UPI Charges / MDR Calculator
Short answer
Estimate the MDR on a merchant UPI payment under the currently announced framework: 0.4% on specified merchant transactions above ₹2,000 once NPCI notifies the post-Diwali start date (originally 15 October 2026), capped at ₹300 per transaction. This is a charge, not a tax.
Last updated: 13 October 2026Last verified: 13 October 2026Applicable from: Deferred post-Diwali 2026 — date to be notified
Estimated result
₹20
0.4% of the transaction value for specified merchant payments above ₹2,000.
- Transaction amount
- ₹5,000
- MDR percentage
- 0.4%
- Maximum cap
- ₹300 per transaction (₹75,000 and above)
- Who bears the charge
- Merchant / payment ecosystem
- Consumer facing?
- No — users should not be charged MDR directly
Read this before relying on the number
Example based on the currently announced MDR framework. Actual applicability depends on transaction category, merchant eligibility and the applicable NPCI or bank rules. This is a charges calculator — not a tax calculator.
Worked examples (regular merchant, once MDR is implemented)
| Amount | Calculation | MDR |
|---|---|---|
| ₹2,000 | At or below threshold | ₹0 |
| ₹5,000 | 0.4% of ₹5,000 | ₹20 |
| ₹10,000 | 0.4% of ₹10,000 | ₹40 |
| ₹50,000 | 0.4% of ₹50,000 | ₹200 |
| ₹75,000 | 0.4% = ₹300, at cap | ₹300 |
| ₹1,00,000 | 0.4% = ₹400, capped | ₹300 |
Related pages
This page is educational information, not professional tax, legal or financial advice. Rules can change — verify against the latest official notification or consult a qualified professional before acting.