Air passengers have a reason to smile as the revised norms that caps ticket cancellation charges and bars airlines from levying additional amount for refund process are coming into force from August 1.

"Cancellation amount not to exceed basic fare plus fuel surcharge; all statutory levies and taxes to be refunded under all circumstances," Civil Aviation Minister Ashok Gajapathi Raju said, as he announced that the new cancellation norms for fare refund would become effective from August 1.

The new cancellation regulations for fare refund shall become effective from 1st August 2016#TransformingIndia @jayantsinha July 13, 2016

Issuing the revised regulations, the Directorate General of Civil Aviation (DGCA) also made it clear that airlines cannot levy additional charge to process the refund.

The move would come as a relief to air passengers against the backdrop of many carriers hiking the cancellation charges in recent times.

The regulator said carriers 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 shall also be applicable for all types of fares offered including promos/special fares and where the basic fare is non-refundable," DGCA noted.

The changes were first proposed by the Civil Aviation Ministry in June as part of putting in place passenger friendly measures.

These norms would be effective from August 1, according to the Civil Aviation Requirement (CAR) issued by DGCA chief M Sathiyavathy on Tuesday.

In a tweet, Raju said the process of refund would be completed within 30 days even when booked through travel agents or online portals.

"Cancellation charges to be clearly displayed on every ticket. The policy to be prominently displayed on the website of the airline," Raju said in another tweet.

No charges can now be levied by airlines for corrections in errors of names of the passengers, he added.

The aviation minister also said that the it will be upto the passenger to get the refund or to hold the amount in credit.

Passenger to decide whether to get refund or hold amount in credit; holding in credit not to be default practice of airlines — Ashok Gajapathi Raju (@Ashok_Gajapathi) July 13, 2016

Separately, DGCA has also revised the rules with respect to persons with disability and reduced mobility whereby airport operators should make provision for such people to embark or disembark from a flight without inconvenience.