Rule 260 of The General Financial Rules 2017 Accounts and Control
Original Rule Text
Visual Summary
Accounts Officer maintains detailed records of loans.
Ensures timely recovery of loan principal and interest.
Verifies adherence to all loan-specific conditions.
Executive Summary
Rule 260 of the General Financial Rules, 2017, outlines the critical responsibilities of the Accounts Officer regarding the management of loans extended to various institutions and organizations. This rule mandates that the Accounts Officer must maintain detailed records of these loans, diligently monitor their recovery, and ensure that all specified conditions attached to each loan are strictly fulfilled. These duties are to be performed in accordance with any general or specific directives issued by the Comptroller and Auditor-General, ensuring robust financial oversight and accountability.
In-Depth Analysis of the Rule
Introduction: Rule 260 establishes the foundational framework for the accounting and control of loans provided by the government to various entities. It places a significant onus on the Accounts Officer to ensure financial discipline and compliance throughout the loan lifecycle.
Breakdown of the Rule:
- Authority and Direction: The Accounts Officer’s functions are guided by general or specific directions from the Comptroller and Auditor-General, ensuring a standardized and authoritative approach to loan management.
- Detailed Account Maintenance: A core responsibility is the meticulous maintenance of detailed accounts for all loans extended to institutions and organizations. This ensures transparency and traceability of public funds.
- Recovery Oversight: The Accounts Officer is tasked with actively monitoring the recovery of these loans, implying a proactive role in tracking repayment schedules and addressing any delays or defaults.
- Condition Fulfillment: A crucial aspect is ensuring that all conditions stipulated for each loan are met by the borrowing entities. This goes beyond mere financial repayment to encompass adherence to project milestones, utilization norms, and other contractual obligations.
Practical Example: Imagine the Ministry of Education sanctions a loan to ‘Innovate University’ for constructing a new research facility, with conditions including specific construction timelines, utilization of funds for approved purposes only, and submission of quarterly progress reports. Under Rule 260, the Accounts Officer responsible for this loan would meticulously record all disbursements, track repayment installments, and verify that Innovate University adheres to the construction schedule, submits reports on time, and uses the funds strictly for the research facility as per the loan agreement. If any condition is breached, the Accounts Officer would flag it for appropriate action.
Related Provisions
Understanding Rule 260 is enhanced by examining related provisions concerning loan management:
- Rule 246 of The General Financial Rules 2017 Sanction of Loans: This rule sets out the general principles for authorities competent to sanction loans of public moneys, providing context for the loans that Rule 260 governs.
- Rule 250 of The General Financial Rules 2017 General Conditions for Loans: This rule details the overarching conditions, such as repayment terms and interest rates, that apply to all loans, which the Accounts Officer must monitor under Rule 260.
- Rule 256 of The General Financial Rules 2017 Loan Utilization Certificates and Reports: This rule specifies the requirements for submitting utilization certificates and reports for loans, which are crucial documents for the Accounts Officer to verify compliance as per Rule 260.
Learning Aids
Mnemonics
- A.C.R.C. – Accounts Control, Recovery Checks: Helps remember the core duties of the Accounts Officer under Rule 260.
Process Flowchart
Multiple Choice Questions
1. According to Rule 260 of the General Financial Rules, 2017, who is primarily responsible for maintaining detailed accounts of loans to institutions and organizations?
- A) The Sanctioning Authority
- B) The Comptroller and Auditor-General
- C) The Accounts Officer
- D) The borrowing Institution/Organization
Show Answer
Correct Answer: C) The Accounts Officer
2. What specific duty does Rule 260 of the General Financial Rules, 2017, assign to the Accounts Officer regarding loan recovery?
- A) To sanction loan write-offs
- B) To negotiate new loan terms
- C) To watch the recovery of loans
- D) To provide financial aid to defaulting institutions
Show Answer
Correct Answer: C) To watch the recovery of loans
3. Under Rule 260 of the General Financial Rules, 2017, what must the Accounts Officer ensure regarding the conditions attached to each loan?
- A) That conditions are flexible and can be changed by the borrower.
- B) That the conditions are fulfilled.
- C) That conditions are only financial in nature.
- D) That conditions are kept confidential from the borrowing entity.
Show Answer
Correct Answer: B) That the conditions are fulfilled.
4. The detailed accounts of loans, as per Rule 260 of the General Financial Rules, 2017, are to be maintained subject to directions from which authority?
- A) The Ministry of Finance
- B) The President of India
- C) The Comptroller and Auditor-General
- D) The Head of the Department
Show Answer
Correct Answer: C) The Comptroller and Auditor-General
5. Rule 260 of the General Financial Rules, 2017, specifically refers to the maintenance of detailed accounts for loans given to which entities?
- A) Only individual government servants
- B) Only State Governments
- C) Institutions and Organizations, etc.
- D) Only foreign governments
Show Answer
Correct Answer: C) Institutions and Organizations, etc.
Frequently Asked Questions
What is the primary role of the Accounts Officer under Rule 260 of the General Financial Rules, 2017?
The primary role is to maintain detailed accounts of loans, watch their recovery, and ensure that all conditions attached to each loan are fulfilled, under the directions of the Comptroller and Auditor-General.
Does Rule 260 of the General Financial Rules, 2017, cover all types of financial transactions?
No, Rule 260 specifically focuses on the accounts and control of loans provided to Institutions and Organizations, not all financial transactions.
How does the Accounts Officer ensure compliance with loan conditions as per Rule 260 of the General Financial Rules, 2017?
The Accounts Officer ensures compliance by actively watching the recovery process and verifying that all stipulated conditions attached to each loan are met by the borrowing entities.
Key Takeaways
- Rule 260 assigns the Accounts Officer the critical responsibility for managing loan accounts.
- It mandates detailed account keeping, active monitoring of loan recovery, and verification of all loan conditions.
- The Comptroller and Auditor-General provides the guiding directions for these functions.
- This rule is essential for ensuring accountability and proper utilization of public funds lent to institutions and organizations.
Conclusion
Rule 260 of the General Financial Rules, 2017, is a cornerstone of financial accountability, ensuring that public funds disbursed as loans are meticulously tracked, recovered, and utilized in accordance with agreed-upon terms. The diligent execution of these responsibilities by the Accounts Officer, under the guidance of the Comptroller and Auditor-General, is vital for maintaining fiscal integrity and promoting responsible financial management across government operations.