Train Tickets Becomes Costly, IRCTC Will Impose Service Charge; This Is What You Need To Pay

Bad news for train passengers, because now, train tickets will become costly. 

What is the reason behind this increase? And how much extra money will passengers pay now? 

Keep reading to find out the details.

IRCTC Will Restore Service Charge

IRCTC has decided to restore service charge on train tickets, which will directly impact the overall expense of a train journey. 

IRCTC had asked the Railway Board whether they can restore this charge or not, and in reply, the Railway Board has agreed to the proposal.

What Is This New Service Charge?

No, this is not a new service charge, but an old one, which was removed in 2016, as a step towards encouraging digital transactions. 

First, the service charge for train tickets booked via counter was removed, and then, the service charge on all e-tickets booked via IRCTC app or website was also removed.

Hence, after 3 years of service charge free tickets, IRCTC will once again start charging it, and make the tickets expensive.

Besides, this can also be termed as a move against Digital India, as passengers will think twice before booking an online ticket.

Why This Service Charge Has Been Restored?

The reason is falling revenues.

Ever since service charge was removed in 2016, Railways has been incurring losses. In fact, the year after service charge was removed, that is 2017, IRCTC witnessed a sharp fall of 26% in revenues.

Between November 23, 2016 to February 28, 2017, IRCTC lost Rs 184 crore for the same reason.

As per various estimates, 33% of the revenues generated by Indian Railways came via service charges levied. In 2016, before this service charge was removed, Railways earned Rs 1500 crore, out of which, Rs 540 crore came via the service charge.

How Much Extra Money You Need To Pay Now?

When the service charge on train tickets was removed 3 years ago, service charge used to be Rs 20 for sleeper class tickets, and Rs 40 for AC class tickets.

If we assume that the same would be implemented now, then passengers will need to pay minimum Rs 20 on the train tickets, and maximum Rs 40.

However, exact details haven’t yet come out regarding the new service charges on the tickets. Some analysts are stating that for compensating the loss in revenues for last three years, service charges can be increased a bit.

But there has been no official confirmation on whether the service charge will be increased or will be kept as same.

We will keep you updated, as more details come in.