In a significant move to promote digital transactions, Indian Railways has announced a direct fare discount for passengers booking unreserved tickets through its unified RailOne application. The scheme, which offers a 3% discount on fares, is set to begin on January 14, 2026, and will be available for a period of six months, until July 14, 2026.
What Does The New Discount Scheme Offer?
The core of the new initiative is a shift from a restricted cashback model to a broader discount system. Previously, passengers could only avail a 3% cashback if they used the dedicated R-wallet within the RailOne app for purchasing unreserved tickets. Under the new scheme, this benefit is transformed into an immediate 3% fare reduction applicable to a wide range of digital payment methods.
Passengers can now use Unified Payments Interface (UPI), debit cards, credit cards, and net banking on the RailOne app to instantly save on their ticket cost. Importantly, the railways has clarified that the existing 3% cashback for R-wallet payments will continue to run concurrently with the new discount, effectively giving users multiple lucrative digital options.
Push for Digital Adoption and RailOne Integration
This discount is a strategic effort by the national transporter to accelerate the adoption of cashless payments and its flagship RailOne app. An official communication, in a letter dated January 8, 2026, addressed to the Southern Central Railway, stated the proposal aims to 'proliferate digital booking'. The offer is exclusively available on the RailOne platform and is not extended to any other online channel for unreserved tickets.
RailOne is designed as a one-stop solution, integrating services that were earlier scattered across different apps like UTSonMobile. Beyond ticket booking, it provides features such as live train tracking, PNR status checks, food ordering, and grievance redressal. The ministry believes a straightforward fare cut will be more attractive and convenient than a post-transaction cashback, encouraging daily commuters and short-distance travelers who frequently use unreserved tickets to switch to digital methods.
Scheme Review and Future Implications
The 3% discount scheme is currently a time-bound pilot. The Centre for Railway Information Systems (CRIS) is expected to review its performance and submit feedback by May 2026. Based on this assessment, the railway ministry will decide on the future course of action regarding the promotion.
This move is part of a larger digital transformation agenda for Indian Railways. By incentivizing digital payments through direct savings, the railways hopes to reduce cash dependency at counters, streamline operations, and enhance the overall passenger experience through a single, comprehensive application. For millions of passengers, this discount could translate into substantial savings over time, making daily travel more economical.
