New UPI payment rules for railway tickets start October 15

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A flat fee of Rs 5 replaces the current 0.4 percent charge for railway ticket transactions exceeding Rs 2,000 paid via UPI.
The Union Finance Ministry states that merchants must absorb this payment processing cost rather than passing it to passengers.
Transactions up to Rs 2,000 remain exempt from any Merchant Discount Rate fees.
The measure aims to manage transaction costs for high-volume digital ticketing while protecting consumers from additional charges.

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“A passenger purchasing a Rs 3,000 railway ticket through UPI should not see the fare increase to Rs 3,005 merely because of the new MDR. The additional Rs 5 is a cost associated with processing the payment and is not supposed to be recovered from the passenger.”
[1]The Indian Express3d agoOpen at the quote ↗
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…if you book a ticket for Rs 3,000 and pay through UPI, the ticket price should remain Rs 3,000. The Rs 5 payment-processing charge is intended to be borne on the merchant side rather than recovered from the passenger. “ A passenger purchasing a Rs 3,000 railway ticket through UPI should not see the fare increase to Rs 3,005 merely because of the new MDR. The additional Rs 5 is a cost associated with processing the payment and is not supposed to be recovered from the passenger. UPI transactions of up to Rs 2,000 will remain outside the new MDR levy, while person-to-person UPI transfers will also remain free irrespective of the amount,” the official added. Why is this important for railway…

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Named India · Indian Railways · IRCTC · Jain · Union Finance Ministry

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