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UPI MDR on Train Tickets: Who Pays the New Flat Fee - Passengers or IRCTC?
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News18•22-09-2026, 23:13
UPI MDR on Train Tickets: Who Pays the New Flat Fee - Passengers or IRCTC?
- •From October 15, a flat fee of ₹5 will be charged for train tickets over ₹2000 booked via UPI, not 0.40% MDR.
- •Passengers will not pay this fee; it will be borne by the merchant (Railways/IRCTC) as per government rules.
- •Railways are categorized in a special essential sector, unlike general retail where 0.4% MDR applies to transactions over ₹2000.
- •The new fee is estimated to impose an annual burden of approximately ₹18.25 crore on Indian Railways.
- •The ticket booking experience and fare for passengers will remain unchanged, with no extra cost to them.
Key Questions Answered
No, passengers will not have to pay any extra money from their pockets. According to government rules, the Merchant Discount Rate (MDR) is charged from the merchant and cannot be passed on to customers, ensuring travelers pay only the posted ticket price.
A flat Merchant Discount Rate (MDR) of Rs 5 will be charged for booking train tickets exceeding Rs 2,000 using UPI. Railways have been placed in a special category of essential sectors, exempting them from the standard 0.4 percent MDR rate applied to general retail transactions.
The entire cost of the MDR fee will be borne by the merchant, which includes the Railways, IRCTC, and the banks. Passengers will not face any additional financial burden on their ticket fares.
