UPI MDR Calculator
How it is calculated
Payments up to ₹2,000 carry no MDR. Above ₹2,000, standard person-to-merchant payments pay 0.4%, capped at ₹300 (the cap applies from ₹75,000). Specified sectors such as railways, telecom, insurance, fuel, agricultural inputs and utility bills pay a flat ₹5. Mutual funds, securities and stockbrokers pay 0.02%, capped at ₹300. Small merchants receiving up to ₹1 lakh a month through UPI QR into a bank account are exempt.
GST at 18% is reported to apply to MDR and is shown as an option. Confirm the rate and the final charge on your acquiring bank's invoice. Read the full explainer: UPI MDR 2026.
Frequently asked questions
How is UPI MDR calculated?
For a standard merchant payment above ₹2,000, MDR is 0.4% of the payment value, capped at ₹300 per transaction. For example, ₹10,000 attracts ₹40 and ₹1,00,000 attracts ₹300.
When does UPI MDR start?
From 15 October 2026, on eligible person-to-merchant payments above ₹2,000.
Do customers pay UPI MDR?
No. MDR is a merchant-side charge, and merchants cannot pass it on to customers as a separate UPI charge.
Indicative results only; not tax or legal advice. Last reviewed 2026-10-17.