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Rule 17 - Grants & Loans | KartavyaDesk

DFPR 1978delegation

Original Rule Text

Provided that, – (a) such grants in aid including scholarships are in accordance with the rules or principles prescribed with the previous consent of the Finance Ministry and a certificate to that effect is included in the sanction; (b) the rate of interest on a loan and the period of payment thereof are fixed with the previous consent of the Ministry of Finance unless the rate of interest on such loan and the period of repayment thereof are prescribed in any general or special order of the Department of the Government of India.

What This Means

Rule 17 of the Delegation of Financial Powers Rules, 1978, focuses on the conditions under which government departments can provide grants-in-aid (including scholarships) and loans. Essentially, it ensures that these financial assistance programs are well-regulated and aligned with the Finance Ministry's guidelines. This rule prevents arbitrary or unchecked disbursement of funds and promotes financial prudence within government operations. It affects all government departments and agencies that administer grants-in-aid or loans.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Grants-in-aid and scholarships must adhere to rules/principles approved by the Finance Ministry.
  • •Sanctions for grants-in-aid must include a certificate confirming Finance Ministry approval.
  • •Loan interest rates and repayment periods require prior Finance Ministry consent.
  • •Exceptions exist if interest rates and repayment terms are pre-defined in a general or special government order.

Practical Example

The Ministry of Social Justice and Empowerment wants to launch a new scholarship program for underprivileged students pursuing higher education. Before disbursing any scholarships, they must first obtain the Finance Ministry's approval for the scholarship guidelines, including eligibility criteria and the scholarship amount. The sanction order for each scholarship must then include a statement confirming that the Finance Ministry has approved these guidelines. Similarly, if the Ministry of Rural Development decides to provide loans to self-help groups, the interest rate and repayment period must be approved by the Finance Ministry, unless these terms are already specified in a pre-existing government order related to such loans.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What happens if we disburse a grant-in-aid without Finance Ministry approval?▼
Disbursing a grant-in-aid without the Finance Ministry's prior consent would be a violation of Rule 17 and could lead to audit objections and disciplinary action against the responsible officers.
Does Rule 17 apply to all types of financial assistance?▼
No, Rule 17 specifically addresses grants-in-aid (including scholarships) and loans. Other forms of financial assistance may be governed by different rules within the Delegation of Financial Powers Rules, 1978.
If a department has a standing order specifying loan terms, do they still need Finance Ministry approval?▼
No. If the interest rate and repayment period are already prescribed in a general or special order issued by the relevant Department of the Government of India, then separate Finance Ministry approval is not required for each loan.
What constitutes 'previous consent' from the Finance Ministry?▼
'Previous consent' means that the Finance Ministry must have formally approved the relevant rules, principles, interest rates, or repayment periods *before* the grant-in-aid or loan is sanctioned and disbursed.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to Rule 17 of the Delegation of Financial Powers Rules, 1978, what is a mandatory requirement when sanctioning grants-in-aid, including scholarships?

Related Rules

Annexure IIDFPR 2024 - Annexure IIAppendix IDFPR 2024 - Appendix IRule 20DFPR 2024 - Rule 20 - (Expenditure from or incidence of charges on contingency fund of India)Rule 10DFPR 2024 - Rule 10 - (Re-appropriation)Rule 14DFPR 2024 - Rule 14 - (Insurance of Government property)

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