Rule 1 of the General Financial Rules 2017 Short Title and Commencement
Original Rule Text
Visual Summary
Official Name
These rules are officially called the ‘General Financial Rules, 2017’.
Effective Date
They became legally effective ‘at once’, meaning immediately upon being issued.
Applicability
Applies to all Central Government Ministries, Departments, and their attached or subordinate bodies.
Autonomous Bodies
Also applies to Autonomous Bodies, unless they have their own separate financial rules approved by the Government.
Executive Summary
Rule 1 of the General Financial Rules (GFR), 2017, serves as the formal introduction to the entire set of rules. It establishes three key points: the official name (‘General Financial Rules, 2017’), the effective date (‘at once,’ meaning immediately), and its scope of application. The rule mandates that these financial regulations apply to all Central Government Ministries, Departments, and their associated bodies. It also extends their applicability to Autonomous Bodies, with a specific exception: if an Autonomous Body has its own separate financial rules that have been officially approved by the Government, then those rules take precedence.
In-Depth Analysis of the Rule
Introduction
Rule 1 is the foundational provision of the General Financial Rules, 2017. It acts as the formal starting point, clearly defining the identity, effective date, and jurisdiction of these crucial financial regulations. By setting these parameters, it ensures there is no ambiguity about what the rules are called, when they became law, and who must follow them.
Breakdown of the Rule
The rule can be broken down into three main components:
- Short Title: This is the official name used to cite the law. The rule states, ‘These rules may be called General Financial Rules, 2017’. This provides a clear and consistent way to refer to this body of regulations in all official communications, documents, and legal contexts.
- Commencement: This specifies when the rules become legally binding. The phrase ‘they shall come into force at once’ means they were effective immediately upon their notification. There was no grace period or future start date.
- Applicability and Scope: This is the most detailed part of the rule. It defines the entities that must comply with the GFR. It explicitly includes ‘all Central Government Ministries / Departments, attached and subordinate bodies’. This is a broad mandate covering the entire machinery of the central government.
- The Exception for Autonomous Bodies: The rule includes a specific condition for Autonomous Bodies. While the GFRs are ‘deemed to be applicable’ to them, there is an exception. If an Autonomous Body has its own ‘separate Financial Rules’ which have been ‘approved by the Government’, then those specific rules will apply instead of the GFR. The key condition here is not just the existence of separate rules, but their formal approval by the Government.
Practical Example
Imagine a newly established Central Government agency, the ‘National AI Development Authority’. From its first day of operation, Rule 1 dictates that it must manage all its finances—from staff salaries to equipment purchases—according to the General Financial Rules, 2017. Now, consider an existing Autonomous Body, like a National Institute of Science. If this institute has its own financial bye-laws that were formally approved by the Government of India, it would follow those. However, if its bye-laws were never officially approved, or if it has no separate financial rules, it must adhere to the GFR, 2017.
Conclusion
Rule 1 is a simple but essential provision. It lays the groundwork for the entire GFR, 2017 by establishing its name, immediate effect, and wide-ranging applicability across the Central Government. The specific clause regarding Autonomous Bodies provides clarity and a mechanism for accommodating specialized financial governance where it has been officially sanctioned, ensuring a consistent yet flexible financial framework.
Related Provisions
Understanding Rule 1 is enhanced by looking at other foundational rules within the GFR, 2017. These related provisions help build a complete picture of the framework’s structure and authority:
- Rule 2: Definition – This rule is the logical next step, as it defines the key terms (like ‘Administrator’, ‘Government Account’, etc.) used throughout the GFR. Understanding these definitions is essential for correctly interpreting the scope established in Rule 1.
- Rule 6: Modifications – This rule explains how the GFR can be changed or modified, always requiring the approval of the Ministry of Finance. It reinforces the authority and central control over the financial framework introduced in Rule 1.
- Rule 4: Departmental Regulations of financial character – This provision clarifies that any departmental regulations with a financial bearing must be approved by the Ministry of Finance. This connects directly to Rule 1’s scope, showing how individual departments, while covered by GFR, can create their own specific rules within the overarching framework.
Learning Aids
Mnemonics
- “NAME, NOW, NATION”: A simple way to remember the three parts of Rule 1.
NAME: The official name is the General Financial Rules, 2017.
NOW: They came into force ‘at once’ or right now.
NATION: They apply to the entire nation’s Central Government machinery.
Mindmap
Multiple Choice Questions (MCQs)
1. What is the official name (Short Title) of the rules as specified in Rule 1?
- A) The General Government Financial Rules, 2017
- B) General Financial Rules, 2017
- C) Central Government Financial Rules, 2017
- D) Financial Rules and Regulations of India, 2017
Show Answer
Correct Answer: B) General Financial Rules, 2017.
2. Under what specific condition is an Autonomous Body exempt from following the General Financial Rules, 2017?
- A) If it is more than 10 years old.
- B) If it has its own separate financial rules which have been approved by the Government.
- C) If it receives less than 50% of its funding from the Government.
- D) If it has drafted its own financial rules, regardless of approval.
Show Answer
Correct Answer: B) If it has its own separate financial rules which have been approved by the Government.
3. A newly formed Autonomous Body drafts its own set of financial bye-laws but has not yet received formal approval from the Government. According to Rule 1, which set of rules must this body follow in the interim?
- A) It can follow its own drafted bye-laws provisionally.
- B) It is exempt from all financial rules until its own are approved.
- C) It must follow the General Financial Rules, 2017.
- D) It must follow the financial rules of its parent Ministry.
Show Answer
Correct Answer: C) It must follow the General Financial Rules, 2017. The rule specifies that separate rules are only valid if they have been ‘approved by the Government’. Without this approval, the GFR, 2017 automatically apply.
Frequently Asked Questions
When did the General Financial Rules, 2017 become effective?
According to Rule 1, the GFR, 2017 came into force ‘at once,’ which means they became legally effective immediately upon their official publication.
Do these rules apply to State Government departments?
No, Rule 1 specifies that these rules are applicable to ‘all Central Government Ministries / Departments, attached and subordinate bodies’. State Governments have their own separate financial rules and procedures.
What is the rule for an Autonomous Body that has its own financial bye-laws?
An Autonomous Body must follow the GFR, 2017, unless its own separate financial rules or bye-laws have been formally ‘approved by the Government’. If they have this approval, they can follow their own rules. If not, the GFR, 2017 apply.
Key Takeaways
- Official Title: The rules are formally known as the ‘General Financial Rules, 2017’.
- Immediate Effect: They became law as soon as they were issued.
- Broad Scope: They apply to the entire Central Government and its associated bodies.
- Conditional Exception: Autonomous Bodies are exempt only if they have their own financial rules that have been officially approved by the Government.