If you thought that ticket fares were the only source of income for the Indian Railways, then you’re in for a shock! According to new data revealed by the Railway Ministry of India, cancellation of tickets is one of the biggest revenue generators for the statutory body. They, reportedly, earned a whopping ₹1,230 crores from cancelled waiting list tickets between 2021 and 2024 only.
How Much Indian Railways Earn From Cancelled Waiting List Tickets?
Responding to an RTI application filed by activist Vivek Pandey from Madhya Pradesh, the Indian Railways has revealed that cancelled tickets brought around ₹1,230 crores over three years to the national railway system. They revealed the data for cancelled waiting list tickets between 2021 and 2024. The numbers also indicated a consistent rise in revenue through the years for Indian Railways through this model.
The #IndianRailways clocked earnings of ₹1,230 crore from cancelled waiting list tickets, including tatkal (between yr 2021 to jan 2024) Reveals #RTI filed by me.
👉 Why railways charge cancellation fee even when passengers don't get a seat ? Another money making strategy ? pic.twitter.com/JmOLse8VGp
— Dr Vivek Pandey (@Vivekpandey21) March 20, 2024
Vivek Pandey posted the RTI response on his X (formerly Twitter) account. From the data, it can be seen that around 2.53 crore tickets on the waiting list were cancelled by the Indian Railways in 2021. This earned the railways ₹242.68 crore. In 2022, the cancelled ticket numbers rose to 4.6 crores, making the cancellation earnings rise to ₹439 crores. In 2023, the Railways earned ₹505 crore from cancelled waiting list tickets. For 2024, in January alone, they were able to earn ₹43 crores for 45.86 lakh cancelled tickets.
Know More About The Cancellation Charges Imposed By Indian Railways
Here’s a little rundown on the cancellation charges imposed by the Indian Railways. As per the railway rules, if a confirmed reservation gets cancelled more than 48 hours before the train departure, then flat cancellation charges are applicable. This is what these charges look like, as per the Indian Railways.
₹240/ for AC First Class/Executive Class
₹200/ for AC 2 Tier/First Class
₹180 for AC 3 Tier/AC Chair car/ AC 3 Economy
₹120/ for Sleeper Class
₹60/ for Second Class.
For those with waitlisted tickets, the cancellation charges are ₹60 per passenger.
Furthermore, if the passenger cancels their tickets within 48 hrs and up to 12 hours before the scheduled train departure time, then cancellation charges are 25% of the fare. If the ticket is cancelled less than 12 hours and up to four hours before departure, then 50% can be charged as a cancellation fee. These, however, are subject to the minimum cancellation charges. You can know more about it here on IRCTC’s website.
That’s one impressive source of income! What’s your take on the cancellation charges imposed by Indian Railways? Let us know in the comments!
Cover Image Courtesy: Canva (representative image)
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