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Indian Railways Faces Criticism Over RAC Ticket Fares

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  Published in Travel and Leisure on Sunday, February 8th 2026 at 4:46 GMT by moneycontrol.com
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New Delhi, February 8th, 2026 - A parliamentary standing committee has issued a critical report questioning the practice of Indian Railways charging full fares to passengers holding Reservation Against Cancellation (RAC) tickets. The committee argues the policy is unjustifiable, particularly in light of recent and repeated fare increases across the network. The report, submitted to the Ministry of Railways earlier this week, demands a comprehensive review of the current fare structure for RAC ticket holders.

For decades, RAC tickets have served as a crucial mechanism for passengers to secure travel even when confirmed berths are unavailable. Passengers with RAC tickets are guaranteed to travel, though they may not be allocated a confirmed berth immediately and could be required to share seating or travel in unreserved compartments until a berth becomes available due to cancellations. However, the committee's report highlights a growing disparity: these passengers are often paying the same price as those with confirmed reservations, despite a demonstrably reduced level of service.

The committee's findings stem from a series of hearings and data analysis conducted over the past six months. Members reviewed passenger complaints, fare charts, and internal railway documentation. A key point of contention is the cumulative effect of multiple fare hikes implemented over the past few years. While the Railways defends these increases as necessary to modernize infrastructure and address operational deficits, the panel argues that applying full fares to RAC passengers effectively penalizes those who have fewer travel options.

"It's a matter of fairness," stated MP Priya Sharma, a leading member of the committee. "Passengers are willing to travel on a standby basis, accepting the uncertainty of not having a guaranteed berth. To then charge them the same fare as a passenger with a confirmed seat feels exploitative, especially when considering the financial pressures many Indians are already facing."

The Railways, in its defense, maintains that RAC tickets are issued only when genuine demand exists. According to senior railway officials, the fares are calibrated to cover operational costs, including the provision of basic amenities and the logistical challenges of accommodating additional passengers. "We are running at near full capacity on many routes," explained Railway Board member, Ashok Verma. "Offering RAC tickets allows us to maximize revenue and cater to the overwhelming travel demand. The fare reflects the value of securing a seat, even if it's not immediately confirmed." Verma also pointed to the significant investment being made in upgrading infrastructure, signaling, and rolling stock - all of which contribute to rising costs.

However, critics argue that this explanation doesn't fully address the fundamental issue of service quality. Passengers with RAC tickets often face considerable hardship, particularly on long-distance journeys. Reports of overcrowded carriages, inadequate sanitation, and limited access to food and water are common. The committee's report specifically calls for improved monitoring of conditions for RAC passengers and the implementation of measures to ensure their basic needs are met.

The controversy surrounding RAC fares is unfolding against a backdrop of wider criticism of Indian Railways. Passenger advocacy groups have long complained about rising ticket prices, declining cleanliness standards, and delays in train schedules. The government is under mounting pressure to address these concerns and improve the overall efficiency and passenger experience of the state-owned transporter. Several recent incidents of train accidents, attributed to aging infrastructure, have further fueled public discontent.

Furthermore, the committee's report draws parallels with international railway systems, noting that many comparable networks offer discounted fares or enhanced compensation to passengers traveling on standby or with limited reservations. The panel suggests that Indian Railways explore similar models to ensure a fairer and more equitable travel experience for all passengers.

The Ministry of Railways is expected to respond to the parliamentary panel's report within the next month. Sources indicate that a preliminary internal review of the RAC fare policy is already underway. The outcome of this review could have significant implications for millions of passengers across India, potentially leading to a revision of fare structures and a renewed focus on improving service quality for all travelers.