UPI MDR Calculator
Starting 2026, merchants may be charged a small fee (MDR) on UPI payments above ₹2,000. Enter the price of your item to see how it affects what you charge — or what you keep. Not sure what MDR means for your shop? Read the full breakdown →
Enter a price above to see the result
Using an estimated MDR rate of 0.30%. Transactions at or below ₹2,000 are not charged.
Disclaimer: As of August 21, 2026, UPI MDR rates have not been officially notified by NPCI/RBI. The rates used here are estimates based on publicly reported ranges (0.25%–0.40%). This tool provides approximate calculations only — it is not tax or legal advice. Please confirm final rates with your chartered accountant or payment service provider before repricing.
Frequently Asked Questions
Not yet. Parliament passed the Taxation and Other Laws (Amendment) Bill, 2026 on August 6, 2026, which removes the legal bar on charging MDR on UPI. However, the actual rate has not been notified by NPCI/RBI. The expected range is 0.25% to 0.40% on business transactions above Rs 2,000. We will update this page as soon as the final rate is announced.
No. MDR (Merchant Discount Rate) is charged to the merchant, that is, the business receiving the payment, not to the customer making the payment. Person-to-person (P2P) UPI transfers also remain completely free.
Small and kirana merchants are expected to stay exempt from UPI MDR. The threshold is set at Rs 2,000 per transaction, and there are additional protections planned for small merchants. Confirm with your payment provider once the final rules are notified.
The Rs 2,000 threshold means that transactions at or below Rs 2,000 will not attract any MDR. Only transactions above this amount will have the MDR fee applied. This is designed to protect small everyday transactions and the merchants who primarily handle them.
The official rate will be notified by the NPCI (National Payments Corporation of India) under RBI oversight. You can check the NPCI website (npci.org.in), your payment service provider communications, or come back to this page. We will update it with the confirmed rate as soon as it is published.
Learn More
- UPI MDR 2026: What Hardware & Industrial Retailers Need to Know — Full policy explainer for shop owners
- How to Reprice Non-MRP Stock After UPI MDR — Step-by-step pricing guide with worked examples
- Talk to Pioneer Mill Stores — Questions about pricing or products? We're here to help.
Last updated: August 21, 2026