"General managers may decide on the issue and ensure that payment is made expeditiously," said a senior railway official, adding Northern and Eastern Railway have already paid the bonus through cash.
The development came following a representation by All India Railwaymen's Federation demanding that the payment be made in cash as there was a collective apprehension among employees that bank holidays from this weekend would deprive them of "celebrating the festival in appropriate manner".
"We met the Railway Minister and chairman of Railway Board and other board members. Since there will be bank holidays for the coming four days, railwaymen will be deprived of their bonus," said general secretary of the federation Shiv Gopal Mishra.
He claimed that payment of the bonus was to be made through banks this year.
The government had yesterday announced 78-day wages as bonus for over 12.37 lakh non-gazetted railway employees for 2011-12.
The PLB, which was approved by the Union Cabinet, is given each year before the Dusshera.
Mishra said the announcement will help an employee get as high as Rs 8975.