This is Set 10 of 48 in the smartvidya question bank on the General Financial Rules (GFR) 2017, updated up to 31.01.2026. Part III: Government accounts. This set covers Rules 85 to 97: banking arrangements, PFMS, Direct Benefit Transfer, Appropriation and Finance Accounts, proforma accounts and Personal Deposit Accounts.
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Set 10: Banking, PFMS, DBT and Annual Accounts
1. The banker to the Government is
(a) the Controller General of Accounts
(b) the Accredited Bank of each Ministry
(c) the Reserve Bank of India
(d) the State Bank of India
Ans. (c) the Reserve Bank of India — Explanation: Rule 85 makes RBI the banker to the Government, maintaining its cash balance. [Ref: Rule 85]
2. The Accredited Bank of a Ministry is nominated by the RBI in consultation with
(a) the Indian Banks' Association
(b) the CAG
(c) the Controller General of Accounts
(d) the Ministry's Secretary only
Ans. (c) the Controller General of Accounts — Explanation: Rule 85 provides for RBI to nominate the Accredited Bank in consultation with the CGA. [Ref: Rule 85]
3. Pay and Accounts Offices and Cheque Drawing DDOs hold assignment accounts with
(a) the Post Office
(b) the RBI directly only
(c) identified branches of the Accredited Bank of the Ministry
(d) any private bank
Ans. (c) identified branches of the Accredited Bank of the Ministry — Explanation: Rule 85 requires all payments to be made through these branches. [Ref: Rule 85]
4. The detailed procedure for remittance of receipts and reimbursement of payments made by banks is laid down in
(a) the Civil Accounts Manual only
(b) the Memoranda of Instructions issued by the RBI
(c) the Treasury Rules
(d) the DFPR
Ans. (b) the Memoranda of Instructions issued by the RBI — Explanation: The note below Rule 85 refers to RBI's Memoranda of Instructions. [Ref: Note below Rule 85]
5. PFMS is the integrated financial management system of
(a) the CAG
(b) the Controller General of Accounts
(c) the Reserve Bank of India
(d) NITI Aayog
Ans. (b) the Controller General of Accounts — Explanation: Rule 86(1) describes PFMS as the CGA's system for sanctions, bills, payments, receipts, DBT, fund flow and reporting. [Ref: Rule 86(1)]
6. Ministries sanctioning grants-in-aid must register on PFMS
(a) only private NGOs
(b) only the first-level agency
(c) only State Governments
(d) all implementing agencies till the last level of implementation
Ans. (d) all implementing agencies till the last level of implementation — Explanation: Rule 86(2) requires registration to track fund flow and unspent balances. [Ref: Rule 86(2)]
7. Payments by Ministries through PFMS shall, to the extent possible, be released
(a) just-in-time
(b) only after audit
(c) only at the end of the year
(d) in advance for the whole year
Ans. (a) just-in-time — Explanation: Rule 86(3) prescribes just-in-time release. [Ref: Rule 86(3)]
8. The approved Detailed Demand for Grants must be uploaded on PFMS
(a) at the start of each financial year
(b) at the end of each financial year
(c) only when required by audit
(d) at the end of each quarter
Ans. (a) at the start of each financial year — Explanation: Rule 86(4) requires uploading at the start of the year. [Ref: Rule 86(4)]
9. Re-appropriation and surrender orders shall be generated through
(a) manual registers only
(b) the e-Receipts portal
(c) the GeM portal
(d) the PFMS system
Ans. (d) the PFMS system — Explanation: Rule 86(5) requires these orders to be generated on PFMS. [Ref: Rule 86(5)]
10. DBT under Rule 87 includes
(a) only pension payments
(b) only in-kind transfers
(c) both in-kind and cash transfers, including honorariums to enablers such as community workers
(d) only cash transfers
Ans. (c) both in-kind and cash transfers, including honorariums to enablers such as community workers — Explanation: Rule 87(2) covers in-kind and cash transfers and transfers to enablers. [Ref: Rule 87(2)]
11. Cash benefits under DBT may be transferred
(a) only through State Governments
(b) only through banks chosen by beneficiaries
(c) directly from Ministries, through the State Treasury Account, or through an appointed Implementing Agency
(d) only through cheques
Ans. (c) directly from Ministries, through the State Treasury Account, or through an appointed Implementing Agency — Explanation: Rule 87(3) lists these three routes. [Ref: Rule 87(3)]
12. Implementing Agencies generate Electronic Utilisation Certificates on
(a) the PFMS portal
(b) the GeM portal
(c) the CPPP
(d) the e-Receipts portal
Ans. (a) the PFMS portal — Explanation: Rule 87(6) requires E-UCs on PFMS, eliminating physical UCs. [Ref: Rule 87(6)]
13. Appropriation Accounts of Central Ministries (other than Railways) and Civil Departments are signed by
(a) the Chief Accounting Authorities, that is, the Secretaries
(b) the Financial Advisers
(c) the CAG
(d) the Ministers
Ans. (a) the Chief Accounting Authorities, that is, the Secretaries — Explanation: Rule 88 states they are prepared by Principal Accounts Officers and signed by the Secretaries. [Ref: Rule 88]
14. Union Government Appropriation Accounts (Civil) are prepared annually by consolidating Ministry accounts by
(a) the CAG
(b) the Controller General of Accounts
(c) the Lok Sabha Secretariat
(d) the Budget Division
Ans. (b) the Controller General of Accounts — Explanation: Rule 88 assigns this consolidation to the CGA. [Ref: Rule 88]
15. The Appropriation Accounts of the Ministry of Railways are prepared and signed by
(a) the CGA
(b) the Chairman, Railway Board
(c) the Minister of Railways
(d) the Secretary (Expenditure)
Ans. (b) the Chairman, Railway Board — Explanation: Rule 88 assigns Railways to the Chairman, Railway Board, and Posts and Defence to their Secretaries. [Ref: Rule 88]
16. Finance Accounts of the Union are prepared and signed by the CGA and countersigned by
(a) the Governor, RBI
(b) the Finance Minister
(c) the CAG
(d) the Secretary (Expenditure)
Ans. (d) the Secretary (Expenditure) — Explanation: Rule 89 provides for countersignature by the Secretary (Expenditure). [Ref: Rule 89]
17. The CAG submits the certified annual accounts to the President in accordance with Section 11 of the CAG's (DPC) Act, 1971 and
(a) Article 151(1) of the Constitution
(b) Article 284 of the Constitution
(c) Article 112 of the Constitution
(d) Article 267 of the Constitution
Ans. (a) Article 151(1) of the Constitution — Explanation: Rule 90 refers to both these provisions. [Ref: Rule 90]
18. Financial stakes of Government in PPPs, Production Sharing Contracts, Joint Ventures and subsidiaries should be disclosed in
(a) the Finance Accounts only
(b) the Annual Report of the Administrative Ministry
(c) the Gazette of India
(d) the Outcome Budget only
Ans. (b) the Annual Report of the Administrative Ministry — Explanation: Rule 91 requires disclosure in the Annual Report. [Ref: Rule 91]
19. Departments working on a commercial basis that cannot fit into cash accounting maintain
(a) no accounts
(b) accounts audited by private auditors only
(c) subsidiary proforma accounts in commercial form, as agreed with the CAG
(d) only cash books
Ans. (c) subsidiary proforma accounts in commercial form, as agreed with the CAG — Explanation: Rule 92 includes Manufacturing, Trading, Profit and Loss Accounts and Balance Sheet. [Ref: Rule 92]
20. Subsidiary accounts and statements of departmental commercial units are appended to
(a) the Annual Report
(b) the Finance Accounts
(c) the Budget
(d) the Appropriation Accounts of each year
Ans. (d) the Appropriation Accounts of each year — Explanation: Rule 95 requires them to be appended to the Appropriation Accounts. [Ref: Rule 95]
21. A Personal Deposit Account allows its Designated Officer to
(a) borrow from the Consolidated Fund
(b) credit receipts and make withdrawals directly from the account, subject to overall bank check
(c) keep funds outside Government Account
(d) invest in shares
Ans. (b) credit receipts and make withdrawals directly from the account, subject to overall bank check — Explanation: Rule 96 describes the PD account and bars minus balances. [Ref: Rule 96]
22. Personal Deposit Accounts are opened by special order of the Ministry in consultation with
(a) the Budget Division
(b) the RBI
(c) the CAG
(d) the Controller General of Accounts
Ans. (d) the Controller General of Accounts — Explanation: Rule 97(1) provides this; PD accounts form part of the Public Account. [Ref: Rule 97(1)]
23. Every Personal Deposit Account forms part of Government Account and is located in
(a) the Consolidated Fund
(b) the Contingency Fund
(c) the Public Account
(d) a private bank account
Ans. (c) the Public Account — Explanation: Rule 97(1) locates PD accounts in the Public Account. [Ref: Rule 97(1)]
24. Only which persons can be Designated Officers of a Personal Deposit Account?
(a) Government officers acting in their official or any other capacity
(b) Elected representatives
(c) Private individuals
(d) Contractors
Ans. (a) Government officers acting in their official or any other capacity — Explanation: Rule 96 restricts designation to Government officers. [Ref: Rule 96]
25. Which of the following is a case in which a Personal Deposit Account may be opened?
(a) For a private company's payroll
(b) For investing surplus funds of a Ministry
(c) For a Minister's personal expenses
(d) For Civil and Criminal Courts' deposits, in favour of the Chief Judicial Authority
Ans. (d) For Civil and Criminal Courts' deposits, in favour of the Chief Judicial Authority — Explanation: Rule 97(2)(b) lists courts' deposits among permitted cases. [Ref: Rule 97(2)(b)]
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These questions are prepared for practice from the General Financial Rules 2017 as updated by the Department of Expenditure up to 31.01.2026. Always check the latest Office Memorandums of the Department of Expenditure before relying on a limit or procedure.