Indian Railway Codes and Manuals-General Financial Rules-2017-Chapter-1 (I) GFR-2017.

 


Chapter – 1

INTRODUCTION

Rule 1

Short Title and Commencement:

These rules may be called General Financial Rules, 2017 and they shall come into force at once and shall be applicable to all Central Government Ministries/Departments, attached and subordinate bodies. The provisions contained in GFRs are deemed to be applicable to Autonomous Bodies except to the extent the bye-laws of an Autonomous Body provides for separate Financial Rules which have been approved by the Government.

Rule 2

Definition: In these rules, unless the context otherwise requires-

(i) “Accounts Officer” means the Head of an Office of Accounts or the Head of a Pay and Accounts Office set up under the scheme of departmentalization of accounts;

(ii) “A d m i n i s t r a t o r ” m e a n s Administrator of a Union Territory, by whatever name designated;

(iii) “Appropriation” means the assignment, to meet specified expenditure, of funds included in a primary unit of appropriation;

(iv) “Audit Officer” means the Head of an Office of Audit;

(v) “Competent Authority” means, in respect of the power to be exercised under any of these Rules, the President or such other authority to which the power is delegated by or under these Rules, Delegation of Financial Power Rules or any other general or special orders issued by the Government of India;

(vi) “Comptroller and Auditor General” means the Comptroller and Auditor General of India;

(vii) “Consolidated Fund” means the Consolidated Fund of India referred to in Article 266 (1) of the Constitution;

(viii) “ C o n s t i t u t i o n” m e a n s t h e Constitution of India;

(ix) “Contingency Fund” means the Contingency Fund of India established under the Contingency Fund of India Act, 1950, in terms of Article 267 (1) of the Constitution;

(x) “Controlling Officer” means an officer entrusted by a Department of the Central Government with the responsibility of controlling the incurring of expenditure and/or the collection of revenue. The term shall include a Head of Department and also an Administrator;

(xi) “Department of the Government of India” means any of the Ministries, Departments, Secretariats and Offices as notified from time to time and listed in the First Schedule to the Government of India (Allocation of Business Rules);

(xii) “Drawing and Disbursing Officer” means a Head of Office and also any other Gazetted Officer so designated by a Department of the Central Government, a Head of Department or an Administrator, to draw bills and make payments on behalf of the Central Government. The term shall also include a Head of Department or an Administrator where he himself discharges such function;

(xiii) “Ministry of Finance” means the Ministry of Finance of the Central Government;

(xiv) “Financial Year” means the year beginning on the 1st of April and ending on the 31st of March following;

(xv) “Government” means the Central Government;

(xvi) “Government Account” means the account relating to the Consolidated Fund, the Contingency Fund and the Public Account; as defined in these rules;

(xvii) “Head of the Department’ means an authority or person (not below the rank of a Deputy Secretary to the Government of India), declared by the concerned Department in the Government of India as a Head of Department in relation to an identifiable establishment or establishments to exercise the delegated financial powers under these Rules;

(xviii) “Head of Office” means

(a) a Gazetted Officer declared as such in the Delegation of Financial Powers Rules and

(b) any other authority declared as such under any general or special orders of the competent authority;

xix) “Local Body” means an authority legally entitled or specially empowered by Government to administer a local fund;

(xx) “Local Fund” means a local fund as defined in Rule 652 of the Treasury Rules;

(xxi) “Non-recurring expenditure” means expenditure other than recurring expenditure;

(xxii) “President” means the President of India;

(xxiii) “Primary unit of appropriation” m e a n s a p r i m a r y u n i t o f appropriation referred to in Rule 8 of the Delegation of Financial Powers Rules;

(xxiv) “Public Account” means the Public Account of India referred to in Article 266 (2) of the Constitution;

(xxv) “Public Works” means civil/ electrical works including public buildings, public services, transport infrastructure etc., both original and repair works and any other project, including infrastructure which is for the use of general public;

(xxvi) “Re-appropriation” means the transfer of funds from one primary unit of appropriation to another such unit;

(xxvii) “Recurring expenditure” means the expenditure which is incurred at periodical intervals for the same purpose. Expenditures other than recurring expenditure are nonrecurring expenditure; (xxviii)“Reserve Bank” means the Reserve Bank of India or any office or agency of the Reserve Bank of India and includes any Bank acting as the agent of the Reserve Bank of India in accordance with the provisions of the Reserve Bank of India Act, 1934 (Act II of 1934);

(xxix) “Subordinate authority” means a Department of the Central Government or any authority subordinate to the President;

(xxx) “Treasury Rules” means the Treasury Rules of the Central Government;

(xxxi) CAPEX model: In the CAPEX Model, Capital expenditures is used by the buyer to straightway purchase goods followed by procurement of c o n s u m a b l e s , a r r a n g i n g comprehensive maintenance contact after warranty period and finally disposing the product after useful life;

(xxxii) OPEX model: In the OPEX model, the Seller provides the goods, maintains it and also provides the consumables as required and finally takes back the goods after useful / contracted life. The expenditure is made by the Buyer in a staggered manner as per the terms and conditions of the contract.

Rule 3

Interdepartmental consultations:

When the subject of a case concerns more than one Department, no order shall be issued until all such Departments have concurred, or, failing such concurrence, a decision has been taken by or under the authority of the Cabinet. In this regard it is clarified that every case in which a decision, if taken in one Department, is likely to affect the transaction of business allotted to another Department, shall also be deemed to be a case which concerns more than one Department.

Rule 4

Departmental Regulations of financial character:

All Departmental regulations, in so far as they embody orders or instructions of a financial character or have important financial bearing, must invariably be made by, or with the approval of the Ministry of Finance.

Rule 5

Removal of Doubts:

Where a doubt arises as to the interpretation of any of the provisions of these Rules, the matter shall be referred to the Ministry of Finance for decision.

Rule 6

Modifications:

(1) The systems and procedures established by these Rules are subject to general or special instructions/ orders, which the Ministry of Finance may issue from time to time.

(2) The systems and procedures established by these Rules may be modified by any other authority only with the express approval of the Ministry of Finance.

Multiple choice questions:

1. What is the title of the rules mentioned in the text?

a) General Financial Rules, 2020
b) General Financial Rules, 2017
c) Financial Rules, 2017
d) Central Financial Rules, 2017

Answer: b) General Financial Rules, 2017

2. Which rule defines the term "Accounts Officer"?

a) Rule 1
b) Rule 2
c) Rule 3
d) Rule 5

Answer: b) Rule 2

3. According to Rule 1, who are the General Financial Rules, 2017 applicable to?

a) State Government Ministries/Departments
b) All Government Bodies
c) Central Government Ministries/Departments, attached and subordinate bodies
d) Autonomous Bodies only

Answer: c) Central Government Ministries/Departments, attached and subordinate bodies

4. Which of the following is NOT a definition provided in Rule 2?

a) Appropriation
b) Contingency Fund
c) Public Works
d) Procurement Process

Answer: d) Procurement Process

5. Which article of the Constitution is referred to in the definition of "Consolidated Fund"?

a) Article 267(1)
b) Article 266(1)
c) Article 265
d) Article 267(2)

Answer: b) Article 266(1)

6. What is the definition of "Recurring expenditure" according to the text?

a) Expenditure that is incurred only once
b) Expenditure that is incurred periodically for the same purpose
c) Expenditure on capital goods
d) Expenditure on public works

Answer: b) Expenditure that is incurred periodically for the same purpose

7. Which rule specifies that interdepartmental consultations must be made before issuing any order?

a) Rule 1
b) Rule 2
c) Rule 3
d) Rule 5

Answer: c) Rule 3

8. What is the responsibility of the Ministry of Finance according to Rule 4?

a) Approving all departmental regulations of financial character
b) Issuing orders regarding public accounts
c) Managing the Contingency Fund
d) Defining the financial year

Answer: a) Approving all departmental regulations of financial character

9. How should doubts regarding the interpretation of the rules be resolved as per Rule 5?

a) By referring the matter to the Cabinet
b) By consulting the Comptroller and Auditor General
c) By referring the matter to the Ministry of Finance
d) By seeking approval from the President

Answer: c) By referring the matter to the Ministry of Finance

10. Which model involves the seller providing goods, maintaining them, and finally taking them back after the useful life?

a) CAPEX model
b) OPEX model
c) PAYG model
d) Leasing model

Answer: b) OPEX model

****** 


Comments

Post a Comment

Popular posts from this blog

Indian Railway Codes and Manuals-The Railway Servants Conduct Rules 1966.

Image
  THE RAILWAY SERVICES (CONDUCT) RULES, 1966 1.Short title. – (1) These rules may be called the Railway Services (Conduct) Rules1966. (2) They shall come into force at once. 2. Definition. - In these rules, unless the context otherwise requires- (a) ‘Government’ means, in relation to – (i) gazetted officers holding posts in the Railway Board, the President; (ii) other gazetted officers, the Railway Board; (iii) non-gazetted officers, in the Railway Board, the Secretary, Railway Board; (iv) other non-gazetted officers in offices directly under the administrative control of the Railway Board, the Heads of the offices concerned; and (v) other non-gazetted officers, the General Managers of the Railway Administrations concerned: Provided that for purposes of sub-rules (2) and (3) of rule 5, sub-rule (i)of rule 8, sub-rule (i) of rule 10, rule 12, rule 14, sub-rules (1) of rule 15, sub-rule (3) of rule 16, sub-rule (1) of rule 19 and rule 21, ‘Government’ means the Ra...
Read more

Indian Railway Codes and Manuals-THE RAILWAY SERVANTS (DISCIPLINE & APPEAL) RULES, 1968 (D&AR)

Image
  THE RAILWAY SERVANTS (DISCIPLINE & APPEAL) RULES, 1968 PART – I GENERAL 2. Definitions - (1) In these rules, unless the context otherwise requires - (a) 'appointing authority' in relation to a Railway servant means - (i) the authority empowered to make appointments to the Service of which the Railway servant is, for the time being, a member or to the grade of the Service in which the Railway servant is, for the time being, included, or (ii) the authority empowered to make appointments to the post which the Railway servant, for the time being holds, or (iii) the authority which appointed the Railway servant to such Service, grade or post, as the case may be, or (iv) where the Railway servant having been a permanent member of any other Service or having substantively held any other permanent post, has been in continuous employment under the Ministry of Railways, the authority which appointed him to that Service or to any grade in that Service or to that post; whicheve...
Read more

Indian Railway Codes and Manuals-Accounts code- Vol-II-Chapter-34 (XXXIV)

Image
  Chapter No. XXXIV CHECK OF TRAFFIC RELATING TO RAILWAYS MATERIALS AND STORES   3401 Returns checked by Accounts Office -This chapter deals with the check and accounting etc. of the following in respect of "Local/Through traffic relating to railway materials and stores for carriage by goods trains on the authority of Departmental Credit Notes. (1) Departmental Credit Notes (COM/C-39 ); (2) Paid statement of Railway Materials and Stores forwarded Local (COM/R. 4 Revised); (3) Paid statement of Railway Materials and Stores forwarded (Through) (COM/R. 5 Revised); (4) Invoices/ Accounts Foil of RMC entries ; (5) Machine Prepared abstract of Railway Materials and Stores received Local (COM/R. 2 Revised); (6) Machine Prepared abstract of Railway Materials and Stores received Through (COM/R. 3 Revised); (7) Carriage bills/Transfer certificate for railway material and stores. 3402 Receipt of Accounts foil of Departmental Credit Note for booking of Railway Materi...
Read more

Indian Railway Codes and Manuals-Accounts Code-Chapter-8 (VIII)

Image
CHAPTER VIII INTERNAL CHECK A. SCOPE AND METHOD OF INTERNAL CHECK 801. Internal Check - The check exercised by the Accounts Officer on the financial transactions of the railway on behalf of the Railway Administration is called internal check. It is so called to distinguish it from the audit conducted by the Chief Auditor of the Railway on behalf of the Comptroller and Auditor General. The internal check should be conducted with reference to- (a) d Rules and orders issued by the President , the Railway Board, General Managers of Railways and other subordinate authorities to whom the power to issue rules or orders has been delegated; (b) the instructions contained in this and other Indian Railway Codes and any further instructions issued from time to time by the Railway Board; and (c) the recognised standards of financial propriety vide paragraph 116 of Financial Code. 802. Unless an exception is specially permitted in any particular case. All transactions, whether relating to receipts o...
Read more

Indian Railway Codes and Manuals-Accounts code- Vol-II-Chapter-32 (XXXII)

Image
  Chapter XXXII The Traffic Book 3201 Scope of Traffic Book: The Traffic Book is a compilation which collects and brings to account, under the prescribed heads Coaching, Goods and Sundry Other Earnings, the whole of the traffic earning of a railway, both Local and Through, whether accrued at stations or otherwise. It records the progress of realization of these earnings, the results of apportionment of traffic interchanged with Other Railways and Deposit Private Companies (NGR, JV including SPVs etc) and the progress in the settlement of the balances on these accounts. 3202 Parts of the Traffic Book. The Traffic Book consists of four distinct parts, viz a) Station Accounts: b) Adjustment or Division Sheets or Net Result of Apportionment on the basis of Matrix generated through CAS c) Ledger account of the Home Line; and Abstract of Earnings and Statement of Balances. 3203 Traffic Book, Part A The earning accrued at stations, for the realization of which the home railway is ...
Read more

Indian Railway Codes and Manuals-Accounts code- Vol-II-Chapter-33 (XXXIII)

Image
  Chapter XXXIII Inspection of Station Accounts 3301 The preceding chapters deal with the check and counting of returns which are submitted by the stations to the Accounts Office. The check of initial records of accounts maintained at stations, which do not come under the scrutiny of the Accounts Office, is carried out by the Travelling Inspectors of Station Accounts who are also responsible to check that the returns submitted by stations to the Accounts Office have been correctly prepared and agree with the initial records maintained at the stations. Travelling Inspectors of Station Accounts or a Cell specifically created in the Traffic Accounts office may be given requisite access and responsibility for checking of online transactions of different Systems such as PRS/FOIS/UTS/PMS Terminals with some specific report generation eg., Exceptional report of missing Roll continuity. Short remittance. Delayed remittance. Distance Masters Junction distance table Commodity...
Read more

Indian Railway Codes and Manuals-Establishment code- Vol-I-Chapter-5 (V)

Image
  Chapter 5 Leave Rules   501.   Short title. – These rules may be called the Railway Services (Liberalised Leave) Rules, 1949.   502.   Extent of application. – These rules shall apply to (i) Railway servants appointed on or after 1st February 1949; (ii) Railway servants appointed prior to 1st February 1949 who have elected to be governed by these rules; and (iii) others who are brought under these rules by special orders; (iv) a temporary Railway servant who has completed 3 years continuous service shall be entitled, from the date of completion of 3 years continuous service, to the same conditions of service in respect of question of leave (including leave salary) as he would have been entitled to if he held a lien on the post in which he was initially appointed. 502-A.    Definitions                     (1)        In ...
Read more

Indian Railway Codes and Manuals-Accounts Code-Chapter-9 (IX)

Image
                                                                                                                                                                                                  CHAPTER IX                                                                                     ...
Read more

Indian Railway Codes and Manuals-Stores code- Vol-II-Chapter-19 (XIX)

Image
  CHAPTER XIX ENGINEERING PLANT RESERVE Custody, Receipt and Issue 1901.  Object of a Reserve.-—In order to avoid losses from forced sales of serviceable and useful plant left over from special works which is likely to be required for future special works, an "Engineering Plant Reserve" may be created on each railway, with the previous sanction of the Railway Board, who will fix the maximum financial limit of such reserve. 1902.  Nature of Plant in Reserve Stock.—The Engineering Reserve would include items of construction plant of the following description.— 1. Air Compressors 2. Air receivers 3. Boilers 4. Boring Plant, special, hand and power driven 5. Concrete mixing machine 6. Cranes (derrick scotch) 7. Dregers, crab 8. Drilling machine, hand or power drives 9. Drilling machines, pneumatic 10. Driving Gear 11. Engines, portable, steam 12. Engines, internal combustion 13. Engines, locomotive, 2 feet gauge 14. Gantries for girder erect...
Read more

Indian Railway Codes and Manuals-Accounts Code-Chapter-1 (I)

Image
                                                                                         ACCOUNTS CODE VOL-I (1)                                                   CHAPTER-1(I) DEPARTMENTAL REGULATIONS 101 Functions of the Accounts Department. - The Accounts Department of a Railway Administration is mainly responsible for :- ( a) Keeping the accounts of the railway in accordance with the prescribed rules: (b) The check with reference to rules or orders (Known as “Internal Check”) of transactions affecting the receipts and expenditure of railway ; (c) Prompt settlement of proper claims against the railway ; (d) Tendering, as part of its importan...
Read more