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Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11

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(Embodying All Correction Slips Issued upto No. 86 Dated 10.12.2019)






Problems of Railway Financial Management and the techniques developed in tackling these have become complex and varied over the years.  The Code Revision Cell set up in 1973 in pursuance to the recommendations of the Railway Convention Committee, 1971 has, therefore, rightly considered the need for a separate Railway Financial Code to serve as a compendium of general rules and orders on financial matters including compilation of annual budget.


2.  THE INDIAN RAILWAY FINANCIAL CODE includes revised version of a part of the erstwhile Indian Railway General Code, which has now been rewritten in two separate texts of which this book is the second text, the first being the introductory text published separately under the title THE INDIAN RAILWAY ADMINISTRATION AND FINANCE-AN INTRODUCTION.


3.  The Indian Railway General Code was first issued as a 'provisional issue' on 5th September, 1938 ; it was up-dated and re-printed on 5th January, 1942 as the first edition, the appendices embodied in the 'provisional issue' being printed for the first time in a separate volume.  A re-print was issued in April 1950 and a second re-print in May 1952.  A revised edition of the Code, incorporating changes consequent on promulgation of the Constitution, and those arising out of the 1949 Railway Convention, was issued on September 14, 1954.  The first re-print of this revised edition was issued five years later, and the second re-print issued on August 22, 1970 has been the edition in use before the present revision of the Code.


4. The book as compiled deals with various important aspects of financial management like Project Appraisal, Budget Formulation, Reporting and Contro1, Parliamentary Financial Control, Award of Contract, Allocation of Expenditure, 'Rules relating to Inter-Railway and Inter Departmental services, Contingent Expenses, Investigation of Losses, etc.  A Chapter on the procedure dealing with Audit-Report presented by the Comptroller and Auditor General of India and its consideration by Public Accounts Committee of Parliament has been added, deleting Chapter VIII 'Communications from Audit and action thereon' from the existing Accounts Code.  The existing Chapter XI on Incidence of the Cost of Works for non-Railway Departments/Ministries' has been transferred to the Engineering/ Mechanical Code, Chapter XIV on 'Cash, Cheques and Vouchers', excluding the section regarding 'Cash Imprests' has been transferred to the Accounts Code and Chapter XVI on 'Bills for Pay and Allowances' has been transferred to the Establishment manual.  The miscellaneous matters dealt with in Chapter XX, excepting the section regarding 'Annual Reports of Railways', have not been incorporated in this Code nor in any other Code or Manual issued by the Board.  These should be included in the Manuals of 0ffice Procedure of the Zonal Railways., Production Units, etc.  The Appendices which were printed in a separate volume of the General Code have now been embodied in the Financial Code, vol. I, except Appendices relating to the classification of expenditure and earnings which have been embodied in Volume II of this Code.

5.  Based on the recommendations of a Task Force constituted in 1973 (in pursuance of the recommendations of the Railway Convention Committee 1971) and as accepted by the Government, restructured Demands for, Grants and Revised Classification of Revenue and Capital Expenditure have been introduced with effect from 1st April, 1979.  The provisions contained in this Code reflect the revised System.


6.  This Code supersedes all existing rules and orders issued by the Railway Board on the subjects dealt within it.  Unless contrary intention is expressed or implied in the wording of the Code rules, provisions of this Code are mandatory and binding on all Indian Railways.  For deviations from the mandatory rules, sanction of Railway Ministry should be obtained.  In accordance with the Government's policy, this Code is being issued as a diglot edition.


7.  The Railway Board will be glad to consider any criticism and suggestions from the Railway Administrations. Any errors or omissions which may be found in this edition may also be brought to the notice of the Secretary, Railway Board.


NEW DELHI  Himmat Singh
8th April 1981. Secretary, Railway Board.



(First Reprint)

This edition is a reprint of the Indian Railway Finance Code, Volume 1, 1982 edition, incorporating additions and alterations introduced through Correction Slips issued up to number 16, dated 30th May 1991.  


12.06.1991 Secretary, Railway Board.


(Second Reprint) 


This edition is a reprint of the Indian Railway Finance Code, Volume 1, 1982 edition, incorporating additions and alterations introduced through Correction Slips issued up to number 52 , dated 06th August, 1998. 


12.06.1999 Secretary, Railway Board.



1. Index letters for Codes.-The following Index letters are used for distinguishing the several Indian Railway Codes from each other :-


A-      Accounts Department.


E-       Engineering Department.


F-       Financial Code.


G-      Administration and Finance-an Introduction.


R-      Establishment Code.


S-      Stores Code.


T-      Traffic Department (Commercial).


W-     Mechanical Department (Workshops).


2.       Paragraph Numbers.-For convenience of indexing and of reference, the paragraphs have been numbered according to a 3/4-figure "Code", in which the last two figures give the number of the paragraph and the remaining figures the number of the Chapter.  Thus paragraph 101 of any code is paragraph I of Chapter I of that code and paragraph 1421, paragraph 21 of Chapter XIV.


3.       Reference to paragraphs.-Reference to the paragraphs of a code is made by putting the paragraph number, suffixed by the index letter of the code concerned.  Thus 1335-RI means paragraph 35 of Chapter XIII of the Indian Railway Establishment Code Volume I and 5 Appendix VIII-RI means paragraph 5 of Appendix VIII of the Indian Railway Establishment Code Volume I.


4.       Reference to "Forms".-The "forms" referred to in any of the Indian Railway Codes (except the Establishment Code) take the number of the paragraph of the code in which they are described, the index letter, of the code in question being prefixed to the number of the paragraph in which the form is illustrated.  Thus W-703 is the form that is described and illustrated in paragraph 3 of Chapter VII of the Indian Railway Code for the Mechanical Department (Workshops).


5.       Correction Slips.-The correction slips will be printed on one side and issued in separate series for each code so, that these may be cut and pasted against the relevant rules.


6.       Index to Correction Slips.-To facilitate reference to correction slips that have been issued to the Codes, an up-to-date index of correction slips is published from time to time showing for each Code the paragraph or rule numbers affected by correction slips and the numbers of such correction slips.  This index may be pasted inside the cover of each Code.