This is Set 17 of 48 in the smartvidya question bank on the General Financial Rules (GFR) 2017, updated up to 31.01.2026. Part V: Procurement of goods. This set covers Rules 154 to 160: purchase without quotation, purchase committee, splitting, methods of procurement, e-publishing and e-procurement.
Try each question first, then tap Show answer to see the correct option, a short explanation and the rule reference. The questions are useful for departmental examinations, SAS, JAO and AAO examinations, LDCE and promotion tests, and for officers dealing with finance and procurement.
Set 17: Small Purchases, Methods and e-Procurement
1. When an item is not available on GeM, goods up to what value may be purchased on each occasion without inviting quotations or bids?
(a) Rupees 25,000
(b) Rupees 1,00,000
(c) Rupees 50,000
(d) Rupees 2,50,000
Ans. (c) Rupees 50,000 — Explanation: Rule 154, amended by DoE OM dated 10.07.2024, sets Rupees 50,000 for general Ministries. [Ref: Rule 154]
2. For notified Scientific Ministries, purchase without quotation under Rule 154 is permitted up to
(a) Rupees 5,00,000
(b) Rupees 25,00,000
(c) Rupees 50,000
(d) Rupees 2,00,000 on each occasion
Ans. (d) Rupees 2,00,000 on each occasion — Explanation: The footnote to Rule 154, per DoE OM dated 05.06.2025, allows Rupees 2 lakh for scientific equipment and consumables for research. [Ref: Rule 154, footnote]
3. Purchase without quotation under Rule 154 is made on the basis of
(a) a purchase committee recommendation
(b) three quotations
(c) a certificate recorded by the competent authority about quality, reliable supplier and reasonable price
(d) a reverse auction
Ans. (c) a certificate recorded by the competent authority about quality, reliable supplier and reasonable price — Explanation: Rule 154 prescribes the competent authority's certificate of personal satisfaction. [Ref: Rule 154]
4. When an item is not on GeM, goods costing above Rupees 50,000 and up to what amount may be purchased on the recommendation of a Local Purchase Committee?
(a) Rupees 5,00,000
(b) Rupees 10,00,000
(c) Rupees 25,00,000
(d) Rupees 2,50,000
Ans. (a) Rupees 5,00,000 — Explanation: Rule 155, amended on 10.07.2024, sets the band above Rupees 50,000 up to Rupees 5 lakh. [Ref: Rule 155]
5. For notified Scientific Ministries, the purchase committee band under Rule 155 is
(a) above Rupees 2,00,000 and up to Rupees 25,00,000
(b) above Rupees 1,00,000 and up to Rupees 10,00,000
(c) above Rupees 50,000 and up to Rupees 5,00,000
(d) above Rupees 5,00,000 and up to Rupees 50,00,000
Ans. (a) above Rupees 2,00,000 and up to Rupees 25,00,000 — Explanation: The footnote to Rule 155, per DoE OM dated 05.06.2025, sets this band for research equipment and consumables. [Ref: Rule 155, footnote]
6. The Local Purchase Committee under Rule 155 consists of
(a) five members including a CAG nominee
(b) two members from Finance
(c) the Head of Office alone
(d) three members of an appropriate level decided by the Head of the Department
Ans. (d) three members of an appropriate level decided by the Head of the Department — Explanation: Rule 155 prescribes a three-member committee. [Ref: Rule 155]
7. The Purchase Committee's joint certificate includes a statement that the recommended supplier
(a) is the largest supplier in India
(b) is not debarred by the Department of Expenditure or the Ministry concerned
(c) is an MSE
(d) has supplied before
Ans. (b) is not debarred by the Department of Expenditure or the Ministry concerned — Explanation: Rule 155's certificate was amended on 02.11.2021 to include non-debarment. [Ref: Rule 155]
8. Under Rule 157, a demand for goods should not be split into small quantities to avoid
(a) inspection
(b) transport costs
(c) the necessity of obtaining sanction of a higher authority required for the total demand
(d) GST
Ans. (c) the necessity of obtaining sanction of a higher authority required for the total demand — Explanation: Rule 157 prohibits piecemeal purchases for this purpose. [Ref: Rule 157]
9. Which of the following is NOT one of the standard methods of obtaining bids under Rule 158?
(a) Two-Stage Bidding
(b) Purchase Committee method
(c) Advertised Tender Enquiry
(d) Electronic Reverse Auction
Ans. (b) Purchase Committee method — Explanation: Rule 158 lists ATE, LTE, Two-Stage Bidding, Single Tender Enquiry and e-Reverse Auction; Rules 154 and 155 are exceptions. [Ref: Rule 158]
10. Tender enquiries, corrigenda and details of bid awards must mandatorily be published on
(a) the CAG portal
(b) the GeM-Central Public Procurement Portal (GeM-CPPP)
(c) notice boards only
(d) newspapers only
Ans. (b) the GeM-Central Public Procurement Portal (GeM-CPPP) — Explanation: Rule 159(i) requires e-publishing by all Ministries, attached offices and Autonomous Bodies. [Ref: Rule 159(i)]
11. Exemption from mandatory e-publishing for reasons of national security is approved by
(a) the CAG
(b) the Head of Office
(c) the Secretary with concurrence of the Financial Adviser
(d) the Minister alone
Ans. (c) the Secretary with concurrence of the Financial Adviser — Explanation: Rule 159(ii) prescribes this; in Autonomous Bodies, the Head of the Body with concurrence of the Head of Finance. [Ref: Rule 159(ii)]
12. Statistics of cases exempted from e-publishing are intimated to the Department of Expenditure
(a) quarterly
(b) never
(c) monthly
(d) annually
Ans. (a) quarterly — Explanation: Rule 159(ii) requires quarterly intimation of number and value. [Ref: Rule 159(ii)]
13. E-publishing instructions under Rule 159 do NOT apply to procurement under
(a) Rule 161
(b) Rules 154 and 155
(c) Rule 162
(d) Rule 166
Ans. (b) Rules 154 and 155 — Explanation: Rule 159(v) excludes purchases without quotation and by purchase committee. [Ref: Rule 159(v)]
14. Under Rule 160, receiving all bids through e-procurement portals is
(a) required only above Rupees one crore
(b) required only for works
(c) optional
(d) mandatory in respect of all procurements
Ans. (d) mandatory in respect of all procurements — Explanation: Rule 160(i) makes e-procurement mandatory. [Ref: Rule 160(i)]
15. Ministries with low procurement volume that have not initiated e-procurement may use
(a) paper bids only
(b) the e-procurement solution developed by NIC
(c) WhatsApp bids
(d) email bids
Ans. (b) the e-procurement solution developed by NIC — Explanation: Rule 160(ii) allows use of NIC's solution or any other provider following due process. [Ref: Rule 160(ii)]
16. In tenders floated by Indian Missions abroad, exemption from e-procurement may be granted by
(a) the competent authority to decide the tender
(b) the CAG
(c) the Ministry of Finance only
(d) the host country
Ans. (a) the competent authority to decide the tender — Explanation: Rule 160(v) permits this exemption. [Ref: Rule 160(v)]
17. For national security and strategic considerations, exemption from e-procurement needs approval of
(a) the Cabinet
(b) the Head of Office
(c) the vendor
(d) the concerned Secretary with concurrence of the Financial Adviser
Ans. (d) the concerned Secretary with concurrence of the Financial Adviser — Explanation: Rule 160(iv) prescribes this approval. [Ref: Rule 160(iv)]
18. Mandatory e-publishing applies to
(a) only works tenders
(b) only global tenders
(c) Tender Enquiries, RFPs, Requests for EOI, pre-qualification notices and any notice inviting bids
(d) only advertised tenders
Ans. (c) Tender Enquiries, RFPs, Requests for EOI, pre-qualification notices and any notice inviting bids — Explanation: Rule 159(iii) covers all forms of notices inviting bids or proposals. [Ref: Rule 159(iii)]
19. Purchase under Rules 154 and 155 is available only when
(a) the item is not available on GeM
(b) the CAG approves
(c) the item is available on GeM
(d) the item is imported
Ans. (a) the item is not available on GeM — Explanation: Both rules begin with the condition that the item is not available on GeM. [Ref: Rules 154 and 155]
20. Rule 156 of GFR 2017 now stands
(a) amended for services
(b) unchanged
(c) amended for works
(d) deleted
Ans. (d) deleted — Explanation: Rule 156 was deleted vide DoE OM dated 02.04.2019. [Ref: Rule 156]
21. The Purchase Committee surveys the market to ascertain
(a) reasonableness of rate, quality and specifications and identify the appropriate supplier
(b) the next year's prices
(c) the supplier's family background
(d) the CAG's views
Ans. (a) reasonableness of rate, quality and specifications and identify the appropriate supplier — Explanation: Rule 155 describes the committee's role. [Ref: Rule 155]
22. The special powers for Scientific Ministries under Rules 154 and 155 can be used for
(a) any office stationery
(b) procurement of scientific equipment and consumables for research purposes only
(c) construction works
(d) hiring vehicles
Ans. (b) procurement of scientific equipment and consumables for research purposes only — Explanation: The notes below the footnotes to Rules 154 and 155 restrict their use. [Ref: Rules 154 and 155, footnotes]
23. E-publishing under Rule 159 is mandatory for
(a) only CPSEs
(b) only State Governments
(c) only Ministries proper
(d) Ministries, their attached and subordinate offices and Autonomous/Statutory Bodies
Ans. (d) Ministries, their attached and subordinate offices and Autonomous/Statutory Bodies — Explanation: Rule 159(i) covers all these entities. [Ref: Rule 159(i)]
24. A Ministry needs goods worth Rupees 3 lakh not available on GeM. The appropriate method is
(a) single tender
(b) purchase without quotation
(c) advertised tender enquiry only
(d) purchase on the recommendation of a Local Purchase Committee
Ans. (d) purchase on the recommendation of a Local Purchase Committee — Explanation: Above Rupees 50,000 and up to Rupees 5 lakh falls under Rule 155 for general Ministries. [Ref: Rule 155]
25. The certificate for purchase without quotation states that the goods are of requisite quality and purchased from
(a) the cheapest supplier in India
(b) a GeM seller
(c) a reliable supplier at a reasonable price
(d) a registered MSE only
Ans. (c) a reliable supplier at a reasonable price — Explanation: Rule 154 prescribes the wording of the certificate. [Ref: Rule 154]
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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.