Passengers not to be charged MDR for booking of railway tickets


The Railways will not levy the Merchant Discount Rate charges on passengers for booking railway tickets on payments made through debit cards for transaction of value up to one lakh rupees. This will be applicable to passengers who buy ticket at the counters or through IRCTC websites.

A report said that the Department of Financial Services, Ministry of Finance, issued instructions regarding this to the banks on February 2018. The move was taken to promote digital and cashless transactions.

The railways minister reportedly informed the Department of Expenditure that the money collected through ticket sale must go to the Consolidated Fund of India through the railways ministry. It also said that such transactions should be considered as Government receipts.

The ministry further said that the benefits of transactions carried out by the Government must be passed on to the masses. The public must not pay MDR charges.

In another development, the Ministry of Railways has also initiated the facility of printing tickets in local languages through Unreserved Ticketing System. The first language for this purpose will be Kannada. The proposed facility is being tested in three Karnataka stations– Mysuru, Bengaluru, and Hubballi.