Source: As worded by Indian Railways, Government of India

If you wish to go on a pilgrimage or sightseeing trip to many destinations, Indian Railways provide the facility of booking Circular Journey Tickets. These tickets offer you unique travel flexibility, as they are issued for all journeys (other than regular routes) which begin and end at the same station. Circular Journey Tickets can be purchased for all classes of travel. A maximum of eight break of journeys will be admissible on these tickets. Endorsements for break journeys are not needed.

Standard Circular Journey Tickets are also offered by Zonal Railways. These cover popular destinations for the convenience of tourists. The detail of route, fare etc., for these tickets can be obtained from nominated stations in each Zonal Railway. You can purchase these tickets if any one of the standard routes suit your convenience. Otherwise you can inform the Zonal Railways about your itinerary and Circular Journey Tickets can be drawn up to suit your requirements.