GFR stands for General Financial Rules — a set of rules issued by the Department of Expenditure, Ministry of Finance, that govern how the Government of India manages public money, including all public procurement. The current version is the General Financial Rules, 2017, which replaced GFR 2005.
GFR 2017 is the master rulebook every government buyer follows when spending public funds. Chapter 6 deals specifically with procurement of goods and services and lays down how tenders must be floated, how EMD and performance security work, which bidding mode applies at which value, and the principles of transparency, competition and fairness that underpin the whole system.
Several practical tendering rules trace directly to GFR 2017. It sets the framework for earnest money deposit and performance security, mandates e-procurement and e-publishing of tenders above defined value thresholds, requires advertised (open) tendering above a threshold value, and permits GeM as a valid, and often preferred, mode of procurement for goods and services.
GFR 2017 also embeds national policy. It restricts global tender enquiry for procurements up to a notified value to protect domestic industry, enables preference to Make-in-India suppliers, and supports MSE and startup relaxations. When a tender says foreign bidders are barred or that local content is required, the legal backbone is usually a GFR provision read with a specific government order.
Importantly, GFR 2017 has been amended several times through Office Memoranda from the Department of Expenditure. Notable changes include allowing a Bid Security Declaration in place of EMD and reducing performance security percentages in certain periods. So the "current" rule on a given point is GFR 2017 as modified by the latest OM — always check the operative memorandum, not just the base text.
For bidders, GFR literacy is a quiet competitive edge. When a buyer’s tender condition seems unusual — an unusually high turnover bar, a rejected exemption, or an unfair evaluation clause — knowing the GFR position lets you raise a well-grounded pre-bid query or representation, rather than simply accepting a condition that may itself be non-compliant with the rules.
BidShakti reads each tender against the norms that flow from GFR 2017 — EMD versus Bid Security Declaration, MSE and startup exemptions, Make-in-India local-content rules — and flags where you qualify for a relaxation you might otherwise miss. Its go/no-go and bid-pack translate the rulebook into a plain checklist for the specific tender in front of you, so compliance is built in, not an afterthought.
Frequently asked questions
What is the full form of GFR?
GFR stands for General Financial Rules, the rules governing management of public money and procurement by the Government of India.
What is GFR 2017?
GFR 2017 is the current General Financial Rules, issued by the Ministry of Finance’s Department of Expenditure, replacing the earlier GFR 2005.
Does GFR 2017 cover procurement?
Yes. Chapter 6 of GFR 2017 covers procurement of goods and services, including tendering modes, EMD, performance security and transparency norms.
Is GFR 2017 still current?
Yes, but it has been amended by several Office Memoranda — for example, allowing Bid Security Declaration in place of EMD — so always check the latest OM.
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