The first online payment of freight charges in Southern Railway was made at Palakkad division’s Panambur in Mangaluru on Thursday.

Indian Potash Ltd booked a rake from Panambur to Chikmagalur by paying ₹4.05 lakh online. A statement said here on Friday that it was also the first online transaction for booking freight in Southern Railway.

Railways has now taken the initiative in ease of doing business for freight services by introducing online payment of freight charges. Freight customers can avail the facility through the Freight Business Development (FBD) portal of Freight Operations Information System (FOIS) using SBI’s payment gateway. Payment can be made through net-banking/credit card/debit card/UPI.

Earlier, the freight customers were required to sign an agreement with Railways and nominate a bank to avail e-payment facility or pay the amount through demand draft or bank cheque. The facility was introduced in the Ahmedabad Division of Western Railway as a pilot project and finally rolled out throughout Indian Railways on June 9.