• Ministry of Railways withdraws convenience fee on IRCTC

    National
    Ministry of Railways withdraws convenience fee on IRCTC

    The Ministry of Railways decided to withdraw the convenience fee on the Indian Railway Catering and Tourism Corporation (IRCTC). 





    This comes a day after IRCTC said it was asked to share 50% of its revenue as a convenience fee. The amount to be paid was from bookings on its website.





    "Ministry of Railways has decided to withdraw the decision on convenience fee", the Department of Investment and Public Asset Management (DIPAM) Secretary announced in a tweet.





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





    IRCTC shares bounced, though dealing in the negative region, as the stock was under 4% after the announcement. The stock had declined 25% in early deals following the news of sharing 50% income from convenience fees with the government.





    IRCTC shares turned ex-split following the board had approved a 1:5 stock split on August 12. This approval was to help improve liquidity in the capital business. It was also to widen the stockholder support and get the shares affordable to the small investors.





    The firm appreciates an influential trust. Iis the only entity approved to handle catering services on trains and major immobile blocks at railway stations. 


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