The Ministry of Railways has withdrawn the decision of 50% sharing of convenience fee on IRCTC, said DIPAM Secretary.
He tweeted about the same today morning :
Ministry of Railways has decided to withdraw the decision on IRCTC convenience fee pic.twitter.com/HXIRLxXTlL
— Secretary, DIPAM (@SecyDIPAM) October 29, 2021Advertisement
This decision came after IRCTC stock suffered after the ministry asked them to share 50 per cent of their revenue as convenience fees from online bookings.
The investors were worried about the decision and criticism came in from all sides. Twitter was flooded with memes for this decision.
After this decision, IRCTC stocks took a big downfall as they tumbled to 28.8 per cent of Rs 650.1 on BSE on Friday morning.
However, after the decision was withdrawn, the stocks saw a sharp recovery taking it Rs 901.6 on BSE. It was however 1.33 lower than the earlier stocks.
The convenience fee that is charged from customers includes revenue for both Railways and IRCTC. It is not a part of the rail fare but only the online ticketing service that is offered by IRCTC.
IRCTC is the official firm that looks after the food of the Indian Railways. It also looks after the ticketing services of Indian Railways. It has a monopoly when it comes to the train services of India.
The decision was turned back in just 19 hours after the stocks fell miserably.
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