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DGCA Orders 48-Hour Free Cancellation Window, Tightens Airline Refund Rules

Implementation from March 26 follows widespread refund delays flagged after December disruptions.

Overview

  • Airlines must offer a 48-hour look‑in window after booking that allows penalty‑free cancellation or changes, with fare differences payable, limited to direct bookings and excluded if departure is within 7 days (domestic) or 15 days (international).
  • Refund timelines are fixed: seven days back to credit cards, immediate cash refunds at airline offices, and completion within 14 working days for tickets bought via agents or portals, with airlines retaining full refund responsibility.
  • Airlines cannot charge for correcting the same passenger’s name if the error is reported within 24 hours of a booking made on the carrier’s website.
  • In medical emergencies involving hospitalisation of the passenger or a family member on the same PNR, carriers may provide a refund or a credit shell, while other medical claims require an airline or DGCA‑empanelled Aerospace Medicine specialist’s opinion.
  • New transparency rules bar default credit shells, require refunds of statutory taxes and user fees, cap cancellation charges at no more than the basic fare plus fuel surcharge, and apply to domestic operators and foreign carriers flying to or from India.