Railways Consider Fare Refund Policy Change: Potential Reduction or Waiver of Clerical Charges for Passengers.
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Indian Railways is reportedly considering a proposal to either reduce or completely waive the clerical charges that are currently deducted when refunding fares for waitlisted tickets. This move could provide significant relief to passengers who cancel waitlisted tickets that do not get confirmed.

Currently, when a passenger cancels a waitlisted ticket, a clerkage charge is deducted from the refund amount. This charge varies depending on the class of travel. As of June 2025, the clerkage charges are ₹30 for passengers in the 2S class, ₹60 for Sleeper class, and ₹60 plus GST (₹65) for all other classes. These charges are applied even when cancellations are made through the IRCTC's online portal.

The proposal to waive these charges is under internal discussion within the Railway Ministry. If approved, passengers would see a welcome reduction in cancellation charges. The rationale behind the potential waiver is rooted in rising passenger complaints regarding these charges, especially when no confirmed seat was ever allotted. Many passengers and public representatives have questioned the fairness of deducting a fee in such cases.

While the exact financial implications for the Railways are still being assessed, it's worth noting that the Railways generates substantial revenue from ticket cancellations annually. For example, between fiscal years 2020 and 2023, the Railways earned over ₹6,000 crore from ticket cancellations. Waiving clerkage fees might lead to a decrease in this revenue, but it could also improve passenger satisfaction and encourage more people to choose train travel.

IRCTC officials have clarified that these clerkage charges are policy decisions made by the Railways. The IRCTC only implements the directives of the Railway Board, and if a waiver is approved at the policy level, the necessary changes will be made to their refund processes.

It's important to note that in addition to clerkage charges, IRCTC also levies a convenience fee of ₹15-30 per passenger, depending on the travel class, which is non-refundable. So, even if the clerkage charge is waived, this convenience fee would still be deducted from the refund amount.

In recent years, Indian Railways has made several changes to its refund rules and processes. As of 2025, tickets can be canceled online up to four hours before the scheduled departure for confirmed tickets, and 30 minutes before departure for RAC/Waitlisted tickets. For trains delayed by more than 3 hours, passengers are eligible for a full refund if a Ticket Deposit Receipt (TDR) is filed within 72 hours of the train's departure. If a train is canceled, a full fare refund is automatically processed to the original mode of payment. For premium trains like the Tejas Express and Vande Bharat Express, IRCTC has launched instant refund processing, with refunds being issued within 2 hours, particularly for bookings made through IRCTC Wallet or UPI.


Writer - Vikram Sharma
With a thoughtful, analytical approach and a passion for sports, Vikram is keenly interested in the intersection of local economics and community development. He's starting to report on local businesses, startups, and economic trends, aiming to understand their impact on job creation and community well-being. Vikram, also an avid sports enthusiast, focuses on making complex economic issues accessible to a broad audience through clear, informative writing.
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