Train Ticket UPI Payments Above Rs 2000 To Attract Rs 5 MDR; Who Will Pay This Fee? Check Here

MDR Charge On UPI: The government on Tuesday announced a 0.4 per cent charge on UPI payments above Rs 2,000 to merchants and capped the fee at Rs 300 for payments of Rs 75,000 and above. Merchant Discount Rate (MDR) framework covers almost all digital merchant payments, including booking railway tickets. Railways, telecom, insurance, fuel sectors, agriculture inputs and others will pay a flat MDR of Rs 5 per transaction above Rs 2,000.

"For specific merchant categories such as railways, telecom services, insurance, and fuel, among others, a flat MDR of Rs 5 per transaction shall be applicable for transactions above Rs 2,000. Rather than applying a 0.4% variable rate, these specific sectors pay a fixed fee of Rs 5 regardless of the transaction amount," the National Payments Corporation of India (NPCI) said in a statement.

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This flat-rate model prevents cost escalations in critical public services, utility bill collection, and thin-margin sectors like fuel retail. It ensures that essential consumer services remain low-cost and digitally efficient

Will Train Passengers Pay MDR charge?

The NPCI said the MDR charge for railways is not for the passengers. The payment authority said merchants on-boarded cannot pass on MDR charges to customers while accepting payments through UPI. The framework ensures consumers pay only the posted price.

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How Is MDR Calculated On Exact Transactions?

MDR calculations follow a clear, predictable formula based on transaction value thresholds. For a Rs 3,000 purchase, applying the 0.4% rate results in an MDR fee of Rs 12 paid by the merchant to its acquiring bank. For a ₹50,000 purchase, a 0.4% fee equals Rs 200.

MDR Charges Fixed For Payments Of Rs 75000 And Above

However, for a high-value purchase of Rs 1,00,000, the 0.4% calculation (which equals Rs 400) is superseded by the fixed maximum cap of Rs 300 (Rs 300 is the fixed maximum cap per transaction for payments of Rs 75,000 and above. Any transaction under Rs 2,000 incurs no MDR.