DGCA announces 10 new cancellation rules; here's what they are

The Directorate General of Civil Aviation on Wednesday capped the ticket cancellation charges and barred airlines from charging an additional amount for refund process.

The new cancellation rules for fare refund will come into effect from August 1. 

According to a DGCA release, the new cancellation rules were introduced as the ministry received large number of passengers' complaints regarding the delay in refund of unused tickets and amount refunded by the airlines against cancelled tickets. 

The passengers also had queries related to the policy of no refund of the ticket amount but to adjust it against tickets purchased for future travel.

On its official website, DGCA released the fresh rules: Here's what they are:

• The airlines shall not levy any additional charge to process the refund.
• The process of refund will be completed within 30 days even if the tickets are booked through travel agent or online portals.

Process of refund to be completed within 30 days even when booked through travel agents or online portals #TransformingIndia @jayantsinha

— Ashok Gajapathi Raju (@Ashok_Gajapathi) July 13, 2016

• Depending on the passengers, they can choose whether to get the refund or hold amount in credit. But, the airlines should not make 'holding in credit' as a default practice.
• No charges can now be levied by airlines for corrections in errors of names of the passengers
• Cancellation charges to be clearly displayed on every ticket. The policy to be prominently displayed on the website of the airline".

Cancellation charges to be clearly displayed on every ticket. The policy to be prominently displayed on the website of the airline

— Ashok Gajapathi Raju (@Ashok_Gajapathi) July 13, 2016

• Cancellation amount not to exceed basic fare plus fuel surcharge; all statutory levies and taxes to be refunded under all circumstances.

Cancellation amount not to exceed basic fare plus fuel surcharge; all statutory levies and taxes to be refunded under all circumstances

— Ashok Gajapathi Raju (@Ashok_Gajapathi) July 13, 2016

• Airlines should refund all statutory taxes and User Development Fee (UDF)/Airport Development Fee (ADF)/Passenger Service Fee (PSF) to the passengers in case of "cancellation/ non-utilisation of tickets/no show". This provision will also be applicable for all types of fares offered including promos/special fares and where the basic fare is non-refundable.
• In case of credit card payments, refund shall be made by the airlines within seven days of the cancellation to the account of credit card holder.
• In case of cash transactions, refund shall be made immediately by the airlines office from where the ticket was purchased. 
• Foreign carriers operating to/from India shall refund the tickets in accordance with regulations of their country of origin.