Rule 1 — General Financial Rules 2017 (amended July 2024) - Rule 1
Original Rule Text
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.
What This Means
The General Financial Rules, 2017, often called GFRs, are the main set of instructions for how the Indian Central Government handles its money. These rules became effective right away in 2017.
They apply to all parts of the Central Government, including every Ministry, Department, and any offices or bodies that work under them. This means if you work in a Central Government office, you must follow these rules for all financial activities, from buying supplies to managing budgets.
For organizations known as "Autonomous Bodies" (which are typically funded by the government but have some independence), these rules generally apply to them too. However, there's an important exception: if an Autonomous Body has its own specific financial rules that have been officially approved by the Government, then those approved rules will take precedence over the GFRs for that particular body.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The General Financial Rules, 2017 (GFRs) are the primary financial guidelines for the Central Government of India.
- 2These rules became effective immediately upon their introduction in 2017.
- 3They are mandatory for all Central Government Ministries, Departments, and their attached or subordinate offices.
- 4Autonomous Bodies are also expected to follow the GFRs by default.
- 5An Autonomous Body can use its own distinct financial rules if those rules have received official approval from the Government.
Practical Example
Imagine Mr. Anil Kumar, a Section Officer in the Ministry of Culture, needs to procure new computers for his department. According to Rule 1 of the GFRs, 2017, he must strictly follow the procurement procedures, budget allocation, and payment guidelines laid out in these rules. He cannot just decide on a vendor or payment method arbitrarily; all steps must align with the GFRs.
Now consider the "National Centre for Performing Arts" (NCPA), an autonomous body operating under the Ministry of Culture. If the NCPA needs to purchase specialized sound equipment for its auditorium, its finance team, led by Ms. Priya Singh, would typically refer to the GFRs 2017 for guidance. However, if the NCPA has its own detailed "Financial Regulations for Autonomous Cultural Institutions" that were specifically approved by the Ministry of Finance, then Ms. Singh would follow those NCPA-specific regulations for the equipment purchase, as they would override the GFRs in this scenario.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.