The Railway Ministry said that it has decided to withdraw its decision on the IRCTC convenience fee.
On Friday The Ministry of Railways said that we have decided to withdraw its decision on the Indian Railways Catering and Tourism Corporation (IRCTC) convenience fee. The announcement was made a day after the Railways asked its online ticketing arm IRCTC to share 50 per cent of its revenue earned as convenience fee from bookings on its website with the national transporter. DIPAM Secretary announced in a tweet that Railway Ministry has decided to withdraw the decision on IRCTC convenience fee. On Thursday, the Railways asked IRCTC to share 50 per cent of its revenue earned as a convenience fee from bookings on its website with the national transporter, an arrangement that had been discontinued since the pandemic. In a regulatory filing, IRCTC informed SEBI that the revenue-sharing arrangement would be enforced from November 1.
Before Pandemic Convenience fees charged from customers generated a sizable revenue for both IRCTC and the Railways. The entire fee is basically not a part of the rail fare. It is only for the service of online ticket booking offered by the IRCTC.
The IRCTC again started charging the fee again during the coronavirus crisis mainly to boost its revenues during the down time. In 2019-20, IRCTC earned Rs 352 crore from convenience fees and in 2020-21, it earned Rs 299 crore. Till August this year, the IRCTC had earned Rs 224 crore.
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