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Section 60: Power to make rules in respect of matters in this Chapter
(1) The Central Government may, by notification, make rules to carry out the purposes of this Chapter. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:— (a) the convenience and accommodation (including the reservation of seats or berths in trains) to passengers; (b) the amount of refund for the cancellation of a ticket; (c) the circumstances under which change of names of passengers, having reserved seats or berths, may be permitted; (d) the carriage of luggage and the conditions subject to which luggage may be kept in the cloak rooms at the stations; (e) diseases which are infectious or contagious; (f) the conditions subject to which a railway administration may carry passengers suffering from infectious or contagious diseases and the manner in which carriages used by such passengers may be disinfected; (g) generally, for regulating the travelling upon, and the use, working and management of the railways. (3) Any rule made under this section may provide that a contravention thereof shall be liable to penalty which shall not exceed Rs. 2,000, and in the event of non-payment of the penalty, the person so failing shall be produced before a competent court having jurisdiction which may impose a fine which may extend to Rs. 2,000. (4) Every railway administration shall keep at every station on its railway a copy of all the rules made under this section and shall also allow any person to inspect it free of charge.
Source: official text of The Railways Act, 1989 as published on India Code (PDF). All sections of the Railways Act, 1989.