Railway e-ticket gets costlier as service charge returns

Three years ago, railways withdrew service charge for online tickets aiming to promote cashless payment for train ticket bookings.

Published: 01st September 2019 04:14 AM  |   Last Updated: 01st September 2019 08:49 AM   |  A+A-

Express News Service

CHENNAI: Faced with funds crunch, the railways has restored the service charge for booking e-tickets. About 75 per cent of service charge which was collected until November 2016 is to be charged as convenience fee per ticket. 

The move is expected to fetch over Rs 1,000 crore revenue annually given that over 65 per cent of train tickets are now booked online. For 2016-17, Indian Railway Catering and Tourism Corporation (IRCTC), earned Rs 416 crore revenue through service charge, as per its annual report.      

Effective from September 1, convenience fee of Rs 15 will be charged for e-tickets of non-AC classes and Rs  30 for AC classes, an order issued on Saturday by IRCTC, which is the sole controller of the passenger reservation system (PRS), said. In addition, GST will be charged for convenience fee collected for both AC and non-AC classes. Maximum four passengers can be reserved per ticket. 

The order comes a few days after the railway ministry asked the railway board to let competent authority to decide on restoring the service charge, citing revenue loss. Following this, IRCTC restored the 75 per cent of service charge for e-tickets.

Three years ago, railways withdrew service charge for online tickets aiming to promote cashless payment for train ticket bookings. Then, Rs 20 was collected as service charge for non-AC classes and Rs  40 charged for AC classes. 

As of March 2019, 54.66 crore seats/berths are available for booking a day. Of this, 36.48 crore berths are in non-AC classes comprising sleeper berth and second seater, while the rest of berths are AC classes. Presently, railways collects a reservation fee of Rs 20 for non-AC classes and Rs 40 for AC classes.

54.66 crore seats a day 
As of March 2019, 54.66 crore seats or berths are available for booking in trains a day. Of this, 36.48 crore berths are in non-AC classes comprising sleeper berth and second seater, while the rest of berths are AC classes. Presently, the railways collects a reservation fee of Rs 20 for non-AC classes and Rs 40 for AC classes

Rs 15 for non-AC classes
Effective from September 1, 2019, a convenience fee of Rs 15 will be charged from passengers for e-tickets of non-AC classes and Rs 30 for AC classes, an order issued on Saturday by IRCTC, which is the sole controller of  passenger reservation system, said

Stay up to date on all the latest Nation news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp