Indian Railways has initiated a more transparent and customer friendly refund system for reserved e-tickets which are cancelled or which are fully waitlisted dropped tickets. This new system has been implemented by Indian Railways PSU, Indian Railway Catering & Tourism Corporation Limited (IRCTC). It is an OTP(One time Password) based refund system wherein OTP will be received as SMS on the registered mobile number of the passenger. This system is applicable to those e-tickets which are booked through IRCTC authorised agents only.

Under this new process, whenever a ticket booked through authorised IRCTC agent is cancelled by the customer or fully waitlisted dropped ticket, OTP SMS will be sent on Customer/passenger mobile no. (which was provided by the customer/passenger to the agent at the time of booking) along with the refund amount. The customer/passenger will be required to share the OTP   with the agent who booked the ticket, for getting the refund amount.