The Government of India (Transaction of Business) Rules, 1961, is a set of Rules made by the President of India, not an Act of Parliament, under the authority of Article 77(3) of the Constitution. It was created on January 14, 1961, in supersession of all previous rules, to provide a clear, systematic mechanism for the "more convenient transaction of the business of the Government of India". The rules solve the problem of ensuring orderly and coordinated decision-making within the Union Executive.
The Rules work by regulating the internal functioning of the government. They stipulate that all business allotted to a department under the connected Government of India (Allocation of Business) Rules, 1961, must be disposed of by the Minister-in-charge. A key mechanism is Rule 4, which mandates Inter-Departmental Consultations: if a case concerns more than one department, no decision can be taken until all concerned departments have concurred, or the matter is decided by the Cabinet. The Rules also specify which cases must be submitted to the Cabinet (listed in the Second Schedule) and which require submission to the Prime Minister or the President (listed in the Third Schedule). Furthermore, they establish the Standing Committees of the Cabinet.
The Rules are intrinsically connected to the Government of India (Allocation of Business) Rules, 1961, which defines the Ministries and Departments and allocates specific subjects to them. Both sets of rules are administered by the Cabinet Secretariat. The Rules are frequently amended; for instance, they were amended up to series no. 72 as of April 3, 2020. While the core structure of executive decision-making remains constant, the schedules and specific procedures are updated to reflect changes in the government's structure and priorities.