With the new UPI rules all set to take effect on October 15, 2026, many travellers have become curious about ticket booking with Indian Railways. A ticket booking above ₹2,000 via UPI will attract a flat ₹5 Merchant Discount Rate, and here’s what travellers should know.
New UPI Rules For Indian Railways Ticket Booking
According to The Indian Express, train ticket booking with Indian Railways is set to see a major change from October 15, 2026. The new UPI framework will introduce a 0.4% fee on UPI payments to regular merchants above ₹2,000. But the authorities have placed train ticket bookings under a special category. For ticket payments above ₹2,000, the applicable charge will be a flat ₹5 per transaction instead of 0.4% of the ticket cost.
But here’s what a passenger needs to know. This ₹5 UPI charge will apply on the merchant side and not the passenger. This means a passenger will not pay the additional charge. Saurabh Jain, Senior Divisional Commercial Manager, Kota Division, explained the additional charge to The Indian Express. He mentioned that ₹5 is a Merchant Discount Rate (MDR), which is a payment-processing charge applicable on the merchant side. They cannot pass this charge to the passengers.
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Will Train Ticket Fares Increase?
According to The Indian Express, ticket booking has been included in a special category along with telecom, insurance, fuel and utility payments. You should also know that the new MDR does not mean that railway fares will increase for a traveller.
For example, if you book a ticket for ₹3,000 and pay through UPI, the extra ₹5 payment-processing charge will be paid by the merchant side rather than the traveller. Yes, ₹5 may seem like a small amount, but this is just for one passenger. The overall cost could become significant because of the huge number of railway tickets that are booked digitally.
Also Read: No More Overflowing Bins! Indian Railways Plans A New Waste System For Long Train Journeys
What are your thoughts on this new charge? Do let us know in the comment section below!
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FAQs
When will the new UPI rules come into effect?
The new UPI rules are set to come into effect on October 15, 2026.
What is MDR?
MDR stands for Merchant Discount Rate. It is a payment-processing charge paid by a merchant.
How to book train tickets?
You can book train tickets online through the official railway ticket booking platform, IRCTC.
