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The Indian Railway Accounts Service (IRAS; ''Bharatiya Rail Lekha Seva'') is one of the Group A Central
Civil Service The civil service is a collective term for a sector of government composed mainly of career civil service personnel hired rather than elected, whose institutional tenure typically survives transitions of political leadership. A civil service offic ...
of the Government of India. The
civil servants The civil service is a collective term for a sector of government composed mainly of career civil service personnel hired rather than elected, whose institutional tenure typically survives transitions of political leadership. A civil service offic ...
under this Service are responsible for the Accounts and Finance Management of the Indian Railways. About 25–30 IRAS officers are recruited every year through
Civil Services Examination The Civil Services Examination (CSE) is a standardized test in India conducted by the Union Public Service Commission for recruitment to higher Civil Services of India, civil services in the Government of India, such as the All India Service ...
conducted by
Union Public Service Commission The Union Public Service Commission (UPSC) is a constitutional body tasked with recruiting officers for All India Services and the Central Civil Services (Group A and B) through various standardized examinations. In 2023, 1.3 million applica ...
. Currently, the IRAS Cadre has a strength of about 800 officers.


History of IRAS

In 1921, the Acworth Committee recommended, and ratified through the Resolution for separation in 1924, that the
Indian Railways Indian Railways is a state-owned enterprise that is organised as a departmental undertaking of the Ministry of Railways (India), Ministry of Railways of the Government of India and operates India's national railway system. , it manages the fou ...
finances should be separated from the General Finances. This segregation of Railway Finances together with acceptance in principle at least of the responsibility for the direct operation of its Railways was a watershed moment in the history of Railway Account Service, as it was for the Railways as a whole. The growth and genesis of the service can be traced to the Acworth Committee report and becomes evident from these significant recommendations which are quoted below:
"''We recommend that the Finance Department should cease to control the internal finances of the Railways; that the Railways should have a separate Budget of their own, be responsible for earning and expending their own income and for providing such net revenues as is required to meet the interest on debt incurred on or to be incurred by the Government for Railways purposes; and that the Railways Budget should be presented to the Legislative Assembly not by the Finance minister of the council but by the member in charge of the Railways." (Paras 74, 76 and 127 of the Acworth Committee report)''
"''We recommend, that subject to independent audit by Government of India, the Railways Department should employ its own accounting staff and be responsible for its own accounts. We think that the present account and statistics should be thoroughly overhauled and remodeled with the assistance of experts familiar with recent practices in other countries." (Paras 129-134 of Acworth Committee Report)''
"''We recommend that greater facilities should be provided for training Indians for the superior posts in Railway service and that the process of their employment in such posts should be accelerated." (Paras 182-184 of Acworth Committee Report)''
It further goes on to recommend that the ''"title of Railway Board be replaced by the title of Railway Commission and that under the member of Council for Communications there should be 4 commissioners and that out of the 4, one should be in charge of Finance and the organization ..."'' With these recommendations not only was the segregation of Railway Finance clearly established, but the office of the Financial Commissioner was envisaged in an embryonic manner, and accordingly, the first Financial Commissioner was appointed on 1 April 1923. The necessity of such an appointment was thus emphasized by the Acworth Committee, The large financial responsibility of the department being perhaps sufficient justification in itself for the addition to the organization of a member competent to advise on the questions of great financial magnitude. The need for a new service was reinforced by yet another recommendation of the Acworth Committee which was with regard to the Railway Department having its own accounting staff and being responsible for its accounts, subject to an independent audit by the Auditor General of India. With the post of Financial Commissioner firmly in place, the requirement for an organisational set up with staff became imminent, and the ground was clearly laid for the growth of a new service which would henceforth meet the burgeoning needs of the increasingly autonomous finance department of
Indian Railways Indian Railways is a state-owned enterprise that is organised as a departmental undertaking of the Ministry of Railways (India), Ministry of Railways of the Government of India and operates India's national railway system. , it manages the fou ...
. Consequently, it was just a matter of time before new service would gently disengage itself from the shackles of the
Indian Audit and Accounts Service Indian Audit and Accounts Service (IA&AS) is a group 'A' central civil service under the Comptroller and Auditor General of India, the supreme audit institution of India. Its central civil servants serve in an audit managerial capacity in the ...
and the embryonic growth of a new service would announce itself. The process was now set in motion and in the late 1920s, the
Government of India The Government of India (ISO 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...
decided to form a new Class I central service, viz IRAS, which would occupy top ranks of the Railway Accounts Department gradually replacing
Indian Audit and Accounts Service Indian Audit and Accounts Service (IA&AS) is a group 'A' central civil service under the Comptroller and Auditor General of India, the supreme audit institution of India. Its central civil servants serve in an audit managerial capacity in the ...
officers. Accordingly, from 1 April 1929, the responsibility for the compilation of accounts for the Railways was taken over by the Financial Commissioner, Railways from the Auditor General. The Accounts organisation was thus brought under the control of the Financial Commissioner, Railways, and the Indian Railway Accounts Service was constituted simultaneously. However, every process of birth has its hiccups, though technically it was intended that from 1929, recruitment should be for the new IRAS service, procedural formalities delayed this recruitment and so 2 officers of 1929 batch who were recruited for the
Indian Audit and Accounts Service Indian Audit and Accounts Service (IA&AS) is a group 'A' central civil service under the Comptroller and Auditor General of India, the supreme audit institution of India. Its central civil servants serve in an audit managerial capacity in the ...
were "permanently seconded" to the IRAS. Accordingly, for the first time two officers, Mr Apjit Singh & Mr N C Deb joined the service. It was only in 1930 that two officers, Mr C T Venugopal and Mr D P Mathur, were recruited "directly" for the first time. The onward march of the service had clearly begun. The closing years of the 1950s and the fore part of the 1960s remain perhaps the most memorable for the chronicler of IRAS in many ways. The cadre burgeoned by more than 50 in just three years. Massive investments in the second Five Year Plan provided a windfall for
Indian Railways Indian Railways is a state-owned enterprise that is organised as a departmental undertaking of the Ministry of Railways (India), Ministry of Railways of the Government of India and operates India's national railway system. , it manages the fou ...
, with the inevitable challenge to finance management. Cadre management came to occupy the attention of the top brass. Modernisation of accounting work with mainframe computers also began in this period. The service continued to wade through these tumultuous waters through the 1960s and 1970s. During the 1990s, the position of
Indian Railways Indian Railways is a state-owned enterprise that is organised as a departmental undertaking of the Ministry of Railways (India), Ministry of Railways of the Government of India and operates India's national railway system. , it manages the fou ...
Finances deteriorated as the organisation hitherto had been working more for fulfilment of social obligations of the
Government of India The Government of India (ISO 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...
like providing employment, affordable and subsidised transport to the common public etc. The Rakesh Mohan Committee report in 2001 on
Indian Railways Indian Railways is a state-owned enterprise that is organised as a departmental undertaking of the Ministry of Railways (India), Ministry of Railways of the Government of India and operates India's national railway system. , it manages the fou ...
Finances observed thus ... ''The Indian Railways (IR) has been a vital component of the social, political and economic life of the country. IR's transportation network has played a key role in weaving India into a nation. This network has not only integrated markets but also people across the length and breadth of this huge country. IR's role in times of war and natural calamities has also been commendable: it has always risen to the occasion and transported men and materials in large numbers at short notice. It is because of these reasons that IR is one of the foremost institutions of the country today. At the same time, because of a series of developments in the 1990s, IR is today on the verge of a financial crisis. Urgent action is needed to revitalise it so that it can continue to serve the nation.'' ''... These tendencies became accentuated in the 1990s and the economics of IR are now extremely vulnerable. For first time in 17 years last year IR was not able to pay a dividend to the government on its past investment. It is in financial crisis. Its ability to invest adequately in providing efficient and cost competitive services in the future is seriously in question. Thus IR is in a watershed period in its history today and therefore drastic action needs to be taken in a number of areas to make this august organisation the country's pride once again.'' The officers of IRAS along with the executives responded to the challenges and within a short period of 5–6 years,
Indian Railways Indian Railways is a state-owned enterprise that is organised as a departmental undertaking of the Ministry of Railways (India), Ministry of Railways of the Government of India and operates India's national railway system. , it manages the fou ...
was a financially vibrant organisation. In the year 2007–08,
Indian Railways Indian Railways is a state-owned enterprise that is organised as a departmental undertaking of the Ministry of Railways (India), Ministry of Railways of the Government of India and operates India's national railway system. , it manages the fou ...
had a cash surplus of 250 billion rupees. Recently, Finance department of Railways has embarked upon computerising its whole accounting and finance functions by implementing a customised software called AFRES (Advance Finance Railway Earning & Expenditure System). As decided by government of India at the end of 2019 all Railway services are to be merged into one service called Indian Railway Management Service. Moreover, Railway Board has been reconstituted with chairman and CEO as head and Member Finance, Member Transportation and Business Development, Member Infrastructure and Member Rolling Stock and Traction. Firsts in IRAS – ast Financial Commissioner(Railways) Mr Vijay Kumar, IRAS


Attachments with various institutes

*Alma Mater at Indian Railway Institute of Financial Management, (IRIFM), Secunderabad http://irifm.org/ * * Railway Foundation Course at National Academy of Indian Railway (NAIR), Vadodara. * Tourism and Hospitality management Training a
Indian Railway Catering and Tourism Corporation (IRCTC)
* Accounts Training a
Centralised Training Academy for Railway Accounts (C-TARA), Secundarabad
* Secretariat Training a
Institute for Institute of Secretariat Training and Management (ISTM), New Delhi
* Ethical Governance Training at
Initiatives of Change (IofC), Panchgani
* Accounts Training a
National Academy Of Audit and Accounts (NAAA), Shimla
* Container Logistics Training a
Inland Container Depot (ICD), Tughlaqabad
* Signals and Tele-communications Training at Indian Railways Institute of Signal Engineering and Telecommunications (IRISET), Secundarabad *P-Way, Works and Contract Management Training a
Indian Railways Institute of Civil Engineering (IRICEN), Pune
* Locomotive, Rolling Stock and Workshop Management Training at Indian Railways Institute of Mechanical and Electrical Engineering (IRIMEE), Jamalpur * Electric Traction and Railway Electrification Management Training at Indian Railway Institute of Electrical Engineering (IRIEEN), Nashik * Infrastructure Security Management Training at Jagjivan Ram Railway Protection Force Academy (JRRPF), Lucknow * Railway Information Infrastructure Management Training at Centre for Railway information systems (CRIS), New Delhi * Parliamentary Procedures Training a
Bureau of Parliamentary Studies and Training (BPST), New Delhi
* Divisional attachments at 68 divisions spread across the length and breadth of the country *Industrial Field visits – Coal India, Aditya Birla Cements, TATA, Bhilai Steel Plant *Port Attachments – Paradip, Vishakhapatnam, JNPT, Mangalore, Krishnapatnam, Ennore etc. * Appreciation Visits to various Railway establishments situated in difficult terrains –
Konkan Railway The Konkan Railway (abbreviated KR) is one of the 19 railway zones in India with its headquarters at CBD Belapur in Navi Mumbai, Maharashtra, India. The Konkan Railway line from Roha to Thokur is operated and maintained by Konkan Railway co ...
s, K-K Line, Shimla-Kalka Toy Train, Nilgiri Railway, Udhampur-Srinagar, Pamban Bridge * Foreign attachment at Canada/USA and Germany/France/Russia * attachment at RBI * Attachment at NADT, Nagpur( IRS IT Academy), at NACEN, Faridabad( IRS Custom Academy), at NAAA, Shimla (IAAS Academy) * Attachment at NADFM, PUNE( IDAS Academy) * attachment at NIFM, Faridabad


Role and function

The Finance and Accounts functions are integrated with the executive at all levels in the
Railways Rail transport (also known as train transport) is a means of transport using wheeled vehicles running in tracks, which usually consist of two parallel steel rails. Rail transport is one of the two primary means of land transport, next to roa ...
. At the apex level of policy formulation, the Financial Commissioner, Railways, assisted by Additional Member (Finance), Additional Member (Budget), Adviser (Finance) and Adviser (Accounting Reforms) in–charge of Budgeting, Expenditure, Earnings, Accounting and Accounting Development/Reforms, is there to aid and guide the Ministry of Railways (
Railway Board The Ministry of Railways is a ministry in the Government of India, responsible for the rail transport in India, country's rail transport. The Indian Railways is the rail network operated and administered by the Railway Board constituted by t ...
). At the Zonal level, the General Manager is aided by the Financial Adviser and Chief Accounts Officer along with his assistants. At the Divisional level, which is only an administrative unit of a Zonal Railway, an identical arrangement exists to assist the Divisional Railway Manager in finance and accounts matters. Besides the major production units and workshops, be they manufacturing units or repair and maintenance units, have an inbuilt system of associate finance and accounts. The stores organisation, which is responsible for procurement of stores and materials worth thousands of crores of rupees, is again assisted by Finance & Accounts. In short, there is hardly any sphere of railway activity with which the Accounts and Finance organisation is not directly associated in the decision-making process. In addition, officers of the Service also occupy management posts such as Divisional Railway Managers, Additional General Managers etc. IRAS cadre of Indian Railways is responsible for the Finance and Accounting functions of the
Railways Rail transport (also known as train transport) is a means of transport using wheeled vehicles running in tracks, which usually consist of two parallel steel rails. Rail transport is one of the two primary means of land transport, next to roa ...
. Core functions of this cadre include maintenance of accounts of Indian Railways and Financial Advice to the executive. At the zonal level, IRAS officers are designated as Financial Advisor and Chief Account Officers while at the Division level, they are Divisional Finance Managers. Budget Management, Expenditure Control, Earnings Accountal, Financial scrutiny of various executive proposals are some of the functions performed by IRAS officers. Every expenditure in Indian Railways has to pass through Financial scrutiny. The IRAS cadre exercises substantial control over the affairs of the
Indian Railways Indian Railways is a state-owned enterprise that is organised as a departmental undertaking of the Ministry of Railways (India), Ministry of Railways of the Government of India and operates India's national railway system. , it manages the fou ...
. Officers of Indian Railway Accounts Service serve in various government ministries on deputation as Deputy Secretary/Director, Joint Secretary, Additional Secretary. They are also sent to various Public Sector undertakings on deputation to hold finance portfolios.


Organisation

At the Apex level, the Financial Commissioner for Railways represents the
Ministry of Finance A ministry of finance is a ministry or other government agency in charge of government finance, fiscal policy, and financial regulation. It is headed by a finance minister, an executive or cabinet position . A ministry of finance's portfoli ...
on the
Railway Board The Ministry of Railways is a ministry in the Government of India, responsible for the rail transport in India, country's rail transport. The Indian Railways is the rail network operated and administered by the Railway Board constituted by t ...
and also functions ex-officio as secretary to
Government of India The Government of India (ISO 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...
in the Ministry of Railways in financial matters. In this capacity, he is vested with full powers to sanction Railway expenditure subject to the general control of the
Finance Minister A ministry of finance is a ministry or other government agency in charge of government finance, fiscal policy, and financial regulation. It is headed by a finance minister, an executive or cabinet position . A ministry of finance's portfoli ...
. He has direct contact with the Finance Minister whom he keeps informed of developments in the Ministry of Railways. Organizational structure, further, varies as per the working at Railway board, Zonal level and divisional level. At zonal railway, PFA (Principal Financial Advisor) is the highest IRAS officer (HAG Level) is supported by FA& CAO(Financial Advisor & Chief Account Officer, SAG Level) and Deputy FA& CAO (JAG Level) plus AFA (Asst. financial Advisor, ST/JT scale officer). At divisional level Sr. DFM (generally JAG rank officer) is the highest account officer supported by DFM (Divisional Finance Manager, senior time scale officer) and ADFM (Asst. DFM, junior time scale officer). Also, IRAS service provides great opportunities for deputation at center in various ministries and in state in various capacities. They are also found to be the most sought after account officers because of their rigorous working background in railway system especially tendering, book and budget and so on. They have been getting regular role in prominent PSUs as director finance, Chief vigilance officers (CVOs) etc. in their mid career level of deputation. Even they have gone on to head various metros (e.g. Hyderabad metro), have got foreign assignment as well in MEA. Also, the promotion is found to be one of the fastest among all railway services in particular and in general reasonably good among other Central and all India services. The new cadre structuring is expected to further narrow down the gap IAS/IAAS commands. It is expected that in 17-18 year IRAS officers will be eligible for empanelment after getting SAG (IAAS/IAS/IFS in general get this in 16 years).


See also

*
Indian Railways Indian Railways is a state-owned enterprise that is organised as a departmental undertaking of the Ministry of Railways (India), Ministry of Railways of the Government of India and operates India's national railway system. , it manages the fou ...
* Centralised Training Institutes of the Indian Railways * Indian Railways organisational structure *
Civil Services of India In India, the Civil Service is the collection of civil servants of the government who constitute the permanent executive branch of the country. This includes servants in the All India Services, the Central Civil Services, and various State Ci ...
* All India Service * Centralised Training Institutes of the Indian Railways *
Central Secretariat Service Central Secretariat Service (; abbreviated as CSS) is the Public administration, administrative Civil Services of India, civil service under Group A and Group B of the Central Civil Services of India, Central Civil Services of the executive bra ...
* Railway Board Secretariat Service


References


External links


IRAS Association

Railway Staff College, Vadodara

Official website of Indian Railways

C-TARA (Centralized Training Academy of Railways Accounts)
{{DEFAULTSORT:Railway Accounts Service Accounting in India Central Civil Services (India) A