News Alert: The Ministry of Railways has officially discontinued the 20-year-old tradition of presenting Gold-Plated Silver Medals to retiring railway officials. In a circular issued by the Railway Board on January 28, 2026, all Zonal Railways and Production Units have been instructed to stop this practice with immediate effect.

The decision comes after serious concerns were raised regarding the quality of the medals. Reports indicated that medals supplied by certain vendors, which were supposed to be made of 99.9% purity silver (20 grams), were found to be largely made of copper or had very low silver content. Additionally, the rising cost of silver was cited as a reason for this austerity measure.

History and The Controversy

The practice was started in March 2006 to honor railway employees superannuating or taking voluntary retirement. Every retiring staff member was gifted a 20-gram silver medal (gold-plated) as a token of appreciation.

Why it was stopped:

• Quality Scam: Recent laboratory tests in some zones revealed that the medals contained mostly copper instead of silver, pointing to a procurement scam.
• Cost Escalation: In 2006, the cost of a medal was approx ₹1,000. In 2026, with silver prices soaring, the cost has jumped to nearly ₹10,000 per medal, creating a huge financial burden.

The Railway Board has directed that any medals currently in stock should be “accounted for and suitably used for other activities” to prevent wastage. No alternative gift (like a cash reward) has been announced yet.

Impact on Retiring Employees

Employees retiring on or after January 31, 2026, will no longer receive this memento. While this is an administrative decision, unions have expressed dissatisfaction, demanding that a transparent procurement process (via agencies like MMTC) could have solved the issue instead of scrapping the honor entirely.

Retiring staff should focus on their major settlement dues. Check the Latest Railway Services Pension Rules 2026 Gazette Notification Gsr 23e to ensure your pension papers are processed under the new rules.