In a move set to bring major relief to train passengers, Indian Railways is preparing to eliminate the clerkage fee levied on cancellation of online waiting tickets. This initiative is driven by widespread complaints and mounting public pressure, particularly through social media platforms, where users have consistently expressed dissatisfaction with the deduction practices of the IRCTC portal.
What Is Clerkage Fee and Why It’s Being Scrapped
The clerkage fee, a fixed deduction imposed on the cancellation of waitlisted or RAC (Reservation Against Cancellation) train tickets, typically ranges between ₹30 and ₹60 per passenger. For sleeper class tickets, the charge is ₹60, while for AC classes (3AC, 2AC, and 1AC), it often exceeds ₹60. This amount is deducted over and above the regular cancellation charges, leaving passengers with a significantly reduced refund amount.
This has been a long-standing issue for passengers who frequently book and cancel tickets due to last-minute changes, unconfirmed waitlists, or scheduling conflicts. Many passengers have voiced concerns about losing money even when tickets remain unconfirmed and are canceled in time.
Passenger Complaints Prompt Railway Review
In 2023, a surge in passenger grievances about the non-refundable clerkage fee caught the attention of top officials in the Ministry of Railways. Numerous travelers took to platforms like X (formerly Twitter) to tag IRCTC and Ministry officials, urging for a transparent and fair refund process. The matter was escalated, and by mid-2024, discussions began around restructuring the ticket refund policy.
According to high-ranking officials, the proposal to abolish clerkage charges is now under serious consideration within the ministry. Though an official notification is awaited, early discussions point toward a full refund policy, with only a minimal processing fee likely to remain.
Refund Structure Likely to See Overhaul
At present, the refund for a canceled waitlisted e-ticket includes a deduction of clerkage charges, which significantly lowers the returned amount. Under the new policy, Indian Railways is aiming to do away with these extra deductions, enabling passengers to receive nearly the entire ticket amount back in case of cancellation.
IRCTC officials have hinted that a nominal system charge or processing fee might still apply, but it will be much lower than the current clerkage fee structure. This change will particularly benefit those who often book backup tickets or need to cancel due to unforeseen travel changes.
Why This Move Matters for Millions
The decision to remove the clerkage fee aligns with Indian Railways’ broader vision to become more passenger-centric and technologically advanced. With millions of daily users relying on online bookings, making refunds faster, fairer, and simpler could drastically improve user trust and satisfaction.
This initiative will especially assist:
Students traveling for exams and may need flexible plans.
Working professionals dealing with dynamic schedules.
Senior citizens and families who book multiple tickets in advance.
Daily or weekly travelers who book multiple options for convenience.
Indian Railways’ Revenue from Ticket Cancellation
According to a Right to Information (RTI) response received last year, Indian Railways generated an astonishing ₹6,000 crore from ticket cancellations alone. This includes both confirmed and waitlisted ticket deductions. In contrast, its overall earnings for FY 2023 reached ₹2.7 lakh crore, with significant contributions from both passenger and freight services.
While ₹6,000 crore represents a small portion of total revenue, the figure reveals the sheer volume of ticket cancellations and the extent of money deducted from customers.
Proposed Policy’s Expected Benefits
If approved and implemented, the abolition of the clerkage fee would introduce a more equitable system. Here’s what passengers can expect:
Increased refunds for canceled waiting list tickets.
Transparent deductions, with clear breakdowns of any minimal charges.
Streamlined refund process via IRCTC’s online portal and mobile app.
Boosted public image for Indian Railways as a responsive organization.
How the Refund System Currently Works
For clarity, here’s how the current refund mechanism for waitlisted e-tickets functions:
When a waitlisted ticket is canceled before chart preparation, a clerkage fee is deducted, and the balance is refunded.
If the passenger does not cancel and the ticket remains on the waitlist, it gets automatically canceled, and the refund is issued after deduction.
For counter tickets, passengers must file a Ticket Deposit Receipt (TDR) to claim refunds in certain cases, with deductions applied similarly.
Digital Ticketing: Towards a Better Passenger Experience
The IRCTC, as the official ticketing arm of Indian Railways, processes over 8 lakh bookings daily. With a growing number of users shifting to online platforms, the need for an intuitive, transparent, and customer-friendly refund policy is greater than ever.
Eliminating the clerkage fee is one step toward aligning Indian Railways with global standards in public transport services, where user experience is prioritized alongside efficiency.
When Will the Change Take Effect?
As of now, no official implementation date has been declared. The proposal is under active review by the Ministry of Railways. However, given the scale of public support and political backing, industry experts believe that the new policy could be rolled out in the coming financial year, possibly starting with a pilot program before pan-India execution.
Passengers are advised to keep an eye on updates via:
IRCTC’s official website
Railways’ Press Information Bureau releases
Verified social media handles
The Future of Train Travel in India
With increased investment in railway infrastructure, smart stations, and digitization, Indian Railways is striving to become more efficient, user-friendly, and globally competitive. Removing unjustified deductions like clerkage fees sends a strong signal of reform and a renewed focus on passenger welfare.
If this refund reform is successfully introduced, it could pave the way for:
More real-time cancellation features
Partial cancellation refund optimization
AI-assisted booking suggestions to reduce cancellations
Key Takeaways for Train Travelers
The clerkage fee of ₹30–₹60 currently deducted during ticket cancellations may soon be abolished.
Refunds for canceled waitlisted tickets will likely become more transparent and generous.
The change is a result of sustained passenger feedback and public engagement.
Indian Railways stands to gain improved credibility and user satisfaction through this reform.
As we await the official confirmation, passengers can stay informed and continue booking with greater confidence. The potential removal of clerkage fees promises a fairer, more modern railway experience, reaffirming the commitment of Indian Railways to serve every citizen with integrity and efficiency.
