Rule 207 of The General Financial Rules 2017 Inventory Management
Original Rule Text
Visual Summary
Establishes basic rules for inventory management across all Ministries and Departments.
Applies to all Central Government Ministries and Departments.
Ministries may prescribe detailed procedures in conformity with these rules.
Executive Summary
Rule 207 of the General Financial Rules, 2017, lays down the foundational principles for inventory management across all Central Government Ministries and Departments. It serves as a guiding framework, allowing individual entities to develop specific, detailed instructions and procedures that align with these overarching rules. The primary objective is to ensure efficient and standardized management of inventory throughout government operations.
In-Depth Analysis of the Rule
Rule 207 is a concise yet critical provision within the General Financial Rules, 2017, establishing the bedrock for inventory management. It underscores the importance of systematic control over government assets, ensuring accountability and operational efficiency. Instead of dictating rigid, universal procedures, the rule adopts a flexible approach, empowering individual Ministries and Departments to tailor their inventory management practices while adhering to a common set of fundamental principles.
Breakdown of the Rule:
- Basic Framework: The rule establishes the fundamental principles for inventory management, serving as a high-level guide rather than a prescriptive manual.
- Universal Applicability: These basic rules are applicable to all Ministries and Departments of the Central Government, ensuring a consistent approach across the board.
- Departmental Autonomy: Ministries and Departments are explicitly permitted to prescribe their own detailed instructions and procedures for inventory management.
- Conformity Requirement: Any detailed procedures developed by individual entities must broadly conform to the basic rules outlined in this chapter, ensuring alignment with central guidelines.
Practical Example:
Consider the Ministry of Health and Family Welfare. While Rule 207 sets the general expectation for inventory management, this Ministry can develop specific guidelines for managing medical supplies, pharmaceuticals, and equipment. These guidelines would cover aspects like cold chain management for vaccines, expiry date tracking for medicines, and specialized storage for sensitive equipment, all while ensuring that the core principles of accountability, regular verification, and efficient disposal (as outlined in subsequent rules of this chapter) are met.
Related Provisions
Rule 207 serves as an introduction to the broader Chapter 7 on Inventory Management. Other rules within this chapter provide specific details:
- Rule 208 of The General Financial Rules, 2017 (Receipt of Goods and Materials from Private Suppliers): Details procedures for receiving goods from external suppliers.
- Rule 210 of The General Financial Rules, 2017 (Custody of Goods and Materials): Outlines responsibilities for safe custody and proper storage.
- Rule 217 of The General Financial Rules, 2017 (Disposal of Goods): Covers procedures for declaring and disposing of surplus or unserviceable items.
Learning Aids
Mnemonics:
- I.M.P.A.C.T. – Inventory Management Principles Apply to Central Transactions.
Process Flowchart:
Multiple Choice Questions (MCQs)
1. What is the primary purpose of Rule 207 of the General Financial Rules, 2017?
- A) To detail specific procurement procedures for all departments.
- B) To establish basic rules for inventory management.
- C) To define financial powers for sanctioning expenditure.
- D) To outline procedures for inter-departmental adjustments.
Show Answer
Correct Answer: B) To establish basic rules for inventory management.
2. To which entities do the basic rules of inventory management under Rule 207 of the General Financial Rules, 2017, apply?
- A) Only to the Ministry of Finance.
- B) Only to Central Public Sector Undertakings.
- C) To all Ministries or Departments of the Central Government.
- D) To State Governments and Union Territories only.
Show Answer
Correct Answer: C) To all Ministries or Departments of the Central Government.
3. According to Rule 207 of the General Financial Rules, 2017, who is responsible for prescribing detailed instructions and procedures for inventory management?
- A) Only the Ministry of Finance.
- B) The Comptroller and Auditor General of India.
- C) Various Ministries or Departments.
- D) The Reserve Bank of India.
Show Answer
Correct Answer: C) Various Ministries or Departments.
4. What condition must detailed inventory management procedures prescribed by Ministries or Departments satisfy under Rule 207 of the General Financial Rules, 2017?
- A) They must be identical across all departments.
- B) They must be approved by the Parliament annually.
- C) They must broadly conform to the basic rules contained in Chapter 7.
- D) They must be developed in consultation with international bodies.
Show Answer
Correct Answer: C) They must broadly conform to the basic rules contained in Chapter 7.
5. Rule 207 of the General Financial Rules, 2017, is part of which chapter?
- A) Chapter 5 – Works
- B) Chapter 6 – Procurement of Goods and Services
- C) Chapter 7 – Inventory Management
- D) Chapter 8 – Contract Management
Show Answer
Correct Answer: C) Chapter 7 – Inventory Management.
Frequently Asked Questions
What is the main objective of Rule 207 of the General Financial Rules, 2017?
The main objective is to establish a foundational framework for inventory management across all Central Government Ministries and Departments, ensuring consistency and efficiency in handling government assets.
Can individual Ministries create their own inventory management procedures under Rule 207?
Yes, Rule 207 explicitly allows various Ministries or Departments to prescribe detailed instructions and procedures for inventory management, provided they broadly conform to the basic rules outlined in Chapter 7.
Why is Rule 207 important for financial management?
Rule 207 is crucial because it sets the stage for effective control over public property. By providing a common framework, it helps prevent waste, ensures accountability, and promotes standardized practices, which are vital for sound financial management and auditability.
Key Takeaways
- Rule 207 establishes the fundamental principles for inventory management.
- It applies universally to all Central Government Ministries and Departments.
- Ministries have the flexibility to develop detailed procedures, provided they align with these basic rules.
- The rule promotes standardized, efficient, and accountable inventory practices across government.
Conclusion
Rule 207 of the General Financial Rules, 2017, serves as the foundational statement for inventory management, emphasizing the need for a structured approach to handling government goods and materials. Its concise nature allows for adaptability, enabling various government entities to implement robust, yet tailored, inventory systems that uphold the principles of financial propriety and operational effectiveness. This rule is essential for maintaining transparency and accountability in the management of public resources.