New Delhi: After five years, train fares are set to see an increase, albeit marginally, with Indian Railways likely to notify the hike from July 1, a move aimed at boosting its revenue without imposing a significant burden on passengers.
While AC travel may cost 2 paise extra per km, a non-AC journey in mail and express trains would cost an additional 1 paisa per km. There will be no increase in fare for suburban tickets, monthly passes and second-class travel for 500 km.
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26 June 2025
“As compared to the previous fare revisions in 2020 and 2013, the current increase will be the lowest,” a railway official said. “As far as suburban train and monthly season tickets are concerned, it has been decided not to increase any fare in the interest of daily commuters,” the official added.
The official said that second-class fare up to 500 km of travel will remain unchanged. For distances over 500 km, fares may be hiked by half paisa per km.
According to officials, train fare was last hiked on January 1, 2020. Then, second-class fare for ordinary and Mail/Express trains was increased by 1 paisa/km and 2 paise/km, respectively. Fares in sleeper classes and all AC classes went up by 2 paise/km and 4 paise/km, respectively.
“Before 2020, it was in 2013 when the train fares for all classes were revised significantly. For instance, the second-class fare for ordinary trains was raised by 2 paise and the second-class fare for Express/Mail trains increased by 4 paise. The sleeper class fare went up by 6 paise,” the official said. “In 2013, all AC class fares, except AC II, were increased by 10 paise/km, and AC II fare went up by 6 paise/km.”
July will see another major change in Railways, as the Ministry has decided to incorporate Aadhaar-based OTP authentication into the ticket reservation system to cut off middlemen.
From July 1, Tatkal tickets through IRCTC’s official website and mobile app will be available only to users authenticated with Aadhaar. Aadhaar-based OTP authentication will become mandatory for online Tatkal bookings from July 15.
Tatkal tickets booked at computerised Passenger Reservation System counters and through authorised agents will also require OTP authentication sent to the mobile number provided by the user at the time of booking.
As per the Budget estimate, the national transporter is likely to earn Rs 92,800 crore from passenger movement in 2025-26.In 2020, the railways had hiked AC fare by 4 paise per km and non-AC fare by 2 paise for mail and express trains. “Proposed fair revision would be 50% less than last time. The new fare structure won’t significantly impact passengers’ budgets. Suburban train fares and Monthly Season Ticket prices will remain unchanged, and hence, passengers of that segment travelling daily for work won’t be impacted at all,” said a source.
According to the plan, for journeys exceeding 500 km in general second class, the fare would increase by only half a paisa per km. This means, a 700 km journey would see an increase of only Re 1.
