In January 1899 the Lithograph of Sri Ramakrishna was brought to the library of one Kedar Nath Moulik (later Swami Achalananda) and on an auspicious day worshipping the same with flowers and incense Swami Niranjananandaji intiated the movement openly for spreading the messages of Vedanta in Kashi. A few weeks later, at the behest of these young men Swami Niranjananandaji offered pujas before the said Lithograph of Sri Ramakrishna on the occasion of His Holy Birthday. Some days later, Kedarnath left his house and started living in a rented accommodation, on rupees three a month, near a Shiva temple at Kshemeswar Ghat on the Ganges.

A little over a decade had passed since Swami Vivekananda visited Varanasi, the eternal abode of Shiva in January, 1902 after His momentous foreign tour. He stayed at the garden house of Kali Krishna Tagore located at Sigrol. By the time his name and fame had reached all the corners of India and a large section of the intellectuals and scholars assembled to hear this Vedantic Hindu Monk wherever he went and Kashi, one of the centres of great spiritual culture, was no exception. A large number of scholars came forward to visit, acquaint themselves with and listen to his religious discourses. Though Swamiji was not keeping well, he spared no pains to spread his idea of practical Vedanta - serving the God in man' the unique exposition which overwhelmed the audience. 

Reaching Kashi Swami Shivanandaji along with Achalananda stayed at the Sevashrama since a suitable place for a centre for preaching Vedanta was yet to be found. The presence of Swami Shivanandaji made the young devotees very happy and feel enthused. Revered Krishnalal Maharaj (Swami Dhirananda) was also resting at the Sevashrama at that time after his pilgrimage to Kedar - Badri. Efforts were being made by all to find out a suitable accommodation for starting a centre for preaching Vedanta. Within seven days a very old house with a garden, known as Khajanchi Bagicha' with lemon, guava trees and bushes around located in Luxa area could be found with the help of one Sri Kalidas Mitra, eldest son of Sri Pramadadas Mitra, a well established citizen of Varanasi and known to the monks of the Ramakrishna Math. He had met Swamiji during his stay at Varanasi and held him in high respect. He was also known to Swami Shivanandaji Maharaj. The said house along with a garden was taken over on a monthly rent of Rs. 10/- when Kedarnath (later Swami Achalananda) was staying at Kshemeshwar Ghat. 

Pramadadas Babu who was very much pleased to find for himself the things he witnessed there, volunteered to purchase and present Kedarnath some utensils for use during the worship of Lord Sri Ramakrishna. Sri Mitra also wished for a permanent Ashrama centre of Sri Ramakrishna at Kashi. Within a day or two, of securing the Khajanchi Bagicha Swami Shivananda, Swami Dhirananda and Swami Achalananda shifted to the same on 4th July, 1902 (23rd Ashara, 1309 Bengali era). Thus, at the great pilgrimage centre of Varanasi came up the first such centre for preaching religious ideals with new orientations suited to the age. Swamiji came to know of this event which, however, strangely coincided with the date of his entering into Mahasamadhi. This was the third centre of the Ramakrishna Math for preaching Vedanta that Swamiji verily wished for. Prior to this, a Sevakendra in Murshidabad was started by Swami Akhandananda and the Ramakrishna Math centre at Madras under the leadership of Swami Ramakrishnananda. By opening the Math centre at Kashi Revered Swami Shivanandaji opened up and showed the ways of application, of the work-oriented Vedantic philosophy, required for the new age, in one's own life. On the auspicious day of Rathayatra occurring a few days after the 4th July 1902 the large sized Lithograph of Sri Ramakrishna was brought to the Ashrama from Kedarnath staying at Kshemeshwar Ghat. Earlier, Swami Dhirananda expressed the views 'whatever food we take should better be offered first to Sri Sri Thakur'. 

At this, Kedarnath suggested that in that case it would be in the fitness of things if the Lithograph of Sri Ramakrishna which he had with him was placed in the Ashrama. Both the suggestions were approved by Swami Shivananda. Along with the Lithograph, a small-sized photograph of Sri Ramakrishna that Swami Kalyananandaji had given to this group of youth in 1901 was also brought to the Ashrama. Swami Shivanandaji suggested that photograph of Swamiji be placed alongside that of Sri Ramakrishna for offering puja and rituals to him also. For the purpose the photograph of Swamiji in a standing posture with a long stick in hand (of a parivrajaka-a wandering monk) which Swami Kalyanananda had with him was also brought to the Ashrama. 

Thus, on the said auspicious day of Rathayatra the images of Sri Ramakrishna and Swamiji were placed on the altar and were duly worshipped with Homa, Bhogaraga (food offerings) in a modest scale to mark the establishment of this new Ashrama centre. Generally, the sitting image of Swamiji in a state of meditation is worshipped in all the centres of the Ramakrishna Math and Ramakrishna Mission as well as in households of devotees except at this centre where the image of Swamiji in a standing posture is being worshipped. Even after the lapse of one hundred years both the photographic images can be seen in the Ashrama. The Lithograph of Sri Ramakrishna is now adorning the hall at the middle of the Ashrama premises and the photographic image of Swamiji is still being daily worshipped placing the same on a cut out space on the side wall of the Sanctum Sanctorum of the attractive Ramakrishna Temple made of Chunar stones and consecrated in 1936. Thus, the above Ashrama centre was established. After prolonged discussion, Swami Shivanandaji Maharaj decided that it should be named Sri Ramakrishna Advaita Ashrama!. He asserted that one has to move from Dualism to Monism and one can not move on to Monism straightway. He also said that this was in consonance with that of Sri Sri Thakur (Sri Ramakrishna). That is why the name 'Sri Ramakrishna Advaita Ashrama' was adopted.