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UPI Train Tickets: Will You Pay More Now? Good News for Passengers!
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News18•28-09-2026, 19:37
UPI Train Tickets: Will You Pay More Now? Good News for Passengers!
- •Major change in digital transactions from October 15; 0.40% MDR for UPI transactions above Rs. 2,000.
- •Railways categorized under essential services; a flat fee of Rs. 5 for train tickets above Rs. 2,000 via UPI.
- •Passengers will not pay extra; the MDR charge will be collected from the merchant (IRCTC/Railways).
- •Booking a Rs. 3,000 ticket via IRCTC app/website will debit only Rs. 3,000 from your account.
- •Indian Railways is estimated to bear an annual burden of approximately Rs. 18.25 crore due to these charges.
Key Questions Answered
Starting October 15, UPI transactions for train tickets exceeding Rs. 2,000 will incur a flat Merchant Discount Rate (MDR) fee of Rs. 5 because railways have been placed in a special essential services category instead of the standard 0.40% rate.
No, passengers will not have to pay anything extra from their own pockets. Government rules dictate that the MDR is always collected from the merchant, meaning the entire cost will be borne by the railways, IRCTC, and banks, while customers only pay the exact ticket price.
Indian Railways estimates that if about 1 lakh tickets worth more than Rs. 2,000 are booked daily via UPI, the daily MDR collection of Rs. 5 lakh will reach approximately Rs. 18.25 crore annually.
