Even if you add the gem to your system gem path, a rails application
doesn't use it.
We have to add it to a Gemfile. You can find the Gemfile at the root
directory of your rails application.

make sure install bundler, before you hit the bundle install.
execute this to install bundler

gem install bundler



2013/5/20 Arvind Vyas <arvindvyas07@gmail.com>
yes i have added it in my gem list inside the rvm , i am working with
rails 2.3.5 so i dont have any bundle that what i can not do bundle
install.

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postedMay 20, '13 at 7:22a
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