Subsequently promoted to war-substantive subedar, Rai was awarded the Military Cross (MC) on 8 October 1944. He received the decoration for, among other actions, his command of his company during the Battle of Imphal in the area of Bishnupur, Manipur. Taking command after his company commander had been killed and while he and his unit were pinned down by Japanese machine-gun fire from several bunkers, Rai conducted a reconnaissance mission and located all of the nearby enemy bunkers. After throwing five grenades at the nearest bunkers, he devised a plan of attack and led his company in an attack which eliminated the first line of bunkers. In the full citation, which was not published, Rai was commended for: