RAC System Reform: Indian Railways Considers Fare Refunds
Indian Railways evaluates the RAC system following PAC recommendations to provide partial refunds for shared berths.
Indian Railways is currently evaluating potential reforms to its Reservation Against Cancellation (RAC) system. This review aims to address long-standing concerns regarding passenger comfort and the equity of ticket pricing for those traveling under shared accommodations.
The Push for Partial Fare Refunds
The evaluation follows a critical recommendation from the Public Accounts Committee (PAC) of Parliament. In its 36th Report, which was tabled on February 4, 2026, the PAC raised significant questions regarding the practice of charging passengers full ticket fares when they are only allocated shared seating rather than a full berth.
The committee has urged the Railway Ministry to establish a formal mechanism to provide partial fare refunds to travelers who are not allotted an exclusive, full sleeping berth. This move is intended to ensure that passengers are paying a price that matches the level of service and privacy they receive.
How the RAC System Currently Operates
Under the existing operating rules, passengers with RAC status are permitted to board reserved coaches, but they do not receive a private berth. Instead, they are required to share a single side-lower berth with another RAC passenger. This arrangement functions as follows:
- During the day: The berth serves as a seating area for both passengers.
- At night: The space is shared for sleeping purposes.
In instances where confirmed berths become vacant due to cancellations, these may still be allotted to RAC passengers to upgrade their travel status.
Modern Trains Moving Away from RAC
While the national carrier reviews its broader policy for traditional trains, some of the newer, modern additions to the fleet have already moved away from the RAC model. High-speed and premium services, including the Vande Bharat Sleeper and Amrit Bharat Express, operate without an RAC quota. These trains are designed to offer exclusively confirmed berths to all passengers from the outset.
Current Status for Passengers
As of November 15, 2026, no official notification or final order has been issued to abolish or modify the RAC facility. Existing booking and travel protocols remain in full effect. Travelers are advised to continue following current booking guidelines and to monitor their PNR status through official IRCTC channels.