Delhi, December 21: The Indian Railways has rationalised its fare structure with effect from December 26, 2025. There will be no increase for suburban services, monthly season tickets, or ordinary class journeys up to 215 km, while marginal hikes apply beyond this range - 1 paise per km for ordinary class over 215 km, and 2 paise per km for mail/express non-AC and AC classes.

The Railways will earn about Rs 600 crore this year as a result of this rationalisation.

Now, a 500 km non-AC journey will cost passengers only Rs 10 extra. The rationalisation comes amid expanded network operations, rising manpower and pension costs, now Rs 1.15 lakh crore and Rs 60,000 crore respectively, and total operational expenditure of Rs 2.63 lakh crore in 2024-25.

To meet these costs, Railways is focusing on higher cargo loading and a small amount of passenger fare rationlistation. Due to these efforts on safety and improved operations, railways has been able to substantially improve safety. The recent successful mobilisation of more than 12,00 traisn during festival season is also an example of improved operational efficiency.