Indian Railways has tightened its ticket cancellation rules. The no-refund window has doubled and the penalties for cancellations made earlier are now stricter. The government said these changes aim to reduce the financial incentives that allow to hold and sell tickets at inflated prices at the last minute.
Last minute ticket cancellation penalties by Indian Railways
Union railway minister Ashwini Vaishnaw announced the new penalty structure on Tuesday. The most significant change is that the no-refund window now extends from four hours before departure to eight hours. Under the current rules set in 2015, an unsold ticket could be cancelled within four hours of departure, resulting in a 50% loss of the fare. That window now closes at eight hours.
Aim to stop black marketing of tickets
This change is meant to shorten the time when holding multiple tickets and then cancelling them remains profitable. Vaishnaw said, “To control misuse and ensure that genuine passengers benefit, these reforms have been brought.” He pointed out that touts often book multiple tickets and cancel unsold ones closer to departure, recovering a large part of the fare under current rules.
He added, “If a ticket is cancelled within eight hours of departure, no refund is permitted. This aims to end the incentive for last-minute black marketing, where people are ready to pay any price.”
The changes also affect the entire penalty structure. Currently, passengers pay a flat cancellation fee of ₹240 for AC First and Executive Class, ₹200 for AC 2-Tier, ₹180 for AC 3-Tier and Chair Car, ₹120 for Sleeper, and ₹60 for Second Class if they cancel more than 48 hours before departure.
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