Merchant payments · NPCI framework from 15 Oct 2026

UPI MDR Calculator

From 15 October 2026, eligible UPI merchant (P2M) payments above ₹2,000 attract MDR. Choose your merchant category and enter a payment amount to see the MDR, 18% GST on it and what you receive.

Payment details

Merchant / payment category

Payment amount

₹

Rate rules (editable)

MDR applies above

₹

MDR rate

Flat MDR / txn

₹

Max MDR / txn

₹

Cap of 0 means no cap. Changing a value switches the category to "Custom".

Amount you receive per payment–

MDR–

GST on MDR (18%)–

Total deduction–

Effective cost–

Where each payment goes

You receiveMDRGST on MDR

MDR at different payment sizes

Same category and settings. Note the jump just above ₹2,000: MDR is charged on the whole amount, not only the part above the threshold.

Payment	MDR	MDR + GST	Effective %

How UPI MDR is calculated under the new framework

Threshold: Payments up to and including ₹2,000 have zero MDR. Above ₹2,000, MDR applies to the full payment value. A ₹10,000 payment at 0.4% costs ₹40, not ₹32.
Regular merchants: MDR = lower of (payment × 0.4%) and ₹300. The ₹300 cap is reached at ₹75,000.
Essential sectors (railways, fuel, telecom, insurance, agri inputs): flat ₹5 per payment above ₹2,000.
Capital markets: 0.02% above ₹2,000, with the same ₹300 cap.
Small P2PM merchants receiving up to ₹1 lakh a month through UPI QR stay at zero MDR, even for a single payment above ₹2,000.
Recurring mandates (UPI AutoPay) and person-to-person transfers are not charged MDR.
GST: 18% GST is added on the MDR amount (not on the payment amount), so total deduction = MDR × 1.18.
Who pays: MDR is a merchant-side cost. NPCI has said merchants cannot pass it on to customers, who pay only the displayed price.

Examples: ₹3,000 → ₹12 · ₹10,000 → ₹40 · ₹50,000 → ₹200 · ₹75,000 or more → ₹300.

Important: These rules follow NPCI's framework as reported for 15 October 2026, which is new and may be clarified or revised. Eligibility for categories and exemptions depends on your acquirer or PSP and the official NPCI circular. Treat results as estimates and confirm with your bank or payment provider.