UPI UPDATE — 16 SEPTEMBER 2026UPI remains free for P2P transactions. Merchant transactions up to ₹2,000 remain free. Applicable P2M transactions above ₹2,000 can attract MDR from 15 October 2026 under the current framework.Read full update →

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 from 15 October 2026, capped at ₹300 per transaction. This is a charge, not a tax.

Last updated: 16 September 2026Last verified: 16 September 2026Applicable from: 15 October 2026
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, on or after 15 Oct 2026)

AmountCalculationMDR
₹2,000At or below threshold₹0
₹5,0000.4% of ₹5,000₹20
₹10,0000.4% of ₹10,000₹40
₹50,0000.4% of ₹50,000₹200
₹75,0000.4% = ₹300, at cap₹300
₹1,00,0000.4% = ₹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.