UPI Charges: How much will you have to pay for railway ticket bookings exceeding ₹2,000?
UPI Charges on Rail Tickets: Here is an important update for rail passengers. A new rule regarding MDR (Merchant Discount Rate) charges is set to come into effect for online train ticket bookings exceeding ₹2,000 when paid via UPI. Read on for the full details.
If you travel by train, this information is crucial for you. Nowadays, most people prefer booking train tickets online; however, a rule regarding additional charges is now set to apply if you book a train ticket worth more than ₹2,000 and pay using UPI. This means you will have to pay an extra charge in addition to the ticket cost.
Preparations to Implement New Rules
The National Payments Corporation of India (NPCI) has introduced a new rule regarding the MDR (Merchant Discount Rate) applicable to UPI transactions. Under this rule, MDR will apply to specific P2M (Person-to-Merchant) UPI payments—transactions made from a customer to a shopkeeper or business. Crucially, railway ticket bookings fall within the scope of this rule. So, let’s find out exactly how much the charge will be for booking a ticket worth more than ₹2,000.
How Much Will the Charge Be for Ticket Booking?
Under the new rule, a charge of ₹5 has been fixed for ticket bookings exceeding ₹2,000. This means if you pay for a train ticket costing more than ₹2,000 via UPI, an extra charge of ₹5 will apply. The biggest question is: will passengers have to pay this charge out of their own pockets?
Will Passengers Have to Pay the Charge?
The NPCI has clarified that the ₹5 charge for booking rail tickets will not be collected from passengers. If you book a ticket online worth more than ₹2,000 and pay via UPI, the additional charge incurred will not come out of your pocket. You will only have to pay the cost of the ticket itself. This means that if you are booking a ticket worth ₹2,500, you will only have to pay ₹2,500.
Who will bear the charge?
The biggest question now is: if passengers do not pay the additional charge, who will? This ₹5 fee will be paid by Indian Railways or IRCTC instead of the passengers. If a passenger pays for a ticket costing more than ₹2,000 via UPI, the burden of the ₹5 MDR charge will not be passed on to them.
When will the rule come into effect?
The National Payments Corporation of India (NPCI) has announced that the new framework will be implemented starting October 15.
What is MDR?
Many people may not be aware of what MDR actually is. MDR stands for Merchant Discount Rate; it is a type of fee. When a business owner or shopkeeper accepts payments via UPI or other digital methods, they incur a charge for processing the payment, and this charge is known as MDR. For instance, suppose you purchase goods worth ₹3,000 from a shop and pay via UPI; the payment reaches the shopkeeper through the banking and payment systems, and the fee charged to process this transaction is called MDR.
