Breather for IRCTC as Indian Railways decides to withdraw 50% convenience fee sharing order

IRCTC convenience fee sharing, IRCTC convenience fee News: In a huge relief for the Indian Railway Catering and Tourism Corporation (IRCTC), the government has agreed to withdraw its order asking the online ticketing arm of the Railways to share 50 per cent of the convenience fee. The decision was taken at a meeting between the top management of IRCTC and the Railway Board on Friday morning.

IRCTC shares crashed more than 27 per cent on the NSE to hit intra day low of Rs 639. However, a sign of recovery was seen after the decision to withdraw the order was announced.

Earlier on Thursday evening, the Railways had asked IRCTC to share 50 per cent of its revenue earned as convenience fee from bookings on its website with the national transporter, an arrangement that had been discontinued since the pandemic. In a regulatory filing on Thursday, IRCTC informed SEBI that the Railways has said the revenue-sharing arrangement would be enforced from November 1.

Convenience fees charged from customers generated a sizable revenue for both IRCTC and the Railways. The fee is not part of the rail fare. It is for the service of online ticket booking offered by the IRCTC.

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