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Indian Railways has revised its ticket cancellation rules, introducing a new penalty structure based on how close to departure a ticket is cancelled. The updated policy increases charges for late cancellations and removes refunds in certain cases, while retaining maximum refund for passengers who cancel well in advance. The changes are aimed at reducing last-minute cancellations, improving seat utilisation and making more tickets available to waiting passengers. Under the revised system, deductions will depend on the time remaining before departure, with stricter penalties as the journey time approaches.

New Cancellation Rules

• More than 72 hours before departure: Maximum refund allowed after deduction of a flat cancellation charge per passenger.
• Between 72 hours and 24 hours: 25% of the fare will be deducted, subject to the minimum cancellation charge.
• Between 24 hours and 8 hours: 50% of the fare will be deducted, subject to the minimum cancellation charge.
• Less than 8 hours before departure: No refund will be permitted.
• At or after departure time: No refund will be given.

Railway officials said the revised slabs are meant to discourage last-minute cancellations, which often leave seats vacant despite long waiting lists.

Reason For Rule Change

According to officials, the earlier system allowed passengers to cancel tickets close to departure with relatively lower penalties, affecting seat availability for others. The new rules are intended to ensure that cancelled tickets return to the reservation pool early enough to be allotted to passengers on the waiting list.

The railways said the updated policy will improve efficiency in the booking system and reduce misuse of reservations through speculative or multiple bookings. Authorities believe stricter refund timelines will help ensure that genuine passengers get confirmed seats while also improving overall seat utilisation.

The revised cancellation rules will apply to confirmed tickets booked through the regular reservation system and form part of broader efforts to streamline ticketing and make the reservation process more efficient for passengers.