Indian Railways Fare Hike From July 1, 2025: What You Need to Know

Indian Railways train on tracks with updated fares effective July 1, 2025

The Indian Railways is set to implement a new fare tariff effective July 1, 2025, bringing slight increases in long-distance train fares across mail/express and AC classes. The changes aim to boost revenue and improve infrastructure, while protecting short distance and daily commuters.

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No Fare Change for Suburban, MST, and Short-Distance Tickets

The good news for daily commuters and short-distance travelers is that fares will remain unchanged for:

Suburban travel

Monthly Season Tickets (MST)

Ordinary second-class tickets for journeys up to 500 km

This ensures that everyday passengers continue to travel at affordable rates.

Revised Fares Beyond 500 km

For long-distance travelers, the following fare hikes will come into effect from July 1, 2025:

✅ Second-Class (Ordinary) – 0.5 paise/km beyond 500 km

✅ Non-AC Mail/Express – 1 paise/km across all distances

✅ All AC Classes – 2 paise/km across all distances

What This Means for Passengers

For example, on a 1,000 km trip:

An ordinary second-class ticket will cost approximately ₹2.50 more.

A mail/express non-AC ticket will rise by ₹10.

A mail/express AC class ticket will see an increase of ₹20.

Why the Fare Hike?

This is the first fare increase since January 2020. According to railway officials, the hike is expected to generate an extra ₹13,000 crore annually. Rising fuel prices, maintenance costs, and modernization of railway infrastructure have prompted this decision.

Other Important Changes from July 1

In addition to fare revisions, Indian Railways will implement the following measures:

Aadhaar authentication mandatory for Tatkal bookings

OTP verification introduced for Tatkal bookings starting July 15, 2025

Aadhaar Authentication & OTP Verification for Tatkal Ticket Bookings

In its ongoing drive to improve transparency and minimize illegal ticketing practices, Indian Railways has mandated Aadhaar authentication and OTP verification for booking Tatkal tickets effective July 1, 2025.

Why Aadhaar Authentication?

Preventing ticket touting – Linking bookings to Aadhaar IDs restricts unauthorized bulk bookings by touts or agents.

Better passenger identification – Every booking is traceable to a verified Aadhaar profile, helping ensure genuine passengers travel.

Seamless KYC – Aadhaar-based authentication acts as a quick and centralized Know Your Customer process for IRCTC.

How OTP Verification Will Work

After entering Aadhaar ID and mobile number on IRCTC, an OTP will be sent to the mobile linked with Aadhaar.

Users must enter this OTP before proceeding with the Tatkal booking.

Only one OTP will allow a limited number of tickets per ID per month to ensure fair access.

Benefits for Passengers

Reduced congestion and fraud at booking windows

Improved ticket availability due to less hoarding

Strengthened data security with verified booking processes

Important Points to Note

Aadhaar authentication is not optional for Tatkal tickets from July 1, 2025 onward.

Make sure your mobile number is linked to Aadhaar before booking.

Only tickets booked after successful verification will be confirmed.

These new measures aim to ensure that Tatkal tickets go to genuine travelers and create a more efficient and fair booking system for all passengers.

Conclusion

While daily commuters and short-distance passengers are safeguarded from this hike, long-distance travelers will see modest fare increases across most classes. Indian Railways aims to channel this extra revenue into safety upgrades, station modernization, and better services.

Stay tuned for more updates on Indian Railways’ policies and travel advisories.