Indian Railways has decided to restore the service charges on E-tickets for which the costs of the e-tickets will get higher. The imposed service charge on e-tickets was withdrawn by the NDA government three years back with an aim to promote digital payments across the country.
The Railway Board has approved IRCTC to restore the system of imposing service charge on e-tickets from the passengers booking tickets online.
The Board made the declaration in a letter dated August 3 stating that IRCTC, railway ticketing and tourism arm had proposed for restoration of service charges on e-ticket booking and the proposal was examined by the competent authority.
The letter further stated that the Finance Ministry has confirmed that the service charge waiving scheme was temporary and the Railway Ministry can impose service charges on the tickets booked online.
"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.
The railway officials informed that after exclusion of service charge, there was 26% drop in online ticketing revenue in the financial year 2016-17.
Previously, IRCTC imposed service charge of Rs 20 on non-AC e-tickets while the service charge was Rs 40 for AC e-tickets.
IRCTC will further decide whether the imposed service charge amount will remain as earlier or the amount will increase.