Indian Railways implements fare hike from July 1: Check complete breakdown by class and distance

The Indian Railways has rolled out a revised fare regime starting July 1, 2025, as part of a fare rationalisation drive to support long-term financial viability while safeguarding affordability for everyday travellers.

This marks the first hike in passenger fares since 2020, with minimal increases for long-distance and AC-class travellers while keeping short-distance and non-AC commuters largely unaffected. 

This move by the Narendra Modi government is part of a broader effort to make the national transporter financially sustainable, without heavily burdening daily passengers.

Key Highlights of Fare Revision

Ordinary Non‑AC (Second/Sleeper/First Class):

0–500 km: No fare rise
501–1,500 km: Rs 5 added
1,501–2,500 km: Rs 10 added
2,501–3,000 km: Rs 15 added 

Sleeper & First Class in similar zones see a modest 0.5 paisa/km surge:

Mail/Express Non‑AC (Second, Sleeper, First Class)

Uniform rise of 1 paisa/km across these classes 

AC Classes (Mail/Express & Premium Trains)

Includes AC Chair Car, 3AC/3E, 2AC, 1AC/Executive, Executive Anubhuti, and premium trains (Rajdhani, Shatabdi, Vande Bharat, Tejas, etc.)

2 paise/km hike across all AC tiers 

Passengers Exempted

Suburban services: No fare change

Monthly/season tickets: Remain intact

Short-distance second-class journeys (≤ 500 km): No revision 

Additional Charges & Booking Changes

- Reservation fees, superfast surcharges, GST, and fare rounding remain unaffected

- From July 1, Tatkal bookings require Aadhaar-based OTP verification, enhancing booking transparency

- Reservation charts will be prepared 8 hours before departure instead of 4 hours

Tickets Booked Earlier Remain Valid At Old Prices 

In sum, this fare rationalisation introduces marginal hikes focused on longer distances and AC travel, aiming to balance passenger affordability and the railways’ financial health while maintaining service quality.