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Passengers not to be charged for MDR booking of railway tickets


Published on: March 2, 2018 | Updated on: March 2, 2018

This will further help in promoting digital and cashless transactions. (Photo: ANI)

New Delhi: The Indian Railways announced that Merchant Discount Rate (MDR) charges will not be levied on passengers for booking railway tickets (at the railway ticketing counters as well as through IRCTC ticketing website) on payment made through debit cards for a transaction value.

However, the said exemption has been granted only on the bookings made for an amount upto Rs. one lakh.

Instructions to this effect have been issued to the banks by Department of Financial Services, Ministry of Finance on February 26, 2018. This will further help in promoting digital and cashless transactions.

Ministry of Railways had informed Department of Expenditure that all proceeds from sale of tickets through IRCTC website/counters go to Consolidated Fund of India through Ministry of Railways and such transactions should be considered as government receipts.

The benefits on government transactions must be passed on to the public, and they should not face MDR charges while making payments to government.

Also, Indian Railways has initiated the facility of printing ticket details in local language on unreserved tickets issued through Unreserved Ticketing System (UTS) with first such language being Kannada.

The facility was under testing at Mysuru, Bengaluru and Hubballi stations of South Western Railway with tickets being issued at these stations form one counter as trial since March 1.

It will be extended to all other stations of Karnataka from March 2.