Effective today, July 1, 2025, Indian Railways has implemented a minor increase in passenger train fares for both AC and non-AC classes. The Ministry of Railways has stated that this adjustment is aimed at improving service sustainability and streamlining fare calculations. The revised fares are based on the updated Passenger Fare Table from the Indian Railway Conference Association (IRCA).

Key Changes and Impact:

• Scope of the Hike: The fare hike affects various classes, including non-AC (Second Class, Sleeper, and First Class) and AC categories (AC Chair Car, AC 3-Tier, AC 2-Tier, and AC First Class) in Mail/Express trains.
• Suburban Fares Unchanged: Suburban journey fares and season tickets remain unchanged for both suburban and non-suburban routes, providing relief to daily commuters.
• Non-AC Classes: For regular non-AC classes on non-suburban trains, Second Class fares will increase by half a paisa per kilometer, but with a condition: there will be no changes for journeys up to 500 kilometers. For distances between 501 and 1500 km, the fare will increase by Rs 5; for 1501-2500 km, by Rs 10; and for 2501-3000 km, by Rs 15. Sleeper and First Class fares in this category will also increase by half a paisa per kilometer. For non-AC classes in mail and express trains (sleeper class, second class (general) and first class), the fare increase is one paisa per km.
• AC Classes: Fares for AC classes will increase by 2 paisa per kilometer. This includes AC Chair Car, AC 3-Tier/3-Economy, AC 2-Tier, AC First Class, Executive Class, and Executive Anubhuti coaches. For example, a passenger traveling 1,000 km in any AC class will have to pay Rs 20 more.
• Premium Trains: The revised fare structure applies to premium and special trains such as Rajdhani, Shatabdi, Duronto, Vande Bharat, Tejas, and Humsafar.
• Existing Tickets: Tickets purchased before July 1, 2025, will remain valid at their original fares without any adjustments. However, any new tickets made by ticket checking staff in trains/at stations on or after July 1, 2025, shall be charged on the revised rate.
• Ancillary Charges: There will be no change in ancillary charges such as reservation fees, superfast surcharges, and GST.

Rationale and Expected Revenue:

The Ministry of Railways aims to enhance service sustainability and streamline fare calculations with this adjustment. The last revision in passenger fares happened in January 2020. The Ministry projects that the hike could generate additional revenue of over Rs 1,100 crore for the remaining period of the current financial year (2025-26).

Other Changes:

Indian Railways is also working to roll out a modernised Passenger Reservation System (PRS) by December 2025. The new PRS will allow more ticket bookings per minute and offer integrated facilities for Divyangjan, students, and patients.