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Brinks Report > Blog > Today > Indian Railways to Increase Passenger Fares, New Rates Likely from July 1
Today

Indian Railways to Increase Passenger Fares, New Rates Likely from July 1

Dolon Mondal
Last updated: June 24, 2025 6:36 pm
Dolon Mondal
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Starting July 1, 2025, Indian Railways will roll out a fare hike across various long-distance trains. While it’s being called “marginal,” every paisa counts—especially when you travel far.

According to a report by CNBC Awaaz, fares for non-AC Mail and Express trains will increase by 1 paise per kilometre, while AC class tickets will now cost 2 paise more per kilometre.

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That means longer journeys will see a noticeable difference on your ticket price.

What Stays the Same?

Not all passengers will feel the pinch. The fare hike won’t apply to suburban trains or monthly season tickets. Also, if you’re traveling in Ordinary Second Class for a distance under 500 km, you’re safe—for now.

But for distances beyond 500 km in the same class, expect a slight increase of 0.5 paise per kilometre.

Tatkal Bookings Get Stricter: Aadhaar Now a Must

In another big move, the Ministry of Railways has announced that Aadhaar authentication will be mandatory for booking Tatkal tickets on the IRCTC website and app. This rule also kicks in from July 1, 2025.

The aim? To stop the misuse of the Tatkal quota and ensure genuine passengers get a fair shot at last-minute tickets.

“Tickets under Tatkal scheme can be booked… only by Aadhaar authenticated users,” says the official circular dated June 10.

OTP Verification: The Next Layer

If you thought Aadhaar was enough, hold on. Starting July 15, 2025, users will also need to complete OTP verification based on their Aadhaar.

When you try to book a Tatkal ticket, an OTP will be sent to your registered mobile number. You’ll have to enter this OTP to proceed.

It’s all part of Indian Railways’ push to tighten security and cut down on bots, middlemen, and booking frauds.

Why Now?

The fare hike may not seem huge, but with over 23 million people traveling daily, even a tiny increase adds up to serious revenue.

Indian Railways hasn’t hiked fares in a while—especially for non-premium trains. This step is seen as part of a broader financial realignment ahead of modernization plans.

Yes, it’s just a few paise more—but it’s more money out of your pocket. Add stricter digital ID rules, and July is shaping up to be a month of serious change for Indian Railways travelers.

Stay updated, travel smart, and keep your Aadhaar linked and active.

Also Read Cabinet Approves ₹6,405 Cr Multitracking Projects to Boost Rail Infrastructure

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