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What are Railways payment terms?

April 26, 2017payment Railways terms

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What are Railways payment terms?

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A. Railway prefers 100% payment on receipt and acceptance of material by consignee. There is no exception for orders value below Rs.5 Lakhs.Even against orders value above Rs. 5 Lakhs, the normal mode of payment is 100 % against receipt and acceptance.However, in exceptional cases where the firm is of good repute and a regular supplier to Railways, 95% payment will be allowed on proof of delivery with pre-inspection by a nominated agency.In such cases also the advance payment is against proof of delivery but not proof of despatch.