Railway Freight Payment Methods PDF

1/27/25, 8:38 PM CHAPTER XII MODE OF PAYMENT OF RAILWAY FREIGHT AND OTHER RAILWAY DUES Payment by the Public 1201 CHAPTER XII MODE OF PAYMENT OF RAILWAY FREIGHT AND OTHER RAILWAY DUES Payment by the Pub...

1/27/25, 8:38 PM CHAPTER XII MODE OF PAYMENT OF RAILWAY FREIGHT AND OTHER RAILWAY DUES Payment by the Public 1201 CHAPTER XII MODE OF PAYMENT OF RAILWAY FREIGHT AND OTHER RAILWAY DUES Payment by the Public 1201. Payment of railway dues on public traffic is required to be made in cash only except where under special circumstances, payment of freight by cheques, bank drafts. Credit Notes, E-payment or under "Weight only" system is authorised by the Railway Administrations. (Authority Railway Board's letter No.TC-I/2006/104/3 dated 22-11-2006)--acs no. 16 Rupee Traveller cheques issued by the State Bank of India and other nationalised banks may also be accepted towards payment of passenger fares and luggage charges at important stations & stations of tourist importance. Railway Administrations are also empowered to authorise Station Masters to accept Bank Drafts/Dank pay orders drawn on nationalised/scheduled banks for payment of freight and other railway dues exceeding 1.000 Rupees in each case. Amount of security required for availing of the facility of payment of Railway dues by Credit Note or under the "weight only" Systems 1202. The facility of payment of railway dues by Credit Notes or under the "weight only" system is granted only at the discretion of the Railway Administration and should be confined to well known parties of good standing who have regular and adequate monthly transaction with a railway provided they agree to deposit the amount of security as indicated below:— System of Payment Amount of Security The amount representing the average freight etc. of the firm for a Payment of freight by Credit Notes period of 30 days based on the average of previous 12 months. If the security is paid in cash, then the amount representing the The "Weight only" System average freight etc. for a period of 20 days based on the peak month's figure during the previous 12 months. If the security is in a form other than a deposit in cash, the amount equivalent to transactions for a period of one month based on the peak month's figure during the previous 12 months. 1203. The security to be deposited by individuals or firms authorised to make payment of railway dues either through Credit Notes or under the "Weight only" system may be in one of the following forms :— (i) A deposit of cash; (ii) Government securities at 5 per cent, below the market value: (iii) (a) Deposit receipts of the State Bank of India; (b) Guarantee bonds executed by the State Bank of India; (c) Demand Drafts of the State Bank of India; (iv) (a) Guarantee Bonds executed by an approved Scheduled Bank, provided the Bank concerned lodges requisite securities either with the Railway Administration or with the Reserve Bank of India if the guaranteed amount is not within the specified monetary limit fixed by the Reserve Bank. (b) Guarantee Bonds executed by a Bank other than the approved Scheduled Banks provided (i) the Bank concerned lodges requisite securities either with the Railway Administration or with the Reserve Bank of India or (ii) the bonds are countersigned by an approved Scheduled Bank subject to condition as in (a) being fulfilled. (v) A deposit in the Post Office Savings Bank; or https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh12_data.htm#1201. 1/5 1/27/25, 8:38 PM CHAPTER XII MODE OF PAYMENT OF RAILWAY FREIGHT AND OTHER RAILWAY DUES Payment by the Public 1201 (vi) Deposits in National Savings Certificates. (vii) Bonds issued by the Indian Railway Finance Corporation duly transferred in favour of the Railway Administration concerned. 1204. The power to authorise private firms or individuals to pay freight charges by Credit Notes or under the "Weight only" system is vested in the Heads of Department only and is not to be delegated to any lower authority. Credit Notes for use by Private Firms of Individuals 1205. Credit Notes for use by private firms or individuals should be in the form prescribed in the Indian Railways Commercial Manual. 1206. "Weight only" system 1206.1 Under the "Weight only" system of booking, the weight and the rate only arc shown on the invoices and the freight is calculated in the Accounts Office. 1206.2 The facility of paying freight through "Weight only" system is available only in respect of selected commodities which are coal. mineral oils, bamboo, iron ore. manganese ore. lime stone, dolomite, gypsum and cement. 1206.3 The party to whom this facility is extended, whether in public sector or private sector should be creditworthy. The party should not be a habitual defaulter in the payment of railway dues. Before this facility is granted to any party, the Senior DCM/DCM concerned should record a certificate to the effect that the party is not a habitual defaulter in payment of railway dues. Further, there should be no outstanding freight and siding charges against the party on the day this facility is granted. 1206.4 If the security deposit for availing of the facility of paying freight etc. by ''weight only" system is given by a party in cash, the traffic of the party will be treated as paid and will not be subjected to the levy of surcharge leviable on "To Pay" traffic. However, in the absence of a deposit in cash, the traffic will be treated as 'To pay" and party will have to pay the surcharge leviable on 'Traffic" booked on "To Pay" basis as notified by the Railway Board from lime to time. 1206.5 The amount of security deposit whether in cash or in the form of a bank guarantee etc. should be reviewed periodically to ensure that it is adequate and if necessary, steps should be taken to enhance it in accordance with the provisions of Para 1202 above. 1206.6 The Zonal Railways where the facility of booking traffic under the "weight only" system is introduced should lay down a detailed procedure in consultation with their F. A. & C. A. Os for booking and accountal of such traffic for the guidance of their staff and for billing and recovery of freight charges. 1206.7 The following guidelines should be kept in view in drawing up the detailed procedure :— (i) A regular system of collection of accounts foils of "weight only invoices by couriers should be introduced to ensure that all "weight, only" invoices are duly received in the traffic accounts office in time for the purpose of billing (ii) Bill should be prepared for every 5 day period and submitted lo the party or their banker as the case may be for prompt payment. However, in the case of loco coal or military authority where only book adjustment is done, billing may be done for every 10 day period. For the month of March, provisional bill should be issued based on the average of the previous 3 months' transaction. The amount of bill for the month of March has to be realised before the end of the financial year, namely, by 31st March of every year,. The amount thus paid may be adjusted next month in the final bill for the actual freight charges due. (iii) "Weight only" bills are payable in full by the parties. Any adjustment required for "over-charges" etc. should be carried out in the bills for the subsequent period/periods. (iv) Close monitoring of the realisation of amount against "weight only" bill should be done and any default in payment or dishonouring of cheque should be viewed very seriously and the question of discontinuing the facility considered. (v) Cheques issued by the parties for payment of "weight only" bills should be drawn on a branch of the https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh12_data.htm#1201. 2/5 1/27/25, 8:38 PM CHAPTER XII MODE OF PAYMENT OF RAILWAY FREIGHT AND OTHER RAILWAY DUES Payment by the Public 1201 bank situated at the headquarter of the Zonal Railway and out-station cheques should not be accepted. (vi) Party giving security deposit in cash and thus enjoying exemption from the payment of surcharge leviable on "To Pay" traffic must also operate a 'Letter of Credit' with any bank in the metropolis where the Railways' Traffic Accounts Office is situated & a Railway Deposit Account is operated. Bankers shall make immediate payment of the bills presented by the Railway drawing upon Letters of Credit established by the parties. If Railways Deposit account is not operated in the same branch of the bank, then the party's bank should issue a Demand Draft in favour of the Railways encashable at the station where the Railways' cash office is situated. Party should also be told that a surcharge will become leviable in the case of default in timely payment of bill within the stipulated period of 10 days. 1206.8 Agreement to be executed for availing of the facility of making payment under the "weight only" System Every party to whom the facility of making payment of railway dues under "weight only" system is extended should execute an agreement with the Zonal Railway Administration. A specimen of the agreement is placed at Appendix VIII. It may be varied as required by the Zonal Rlys in consultation with their FA. & C.A.Os. 1207. As in the case of "weight only" system, periodical review to verify the adequacy of the security deposit should be carried out in respect of parties granted the facility of making payment of railway dues by Credit Note-cum-Cheque and steps should be taken to get additional amount of security as justified. 1208. A close watch should be kept on receipt of amount against the Credit Notes issued by a party and any case of non-payment of dues or dishonouring of Credit Note should be viewed very seriously and the facility of making payments by Credit Note withdrawn unless there are adequate grounds for not doing so. 1209. Where payment of freight is made by the consignor/consignee at the time of booking of traffic by Credit Note, the traffic will be treated as paid traffic. 1210. Wherever MICR technology for mechanised processing of cheques has been introduced, the party will issue a formal MICR cheque drawn on its banker for the amount due along with the Credit Note. The Credit Note No., the name of the booking station and other relevant particulars should be recorded on the reverse of the cheque to facilitate linking. Similarly, the particulars of the cheque, namely. No., Date, name of the bank on which drawn, amount etc. shall be recorded on the Credit Note. 1211. Credit Notes/MICR cheques should be drawn only on a scheduled bank and at that branch of the bank where Railways' cash office is situated. If on account of the unavoidable circumstances. Credit Notes/MICR cheques are drawn on any branch of a scheduled bank outside the station where the Railways' cash office is located, the amount should also include the commission charges payable for encashing such Credit Notes/MICR cheques. 1212. Before giving effect to the facility of payment by Credit Note. Railway Administration should enter into an agreement with the party concerned incorporating the terms and conditions for affording the Credit Note facility which should be drawn up in consultation with the Law Officer and the Associate Finance. Payment by Government Departments 1213. Defence Department.—The instructions regarding mode of payment of railway dues and the various forms used by the Defence Department for making such payments, i.e., Military Credit Notes. Warrants etc. appear in the I.R.C.A. Military Tariff for the time being in force. 1214. Civil Departments of the Central Government and Departments of State Governments are permitted to use Civil Credit Notes for making payment of freight and other railway dues in the form prescribed for the purpose. This facility is also allowed lo the Post and Telegraph Department for whom however a separate form of Credit Note has been prescribed. 1215. Payment of freight charges by Cheques.—The facility of making payment of freight charges by means of cheques may be granted by the General Manager, on application, to the Civil Departments of the Central and State Governments provided these departments agree to the following conditions and those detailed in paras 1216 & 1217 below : (a) that the responsibility for the safe custody of cheque books shall entirely be of the issuing departments and if any cheque book is lost, stolen or other wise made fraudulent use of. the loss arising https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh12_data.htm#1201. 3/5 1/27/25, 8:38 PM CHAPTER XII MODE OF PAYMENT OF RAILWAY FREIGHT AND OTHER RAILWAY DUES Payment by the Public 1201 out of the acceptance of such cheques at the railway station shall be borne by the departments concerned: (b) that the undercharges, if any. detected either al the time of delivery of consignments or thereafter shall be paid by the departments promptly on demand: over-charges, if any. being claimed by them in the usual way, i.e., by preferring a formal claim against the railway within the prescribed time limit; (c) that the commission charges, if any. incurred by the Railway Administration for realising the amount of cheques shall be paid for by the departments; (d) that if a cheque is dishonoured for any reason, whatsoever, a fresh cheque in lieu thereof shall be issued promptly by the department: (e) that the departments who are allowed the facility of payment by cheques shall not be allowed the facility of payment of railway dues by means of Credit Notes. 1216. The following procedure shall be observed in the matter of issue of cheques :— (i) The cheques shall be drawn in favour of the Chief Cashier of the railway concerned (or any other officer nominated by the Railway Administration) on the Reserve Bank of India, the State Bank of India or the State Banks with which the Railway Administration may be having a draw in« account: (ii) The cheques shall be issued on the printed forms of the department and shall bear a special crossing "Account Payee only—Not negotiable". (iii) The cheques shall, as far as possible, be written with cheque writing machines. In the case of departments not having such machines, the cheques shall be written by hand legibly and with bright ink. The cheques shall also have written across them in words and al right angles to the type, a sum a little in excess of that for which it is issued e.g.. "under Rupees Thirty " if the cheque is drawn for "Rupees Twenty Nine"; (iv) There shall be no erasures or over writings on the cheques nor any abbreviations used. (v) The cheques shall bear the stamp of office of issue and shall be signed by the officer authorised to do so under his full designation over a rubber stamp: (vi) A separate cheque shall be issued for each transaction. (vii) No cheque shall be accepted when the amount payable is less than Rs 10. Payment in such cases must be made m cash; (viii) No cheques shall be accepted in payment of passengers fares. 1217. The departments who are allowed the facility of payment of freight charges by means of cheques shall furnish to the General Manager the names, designations and specimen signatures (in triplicate) of the officers authorized to issue the cheques and the names of stations where the facility is required. 1218. The General Manager shall supply the stations concerned and the Cash Office, a list of the names and the designations of the officers authorized to issue the cheques together with their specimen signatures. Any changes in the names and designations of the officers will be intimated by the departments concerned to the General Manager along with their specimen signatures who will notify the same to the stations concerned and to the Cash Office. 1219. At stations, the following procedure shall be observed :— (i) When a cheque is presented, it shall be seen that it has been issued by an officer authorised lo issue the same, that the signature tallies with the specimen supplied by the General Manager and that the cheque has been issued strictly in the manner prescribed in para 1216 above. (ii) A register of cheques accepted from Civil Departments shall be maintained in the following form at the station in which particulars of cheques shall be entered as and when a cheque is accepted. Separate folios shall be set apart for each Government Department:— Date of Number and Name and Bank on Amount Particulars of receipt of date of the designation which drawn the relevant https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh12_data.htm#1201. 4/5 1/27/25, 8:38 PM CHAPTER XII MODE OF PAYMENT OF RAILWAY FREIGHT AND OTHER RAILWAY DUES Payment by the Public 1201 cheque at cheque of the drawer Invoice/P.W. the station Bill etc. (iii) The money receipt, if any, issued in respect of such payments shall bear the superscription "subject to realisation of cheque." (iv) The cheques received shall be sent to the cash office daily along with the earnings for the day. duly entered in the Cash Remittance Note showing the number, date and amount of the cheque, name of department and officer drawing the cheque, name of officer in whose favour drawn and the bank on which drawn. 1220. In the Cash Office, the cheques remitted by the stations shall be scrutinised to see that the same are in order and "have been issued by the authorised officers. 1221. Under-charges. if any, detected during internal check in respect of transactions paid for by cheques shall be debited to the stations concerned in the usual manner who will clear the same by obtaining a fresh cheque for the amount of undercharge from the department concerned. https://indianrailways.gov.in/railwayboard/uploads/codesmanual/IRCTCD/TrafficCommericalDepartmentCh12_data.htm#1201. 5/5