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Sunday, July 22, 2018

No merchant discount rate on buying rail tickets with debit cards

A communication in this regards has been issued to banks by the department of financial services.

By: ENS Economic Bureau | New Delhi | Published: March 2, 2018 1:43:16 am
No merchant discount rate on buying rail tickets with debit cards An Indian Railway ticketing staff in Allahabad. (Source: AP/File)

With an aim to promote digital and cashless transactions, passengers will not be charged merchant discount rate (MDR) for booking railway tickets through debit cards for transactions up to Rs 1 lakh. These transactions include those made at railway ticketing counters as well as through the website of the Indian Railway Catering and Tourism Corporation (IRCTC).

A communication in this regards has been issued to banks by the department of financial services. “The Ministry of Railways had informed department of expenditure that all proceeds from sale of tickets through IRCTC website/ counters go to Consolidated Fund of India through the ministry of Railways and such transactions should be considered as government receipts. The benefits on government transactions must be passed on to the public, and they should not face MDR charges while making payments to government,” said a statement released on Thursday.

The government paid a one-off Rs 88 crore to IRCTC, as announced in the Union Budget, to compensate for the loss of revenue for not charging service charge to customers for online booking of tickets. Separately, the transporter has initiated facility of printing ticket details in local language on unreserved tickets issued through the unreserved ticketing system.

(With inputs from FE)

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