Consider the following statements with respect to the Railway Convention Committee:
1. It has members from both Lok Sabha and Rajya Sabha
2. It makes recommendations which define financial relationship between the Central Government and the Railways
3. Its Chairman is nominated by the Lok Sabha speaker
Which among the above is / are correct statements?

Answer: [D] 1, 2 & 3

The Railway Convention Committee, which was first set up in 1949, is an ad-hoc parliamentary committee with 18 members (12 Lok Sabha+ 6 Rajya Sabha). The members are nominated by speaker / chairman of respective house. By convention the Minister of Finance and the Minister of Railways are members of the Committee.

The financial relationship between the Central Government and the Railways is governed by the recommendations of Railway Convention Committee. This committee’s inputs are vital for preparation of Rail Budget. The major function is to review the Rate of Dividend payable by the Railways to General Reserves.

This question is a part of GKToday's Integrated IAS General Studies Module