Mr Bansal, 64, stepped down after his nephew's recent arrest on charges of bribery. It is the latest in a series of government corruption scandals.
"I have always observed the highest standard of probity in public life," Mr Bansal told local media.
"I look forward to an expeditious investigation by CBI [Central Bureau of Investigation] into the matter."
The opposition's demands for Mr Bansal to resign paralysed the Indian parliament over the last week and even disrupted a budget session.
His departure is the latest in a series of corruption scandals that has hit India's Congress-led government since it came to power in 2009.
Local media reported that Mr Bansal met Prime Minister Manmohan Singh at his residence in Delhi to discuss his position.
The Congress party said earlier on Friday that "it was not going to spare anybody mired in corruption" and that they are examining the allegations against Mr Bansal "very seriously".
Party officials told the AFP news agency that his position had become untenable.
Mr Bansal was appointed as railways minister in October last year.
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