is a holiday).

ii.  All undisbursed cash along with the acquittance shall be deposited   with   the   MPDOs/Municipal   Commissioners before 5th of every month by the PDAs.

iii.  The above data is computerised in the manner provided by SERP before 10th of every month.

g)  In case of smartcard system, amounts will reach the designated smart card bank accounts before 25th of each month; and thereafter, based on the electronic acquittance, Banks shall arrange to reach the cash to the Customer Service Provider (CSP) in the village before last day of the

month. Banks will also be responsible for arranging disbursement after biometric authentication on the 1st of each month ensuring the following:

i.  Further  any  disbursement  in  the  smart  card  villages  by ‘manual  override’  method  i.e. payment  without  biometric authentication shall be strictly banned.   Banks will be responsible for returning all such money to back Government.

ii.  The disbursement details shall  be captured in the bank server (and from there to the State server) through automatic synchronization of the biometric device.

iii.  All undisbursed cash shall be remitted back in the account specified by SERP before 10th of each month.

G.O.Ms.No. 88 Dated:13.03.2013 Read the following:

1. G.O.Ms.No.380, PR&RD (RD.I) Dept., dated 01.12.2011.
2. Note.No.1939/RD-SHG.SSP/2013 received from the CEO, SERP, A.P, Hyd., Dt: 28.02.2013.

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.