India

₹5 UPI Fee on Rail Tickets? Passengers Won't Pay Extra

Published: 15 September 2026 · 1 min read

What Happened

Under the new UPI MDR framework effective October 15, railway ticket payments above ₹2,000 will attract a flat ₹5 Merchant Discount Rate (MDR) instead of the standard 0.4% fee. However, the charge will be borne by the railway merchant, not by passengers. For example, if a train ticket costs ₹3,000 or ₹10,000, the customer will still pay exactly that amount and not an extra ₹5.

Key Takeaways

Passengers booking railway tickets through UPI will not face any additional charge. The NPCI has clarified that merchants cannot pass MDR costs to customers, and UPI payments up to ₹2,000 will continue to attract zero MDR.

Sources

Moneycontrol, NDTV