Train travel to get slightly costlier From July 1; all details on fare hike

Indian Railways will likely roll out a modest fare hike effective 1 July 2025, marking its first across-the-board increase in five years. The move aims to boost revenue while minimising passenger impact—and will not affect suburban commuters or monthly pass holders.Referring to this, a railway official told news agency PTI, "As compared to the previous fare revisions in 2020 and 2013, the current increase will be the lowest. 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."Read more: 6 Indian states with peaceful hill stations that haven’t gone viral yet

What's changing?

According to the Railways, the fare hike will apply to non-suburban travel only. Here’s how the revised fares will be structured:Ordinary second class (above 500 km only): Increase of 0.005 paise per kilometreNon-AC Mail and Express classes: Increase of 1 paisa per kilometreAC classes (Chair Car, 3AC, 2AC, 1AC): Increase of 2 paise per kilometre

There will be no increase for:

Suburban servicesSecond class travel up to 500 kmMonthly season tickets (MST) and platform ticketsRailways emphasized that most short-distance travellers, including suburban passengers, would remain unaffected.Officials say the small increase is crucial to offset rising costs such as fuel, repairs, and improvements, without burdening daily commuters. With passenger-kilometers projected at around 7.57 billion in FY 26, the fare hike is expected to generate roughly INR 700 crore in extra revenue over the remaining three quarters. Railways have set a passenger fare target of INR 92,800 crore in FY 26, up from approximately INR 80,000 crore last year.

Analysts suggest this minimal hike will have a negligible effect on inflation.Read more: 8 countries that are all about wildlife

New Tatkal booking rules

Coinciding with the fare hike, several changes to Tatkal ticketing will also take effect:Starting 1 July: IRCTC’s website and app Tatkal bookings will require Aadhaar authentication.From 15 July: Aadhaar-based OTP verification will be mandatory for bookings.Booking window restrictions: Authorized agents will be barred from making Tatkal bookings in the first 30 minutes—10:00–10:30 AM for AC, 11:00–11:30 AM for nonAC—to curb misuse.Short-distance travelers (≤ 500 km): See zero fare hike.Long-haul travelers: Experience a slight bump (max INR 30 on a long AC journey).Daily commuters & suburban users: Remain unaffected.Tatkal users: Will need to link Aadhaar and comply with OTP/booking timing rules.With a marginal fare revision and tightened Tatkal rules, Indian Railways is attempting to strike a balance between financial sustainability and passenger convenience — without hitting the daily traveller’s pocket.