Railway Ticket Booking via UPI to Face New Rs 5 Levy from October 15

Indian Railways has announced a significant overhaul of its payment processing fees for Unified Payments Interface (UPI) railway ticket bookings. As of October 15, 2026, the new structure will eliminate merchant discount rates above Rs 2,000 and introduce a flat Rs 5 MDR on UPI payments for railway ticketing.

According to Saurabh Jain, Senior Divisional Commercial Manager (Kota Division), the new Rs 5 UPI charge will not be passed on to passengers. Instead, it is expected to significantly reduce the cost of booking tickets online.

The new structure offers the following fee structures:.

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The Union Finance Ministry has issued guidance to banks urging them to absorb a one-time charge associated with certain railway transactions. This flat-rate structure provides substantial savings compared to the standard 0.4 per cent merchant discount rate.

For passengers, the key takeaway is that booking a ticket worth more than Rs 2,000 through UPI from October 15 will not incur an additional MDR charge. The new fee structure aims to reduce costs for both merchants and passengers.

The introduction of the flat-rate structure is expected to benefit railway passengers who book tickets online. With the Rs 5 payment-processing charge borne by the merchant, passengers can enjoy lower prices without additional fees.

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The new MDR regime is part of Indian Railways' ongoing efforts to regulate fees and improve the overall passenger experience. As the industry continues to evolve, this development is likely to have a positive impact on railway ticketing services.

The introduction of the flat-rate structure for UPI railway ticket bookings marks a significant shift in the way Indian Railways handles payment processing fees. With the new regime in place, passengers can expect more competitive prices without additional charges.

According to industry experts, this development is a step in the right direction for improving the passenger experience and reducing costs for both merchants and passengers.