Rule 7 of the General Financial Rules 2017 Prompt Accounting of Government Moneys
Original Rule Text
Visual Summary
Prompt Accounting
All money received must be deposited into the Government Account immediately.
All Types of Money
This rule applies to all funds, including dues, deposits, and remittances.
Constitutional Basis
The process must follow rules issued under Articles 150 and 283(1) of the Constitution.
Executive Summary
This rule establishes a fundamental principle of financial discipline: any and all money received by or for the Government must be deposited into the official Government Account immediately. This includes taxes, fees, deposits, or any other type of payment. The process must adhere to specific rules laid out under the Constitution to ensure transparency and proper handling of public funds.
In-Depth Analysis of the Rule
Introduction
Rule 7 is a cornerstone of the General Financial Rules, focusing on the timely and proper accounting of all government receipts. Its primary purpose is to prevent misuse of public funds, ensure accurate financial records, and maintain the integrity of the government’s financial system.
Breakdown of the Rule
Let’s break down the key phrases of Rule 7:
- ‘All moneys received by or on behalf of the Government’: This is a broad term that covers every form of payment. It’s not just about taxes or fines; it includes deposits, remittances, fees for services, and any other money that a government officer collects in their official capacity.
- ‘shall be brought into Government Account’: This means the money must be deposited into the official, designated bank accounts of the government, which are part of the Consolidated Fund of India or the Public Account. It cannot be kept in a personal account, a departmental cash box (beyond prescribed limits), or used for any other purpose.
- ‘without delay’: This is the most critical part of the rule. It means the deposit must happen immediately or as soon as practically possible. Holding onto government money, even for a short period, is a violation of this rule.
- ‘in accordance with such general or special rules as may be issued under Articles 150 and 283 (1) of the Constitution’: This links the rule directly to the Constitution of India. Article 150 deals with the form of accounts of the Union and the States, and Article 283(1) deals with the custody of the Consolidated Fund. This ensures that the entire process is legally sound and standardized.
Practical Example
Imagine you go to a Regional Transport Office (RTO) to pay a fee for your driver’s license renewal. You pay the fee in cash at the counter. According to Rule 7, the RTO official who receives your cash cannot keep it in their drawer until the end of the day or use it for petty office expenses. They must deposit that money into the designated government bank account promptly, following the prescribed procedure for recording the transaction.
Conclusion
Rule 7 is a simple yet powerful directive that ensures all public money is handled with speed, accuracy, and accountability. By mandating the immediate deposit of all receipts into the Government Account, it safeguards public funds and maintains the financial health of the government.
Related Provisions
This rule is the starting point for the management of government receipts. Its principles are further detailed and supported by the following rules:
- Rule 8: Accounting of Moneys in Public Account – This rule specifies how moneys that are not government revenues (like deposits held in trust) are to be handled and paid into the Public Account.
- Rule 9: Departmental Responsibility for Receipts – This rule places the responsibility squarely on government departments to ensure that all dues are assessed, collected, and credited correctly and promptly.
- Rule 10: Controlling Officer’s Duty to Reconcile Receipts – This rule provides a check and balance, requiring senior officers to verify that the money reported as collected has actually been credited to the government’s account.
Learning Aids
Mnemonics
- Remember the acronym ‘GAD’: Government Account Directly. It reminds you that all money must go directly to the Government Account.
Mindmap
Multiple Choice Questions (MCQs)
1. [Easy] What is the primary instruction of Rule 7 regarding money received by the Government?
- A) It should be reported to a senior officer immediately.
- B) It can be held in the office for up to 24 hours for reconciliation.
- C) It must be brought into the Government Account without delay.
- D) It can be used for urgent departmental expenses and adjusted later.
Show Answer
Correct Answer: C) It must be brought into the Government Account without delay.
2. [Medium] To which of the following types of receipts does Rule 7 apply?
- A) Only to tax revenues collected by the government.
- B) Only to fines and penalties imposed by government authorities.
- C) To all moneys received, including government dues, deposits, and remittances.
- D) Only to deposits received from other government departments.
Show Answer
Correct Answer: C) To all moneys received, including government dues, deposits, and remittances.
3. [Hard] The procedure for bringing money into the Government Account under Rule 7 must be in accordance with rules issued under which specific Articles of the Constitution?
- A) Articles 148 and 149
- B) Articles 266 and 267
- C) Articles 280 and 282
- D) Articles 150 and 283(1)
Show Answer
Correct Answer: D) Articles 150 and 283(1).
Frequently Asked Questions
What does ‘without delay’ practically mean for a government official?
It means the money should be deposited into the designated government bank account at the earliest possible opportunity, typically on the same day it is received or the next banking day at the latest. It prohibits holding onto cash unnecessarily.
Does this rule apply only to cash payments?
No, the term ‘moneys’ is comprehensive. It includes cash, cheques, demand drafts, electronic transfers, and any other form of payment received by or on behalf of the government.
What is the ‘Government Account’ mentioned in the rule?
The ‘Government Account’ refers to the official accounts of the government where public funds are kept, as defined by the Constitution. This primarily includes the Consolidated Fund of India and the Public Account of India.
Key Takeaways
- Speed is Essential: All money received for the government must be deposited into the official account immediately.
- Universal Application: The rule applies to every type of money (dues, deposits, etc.) and every form of payment (cash, cheque, online).
- No Exceptions: Government officials cannot hold onto public funds or use them for any other purpose before depositing them.
- Constitutional Mandate: The entire process is backed by the Constitution to ensure legal compliance and accountability.