Understanding the E-Bill Processing System

The concept of the Electronic Bill (e-Bill) processing system was first introduced in the Union Budget of 2022–23. This system aims to revolutionize the way transactions and billings are handled by government departments.

• The e-Bill system eliminates the necessity for physical copies of bills, allowing for online tracking and signing.
• Over 350 departments have already been incorporated into the e-Bill system.
• By leveraging the Public Financial Management System (PFMS) and Single Nodal Agency (SNA), the government anticipates significant savings in interest costs.

Decoding PFMS and SNA

• PFMS, or the Public Financial Management System, was formerly known as the Central Plan Schemes Monitoring System (CPSMS). The system was developed by the organization of the Controller General of Accounts (CGA) and serves as an online software program.
  • PFMS provides an online subsidy payment network for both non-Aadhar and Aadhar-linked bank accounts under the Direct Benefit Transfer (DBT) scheme, facilitated by the National Payments Corporation of India (NPCI). Numerous banks have initiated DBT payments via the PFMS for eligible recipients.
• The Single Nodal Agency (SNA) was a substantial reform initiated in 2021, altering how funds for Centrally Sponsored Schemes (CSS) are released, disbursed, and monitored.
  • Under the revised SNA model, each state is required to identify and designate an SNA for each scheme.

Benefits of the E-Bill System

• The system promises to be completely paperless and faceless, ensuring transparency in operations.
• It is expected to expedite the clearance of bills and diminish the possibility of corruption.
• The PFMS and SNA systems are being designed as data intelligence systems, rather than mere data repositories.
• The implementation of the e-Bill system will enhance the Ease of Doing Business (EoDB) and contribute to the Digital India ecosystem, promoting payment transparency and efficiency.