Pay Roll Automation for Disbursement of Monthly Allowances (PADMA)

• 30 Jun 2022

For Prelims: PADMA, Indian Coast Guard, Centralized Pay System, Digital India, Atmanirbhar Bharat, Special Economic Zone (SEZ), RTGS, NEFT

For Mains: Various Security Forces & Agencies & Their Mandate, Centralized & Decentralized Payment System, Indian Coast Guard

Why in News?

Recently, the Ministry of Defense inaugurated PayRoll Automation for Disbursement of Monthly Allowances (PADMA), an automated Pay & Allowances module for the Indian Coast Guard.

What are the Key Highlights about PADMA?

• About:
  • PADMA is an automated platform leveraging latest technology which will provide seamless and timely disbursal of Pay & Allowances to around 15,000 Indian Coast Guard personnel.
  • This module has been developed under the aegis of the Defense Accounts Department and will be operated by Pay Accounts Office Coast Guard, Noida.
• Significance:
  • The launch marked the beginning of the Centralized Pay System (CPS), the foundation of which is being laid down by the Defense Accounts Department Headquarters to provide one stop pay accounting solutions for all organizations under the Ministry.
  • Launch of PADMA will strengthen the Digital India Vision. Also, it is an ‘Atmanirbhar Bharat’ initiative as the entire module has been designed and developed by Indian entrepreneurs assisted by domain experts.

What is a Centralised & Decentralized Payment System?

• Centralized Payment Systems in India are Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems, both owned and operated by the Reserve Bank.
  • RTGS: It enables real-time transfer of funds to a beneficiary’s account and is primarily meant for large-value transactions.
    • Real time means the processing of instructions at the time they are received and gross settlement implies that settlement of funds transfer instructions occurs individually.
  • NEFT: It is an electronic fund transfer system in which the transactions received up to a particular time are processed in batches.
    • It is generally used for fund transfers of up to Rs. 2 lakh.
• The decentralised payment systems will include clearing houses managed by RBI (Cheque Truncation System (CTS) centres as well as other banks (Express Cheque Clearing System (ECCS) centres and any other system as decided by RBI from time to time.
  • Cheque Truncation: It is the process of stopping the flow of the physical cheque issued by a drawer at some point by the presenting bank en-route to the paying bank branch.
  • Express Cheque Clearing System: Funds move from one account to another to settle a check payment. The amount is usually credited to the bank account of deposit and an equivalent amount debited at the bank from which it is drawn.

What is Indian Coast Guard?

• About:
  • It is a maritime law enforcement and search and rescue agency of India with jurisdiction over its territorial waters including its contiguous zone and exclusive economic zone.
    • Contiguous zone: It is a band of water extending farther from the outer edge of the territorial sea to up to 24 nautical miles from the baseline.
    • Special Economic Zone (SEZ): It is an area in a country that is subject to different economic regulations than other regions within the same country.
  • It comes under the under the Ministry of Defense.
  • The concept of forming ICG came into being after the 1971 war.
  • The blueprint for a multidimensional Coast Guard was conceived by the visionary Rustamji Committee.
• Functions:
  • Preventing Smuggling: One of the primary duties of the ICG is prevention of smuggling through maritime routes.
    • It has jurisdiction over the territorial waters of India including contiguous zone and Exclusive Economic Zone (EEZ).
  • Aid to Civil Authority: It has also rescued approximately 13,000 personnel to date during various ‘Aid to Civil Authority’ operations viz. assistance provided to civil authorities during floods, cyclones and other natural calamities,
  • Maritime Security: It is also collaborating with littoral countries to combat transnational maritime crimes and enhance maritime safety in its area of responsibility and in the Indian Ocean Region.
    • Under SAGAR' - Security and Growth for all in the Region & 'Neighbourhood First' policy, the ICG has nurtured professional relationships across oceans and established ties with countries in the Indian Ocean Region for Ocean Peacekeeping.
  • Role in Disaster Management: The ICG has successfully averted major ecological disasters and emerged as the ‘First Responder’ in the region.
    • For example, by undertaking a major fire-fighting and pollution response operation off the Sri Lanka coast, the most recent being ‘Sagar Aarakshan-II’ onboard Chemical carrier MV X-Press Pearl.

Source: PIB