which rails
find / -name rails

Is it installed in /usr/local/ ?

do you have /usr/local/bin/ in your path?

echo $PATH

Is rails installed?

gem list

Did you install the gems under a user ? maybe you should have done

sudo gem install rails

Just like on a mac if you use gem install on a none privileged user it
will install the gems in .gem in the users home directory... And most
likely you do not have that directory in your path...
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