Over the years, the awards system had faced allegations of favouritism, at the cost of excluding the truly deserving.
Old rule allows cashiers to earn extra money, sometimes more than salaries.
Instructions come after PM said he wanted to see cleaner stations, trains.
The ministry Defended its decision to ban the entry of agents in the Passenger Reservation System.
Rail Bhawan officials said that the idea was not workable and they would communicate this to the PMO.
The PMO is now keen to grant an allowance instead of letting officers retain the staff as domestic help.
The compensation amount for such claims ranges from Rs 32,000 to a maximum of Rs 4 lakh per victim.
Railways plans to launch the service in Oct-Nov; the project is expected to find a mention in Rail Budget.
On the huge backlog of projects, Gowda said his priority would be the projects that are currently under way but he would review the ones which were sanctioned on paper but haven’t taken off yet.
The Railways Ministry has maintained that since almost all these lines are financially unremunerative, it would want the operational losses to be reimbursed by the government.
The law ministry had objected to the creation of an all-powerful body by executive order.
A railway panel has proposed waterless urinals; idea awaits Rly Board approval
Acute fund constraints is holding up railway works across the country
Having seen four changes in 14 months,the coveted post of Railways Minister became the most volatile ministerial berth in UPA-II
During the 2009 LS polls,when Bansal won from Chandigarh,his nephew was his election agent