NEW DELHI: Railway tickets bought online through Indian Railway Catering and Tourism Corporation (IRCTC) are set to get costlier as the railway ministry has approved the restoration of service fee charges.
The railways had done away with the service charges three years ago in order to encourage digital payments, a pet project of Prime Minister Narendra Modi.
The railway board also has given its approval for the restoration of the service charges for passengers who book their tickets online.
“The IRCTC, railways ticketing and tourism arm, had made a detailed case for the restoration of service charge on booking of e-ticket and the matter has been examined by the competent authority,” the railways said in a letter written last week.
It said the Finance Ministry has contended that the scheme of waiving of service charges was a temporary one and that the railway ministry could begin charging e-tickets.
“In view of the advice given by the Ministry of Finance, the competent authority has decided that IRCTC may take a suitable decision on the imposition/restoration of convenience fee/service charges and the quantum to be levied,” the letter said.
According to railway officials, IRCTC saw a dip of around 26 per cent in internet ticketing revenue. Earlier IRCTC levied `20 as service charge for non-AC tickets and `40 for AC tickets.