Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 13 of 44, covering Rules 14 and 20. Each set has 25 questions. Try each question first, then tap Show answer to check your answer and read the explanation.
Source: Delegation of Financial Powers Rules, 2024 (Ministry of Finance, Department of Expenditure, notification S.O. 1543(E) dated 22.03.2024) and the Government of India decisions, appendices and related orders printed in the official DFPR 2024 booklet.
1. Under Rule 14, Government property, both movable and immovable, shall
(a) Be insured by the CPWD
(b) Be insured only if valued above Rs. 1 crore
(c) Always be insured
(d) Not be insured without the previous consent of the Finance Ministry, except where relaxation is provided by that Ministry
Ans. (d) Not be insured without the previous consent of the Finance Ministry, except where relaxation is provided by that Ministry — Explanation: Rule 14 states that Government property, both movable and immovable, shall not be insured and no Subordinate Authority shall incur expenditure on such insurance without the previous consent of the Finance Ministry, except where relaxation is provided. [Ref: Rule 14]
2. Rule 15 (Insurance of Government Property) of DFPR 1978 has been shifted as
(a) Rule 14
(b) Rule 15
(c) Rule 19
(d) Rule 13
Ans. (a) Rule 14 — Explanation: The Concordance Table shows Rule 15 of DFPR 1978 shifted as Rule 14 of DFPR 2024. [Ref: Concordance Table]
3. Under Rule 14, a Subordinate Authority wishing to insure a Government building must
(a) Obtain the State Government's approval
(b) Insure through any company without approval
(c) Obtain the previous consent of the Finance Ministry, unless a relaxation is in force
(d) Obtain only the Head of Office's approval
Ans. (c) Obtain the previous consent of the Finance Ministry, unless a relaxation is in force — Explanation: Rule 14 prohibits any Subordinate Authority from undertaking liability or incurring expenditure on insurance of Government property without previous consent of the Finance Ministry, except where relaxation is provided. [Ref: Rule 14]
4. Rule 14 applies to which kinds of Government property?
(a) Both movable and immovable
(b) Only movable
(c) Only immovable
(d) Only vehicles
Ans. (a) Both movable and immovable — Explanation: Rule 14 refers to "Government property, both movable and immovable". [Ref: Rule 14]
5. Under Rule 20(1), whenever consent or sanction of the Finance Ministry is required, it is communicated to audit or the PAO by
(a) The C&AG
(b) The Head of Office
(c) The Finance Ministry directly
(d) The Department of the Government of India itself, after adding a prescribed clause to the sanction
Ans. (d) The Department of the Government of India itself, after adding a prescribed clause to the sanction — Explanation: Rule 20(1) states that such consent or sanction shall be communicated to the audit or PAO by the Department itself after adding the prescribed clause to the sanction. [Ref: Rule 20(1)]
6. The clause to be added under Rule 20(1) when Finance Ministry concurrence is obtained reads
(a) "Approved by the President."
(b) "This order / memorandum issues with the concurrence of the Ministry of Finance (Department of Expenditure), vide their O.M./ U.O. No.… dated…"
(c) "This sanction issues with the approval of competent authority."
(d) "Issued with the approval of Parliament."
Ans. (b) "This order / memorandum issues with the concurrence of the Ministry of Finance (Department of Expenditure), vide their O.M./ U.O. No.… dated…" — Explanation: Rule 20(1) prescribes the clause: "This order / memorandum issues with the concurrence of the Ministry of Finance (Department of Expenditure), vide their O.M./ U.O. No……..dated………". [Ref: Rule 20(1)]
7. Under Rule 20(2), a financial sanction issued in consultation with the Internal or Integrated Financial Adviser and approval of competent authority should contain the clause
(a) "This sanction issues with the approval of the C&AG."
(b) "This order issues with the concurrence of the Ministry of Finance (Department of Expenditure)."
(c) "This sanction issues with the approval of the Cabinet."
(d) "This sanction issues with the approval of competent authority. The advice of Internal Finance / Integrated Finance was conveyed vide Dy. No./ U.O. No.… dated…"
Ans. (d) "This sanction issues with the approval of competent authority. The advice of Internal Finance / Integrated Finance was conveyed vide Dy. No./ U.O. No.… dated…" — Explanation: Rule 20(2) prescribes that the sanction be communicated with the clause: "This sanction issues with the approval of competent authority. The advice of Internal Finance / Integrated Finance was conveyed vide Dy. No./ U.O. No………dated………". [Ref: Rule 20(2)]
8. Rule 20 of DFPR 2024 deals with
(a) Repeal and savings
(b) Dismantlement of public buildings
(c) Communication of sanctions to audit
(d) Trading operations
Ans. (c) Communication of sanctions to audit — Explanation: Rule 20 is titled "Communication of sanctions to audit". [Ref: Rule 20]
9. Rule 25 (Communication of sanctions to Audit) of DFPR 1978 corresponds to
(a) Rule 20 of DFPR 2024
(b) Rule 21 of DFPR 2024
(c) Deleted
(d) Rule 25 of DFPR 2024
Ans. (a) Rule 20 of DFPR 2024 — Explanation: The Concordance Table shows Rule 25 of DFPR 1978 shifted as Rule 20 of DFPR 2024. [Ref: Concordance Table]
10. Sanctions under DFPR 2024 are communicated to audit or to the
(a) Pay and Accounts Officer concerned
(b) Head of Office
(c) Treasury Officer of the State
(d) Reserve Bank of India
Ans. (a) Pay and Accounts Officer concerned — Explanation: Rule 20 requires communication to the "audit or Pay and Accounts Officer concerned". [Ref: Rule 20(1), (2)]
11. Which of the following is correct about communication of a sanction requiring Finance Ministry concurrence?
(a) The Finance Ministry communicates it directly to audit
(b) No communication to audit is needed
(c) The Department communicates it, quoting the Finance Ministry's O.M./U.O. number and date
(d) The C&AG communicates it to the Department
Ans. (c) The Department communicates it, quoting the Finance Ministry's O.M./U.O. number and date — Explanation: Rule 20(1) requires the Department itself to communicate the sanction, adding the clause that quotes the Finance Ministry's O.M./U.O. No. and date. [Ref: Rule 20(1)]
12. The phrase "Internal Finance / Integrated Finance" appears in the clause prescribed by
(a) Rule 20(2)
(b) Rule 14
(c) Rule 21(1)
(d) Rule 20(1)
Ans. (a) Rule 20(2) — Explanation: Rule 20(2) prescribes the clause mentioning that "the advice of Internal Finance / Integrated Finance was conveyed vide Dy. No./ U.O. No….". [Ref: Rule 20(2)]
13. Formal sanctions under DFPR 2024 are issued in whose name?
(a) The Secretary
(b) The Head of Department
(c) The President
(d) The Finance Minister
Ans. (c) The President — Explanation: Para (1) of Annexure-II states that powers delegated to the Departments are exercised by issue of formal sanctions in the name of the President. [Ref: Annexure-II, para (1)]
14. A Subordinate Authority agrees in a hire contract to bear the insurance premium for Government-owned equipment. Under Rule 14 this
(a) Requires the previous consent of the Finance Ministry, unless a relaxation applies
(b) Needs only the vendor's consent
(c) Is within its full powers
(d) Needs only the Head of Office's approval
Ans. (a) Requires the previous consent of the Finance Ministry, unless a relaxation applies — Explanation: Rule 14 bars any Subordinate Authority from undertaking any liability or incurring any expenditure in connection with insurance of Government property without the previous consent of the Finance Ministry, except where relaxation is provided. [Ref: Rule 14]
15. Why does Rule 20 require the Department to quote the Finance Ministry's O.M./U.O. number in the sanction?
(a) To avoid appropriation
(b) So that audit and the PAO can verify that the required concurrence was obtained
(c) To transfer liability to the Finance Ministry
(d) So that the Finance Ministry can pay the bill
Ans. (b) So that audit and the PAO can verify that the required concurrence was obtained — Explanation: The prescribed clause records the reference of the Finance Ministry's concurrence, enabling audit and the PAO to verify that the sanction was issued with the required consent. [Ref: Rule 20(1)]
16. Which rule permits relaxation of the ban on insuring Government property?
(a) Rule 20
(b) Rule 11
(c) Rule 14 itself, where relaxation is provided by the Finance Ministry from time to time
(d) Rule 18
Ans. (c) Rule 14 itself, where relaxation is provided by the Finance Ministry from time to time — Explanation: Rule 14 ends with "except in the cases where relaxation is provided by that Ministry from time to time". [Ref: Rule 14]
17. Rule 14 of DFPR 2024 is titled
(a) Insurance of Government property
(b) Powers of Subordinate Authorities to write off loss
(c) Waiver of recovery of overpayment
(d) Trading operations
Ans. (a) Insurance of Government property — Explanation: Rule 14 is titled "Insurance of Government property". [Ref: Rule 14]
18. A sanction issued by a Department under its own delegated powers, after consulting its Integrated Finance Division, is communicated under
(a) Rule 14
(b) Rule 5(1)
(c) Rule 20(1)
(d) Rule 20(2)
Ans. (d) Rule 20(2) — Explanation: Rule 20(2) covers financial sanctions issued by a Department under its own powers in consultation with the Internal or Integrated Financial Adviser and with approval of the competent authority. [Ref: Rule 20(2)]
19. Under Rule 20(2), the reference quoted is that of the
(a) Budget Division's consent
(b) Diary number or U.O. number by which the advice of Internal/Integrated Finance was conveyed
(c) Cabinet decision
(d) C&AG's letter
Ans. (b) Diary number or U.O. number by which the advice of Internal/Integrated Finance was conveyed — Explanation: The Rule 20(2) clause states "The advice of Internal Finance / Integrated Finance was conveyed vide Dy. No./ U.O. No………dated………". [Ref: Rule 20(2)]
20. Which of the following statements about Rule 14 is correct?
(a) It applies only to immovable property abroad
(b) It applies only to Railways
(c) It makes insurance of all Government property compulsory
(d) It prohibits insurance of Government property and any related liability or expenditure by a Subordinate Authority without previous consent of the Finance Ministry
Ans. (d) It prohibits insurance of Government property and any related liability or expenditure by a Subordinate Authority without previous consent of the Finance Ministry — Explanation: Rule 14 lays down that Government property shall not be insured, and no Subordinate Authority shall undertake any liability or incur any expenditure on such insurance, without the previous consent of the Finance Ministry except where relaxation is provided. [Ref: Rule 14]
21. Rule 20(1) applies whenever
(a) Consent or sanction of the Finance Ministry is required under these rules
(b) Any Contingency Fund advance is obtained
(c) Any post is filled
(d) Any expenditure below Rs. 1 lakh is incurred
Ans. (a) Consent or sanction of the Finance Ministry is required under these rules — Explanation: Rule 20(1) opens with "Whenever the consent or sanction of the Finance Ministry is required under these rules". [Ref: Rule 20(1)]
22. Under DFPR 2024, the term "audit" in Rule 20 refers to communication of sanctions to
(a) The Estimates Committee
(b) The internal audit wing of the Head of Office only
(c) The Public Accounts Committee
(d) The audit office or the Pay and Accounts Officer concerned
Ans. (d) The audit office or the Pay and Accounts Officer concerned — Explanation: Rule 20 requires sanctions to be communicated to "audit or Pay and Accounts Officer concerned". [Ref: Rule 20]
23. If a Department issues a sanction requiring Finance Ministry concurrence but omits the Rule 20(1) clause, the sanction
(a) Becomes automatically valid
(b) Is exempt from audit
(c) Is treated as a Cabinet decision
(d) Would not show on its face that the required concurrence was obtained, which audit or the PAO may question
Ans. (d) Would not show on its face that the required concurrence was obtained, which audit or the PAO may question — Explanation: Rule 20(1) requires the clause precisely so that audit or the PAO can see the Finance Ministry's concurrence. Without it, the sanction does not demonstrate compliance. [Ref: Rule 20(1)]
24. Which Rule of DFPR 2024 prescribes two different standard clauses to be added to sanctions?
(a) Rule 12
(b) Rule 20
(c) Rule 7
(d) Rule 14
Ans. (b) Rule 20 — Explanation: Rule 20(1) prescribes the clause for Finance Ministry concurrence and Rule 20(2) the clause for sanctions issued with IFD advice and approval of the competent authority. [Ref: Rule 20]
25. Rule 20(2) applies when a financial sanction is issued by a Department in consultation with its IFA and with approval of
(a) The competent authority
(b) The C&AG
(c) Parliament
(d) The Budget Division
Ans. (a) The competent authority — Explanation: Rule 20(2) covers sanctions issued in exercise of powers conferred by the rules "in consultation with its Internal Financial Adviser or Integrated Financial Adviser and approval of competent authority". [Ref: Rule 20(2)]
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