The Railway Board has given its approval to the Indian Railway Catering and Tourism Corporation (IRCTC) to restore the mechanism of charging service charge from passengers booking online tickets.

In a letter dated August 3, the Board has said the IRCTC, railways ticketing and tourism arm, had made a "detailed case" for the restoration of service charge on booking of e-ticket and the matter has been examined by the "competent authority".

It further said the Finance Ministry has contended that the scheme of waiving of service charges was a temporary one and that the railway ministry could begin charging e-tickets.

"In view of the advice given by the Ministry of Finance, the competent authority has decided that IRCTC may take a suitable decision on the imposition/restoration of convenience fee/service charges and the quantum to be levied," the letter said.

Officials say that after service charges were discontinued, IRCTC saw a 26 per cent drop in Internet ticketing revenue in financial year 2016-17.

IRCTC used to levy a service charge of Rs 20 on every non-AC e ticket and Rs 40 for every AC ticket.

IRCTC will now have to decide whether it will keep the earlier charges or increase it.