The service charge which was earlier abolished on e-tickets to promote digital transactions, will soon be recovered. Earlier, the sleeper class ticket had to pay a service charge of Rs 20 and for a seat in AC bogie, Rs 40. According to a Railway Ministry letter dated 3 August, the ministry has decided to recoup operating costs, which include marketing and sales services.
Prior to the announcement of demonetisation, till November 2016, service charges were levied on e-tickets. IRCTC used the money collected through service charge for e-ticketing system. Sources said, the Finance Ministry had advised the Railway Ministry not to charge the service charge and promised that the operating expenses would be reimbursed. However, in a letter to the Railways on 19 July this year, the Finance Ministry wrote that the system of reimbursement was temporary to meet the operational cost of the e-ticketing system.
As per the instructions given initially, the system of non-levy of service charge was to remain till June 2017, but later its deadline was extended several times and till now the old system has not been restored. During this
IRCTC's earnings also declined as the revenue from service charge was a major contributor to the total revenue of the Railways. Sources said, IRCTC was supposed to get a reimbursement of Rs 88 crore from the finance ministry's way, but it was not enough.
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