Odishatv Bureau

Bhubaneswar/New Delhi: The Central government is mulling to withdraw the merchant discount rate (MDR) charges which are currently applicable on payments made via debit or credit card for train bookings by Indian Railway Catering and Tourism Corporation (IRCTC).

If the MDR charges are removed, train passengers will have to shell out less for tickets as compared to what they are presently paying, India.com reported citing a report of The Economic Times.

As per the report, Union Railway Minister Piyush Goyal had last week said that he was in talks with banks to chalk out plans to relieve passengers from the burden of MDRs.

What are MDR charges?

MDR charges are passed to consumers by IRCTC

If it removes the MDR charges, train tickets will get cheaper

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Besides, the government had waived service charges after demonetisation in November last year to encourage digital modes of booking following which, IRCTC is currently charging only MDR charges.

The facility was then extended to June 30 and then September 30. Service charges on booking train tickets online through IRCTC ranges from Rs 20 to 40 per ticket.

Moreover, in a September 29 missive to IRCTC, the ticketing agency of the railways, the Railway Board directed that the benefits be extended till March 2018.