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First time in July 1942, as an experimental measure, a Service Commission with a Chairman and two members was established for recruitment of Subordinate Staff on the then North West Railway. The position was reviewed in 1945 and Services Commissions at Bombay, Calcutta, Madras and Lucknow were set up under Railway Board. These Commissions were introduced with two fold functions of recruiting class III staff and also tender advice to General Managers for dealing with appeals from subordinate staff on disciplinary matters.

In 1948, the Indian Railway Enquiry Committee reviewed working of commissions. While recommending their permanency, suggested that the work related to appeals should be withdrawn so that commission can give undivided attention to recruitments. Chairman Bombay/Service Commission was given the supervisory role to Supervise Commissions at Calcutta, Lucknow and Madras.

In 1949, due to financial constraints a ban was imposed on recruitments on Indian Railways thus numbers of commissions was reduced to one centrally located at Bombay.

In 1953-54 when Economic conditions of Indian Railway improved, four service commission were again set up at Bombay, Madras, Allahabad and Calcutta. In 1956, the Estimates committee generally approved the method of recruitment by the constitution of the Railway Service Commissions.

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