This document provides an overview of the existing manual reconciliation system for railway transfer transactions in India, the need for an electronic reconciliation (E-Recon) system, and suggestions for improving E-Recon. It summarizes the key provisions for manual reconciliation in the Indian Railways Accounts Code. It then outlines problems with the current manual system like time-consuming reconciliation meetings. E-Recon was developed to address these issues by allowing online settlement of transactions. However, some problems were encountered with E-Recon's implementation. Suggestions are provided to improve areas like generating journal vouchers for multiple transactions, integrating it with other financial systems, and allowing different transaction types. Full implementation of E-Recon could facilitate timely settlement

1. 1
Presented
By
M.Nageswara Rao
SSO(A)/Secunderabad

2. presentation
Index
Existing Manual Reconciliation
System
Need for E-Reconciliation
Problems and issues in E-Recon
Suggestions to improve the E-
Recon
Conclusion 2

3. 3
CHARLES DARWIN well known for
theory of evolution and author of
“Origin of Species”

4. CHANGE IS INEVITABLE
4
So, Reconciliation of Railway Transfer transactions is
also not an exception to the change.

5. 5
Now look at present
manual system of
transfer
transactions and
reconciliation and
codal provisions

6. As per Para 301 of Accounts Code
vol.I, it is the duty of the Accounts
Officer
adjust in his books of
account the items of
expenditure or receipts
pertaining to his own
circle and transferred to
him by other Accounts
officers;
to transfer to other
accounts circles the
items pertaining to
them which
originate in his
circle
6

7. 7
The Indian Railways Accounts
Code Volume One – Chapter
4 deals about the procedure of
the Transfer Transactions

8. Para 401 of Accounts Code Vol.I
All Inter Railway
transactions (Intra
Railway
transactions too)
are technically
known as “
Transfer
Transactions”
8

9. Para 402 of Accounts
code vol.I says

9
As a general rule all
transactions between two
different accounting units
in the same railway or
between two railways
should be settled by book
adjustment (i. e. not by
actual payment or
recovery of cash).
Then what is Book Adjustment ?

10. What is book
adjustment ?
It is classifying the
transactions in the
books of the
Railways under
the relevant
remittance head
of accounts and
Transferring them to
the Accounts Officers
concerned for
incorporation in their
accounts for the
months specified
by means of
Transfer
Certificates (A
406)
10

11. Para 406 says
Transfers between any two accounting
units within the same Railway should be
affected by means of TRANSFER
CERTIFICATE (TC)
The unit initiating a transfer should
prepare the TC in duplicate
And send one copy duly supported by initial
accounts records or vouchers to the unit to which
the transaction pertains and
Retain the other copy as the Office copy. 11

12. Para 407 says about
acceptance by the
responding officer
Para 408 says about
“Numbering and
watching the acceptance
of Transfer Certificate” –
to see there is no break
in the serial number
12

13. T.C.s should be issued
/returned duly accepted in
even flow and not left over
till the last date in the
prescribed schedule.
No T.C. should be issued
without accepted vouchers
except in the case of Cash
transactions or stores
supplied to other Railways
or Labour dept. central cess
charges.
13

14. NEED FOR DEVELOPMENT OF SOFTWARE
FOR TRANSFER TRANSACTIONS
The reconciliation
meetings at the end of
each quarter and
preceding month (i.e.,
February) attended by
large number of
officers/staff which
involve substantial time
and financial
implications
besides
acrimonies and
disputes
amongst the
participating
staff
14

15. NEED FOR DEVELOPMENT OF SOFTWARE
FOR TRANSFER TRANSACTIONS
To reduce the
time consumed in
the physical
transfer of
vouchers
To avoid delay for
the expenditure to
be accounted in the
same month of
incurrence.
Thereby to
ensure more
realistic
comparison of
expenditure with
reference to
Budget Proportion
of a Month.
15

16. NEED FOR DEVELOPMENT OF SOFTWARE
FOR TRANSFER TRANSACTIONS
Eliminate the need
of Approximate
Account Current
Ways and
means to be
authorised on
actual basis
16

17. CONCEPT OF E - RECON
Entrusted to
Western
Railway
Conceived
by Exilant 17

18. E – Recon - visualisation
Upload
Settlement
Making of J.V.s
Download of e-recon data into FMIS 18

19. What is E -
Recon
It is a Online Transfer
Transaction Portal for
Indian Railways
Offers settlement of
transfer transactions
among units and
Railways.
19

20. What is E - Recon
Disputes/differences of
opinions in regard to
acceptance of a TC etc.
are resolved by the
Presiding Officer in the
Quarterly Reconciliation
Meetings.
In E-Recon, a
provision also
exists for presiding
officer but in
electronic mode.
20

21. E-Recon – minimum
requirements
Availability of
PC with
Railnet/Interne
t connectivity
Browser
Internet
Explorer 7.0
version and
above
Good quality
scanners for the
purpose of scanning
documents
21

22. P D F – File Attachments
File attachments
should be in PDF
format
PDF means
Portable Document
Format supported
by Adobe systems 22

23. TEAM VIEWER
23
If you have issues and seek remote help, you can
install TeamViewer (free version) and seek help
from help desk by giving them userid and
password which shall appear on your screen.

24. Transfers between Revenue and
Capital or vice versa and their
reconciliation are not in the scope
of E-Recon.
These will continue to be part of
the Non Transfer Transactions
for which JV can be made from
one of the existing running
modules 24

25. Physical exchange of
related vouchers will
continue to take
place as is being
done at present.
25

26. Non Provision of
generation of one
Journal Voucher
(JV) for two or
more similar
accepted TCs
26
E-Recon – teething problems
encounterded

27. Lack of sufficient infrastructure
Non availability of User
friendly detailed Manual
without scope for interpretation
Not known the exact status of
Transfer Certificate (TC) with
regard to place of pending 27
E-Recon – teething problems
encounterded

28. Generation of
J.V’s combining
similarly placed
T.C.’s
Link
Concordance
for the O/W
from Unit level
to Central
Books at Hqrs
level.
28
E-Recon – Suggestions or Areas of
improvement

29. Section wise User
Id and passwords
should be
activated.
This enables
focused monitoring
each section of the
data transmitted by
them instead of
going to entire data
generated by all
sections. 29
E-Recon – Suggestions or Areas of
improvement

30. Suggestions and areas of improvement
30
For transactions where
Spending Units (SU) are
either not relevant or not
mandatory such as
Suspense Heads, Civil
Heads, Deposits, Loans and
Advances.
E-Recon is not allowing to
proceed without input of
Spending Unit code. This
has to be addressed.

31. Suggestions and areas of
improvement
The means of exchange of Monthly Lists
(ML) for inward and outward transactions
with NIL difference in the new system
needs to be tested.
31

32. Suggestions and areas of
improvement
If the Section to which it was
forwarded is not correct, it
can again be returned to
Books section for re-
forwarding to correct section.
All inward TCs of Intra-Railway
on Hqrs can be posted to
Books section for
redirecting/forwarding to
correct section. 32

33. Suggestions and areas of improvement
The reasons for
rejection of TC
should be mandatory
and appear to the
receiver.
Digital signature
should be
incorporated to
authenticate the
documents 33

34. Provision of Hqrs Stores unit
(008782 54) Hqrs Traffic unit
(008782 57) to be enabled to
avoid the routing of Stores
transactions and Earnings
transactions through Hqrs
Central Books
Necessary provision to be
enabled for incorporation of
Section Code in the JV
Numbering system. In absence
of such provision, all JVs are
appearing in the accounts with
the Books Section Code (01)
34

35. Suggestions and areas
of improvement
In E-Recon environment, JV to be prepared only
after acceptance of the TC by the destination
unit. However the same method cannot be
compatible for sundry earnings, as the same is
impracticable to wait till acceptance by
responding unit. Hence modification of the E-
Recon to such extent is required.
Some of the allocations in the Finance
Code volume II and suspense heads are
not being accepted in the E-Recon. The
programme to be altered accordingly to
accept the same ones.
35

36. Suggestions and areas
of improvement
The possibility of
dispensing with
transmission of
physical vouchers
to be explored.
(or) Sending one
abstract statement
in lieu of numerous
vouchers may be
tried.
Integration of E -Recon
data into FMIS under
AFRES.
36

37. People are averse to changes &
reluctant to implement even
though it is designed for good
cause.
Let us deviate ourselves from the
above adage and implement E-
Recon in letter and spirit for the
good cause of the system.
37

38. If, E-Recon is
implemented in all
respects
it can facilitate
speedy settlement
of transfer
transactions
and thereby
Approximate Account
Current can be totally
eliminated/dispensed
and figures can
be reported on
actual basis 38

39. THANK YOU
39