JKSSB Accounts Assistant: PFMS Practice Test (50 MCQs)

JKSSB Accounts Assistant (Finance) - Public Financial Management System (PFMS) Practice Test

Targeted 50 MCQ Practice Module focusing on: Origin & Objectives of PFMS, Architecture & Stakeholders, Fund Flow & DBT, Bank Interface & SNA-SPARSH, and Reports & Security.

Select your answers and click Submit Assessment Answers at the bottom to calculate your total score and review explanations.

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SECTION I: Origin, History & Objectives of PFMS [Questions 1 to 10]

1. What does PFMS stand for?

Public Fund Management Scheme Public Financial Management System Plan Fund Monitoring System Public Finance Ministry System

Explanation: PFMS is the abbreviation for Public Financial Management System, a web-based online platform for public fund management.

2. Which organization is the nodal agency for implementing PFMS?

Reserve Bank of India National Informatics Centre Office of Controller General of Accounts (CGA) NITI Aayog

Explanation: PFMS is owned and implemented by the Office of the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance.

3. PFMS was originally launched in 2009 under which name?

e-Kuber Central Plan Scheme Monitoring System (CPSMS) Bharatkosh IFMS

Explanation: PFMS began in 2009 as CPSMS, a scheme to track funds released under Plan schemes of the Government of India.

4. Under which Ministry does PFMS function?

Ministry of Home Affairs Ministry of Finance (Department of Expenditure) Ministry of Corporate Affairs Ministry of Electronics and IT

Explanation: PFMS operates under the Department of Expenditure, Ministry of Finance, Government of India.

5. CPSMS was renamed as PFMS in which year?

2010 2011 2013-14 2016

Explanation: CPSMS was rebranded as PFMS in 2013-14, expanding its scope beyond Plan scheme tracking.

6. What is the primary objective of PFMS?

To collect income tax online To provide real-time, reliable information on fund utilization across government schemes To manage employee pension records To issue GST invoices

Explanation: PFMS aims to provide a real-time, reliable, and comprehensive management information system for tracking fund flow and utilization.

7. PFMS supports which key government payment initiative aimed at transferring benefits directly to beneficiaries?

MGNREGA portal Direct Benefit Transfer (DBT) e-NAM UMANG

Explanation: PFMS serves as the technology backbone of India's Direct Benefit Transfer (DBT) programme.

8. Which of the following technical bodies assisted CGA in developing PFMS?

NIC (National Informatics Centre) TCS Infosys CDAC

Explanation: National Informatics Centre (NIC) provided the technical platform for developing and maintaining PFMS.

9. PFMS was expanded from tracking only Plan Scheme funds to also cover:

Only state government salaries Non-Plan Scheme expenditures and all Central Sector/Centrally Sponsored Schemes Private company accounts Foreign remittances

Explanation: Over time PFMS broadened its coverage to include Non-Plan expenditure and virtually all Central Sector and Centrally Sponsored Schemes.

10. The official website portal of PFMS is:

pfms.gov.in pfms.nic.in cga.nic.in/pfms dbt.gov.in

Explanation: The PFMS portal is hosted at pfms.nic.in.

SECTION II: Architecture, Stakeholders & Registration [Questions 11 to 20]

11. In PFMS, which officer is responsible for authorizing payment through Digital Signature Certificate at the spending unit?

Programme Division Drawing and Disbursing Officer (DDO) Chief Vigilance Officer State Treasury Officer

Explanation: The Drawing and Disbursing Officer (DDO) digitally signs and authorizes payments at the spending unit level in PFMS.

12. Which module of PFMS is primarily used by Central Government Ministries/Departments for DDO-level payments?

EAT Module Component Drawing & Disbursement (DDO Payment) Module SNA Module Aadhaar Bridge Module

Explanation: The Component/DDO Payment module handles bill processing and payment for Central Government establishments.

13. The EAT module in PFMS stands for:

Expenditure, Advance and Transfer Employee Attendance Tracking Electronic Audit Tool Estimate and Allotment Tracker

Explanation: EAT stands for Expenditure, Advance and Transfer — a module used to record how sanctioned funds are utilized.

14. The EAT module in PFMS is mainly used by:

Private banks State governments/implementing agencies for tracking sanctioned funds Income Tax department Reserve Bank of India

Explanation: State-level implementing agencies use the EAT module to record expenditure, advances, and transfers of scheme funds.

15. Every implementing agency registered in PFMS is assigned a unique:

PAN number Agency Code/ID GST number IFSC code

Explanation: Registered implementing agencies are identified in PFMS through a unique Agency Code for tracking fund flow.

16. Who among the following is a key stakeholder using PFMS for releasing funds under Centrally Sponsored Schemes?

Programme Division of the Ministry Municipal Corporation only Private contractors Foreign donors

Explanation: The Programme Division of the concerned Ministry initiates and releases scheme funds through PFMS.

17. The Pay and Accounts Office (PAO) in PFMS is primarily responsible for:

Auditing private firms Processing and authorizing central government payments Issuing Aadhaar cards Managing GST refunds

Explanation: The PAO verifies and authorizes payment of bills submitted by DDOs under Central Government establishments.

18. To transact on PFMS, an authorized user typically requires which security device?

OTP only Digital Signature Certificate (DSC)/Token Biometric fingerprint only Physical cheque book

Explanation: Payment authorization in PFMS requires a Digital Signature Certificate (DSC) token for secure transaction approval.

19. Which category of users in PFMS can only view MIS reports but cannot make payments?

Maker Checker Viewer/Read-only user Approver

Explanation: A Viewer/read-only role in PFMS is restricted to accessing reports without transaction rights.

20. PFMS follows which access-control model for financial transactions to ensure accountability?

Single-user control Maker-Checker mechanism No authentication Open access to all

Explanation: PFMS uses a Maker-Checker workflow so that every transaction entered by one user is verified/approved by another before execution.

SECTION III: Fund Flow, DBT & Payment Modules [Questions 21 to 30]

21. PFMS enables which of the following approaches to fund release, minimizing idle parking of funds with implementing agencies?

Advance lump-sum release Just-in-Time (JIT) fund release Annual bulk transfer Quarterly cash release only

Explanation: PFMS supports Just-in-Time (JIT) release of funds based on actual requirement, reducing float and idle balances.

22. Direct Benefit Transfer (DBT) payments through PFMS are primarily routed to beneficiaries via:

Postal money order only Aadhaar Payment Bridge System (APBS)/bank accounts Cash handed by agents Cheques mailed manually

Explanation: PFMS routes DBT payments electronically into beneficiary bank accounts, often via the Aadhaar Payment Bridge System.

23. Which national body facilitates Aadhaar-based direct credit of DBT payments in coordination with PFMS?

SEBI National Payments Corporation of India (NPCI) IRDAI TRAI

Explanation: NPCI operates the Aadhaar Payment Bridge System (APBS) that PFMS uses to credit DBT funds to Aadhaar-seeded accounts.

24. In PFMS, "Aadhaar Seeding" of beneficiary bank accounts is essential for:

Opening new bank branches Ensuring correct and direct crediting of DBT funds GST registration Passport verification

Explanation: Aadhaar seeding links a beneficiary's Aadhaar number with their bank account, ensuring accurate, duplicate-free DBT crediting.

25. The Sanction Module in PFMS is used to:

Approve loans to private companies Digitally record and track sanction orders issued for scheme funds Issue Aadhaar numbers File income tax returns

Explanation: The Sanction module allows Ministries/Departments to digitally record sanction orders, which then trigger fund release in PFMS.

26. Which of these payment modes is NOT typically processed through PFMS?

NEFT RTGS Aadhaar-based payment Cryptocurrency transfer

Explanation: PFMS processes payments via NEFT, RTGS, and Aadhaar-based bridge systems; cryptocurrency is not a recognized government payment mode.

27. When funds are released to an implementing agency via PFMS but remain unspent, PFMS enables tracking of:

Unspent balances at every level of fund flow Only the total budget of the country Employee attendance Private sector CSR data

Explanation: A core feature of PFMS is visibility of unspent/parked balances at each level of the fund-flow hierarchy.

28. Which of the following best describes "component-wise" tracking of expenditure in PFMS?

Tracking expenditure only at the national level Tracking fund utilization at scheme, sub-scheme and beneficiary level Tracking only foreign aid Tracking employee salaries only

Explanation: PFMS allows drill-down tracking of expenditure from the scheme level down to individual components and beneficiaries.

29. Under PFMS, State Governments implementing Centrally Sponsored Schemes are required to route funds through:

Their own independent banking system with no PFMS linkage A designated Single Nodal Agency (SNA) account integrated with PFMS Cash disbursement only Foreign exchange accounts

Explanation: States must operate a Single Nodal Agency (SNA) bank account linked to PFMS for each Centrally Sponsored Scheme.

30. What is the main advantage of real-time fund tracking through PFMS for the government?

Reduced need for auditors Better cash management and reduced float of unutilized funds Elimination of taxation Automatic GDP growth

Explanation: Real-time visibility of fund utilization enables the government to release funds need-based, improving cash management.

SECTION IV: Bank Interface, Reconciliation & SNA-SPARSH [Questions 31 to 40]

31. PFMS interfaces with the Core Banking System (CBS) of banks mainly to:

Set interest rates Enable direct electronic payment and reconciliation of transactions Print passbooks Approve loan applications

Explanation: The CBS interface allows PFMS to push payment instructions directly to banks and receive confirmation status back.

32. The process of matching PFMS payment records with actual bank transaction status is called:

Vouching Bank Reconciliation Verification Auditing

Explanation: Bank Reconciliation in PFMS confirms whether payment instructions were successfully credited by matching them with bank-side status.

33. SNA SPARSH is an acronym associated with PFMS that stands for:

Single Nodal Agency System for Payments, Reconciliation and Handling State National Agency for Public Reporting Special Nodal Approval for Reserve Handling Sanctioned Norms for Accounts and Reporting System

Explanation: SNA SPARSH stands for Single Nodal Agency System for Payments, Reconciliation and Handling of transactions.

34. The SNA SPARSH model was introduced to ensure:

Direct payment to final beneficiaries from a single account monitored centrally, avoiding multiple bank accounts Cash payments to states in bulk Removal of DBT altogether Manual cheque disbursal

Explanation: Under SNA SPARSH, a single centrally-monitored SNA account is used to make payments directly to end beneficiaries/vendors, avoiding fragmented sub-accounts.

35. Which of the following is a benefit of the PFMS-Bank interface for reconciliation?

Manual entry of every bank statement Automatic, near real-time confirmation of credit to beneficiary accounts Elimination of the need for bank accounts Cash-only settlement

Explanation: The CBS-based interface allows PFMS to receive near real-time confirmation of successful credit into beneficiary accounts.

36. In PFMS, a failed transaction (e.g., wrong account number) is typically reflected as:

Successful payment Bounced/Rejected transaction requiring correction and resubmission Permanent loss of funds Automatically credited to Suspense Account permanently

Explanation: Failed transactions are flagged as bounced/rejected in PFMS so the DDO/agency can correct details and resubmit.

37. Approximately how many banks are digitally linked with PFMS for CBS-based transactions?

Around 10 banks Over 300 banks (Public, Private, Regional Rural & Cooperative) Only 2 public sector banks No banks; PFMS is standalone

Explanation: PFMS is integrated with the CBS of a large number of banks, including public, private, regional rural, and cooperative banks.

38. Which data is used by PFMS to validate the correctness of a beneficiary's bank account before transfer?

Passport data Bank's Core Banking System / Aadhaar mapping data Driving license data Ration card data only

Explanation: PFMS validates account details against bank CBS records and Aadhaar mapping to prevent misdirected payments.

39. Under the Single Nodal Agency (SNA) framework, interest earned on unspent CSS balances in the SNA account is:

Retained fully by the implementing agency Required to be reported/tracked and often remitted back as per scheme guidelines Automatically donated to charity Ignored completely

Explanation: Interest accrued on unspent central share in SNA accounts must be reported and handled as per scheme-specific and finance ministry guidelines.

40. What happens in PFMS when a Single Nodal Agency (SNA) has insufficient balance for a scheme payment?

Payment fails and PFMS indicates insufficiency of funds to release further central share Government automatically credits unlimited funds The transaction is settled in cash Central share is released without any real-time check

Explanation: PFMS performs a real-time balance check; further central share release is restricted if the SNA has unutilized balances/insufficient absorption capacity.

SECTION V: Reports, Security & Recent Developments [Questions 41 to 50]

41. PFMS generates Management Information System (MIS) reports primarily for:

Weather forecasting Scheme-wise, state-wise, and agency-wise expenditure monitoring Stock market analysis Population census

Explanation: PFMS MIS reports give a granular view of expenditure by scheme, state, agency, and beneficiary category.

42. "Custom Built Reports" in PFMS allow users to:

Design and generate need-based, tailored expenditure reports Modify the source code of PFMS Print Aadhaar cards Issue GST invoices

Explanation: Custom Built Reports allow authorized users to configure parameters and generate reports tailored to specific monitoring needs.

43. PFMS enhances transparency by making certain expenditure data available to:

Only the Prime Minister's Office The general public through open reports on schemes and beneficiaries Foreign governments only No one outside CGA

Explanation: PFMS publishes public-facing dashboards and reports on scheme-wise expenditure, promoting transparency and accountability.

44. Two-Factor Authentication (2FA) in PFMS is primarily implemented to:

Speed up login only Strengthen security of financial transactions and prevent unauthorized access Reduce the number of registered users Replace Digital Signature Certificates entirely

Explanation: 2FA adds an additional verification layer alongside DSC to secure PFMS logins and financial transactions from unauthorized access.

45. Which of the following is a key benefit of PFMS to policymakers?

Real-time dashboards providing decision-support data on scheme expenditure Automatic tax collection Currency printing decisions Passport issuance tracking

Explanation: Real-time PFMS dashboards support evidence-based policy decisions by showing live scheme expenditure trends.

46. PFMS data is also utilized to support which important national-level exercise related to government expenditure monitoring?

Union Budget speech drafting only Public Financial Management (PFM) reforms and performance monitoring of schemes Election Commission voter rolls Census of India

Explanation: PFMS data feeds into broader Public Financial Management reform initiatives and scheme performance reviews.

47. Under PFMS, which authority conducts periodic capacity building and training for DDOs/PAOs on system usage?

Ministry of Defence Office of Controller General of Accounts (CGA)/State Treasuries Election Commission Reserve Bank of India

Explanation: CGA, in coordination with State Treasuries, regularly trains DDOs, PAOs, and other users on PFMS operations.

48. A major recent development in PFMS has been its integration with which of the following for improved DBT delivery under schemes like PM-KISAN?

Aadhaar Payment Bridge System (APBS) and bank account validation Cryptocurrency wallets Foreign remittance systems only Stock exchange platforms

Explanation: PFMS integration with APBS and account-validation systems has streamlined DBT delivery under schemes such as PM-KISAN.

49. PFMS supports which of the following for ensuring "One Beneficiary One Bank Account" to avoid duplicate/fraudulent payments under DBT schemes?

De-duplication and Aadhaar-based validation Manual physical verification only Random sampling of villages No such mechanism exists

Explanation: PFMS uses de-duplication checks and Aadhaar-based validation to prevent duplicate or fraudulent beneficiary payments.

50. The overall long-term goal of PFMS is best described as:

Replacing all government ministries Creating an integrated financial management platform for efficient, transparent, and accountable public expenditure across India Managing only defence budgets Handling only export-import trade data

Explanation: PFMS's overarching goal is to build a unified, transparent, and accountable public financial management ecosystem across all levels of government.

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