You Cancelled Your Train Ticket, Railways Made Rs 90 Crore From It

Last Updated:February 05, 2026, 13:27 IST

If a ticket is cancelled between 48 hours and 12 hours before departure, 25% of the fare is deducted, subject to the minimum clerkage applicable to that class.

Railway officials say most cancellations occur due to changes in travel plans, waiting-list tickets failing to get confirmed, or passengers opting for alternative modes of transport. Image: Canva

Railway ticket cancellations are often seen as a minor inconvenience for passengers, but over time, they add up to significant numbers for the system. Recent data from South Western Railway shows how routine changes in travel plans have translated into substantial revenue, offering a glimpse into shifting post-pandemic travel behaviour and the growing flexibility passengers expect from train journeys.

Data from South Western Railway shows that cancellation charges, also known as clerkage fees, brought in about Rs 90.4 crore between 2021 and 2025 across its Bengaluru, Mysuru, and Mangaluru divisions.

Post-Pandemic Travel Patterns Drive Cancellations

In 2021, when train services were still restricted due to Covid-19 protocols, revenue from ticket cancellations was negligible, amounting to just a few lakh rupees. However, as services resumed and passenger confidence returned, cancellation collections rose sharply.

In 2022, South Western Railway earned around Rs 28 lakh through cancellations. The number surged in the following years, reaching about Rs 27 crore in 2023, Rs 30.3 crore in 2024, and approximately Rs 32.9 crore in 2025. Officials say the steady increase mirrors the return of regular travel and greater flexibility in how passengers plan their journeys.

Why Passengers Cancel Tickets

Railway officials say most cancellations occur due to changes in travel plans, waiting-list tickets failing to get confirmed, or passengers opting for alternative modes of transport. They clarified that the rise in cancellation revenue is not linked to ticket hoarding or misuse but reflects more dynamic travel decisions.

As train connectivity stabilised after the pandemic, more passengers booked tickets early, confident that services would operate as scheduled. At the same time, the option to cancel when plans changed meant a higher number of tickets were refunded with applicable deductions.

How Cancellation Charges Are Calculated

Under Indian Railways rules, cancellation charges vary based on the time of cancellation and the class of travel. When a ticket is cancelled more than 48 hours before departure, a fixed clerkage fee is deducted. This ranges from Rs 240 for AC First Class to Rs 60 for Second Sitting, with different slabs for other classes.

If a ticket is cancelled between 48 hours and 12 hours before departure, 25 percent of the fare is deducted, subject to the minimum clerkage applicable to that class. Closer to departure, higher deductions apply.

South Western Railway has collected more than Rs 90 crore from ticket cancellation charges over the last five years, turning last-minute changes in passenger travel plans into a steady revenue stream. The figures highlight how rail travel has rebounded after the pandemic, with more passengers booking reserved tickets and cancelling them when plans change.

Despite the sharp rise in cancellation revenue, railway officials said there has been no significant increase in passenger complaints related to cancellation charges in the South Western Railway zone. This suggests that most travellers are aware of the rules and accept the deductions as part of the booking process.

What This Means for Passengers

For frequent rail travellers in Karnataka and neighbouring regions, the data underlines the importance of planning cancellations carefully to minimise deductions. While cancellation charges help railways offset administrative and operational costs, passengers can avoid higher losses by cancelling tickets well in advance.

Officials expect cancellation revenue to remain stable as travel demand normalises, reflecting both the growing use of reserved tickets and the flexibility passengers now expect from rail travel.

News india You Cancelled Your Train Ticket, Railways Made Rs 90 Crore From It