The Indian Railway Catering and Tourism Corporation, or IRCTC, has justified the convenience fee it levies on online ticket bookings, stating the charge is necessary to cover the substantial expenditure required to maintain its digital infrastructure. The clarification comes in response to a query raised in the Rajya Sabha by MP Sanjay Singh regarding the additional charges placed on digital payments, including UPI, for both AC and non-AC train tickets.
Singh, in his query, had asked the rationale behind these fees, which stand at Rs 10 for non-AC tickets and Rs 20 for AC tickets, especially as the government now wants to push for a cashless economy. Singh’s argument was that these charges could be a deterrent, contradicting the push for a completely cashless society.
Railway Minister explains the logic
In a written response on July 8, Railway Minister Ashwini Vaishnaw provided a detailed explanation for the charges. He stated that the online ticketing system, which is a significant passenger-friendly initiative, incurs substantial expenditure for IRCTC. This includes the continuous costs of maintaining, upgrading, and expanding its digital infrastructure, which is essential to offer a seamless and secure booking experience for millions of users.
The minister’s response clarified that this system saves passengers from the inconvenience and additional costs associated with physically traveling to reservation counters. He highlighted the service’s success, noting that 87 per cent of all reserved railway tickets are now booked online, showcasing its widespread adoption and convenience. The fee, according to the minister, is merely a ‘very nominal’ way to offset these operational expenses.
Will charges on online payments affect ticket bookings?
The debate, which was brought to light by MP Sanjay Singh’s query, reflects a larger public concern on digital payments. While the government has actively promoted UPI and other digital platforms to reduce cash dependency, the practice of levying convenience fees by state-run enterprises like IRCTC has drawn criticism.
However, the Railway Minister’s defense positions the fee not as a tax on digital payments but as a necessary charge for a value-added service. The argument is that the online booking platform is not a basic payment system but a costly-to-run service that provides a premium level of convenience. This suggests that the government views the fees as a fair trade-off for the technological infrastructure that enables over 80 per cent of railway passengers to book their tickets with ease.
