New Delhi: Indian Railways online ticketing subsidiary Indian Railway Catering and Tourism Corporation (IRCTC) has been caught in a squabble with six banks over convenience fees on transactions.
IRCTC has blocked these banks from using its payment gateway for debit card payments, according to reports.
IRCTC had stopped such banks from operating on the website as they were unwilling to share a half of the convenience fees earned on customer transactions, the report said.
After demonetisation, Finance Minister Arun Jaitley had announced the withdrawal of service tax on railway tickets booked through IRCTC website. The announcement was made during the Budget 2017 presentation in the Parliament. IRCTC is the online ticketing platform for booking reserved seats on trains run by Indian Railways. IRCTC website presently allows card payments banks such as Indian Overseas Bank, Canara Bank, United Bank of India, Indian Bank, Central Bank of India, HDFC Bank and Axis Bank.
Earlier, a tax of Rs 20 is levied on sleeper class tickets and Rs 40 on AC class tickets while transacting via IRCTC website.