Indian Railways is preparing to offer major relief on cancelled tickets. Currently, if a booked ticket remains on the waiting list and gets cancelled, passengers do not receive a full refund. This is because the Railways deducts a clerkage fee, which ranges from ₹30 to ₹60 depending on the class of travel. This causes a double setback for passengers — not only does their ticket remain unconfirmed, but they also face deductions in the refund amount. To address this issue, Indian Railways is now considering removing this fee altogether. If implemented, passengers with unconfirmed waiting list tickets would receive a full refund.
There has been ongoing debate over the cancellation charges on train tickets. Based on the class of travel, the charges range between ₹30 and ₹60. Many passengers have raised concerns about why they are charged a fee even when their tickets are cancelled automatically due to remaining on the waiting list — and not by their own choice. A proposal has now been placed before the Railway Ministry to eliminate these charges, and officials are reportedly considering it.
At present, a cancellation charge of ₹30 is levied for 2S class tickets, ₹60 for sleeper class, and ₹60 plus GST for third AC and higher classes. These charges apply even if the ticket is booked through the official IRCTC portal. When a waiting list ticket is not confirmed, the cancellation is automated, and the refund is issued after deducting clerkage and other minor fees.
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In the financial year 2025, Indian Railways recorded a revenue of ₹2.7 lakh crore, driven by both freight and passenger services. The Railways also saw an increase in the number of passengers, which it considers a sign of growing public trust. Freight services contributed ₹1.75 lakh crore to the total revenue, and the number of passengers reached 735 crore.
Railways Earned ₹6,000 Crore from Cancellation Charges Alone
It’s important to note that cancellation charges have been a significant source of revenue for the Railways. According to information revealed in response to an RTI query, Indian Railways earned ₹6,000 crore from ticket cancellation charges alone between 2020 and 2023. This revelation sparked questions about the fairness of deducting charges from passengers whose tickets were automatically cancelled due to waitlist status.