The 65-year-old politician, filed his papers before the Returning Officer, in Chandigarh.
Bansal was accompanied by his wife Madhu, son Manish, City Mayor H C Kalyan, some Congress councillors and a few supporters when he reached the office of Deputy Commissioner-cum-Returning Officer in Chandigarh.
Later, speaking to media persons, Bansal thanked Congress President Sonia Gandhi, party vice president Rahul Gandhi and members of the party's central election committee for reposing faith in him and re-nominating him from Chandigarh.
He also thanked the people of Chandigarh for their continued support and added he will not betray their faith.
Earlier, addressing media persons on Sunday, Bansal had hit out at his detractors who questioned his renomination from Chandigarh over the cash-for-post scam issue, claiming he was a victim of a conspiracy and had suffered despite there being no evidence against him.
Bansal is pitted against three prominent women candidates in Chandigarh -- former Miss India and AAP candidate Gul Panag, BJP's actress-turned-politician Kirron Kher and BSP's Jannat Jahan.
Bansal had to resign from the Cabinet in the wake of Rs 10 crore cash-for-post bribery scam allegedly involving his nephew Vijay Singla and nine others when the Congress leader was holding the Railways portfolio.
His nephew Vijay Singla and nine others, arrested in the Rs 10-crore cash-for-post railway bribery case last year, will face trial with a special court in Delhi framing charges of criminal conspiracy and corruption against them on Tuesday.
Bansal has been arrayed as a prosecution witness by the CBI in its charge sheet filed last year.
Bansal hits out at detractors, says he has nothing to hide
Rahul is busy blowing up a balloon full of holes: Shiv Sena
Cong hints at giving Chandigarh LS seat to Pawan Bansal
People have exaggerated notions about themselves: Pawan Bansal
Holi Hungama: Colour me RED!