Rule 283 — GFR

Rule 283 (1) Invocation of Guarantee. A Guarantee Redemption Fund (GRF) has been established in the Public Account of India for redemption of guarantees given to CPSEs, Financial Institutions, etc., by the Central Government whenever such guarantees are invoked. The funding to the Guarantee Redemption Fund is to be done through budgetary appropriations, as considered appropriate, under the head 'Transfer to Guarantee Redemption Fund' through the Demands for Grants of the Department of Economic Affairs.

Rule 283 (2) The Administrative Ministries/ Departments should inform any case of impending/likely invocation, well in advance, to the Budget Division, along with the proposed corrective measures.

Rule 283 (3) In the event of invocation of a guarantee, the obligation may be discharged by sanctioning loan to the borrowing entity equal to the amount of guarantee outstanding with the approval of Budget Division, Ministry of Finance. However, any payment on this account will finally be charged to the Guarantee Redemption Fund maintained in the Public Accounts.

Ch.-12 - MISCELLANEOUS SUBJECTS I. ESTABLISHMENT