On the IRCTC Train and Sleeping Passengers – Part 2 – Investing.com India

On the IRCTC Train and Sleeping Passengers – Part 2 – Investing.com India

The prime intention of this article is to enlighten retail individual investors and not mock them. A few days back, I expressed my views on Indian Railway Catering & Tourism Corporation

On the IRCTC Train and Sleeping Passengers

(on IRCTC (NS:INIR)) stock’s great fall. But now, it seems more skeletons are there in the cupboard. IRCTC shares started trading on an ex-split basis from yesterday, October 28. The scrip traded yesterday at Rs 983 on the BSE, up 16%. Today, we came to know that on October 27, the Ministry of Railways, Government of India communicated its decision to IRCTC regarding sharing 50% of convenience fees received by the latter with the Ministry of Railways.

Convenience fees—the golden hen

A convenience charge/fee is charged by a seller when a service seeker pays via an electronic payment card instead of a standard form (cash, cheque, or ACH transfer) of payment accepted by the business. IRCTC stopped charging convenience fees to imbibe electronic payment culture in the country after demonetization. You should note that the arrangement of sharing convenience fees with the Government was in force prior to demonetization in the 80:20 ratio. However, charging convenience fees resumed on September 1, 2019, to boost