GFR Rule No. 256 Part-1 | How Government Ensures Loan Utilization

🔸 Why Loan Utilization Matters After Government Sanction

🔸 When the Government sanctions a loan and releases funds, the process does not end there. The real challenge begins afterward, ensuring the money is used strictly for the purpose for which it was sanctioned.

🔸 This is where GFR Rule 256 becomes crucial.

🔸 Rule 256 establishes strict accountability for the utilization of government loans. From mandatory utilization certificates to compliance timelines and audit validation, this rule forms the backbone of financial discipline.

🔸 What You Will Learn in This Video

• When GFR Rule 256 applies.
• Why the sanctioning authority must certify proper loan utilization.
• What Form GFR 20 B is and how frequently it must be submitted.
• Why borrowers must provide periodic progress reports and auditor certified statements.
• When Utilization Certificates are mandatory and when they are not required.
• Special provisions for consolidated Utilization Certificates in departmental accounting.
• The strict 18-month timeline for furnishing Utilization Certificates.
• Why can no fresh loan be sanctioned until the previous loan utilization is verified?

🔸 Core Principle of Rule 256

🔸 Government loans must be traceable, justified, and fully accountable. Every rupee must clearly demonstrate its sanctioned purpose.

🔸 Rule 256 protects public money, enforces structured monitoring, and strengthens transparency at every stage of the loan lifecycle.

🔸 If you want clarity on Government finance compliance, audit systems, and administrative accountability in India, this explanation of GFR Rule 256 will significantly strengthen your understanding.

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🔸 Disclaimer
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Видео GFR Rule No. 256 Part-1 | How Government Ensures Loan Utilization канала Rohit Semwal