In a bid to promote cashless and card transactions for train reservations, Indian Railways has decided to do away with Merchant Discount Rate (MDR) charges on payments done through Debit cards.
In a press release through PIB, Indian Railways has announced that no MDR charges would be levied on transactions below Rs 1 lakh. The facility will be applicable for both online bookings made through the IRCTC website and offline bookings made through reservation counters, when the payment is done through debit cards.
The ministry statement also said that all such transactions are to be considered as valid government receipts. The instructions to this effect has been issued to the banks by Department of Financial Services, Ministry of Finance on 26 February.
“The benefits on Government transactions must be passed on to the public, and they should not face MDR charges while making payments to Government,” the Railway Ministry statement read.
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