India's civil aviation authority has released a sweeping new set of rules designed to crack down on airline refund abuses that have frustrated millions of travellers. The Director General of Civil Aviation (DGCA) published a draft framework titled Civil Aviation Requirements (CAR) on October 31, 2025, and is now seeking feedback from the public until November 30, 2025, before finalising these crucial consumer protections.
However, the document is dated May 22, 2008, suggesting that the amendment has been in the works for quite a while now.
The move comes after mounting complaints from passengers about delayed refunds, hidden charges, and airlines refusing to return money for cancelled tickets.
For years, travellers have faced a system where airlines dragged out refund processes, kept large portions of cancellation fees, or pushed passengers to accept credit vouchers valid only for future flights that often expired without use.
So, here are the key points in the latest amendment of regulations:
Clear timelines for refunds
If the new rules come to pass, the refund process will have strict deadlines. If you paid with a credit card, you'll receive your refund within seven days.
For cash purchases at airline counters, refunds must happen immediately. If you bought your ticket through a travel agent or online portal, the airline has 21 working days to complete the refund.
What fees must be returned
One of the most significant changes is that airlines must now refund all taxes and airport fees, even on discounted or promotional tickets that technically have "non-refundable" fares attached.
This means passengers won't lose out on government taxes and service charges when cancelling flights.
"The airlines shall 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 shall also be applicable for all types of fares offered including promos/special fares and where the basic fare is nonrefundable," the draft rules read.
Your 48-hour "no questions asked" window
The new regulations also seek to introduce a "look-in option" that gives passengers 48 hours after booking to cancel or change their flight without any extra charges.
This applies to domestic flights booked 5 or more days in advance and international flights booked 15 or more days ahead.
"The airline shall provide 'Look-in option' for a period of 48 hours after booking ticket. During this period, passenger can cancel or amend the ticket without any additional charges, except for the normal prevailing fare for the revised flight for which the ticket is sought to be amended. This facility shall not be available for a flight whose departure is less than 5 days for domestic flight and 15 days for international flight from booking date when ticket is booked directly through airline website. Beyond 48 hours of initial booking time, this option is not available and the passenger has to pay the relevant cancellation fees for amendment."
Cancellation charges with real limits
Airlines can no longer charge whatever they want for cancellations. The maximum fee they can collect is limited to the basic ticket fare plus fuel surcharge.
Travel agents cannot add surprise charges beyond what was disclosed at booking.
Refund credits, your choice
Most importantly, if an airline suggests offering your refund as a credit voucher for future flights instead of cash, this must now be your decision, not theirs. Airlines cannot make this their default practice, noted DGCA.
"The option of holding the refund amount in credit shell by the airlines shall be the prerogative of the passenger and not a default practice of the airline," according to the draft document.
Transparency is a must
Airlines will soon have to clearly display cancellation fees and refund amounts at the time of booking, both on tickets and on their websites. No hidden information allowed.
Moreover, passengers cancelling flights due to genuine medical reasons could receive either a full refund or a credit shell, giving them the flexibility to choose what works best for their situation.
The draft changes were published on the DGCA website, with comments invited, latest by November 30, 2025. They have to be directed to:
Brijesh Kumar Singh
Assistant Director
Office of the Director General of Civil Aviation
Opp. Safdarjung Airport, Aurobindo Marg,
New Delhi - 110 003
via email at bksingh.dgca@gov.in