Railway Accounts Department Examinations

Friday, November 25, 2022

PFMS - Public Finance Management System


PFMS - Public Finance Management System

  • A web based online software application

  • Developed and implemented by CGA - Controller General of Accounts, Department of Expenditure, Ministry of Finance, Government of India 


  • Started in 2019 


  • Object: Tracking funds released under all Plan schemes of Government of India & real time reporting of expenditure. 


  • Covers all payments, Exchequer control, all receipts, compilation of accounts, preparation of Fiscal Reports

  • Interface with the treasury system of all the 28 States and 2 UTs with legislatures.  


  • Integrated with the core banking system of over 300 Banks in the country.  


  • Interface with the NPCI - National Payments Corporation of India   

Key takeaways for MCQ

  1. PFMS stands for Public Finance Management System 

  2. Launched in 2019

  3. Developed and maintained by CGA, Department of Expenditure

  4. CGA stands for Controller General of Accounts   

  5. CGA is a Principal Accounting Officer to the Government of India. (Apex accounting authority in Government of India) 

  6. Old name of PFMS is CPSMS - Central Plan Scheme Monitoring System.  

  7. NPCI stands for National Payments Corporation of India

Monday, November 21, 2022

Option Clause in Stores Contracts

Option Clause in Stores Contracts

Source: Railway Board letter dated 04.03.2022  Click here for download


  • Para 3800 of IRS Conditions of Contract Click for download

  • Applicable for all tenders wherever specifically mentioned in the tender as Special condition.

  • For Fixed Quantity Contracts only

  • The purchaser (i.e., Railways) reserves the right to increase the order quantity by a quantity not exceeding 30 % of the ordered quantity

  • Provision of Minus 30 % Option Clause shall not be inserted in the Tenders.   

  • Minimum Purchase value is Rs. 1.5 Crores  

  • There is no bar to include this clause for below value of Rs. 1.5 Crores, if accrues the benefits to the Railways. 

  • Example: As per contract, the quantity ordered is 100 Nos.  Under this clause, Purchaser has the right to increase up to 130 Nos depending on the requirements.

  •  Same price, same terms & conditions are applicable.

  •  During the currency of the contract including extension period, if any.

  • Before resorting to such an increase, reasonable notice and time should be given to the contractor/supplier.

  • Railways can resort to increasing the quantity, though the contractor/supplier who delivered the ordered quantity has been supplied in full before the last date of delivery.  

  • Approval of Option Clause:  While deciding the acceptability of Tenders/Contracts, the value of +30% quantity will be excluded from the value of Tenders for determining the level of Competency of sanction.   

  • Performance of the firm on whom option is proposed to be exercised should be satisfactory.  

  • Operated only where there is clear demand for additional quantities and benefits accrue to Railways in terms of existing contractual rates being reasonable  or lower than newly opened tendered rates, if available. 

  • Operation of Option Clause: 


  • TC cases - Finance Concurrence is not required. By Competent authority within his powers of Tender acceptance (original quantity plus 30 % under option clause. Operation of plus 30% clause, Finance vetting of modification advice is required. 


  • Non TC cases - Finance concurrence is required -If the value of contract (including plus 30%) is within vetting limit of PO - Purchase Order.


 Key Takeaways:

  1. Plus 30 % only 

  2. Minimum purchase value : Rs. 1.5 Crores

  3. There is no bar to include this clause for below value of Rs. 1.5 Crores, if accrues the benefits to the Railways. 


  1. Same Price and Same conditions 

  1. Applicable to extended date of delivery 


Tuesday, November 8, 2022

GFR - General Financial Rules, 2017

GFR - General Financial Rules, 2017  

Nageswara Rao 9492432160

Click for GFR 2017 with amendments up to 31.07.2022


 Railway Board vide its letter No.2017/ F(X)II/PW/R dated 09.02.2018 advised all  concerned to refer the rules under the GFR- General Financial Rules, 2017 and  used them as broad principles while making financial decisions.  

Indian Railways being part of Govt of India, it is incumbent on Indian  Railways to refer GFR in discharging financial powers.  

Although, historically processes have evolved on Indian Railways considering  operational requirement of field, however, with merger of Railway Budget with  General Budget, any substantive deviation from GFR has become part of  reporting through the monthly PCDO by respective PFAs to Member  Finance /Indian Railways in order to reporting to Ministry of Finance. 

 Issued by the Ministry of Finance, Dept of Expenditure.  

 Consists of 208 pages and 12 Chapters.  

 First GFR in 1947. Then Revised in 1963 and 2005.  

What is the Need of Revised GFR in 2017 ?  

1. Removal of distinction in non-plan and plan expenditure.  

2. Merger of Railway Budget with General Budget in 2017-18.  

3. Focusing on outcomes through an improved Outcome Budget document.  

4. Reliance on DBT - Direct Benefit Transfer scheme to ensure efficient delivery of  entitlements.  

5. Introduction of new e-sites like Central Public Procurement Portal, GeM Government e-Marketing portal, Non-Tax Revenue portal.  

6. Increased focus on the Public Finance Management System(PFMS).

Key Takeaways - For MCQ  


1. First GFR – 1947  


2. Latest GFR – 2017  


3. GFR stands for General Financial Rules  

4. PFMS stands for Public Finance Management System. 


5. Any substantive deviation - 

  • At Zonal Level - Brought to the notice of Member  Finance by PFA. 

  • At Board level – Brought to the notice of the Ministry of Finance  by Member Finance.  

6. DBT stands for Direct Benefit Transfer 

7. Removal of distinction in non-plan and plan expenditure

8. Total Number of Chapters in GFR  = 12  (total pages 208) 


   – end – 

Wednesday, November 2, 2022

Traffic Study Material by Shri Murali, SSO(A)/Chennai/SR


Various types of charges collected in Railway Receipts

By P.Murali Sr.SO(A)/TA/SR

Current prevailing Rates:

  1. Wagon Demand Registration FEE. W.E.F. 01.11.2022 (WDRF)


Registration fee per wagon (Rs.)

Registration Fee per rake (Rs.)








No loading

No loading

Lump Sum Deposit for Government Departments shall be Rs.5 Lakhs.

Authority TC-I/2020/101/efile/I-part(I)(3332083) dt 17.10.2022

  1. Demurrage Charges 

The current Base Rate of DC shall be Rs.150/- per 8 wheeled wagons per hour w.e.f. 1.10.2022

Duration of excess detention beyond the free time of stock

Rate of Demurrage

Upto 6 hours

Rs.150/- per wagon per hour or part thereof

Beyond 6 hours upto 12 hours

Base rate + 10%

Beyond 12 hours upto 14hours

Base rate + 25%

Beyond 24 hours upto 48 hours

Base rate + 50%

Beyond 48 hours upto 72 hours

Twice of Base Rate

Beyond 72 hours 

Thrice of Base Rate

Authority TC-I//2022/201/efile/2(3394909   dt  13.09.2022

The debit/credit system of charging DC on trial measure has been discontinued  w.e.f. 01.10.2022

  1. Wharfage Charges

Railway Premises (Goods Sheds, Stations etc.) will be classified into three groups as prescribed below on the basis of average number of rakes dealt with during the period from 1st January to 30th April. 

Group I 

More than 12 rakes per month

Group II

7 rakes to 12 rakes per month

Group III

less than 7 rakes per month 

PERMISSIBLE FREE TIME FOR REMOVAL OF GOODS FROM RAILWAY PREMISES 3.1 Free time for removal of goods from railway premises will be as under:

  1. Goods stacked in goods sheds etc. waiting to be loaded in wagons/rake  

Group I 

12 working hours from the expiry of free time for loading of wagons/rake

Group II

15 working hours from the expiry of free time for loading of wagons/rake

Group III

30 working hours from the expiry of free time for loading of wagons/rake

(b) Goods unloaded from wagons/rakes waiting to be removed from goods shed etc.

Group I 

12 working hours from the expiry of free time for loading of wagons/rake

Group II

15 working hours from the expiry of free time for loading of wagons/rake

Group III

30 working hours from the expiry of free time for loading of wagons/rake

  1. Siding Charges:  

The siding charges are calculated with All India Engine  Hour Cost (AIHEC)  which is advised by the Traffic Commercial Department. Every year. Based on the AIEHC siding charges are fixed for each siding. 

The AIEHC for the current year w.e.f. 01.08.2022

Type of Engine Locomotives

Cost per hour

Broad Gauge (BG)

Meter Gauge (MG)

Diesel Locomotives

Shunting Engine



Train Engine



Electric Locomotives

Train Engine



Costs to be recovered for steam locos wherever in use over IR shall be identical to that of Diesel Engines indicated above.

Minimum time levied for siding charge is one hour

If the shunting trip time exceeds one hour based on trip trials conducted. The siding rates are calculated accordingly. 

  1. Busy Season Charge

Busy Season Charges which were discontinued during the pandemic period .  Now the Board has decided              to levy the same w.e.f. 01.10.2022 at the rate of  15 % for all commodities except Coal & Coke, container traffic and Automobile traffic. The Busy Season period is from 1st April to 30th June and 1st October to 31st March.

(Authority TCR/1078/2020/16/3329183  dated 27.09.2022

  1. Development Surcharge:

5% levied throughout the year on all Goods Traffic

Authority TCR/1078/2015/14 dt 20.07.2015 

  1. Congestion charge:. 

25% for all traffic booked to Bangladesh.

 20% for all  traffic booked to Pakistan 

Authority TCR/1078/2015/14 dt 20.07.2015 

  1. Port congestion charges: 

 10% is levied for all Goods traffic, including containers originating from the ports. 

Authority TCR/1078/2015/14 dt 20.07.2015 

  1. OTC & DTC:

 In addition ,Originating Terminal Charge and Destination Terminal Charge are collected and apportioned to Originating Railway and Terminating Railway. The rates are OTC Rs. 20/- per tonne and DTC Rs.20/- per tonne.

  1. GST:

 5% Levied on all commodities.

  1. Railway Material consignment:

 when booked in Department owned wagons NO OTC, DTC and  busy season surcharge levied.    If RMC is booked in the General Service Wagon it is treated as Revenue Traffic and all charges are levied.

  1. Freight calculation

 sample calculation 

From:  MDKS   - ACC Siding Madukkarai

To:      BDJ           - BADAGARA

Commodity : Cement

Class :  140 B Wagon load

Distance : 216  Kms.

Table Rate : Rs. 366.50

Tonnes : 759 T


216 Kms.

Table Rate


Chargeable weight 

759 T



OTC & DTC 40/T

Rs. 15,180/-  Origin is private siding only DTC is charged

Busy season surcharge 15 %

Rs.41,729.50 (278173.5* 15%)

Development Surcharge 5%

Rs. 15992.13 ((278173.5+41729) X 5%)

GST 5%

Rs.17,554 (278173.5+15180+41729.5+15992.13) X 5 %

Total freight 



  1. Hub and Spoke system:

 Operators can operate the Hub and Spoke system for transportation of containers in certain regions for which the system of documentation and calculation of haulage charges would be as follows. 

  1. Hub is a container loading facility/depot, which will be used by an operator to aggregate/ disseminate traffic. For this purpose, the operator may make a request to the Railway indicating the pairs of stations between which he will run his container trains via this hub.  Depending on operational feasibility and ensuring that this feasibility is not used by operators to get undue benefit of telescopic rate, the hub will be approved and notified to the Railway Administration by the Railway Board.  No benefit may be given unless a Hub is notified by the Railway Board.

  1. The Originating point will clearly indicate on the Railway Receipt (RR) whether the container will go directly to the destination or will move via a specified hub.  

  1. The haulage charges for the loaded container will be charged from the originating point to the destination point for the entire distance of actual haulage via the specified “Hub”.

  1. For the loaded/empty container transshipped at the “Hub”, a subsequent RR with “Zero” freight will be prepared for the distance from the hub to the destination, duly cross-referring the original RR and the originating point on the subsequent RR.

  1. The RR for recovery of haulage charges will be prepared by Railway Staff posted at ICD/Port/Railway Terminal on the basis of summary given by the operator of ICD indicating weight of consignment including the tare weight of container.

  1. CONCOR:

  • The haulage charges are  only collected for movement of TEU (Twenty feet Equivalent unit). The  empty haulage is also charged.

  • The loaded container single deck are charged based on   the weight loaded i.e, upto 10T, more than 10T and upto 20T, more than 20T and upto 26T, more than 26T and upto 30T and more than 30T. 

  • Similarly empty container single deck and Empty Flat wagon movements are also charged. 

  • Development Surcharge 5%,  GST and Terminal Access Charge is also  leviable   for concor movement. 

 – end –