The National Institute of Financial Management (NIFM) was set up in 1993 on the basis of a proposal made by Ministry of Finance, which was approved by the Union Cabinet. The Union Cabinet envisaged that NIFM would begin as a training institution for officers recruited by the Union Public Service Commission (UPSC) through the annual Civil Service Examinations and allocated to the various services responsible for manning senior and top management posts dealing with accounts and finance in the Government of India. NIFM was to develop as a centre of excellence in the areas of Financial Management and related disciplines “not only in India but also in Asia.”
In order to ensure that NIFM enjoys a greater degree of flexibility and autonomy than the departmental academies that existed at that time for officers training, it was decided that the Institute would be a legal entity known as “Society”. Such societies are legally independent entities authorized to frame their own rules and regulations. This structure makes available greater autonomy in both academic and administrative matters to the Institute, facilitating quick decision making in response to changing perceptions of desired goals and objectives.
Despite the legally autonomous character of the Institute, making the Finance Minister of Government of India, the President of the Society, ensured a very close linkage with Government. For administrative purposes, there is a Governing Board chaired by the Secretary (Expenditure). The Director appointed by the Appointments Committee of the Cabinet is responsible for the administration and academic programmes of the Institutes. It will thus be seen that the Institute has close links and direct access to Government of India.