UPI MDR Calculator

Official NPCI and Ministry of Finance material describes a new MDR framework for select direct UPI payments to merchants above ₹2,000. Peer-to-peer transfers, eligible small merchant/P2PM payments, and UPI AutoPay mandates remain free in this calculator.

Customers do not pay a UPI fee in the supported official rules shown here. The new MDR is a merchant-side payment-processing cost, and official guidance says merchants should not pass MDR to customers. UPI apps are also prohibited from adding hidden or platform fees for these transactions.

The MDR is not collected by the Government or NPCI. It is distributed among payment ecosystem participants such as banks and service providers.

MDR is merchant discount rate: a payment-processing charge paid on eligible merchant transactions. The standard rate is 0.40% for select P2M payments above ₹2,000, capped at ₹300 before GST. Some sectors receive a flat ₹5 fee, and capital-market transactions use 0.02% capped at ₹300.

GST, where applicable, is calculated on the taxable payment-processing service or fee. It is not calculated on the entire transaction amount. For example, a 0.40% MDR plus 18% GST on MDR equals 0.472% of the payment before caps, but the calculator keeps MDR and GST separate. Merchant input-tax-credit treatment can affect the merchant's ultimate economic cost and is not estimated here.

Each result is generated from the versioned rules dataset. The calculator first checks the transaction type and ₹2,000 threshold, then calculates MDR or flat fee, applies the relevant cap, calculates GST on that fee where applicable, and shows total processing cost separately.

Customer view answers what the payer pays. Merchant view shows MDR, GST on MDR, total shown processing cost, and amount after shown charges. Officially, the payer should still pay only the posted transaction amount.