RAILWAY ORGANIZATION

The Railways in India are Government concern as well as a Commercial concern.

Since Indian Railway is a Government undertaking, its major decisions are subject to
control of Parliament and it cannot spent any money without approval of the Parliament
through Railway budget.
Indian Railway is a public sector organization engaged in providing transport
services both passenger and goods to the country.
For the purpose of sale of transportation, the places which have been authorized
for and behalf of Indian Railways are technically known as a Railway Station. In order to
meet the requirements of transportation the Railway requires the means of the business
i.e. rolling stock, Railway tracks, buildings, Goods sheds, workshops etc.
The objectives of Indian Railways :Every Organization has some financial objectives and whether these are being
achieved or not is also monitored. The Objectives of Indian Railways are as under:1.
2.
3.
4.

Efficient management of a transportation of a passengers and goods.

To provide the transportation services at the minimum cost as far as possible.
To ensure the safety in transportation of all the railway users.
To create such feelings in the railway organization that it is basically meant for the
welfare of the nation itself.
5. To have efficient management in the Railway activity as a whole training of a staff and
the allied works etc.
Salient features of the Indian Railway Organization:
As a result of Nationalization and integration of various systems of Railways in India
these have been divided into different Zones to ensure the efficient transportation and the
working of the Railways. The following points were kept in view to ensure the above
intentions.
1. As far as possible the services of one Zonal Railway may be made available for one
state.
2. Each Zonal Railway will have a Head Quarter duly equipped with a Personnel,
Technical, Statistical, Management services.

3. To ensure minimum dislocation in the services of the Railway keeping in view the
above intentions, the Railways have been divided into various zones as under:
Sr.No.

Name of the Zonal Railway

No. of
Division
7

HQs.

1.

Northern Railway (NR)

2.

Central Railway (CR)

Mumbai

3.

Eastern Railway (ER)

Calcutta

4.

North Eastern Railway (NER)

Gorakhpur

5.

North East
(NEFR)

Maligaon

6.

Southern Railway (SR)

Chennai

7.

South Central Railway (SCR)

Secunderabad

8.

South Eastern Railway (SE)

Calcutta

9.

Western Railway (WR)

Mumbai

Frontier

Railway

Delhi

Further, it is again recently divided into six more zones. They are as under
10.

East coast Railway

Bhubaneshwar

11.

East Central Railway

Hajipur

12.

North Central Railway

Allahabad

13.

North western Railway

Jaipur

14.

South Western Railway

Bangalore

15.

West Central Railway

Jabalpur

For the purpose of monitoring on the working of zonal railways, there exists Railway
Board / Ministry of Railways, the organization at the Boards level is as under:
Railway Minister
Minister of State for Railways (MOSR)
Dy. Minister in the Ministry of Railways

CRB
Member
(Traffic)

Member
Staff

Member
(Mech)

Member
(Engg.)

Member
(Elect.)

FC

CRB The Chairman Railway Board is an Ex-officio Principal Secretary to the Govt. of
India in the Ministry of Railway. He is responsible for giving the day to day information to
the Railway Minister in connection with the policies of the Govt. of India in respect of
technical and the non-technical matters pertaining to Railway. He also functions as one
of the members of the Railway Board and the responsibility for internal co-ordination
vests with him.
FC : The Financial Commissioner in the Boards Office represents the ministry of a
finance and he is also an ex-officio secretary to the Govt. of India in respect of a financial
matters. He has a direct contact with the finance Minister and the Railway Minister and
he is responsible to appraise the financial activities in respect of railways to the ministers
concerned.
Member:
Each member is responsible to ensure that the matters relating to his
department are dealt with as early as possible and they are responsible to chairman
Railway Board in respect of their portfolios. They are also considered as ex-officio
secretary to Govt. of India. To assist the members, some advisors are also provided.

The following directorates are also functioning in the Boards Office:

1.
Accounts
2.
Civil Engg.
3.
Efficiency Bureau
4.
Electrical Engg.
5.
Establishment.
6.
Finance
7.
Health
8.
Intelligence
9.
Law
10.
Mech. Engg.
11.
Mech. Engg. (Workshop)
12.
Metropolitan Transport Project
13.
Official Language
14.
Pay commission
15.
Public Relations
16.
Railway Act Revision
17.
Railway Electrification
18.
Rail Movement (Coal Planning)
19.
Railway Planning
20.
Stores
21.
Safety and Coaching
22.
Security
23.
Signal and Telecommunication
24.
Statistic and Economics
25.
Traffic (commercial and General)
26.
Traffic Transportation
27.
Vigilance.
Advisors are assisted by Directors in SA Grade
Joint Director, Dy. Director & Astt. Directors who are directly in-charge of the various
branches of the Railway Ministry and they are responsible for the disposal of all the day to
day work of the Ministry. They also deal with the GMs of the various Zonal Railways,
General public and various Ministries of the Govt. of the India.
The following Organizations are working directly under the Railway Board control which
are also known as a production units.
1.
2.
3.
4.
5.
6.

Chittaranjan Locomotive Works (Chittaranjan) CLW

Diesel Locomotive works (Varanasi) DLW
Integral Coach Factory (Perambur) Chennai (ICF)
Wheel and Axle plant (Bangalore)
Diesel components works (Patiala) DCW
Rail Coach Factory (Kapurthala)

In addition to above, the following institutions are also controlled by the Boards Office:
1.
2.
3.
4.
5.
6.
7.

Indian Railways Institute of Advances Track Technology Pune (IRIATT).

Indian Railway Institute of Mechanical & Electrical Engg. Jamalpur (IRMEE).
Indian Railway Institute of Signal Engg. & Tele communication Secunderabad (IRISET).

Railway Staff College (Vadodara)

Shri. Jagjiwanram RPF College. (Lucknow).
Central Organization for Modernization of Workshops Delhi (COF MOW)
Indian Railway Institute of Civil Engineering Pune(IRICEN)

For the purpose of fulfilling the Railways recruitment in respect of various categories the
"Railway Recruitment Board" is functioning at the following places.
1. Ahmedabad
2. Ajmer
3. Allahabad
4. Bhopal
5. Bangalore
6. Bhubaneshwar
7. Mumbai
8. Calcutta
9. Chandigarh
10. Guwahati
11. Gorakhpur
12. Jammu Tawi (Shrinagar)
13. Chennai
14. Maldah
15. Muzaffarpur
16. Patna
17. Ranchi
18. Secunderabad
19. Trivandram
Organization of Zonal Railways
For the purpose of Administration and working of Zonal Railways there exists a General
Manager at HQrs. of the Railway concerned. The GM is assisted by Addl. GMs , Head of
the Departments at HQs. level who are further assisted by Divisional Railway Manager at
various divisions and also the Division executive authorities in respect of daily working of
Zonal Railways. G. M. is responsible for over all supervision of zonal Railway.
In the following lines the organization of Central Railway has been described showing the
various department of the Central Railway. The names of the departments, Official
designation of their HOD, as also the nature of duties entrusted with these departments is
also explained in brief.

GM
Additional GM (Optg.)
S
Name of the Dept.
r.
N
o
.
1. Genl. Management

2. Optg.

3. Commercial

HOD

SDGM
CVO
COM
CFTM
CPTM
CSO
CCM
CMM
CCO

4. Accounts

FA&CAO

5. Mechanical

6. Engineering

CME
CWE
CRSE
CMPE
CE(G)

7. Electrical

CEE

Additional GM (Tfc.)
Duties

General Admn., Law Affairs, Public

Relations, efficiency, Works Study etc.
To ensure that no malpractices are
taking place in the organization.
Movement of freight, passenger &
other traffic Ensuing proper indication
of the Rly. Stock with safety.
Acceptance & booking of various
types of traffic offered to the Rly. &
prompt disposal of claims against the
Railways.
Bringing into accounts all the receipts
& expenditure of the Rly., compilation /
maintenance submission of various
accounts in a prescribed manner from
time to time & tendering the financial
advice as & when required desired by
Exe. Department etc. are the main
functions of account Dept.
Repairs & maintenance of a various
types of rolling stock, the works in
respect of the rolling stock are some of
the important duties of this dept.
Repairs & maintenance of the
permanent ways, bridges, Engg.
structural works including office /
stations / yards, workshop building,
conducting of a surveys for new lines
projects,
execution
of
new
construction works are some of the
functions of this dept.
This dept. is responsible for repairs
and
maintenance
of
electrical
installation supply of energy for

8. S&T

CSTE

9. Personnel

CPO

10. Stores

COS

11. Medical

CMO

12. Planning

CPLO

13. Public Relation

CPRO

14. Security

CSC

traction and general services of the

Rlys. including R&M of Elect. Locos.
Repairs & maintenance of a various
types of signalling arrangements,
communication
including
public
announcing system are main functions
of this dept.
Recruitment, Appointment, Training,
Posting, Transfers, Promotions etc. in
respect of the personnel are the main
functions of this dept. as also looking
after welfare of the Rly. employees.
procurement, purchases, storing &
supply of varieties of
stores and
material required by Rlys.
This Dept. is responsible for ensuring
health & medical welfare of the Rly.
employees, sanitation in the Rly.
premises etc.
Preparation of various plannings for
the Rly. Admn. and its implementation.
Release of a press communication in
respect of various Rlys. activities,
public relations & the disposal of a
suggestions / complaints received
from the general public.
Security of the Railway property &
security of goods and passengers
while in transit are the main functions
of this dept.

At divisional level the DRM is the head of that particular division. The DRM is assisted by
ADRM, Divisional officers, Sr. Officers, Jr. Officers & staff for efficient functioning of each
dept. The five divisions of Central Railway are as follows: Division
Mumbai
Bhusawal
Nagpur
Solapur
Pune(under formation)

Code
MB
BSL
NGP
SUR
PA

HQ
Mumbai CST
Bhusawal.
Nagpur
Solapur
Pune

The organization at divisional level is as under:

DRM
ADRM (Optg.)

EA. to DRM

ADRM (G)

Sr.DOM/ Sr.DSO/ Sr. DCM/ Sr. DAO/ Sr. DPO/ Sr. DME/ Sr. DEE/ Sr.DEN/
Commandant/ DCOS/ Sr. DSTE

Security

The divisional officers of various depts. are responsible to DRM, in respect of day to day
functioning of their depts. However, the Accounts Officers, Stores Officers, Workshop
Executives who are functioning at divisions are directly controlled by the respective
HODs so far as profession control is concerned.
Functions of Accounts Dept.
Every organization has some objectives and whether these are achieved or not is also
monitored. It is only possible when all the transactions are evaluated in terms of money
and are recorded in a meaningful manner. The process of keeping these records is called
"Accounting" and the department which does it is called "Accounts department".
The main task of Railway Accounts department is to advice management on financial
matters and maintains account in the prescribed proforma. A necessary part of this
function is to scrutinize all transactions and bring to record only those transactions which
are legitimately chargeable to railway revenues. This function is known as "internal
check". It is also the duty of the accounts department to settle all claims against the
railways arising out of those transactions which is found to be legitimate and regular.
The cost accounting is done particularly in the workshops of Indian Railways where costs
are collected separately for each item of work done. It is essential to control cost of each
item of work and also to decide the rates at which the shop manufactured items, the
expenses may be transferred to user department and credit taken into workshop
manufacturing suspense.
Railway accounts department also renders management accounting service while
furnishing various information to management and carrying out its function of tendering
financial advice. All managerial decisions regarding new investments and other proposals
for fresh expenditure are taken only in the light of the financial advice given by the
accounts department.
The main functions of Accounts dept. are as under:
1. Internal check with reference to Extant Rules / Orders of all the transactions affecting
the Railway receipts and expenditure.
2. Maintenance of account as per prescribed procedures.
3. Prompt disposal of all the claims against the Rlys.
4. Tendering of financial advice to the Rly. Administration as and when required.
5. To ensure that there are no financial irregularities in the Rly. Transactions.
6. To play role of management accountant
Scrutiny of Receipts:

In scrutinizing the receipts, it should be seen that

1. The amount due to railway for services rendered, supplies made or for any other
reason are correctly and promptly assessed and recorded as soon as this become
due.
2. All receipts are properly brought into accounts.
3. All receipts are correctly classified and if these pertain to more than one Railway, the
same are correctly apportioned among the Railways concerned.
Scrutiny of Expenditure:
All the claims against the Railways should be scrutinized with a view to ensure:
1. The expenditure or remission of revenue has been sanctioned by the competent
authority and that the expenditure is incurred by the Officer competent to incur the
same.
2. All prescribed preliminaries to the expenditures have been observed such as framing
proper estimate, approval by competent authority, provision of funds etc.
3. It is covered by the grant at the disposal of the Officer incurring the same.
4. The expenditure does not contravene (against) any rules or orders in force.
5. The expenditure does not involve any breach of canons of a financial propriety.
6. The expenditure for a limited period is not admitted beyond that period without further
sanction.
7. The expenditure has been properly and fully supported by vouchers and the payment
has been so recorded as to render a second claim on the same account impossible.
8. The charges are correctly classified and if the amount is debitable to the personal
account of the contractor / employees / other individual are recoverable from him
under any rule or order; it is so recorded in the prescribed form.
9. In case of recurring charges payable on fulfillment of certain conditions, a certificate
is forthcoming from the drawing Officer to the effect that necessary conditions have
been fulfilled.
10. Departmental receipts are not utilized to meet any expenditure except where it has
been specially authorized by the Competent Authority.
One of the important functions of a Accounts Department is to see that the claims
preferred against the railways are carefully checked and promptly settled. All the claims
against the Railway for services rendered are submitted in the form of bills by the
concerned parties or by the departmental officers and the payment thereof is arranged by
the Accounts Officers by drawing requisite funds from the RBI / SBI.
In order to enable, the FA&CAO to carry out his functions successfully, he has a well
organized office under his control divided into different branches consisting of a several
district units / sections and each such unit / section is to look after some specific portion
of the work relating to the Railway finance and accounting etc.

Functions of a various sections in the Accounts Office:

i)

Administration Section: All the staff matters of Accounts Dept. such as

appointment, posting, transfers, fixation of pay, preparation of seniority list and all
other personal matters are dealt with in this section.

ii)

Establishment Section: Establishment matters of all the staff at HQ, Cash and
pay work in connection with proposals for GMs sanction, school subsidy,
maintenance of suspense account, court attachments, passing of payment of pay /
allowances in respect of gazetted / non-gazetted staff including advances and
loans to the staff etc. are dealt with in this section.

iii)

Finance Section ; Scrutiny of all the proposals affecting Rly finances and
tendering financial advice to the executive concerned is one of the main functions
of this section .Scrutiny of the proposals for creation of new posts, extension of the
currency of temporary posts , up-gradation of certain posts , critical examination of
the tender documents including contract agreements etc. are few examples of the
work done in this section.

iv)

Provident Fund Section : Maintenance of PF accounts in favour of all the

employees under different earnings CSRPF, NCSRPF , VPF, etc. passing of
various advances and withdrawals from PF , transfer of PF account, in case of
transferred employees amalgamation of such accounts when received from other
units , monthly and annual re-conciliation of individual PF balances with the
general books of the Rlys , issue of PF slips to the employees concerned are some
of the items dealt with in the PF section .

v)

Pension and Settlement Section : This section deals with all the matters in
connection with arranging the payments of final settlement dues ,DCRG. (Death
cum retirement gratuity )pension , leave salary etc. in favour of the Rly employees
who have retired from the Rly service or ceased to be a Rly employee due to
various reasons.

vi)

Booking section : Maintenance general books of the Rlys ie cash book , journal ,
ledger ,etc. preparation of monthly and annual account current in respect of capital
and REVENUE transactions , consolidations and submission of monthly and
annual account
current in respect of capital and Revenue transaction
consolidation and submission of monthly and annual returns to the Rly Board
raising and accepting debits/ credits issued to any by various divisions / Rlys .
other govt dept. etc. preparation of cheques and post audit of all the paid vouchers
are dealt with in this section, unpaid wages payorders are passed by this section.

vii)

Budget section : Compilation of the information received from various executives

departments in respect of budget and timely submission of the same to the Boards
office is the main function of this section . Compilation of Budgetory information
on the scheduled dates/ occasionally keeping informed all the executives

deparments as regards to there Budgetory provisions, compilation of appropriation

accounts after the close of the financial year are also dealt with in this section.
viii)

Expenditure Section : To book the expenditure on all the works and revenue, to
prefer bills against the public and private bodies for services rendered and supplies
made, to make prompt payment of all the bills preferred against the Rlys. including
contractors bills for works done, check of estimates submitted by the executives,
timely preparation of control over statements etc. are the items of work carried out
in this section.

ix)

Inspection Section: This section is responsible to examine the initial

books/records maintained by various executive departments including Accounts
Offices through the periodical inspection of these offices and ensure that no
irregularities are committed by the Executive Officers in the initial records on the
basis of which various statements/returns/bills etc. have been sent to the Accounts
Office from time to time. Prompt disposal of all audit objections including Audit
Inspection Reports/Draft para/Audit Notes is also to be done by this section.

x)

Test Check Section: This section carries out the Test checks subject to prescribed
percentages of the work done in various sections of the Accounts Office to see that
proper procedures have been followed at all the stages and thereby increasing the
efficiency of the Accounts Office.

xi)

Receipt & Despatch / Record section: Receipt and despatch of all the
communications in the Accounts Office, other departmental offices, sections in the
offices, Govt. Dept. and proper distribution of the concerned communication to the
section concerned are the main functions of R&D section. Similarly systamatic
maintenance of various types of paid vouchers making available the same as and
when required, storing of forms and stationery including various types of books and
Registers and supply of the same to various section when demanded for, are the
main duties of the Record section.

Traffic Accounts Branch:

This branch is centralized in the HQrs. only. The sub-sections of this branch are as
under:
Coaching section: This section deals with internal check of various coaching returns
received from the stations in respect of various types of traffic passenger, classification,
excess fare return, luggage return parcel traffic return, station B / S etc. are some of the
important returns checked in this section. Similarly check of Ticket indents received from
the station is also carried in the section. Results of internal check are intimated to the
stations concerned generally through advice of internal check. Similarly any irregularities
detected during the course of check are taken up with the staff concerned through
respective executive officers. The work in connection with the computer print in respect
of coaching returns is also done in this section.

Goods section: This section deals with the internal check of all the returns received from
the stations in respect of Goods Traffic such as check of invoice, goods B/S, MPA,
handling bills etc. The results of internal check are communicated to the stations
concerned by issue of error sheets and irregularities if any are reported to the executive
concerned for necessary action.
General Section: Maintenance of Traffic book, Compilation of T / ACs, efficiency of work
of the various sub-sections in the T / ACs branch and disposal of all the personnel matters
of the accounts staff working in the T.A/Cs. branch. Similarly provision of books, forms,
stationary etc. and maintenance of T.A/Cs. record are dealt with by the section.
Traffic Inspection section: This section in entrusted with the job of inspecting through
the agency of TIA, the initial books, records, vouchers etc. at the Railway stations where
the traffic transactions are originally initiated and to ensure that the same are maintained
correctly. Prompt disposal of the various communications including Inspection reports
received from the inspectorial staff of the Accounts dept. is also done by this section.
Test Check Section : This section carries out test check subject to prescribed
percentages of the work done in various sections of the account s office to see that
proper procedures have been followed at all the stages and there by increasing the
efficiency of the accounts office .
Receipt Despatch /Record section: Receipt and Dispatch of all the communications in
the accounts office, other departmental offices, sections in the offices ,Govt Dept.and
proper distributions of the concerned communication to the section concerned are the
main functions of R&D section. similarly systematic maintenance of various types of paid
vouchers making available the same as and when required, storing of forms and
stationary including various types of books and Registers and supply of the same to
various section when demanded for, are the main duties of the Record Section.
Cash & Pay Section: This section is responsible for the receipt of all the Dept.Cash
receivable to the Rly Admn. on account of various services rendered by the Rlys, prompt
deposit of the same in to RBI/SBI and disbursement of all the cash in respect of various
types of bills passed for payment by the accounts officers from time to time.
Stores Accounts Branch : SAB is responsible for all the accounts work and the work in
respect of the financial matters of the Stores Dept. It has to see that the check of initial
documents of Receipts and issues of the stores is carried out . it has to compile and
prepare periodical returns and also to verify effectively the stock/stores lying in the
Stores depot, offices, on the line etc.
Work Shop Accounts Branch : This branch of accounts office mainly deals with the
Costing & Accounting work of the work shop , rendering all the assistance and cooperation required by the Head of the Work shop in financial matters , maintenance of
accounts of expenditure in the W/shop in connection with Labour & materials ,arranging
payments of W/shop labours, maintenance of suspense registers ,payment of incentive
bonus to the work shop staff etc.

Organization of Accounts Department

FA & CAO
(Principal)

FA&CAO
(F/B)

FA & CAO
(C)

FA & CAO
(S&C)

Dy CAO(G)

Dy FA&CAO
(F/B)

Dy FA&CAO
(C)

Dy FA&CAO
(S&C)

SAO

SAO

SAO

SAO

AAO(Adm.)

AAO

AAO

AAO
FA & CAO
(Traffic)

FA & CAO(S & W)

Dy FA & CAO
(Workshop)

Dy FA & CAO
(Store)

Dy FA & CAO
(T)

CC

SAO

SAO

SAO (T)

ACC
MB CST

AAO

AAO

AAO (T)

ACC (JHS)

Open Line

Constructions

Workshop

Sr. DAO

SAO (C)

WAO

DAO

AAO (C)

WAAO

ADAO
AO(P)