Settlement reports
How to read your UPI settlement statement and spot a wrong deduction
Where to find the amount, date and fee on a PSP settlement report, and which deductions are wrong: fees under ₹2,000, above ₹300, or before 15 October 2026.
Updated: 6 min readहिन्दी
By upicharges.in editorial desk · Published:
The short answer
How do I spot a wrong MDR deduction on my settlement statement?
Check each line's amount, date and fee. A fee on ₹2,000 or less, more than ₹300 on one payment, or any fee dated before 15 October 2026 is wrong (FAQ Q26, Q32, Q5).
The settlement check does all of this in one go.
UPI MDR is never paid as a separate bill. It is taken out before the money reaches your account, so the only place you will ever see it is your settlement report - the statement your PSP or bank produces showing each payment, what was deducted, and what was paid to you. If a deduction is wrong, that report is where you will find it, and it is the evidence you will need to get it corrected.
This article explains how to get the report, what each column means, the five signs of a wrong deduction, what is and is not a real mismatch, and how to raise one. Every rule carries its FAQ question number so you can check it in the official document.
Why the report is the only place to look
When a customer pays you by UPI, they send the full amount. The MDR is taken along the way by the bank and payment companies that carry the payment, and the rest settles into your account FAQ question FAQ Q3.
So your bank credit is already the net amount. Unless you compare it with the gross amount, payment by payment, you would never notice a wrong fee. That comparison is exactly what a settlement report lets you make.
Where to get the report
Most PSP apps and merchant dashboards, and most banks' net banking, let you download a settlement or transaction report for a date range. Look for a download or export option and choose CSV or Excel. A PDF statement is fine for reading by eye, but a CSV lets you - or our settlement check - recalculate every line.
What each column means
The names vary, but almost every report has some version of these:
- Amount / Gross amount / Transaction amount - what the customer paid. This is the figure MDR is calculated on.
- Date / Transaction date - when the customer paid. MDR applies only to payments dated 15 October 2026 or later FAQ question FAQ Q5.
- MDR / Fee / Charges / Commission - what was deducted for that payment.
- Net amount / Settled amount - gross minus fee (and minus anything else deducted). This is what reached your account.
- Type / Mode / Channel - sometimes shows whether a payment was an AutoPay mandate, a refund or an ordinary payment.
- RRN / UTR / Reference - the unique number for each payment. Keep it; it is how you point your PSP to a specific line.
If your report has a gross amount and a net amount but no fee column, the fee is simply gross minus net for each row.
Five signs of a wrong deduction
From 15 October 2026, these five are always wrong for a regular (P2M) merchant in the standard category:
- A fee on a payment of ₹2,000 or less. Payments up to ₹2,000 carry no MDR FAQ question FAQ Q26, and that includes exactly ₹2,000.
- More than ₹300 on a single payment. MDR is capped at ₹300 per payment, which binds from ₹75,000 FAQ question FAQ Q32.
- A fee on a payment dated before 15 October 2026. Nothing is due before the effective date FAQ question FAQ Q5.
- A fee on an AutoPay or mandate collection. Recurring mandates carry no prescribed MDR FAQ question FAQ Q22.
- Any fee at all, if you are P2PM. Small merchants taking up to ₹1 lakh a month over QR straight into a personal account pay zero MDR, on every payment FAQ question FAQ Q23, Q24.
And two that depend on your sector:
- In a flat ₹5 sector - railways, telecom, insurance, fuel, and electricity, water and piped-gas bills - anything other than ₹5 on a payment above ₹2,000 is wrong FAQ question FAQ Q33, Q41.
- In the standard category, a fee that is not 0.4% of the full amount on a payment between ₹2,000 and ₹75,000 is wrong FAQ question FAQ Q26. A ₹5,000 payment should show ₹20; a ₹50,000 payment ₹200.
A worked example
Rounding is not a mismatch
MDR is worked out to the paisa. 0.4% of ₹2,001 is ₹8.004, which settles as ₹8.00; your PSP may round a paisa differently from us. Our settlement check treats a difference of up to 5 paise on a row as rounding, not a mismatch, and only calls the whole file "overcharged" or "undercharged" when the total is off by at least ₹1.
Refunds, reversals and credit on UPI
Refunds and reversals usually appear as negative amounts or with a "refund" type. They are not new collections, so our settlement check sets them aside instead of recalculating MDR on them, and reports how many it found. The FAQ does not say how MDR is treated when a payment is refunded; ask your PSP if a refund line carries a fee.
Payments made through UPI using a credit card or a pre-approved credit line follow the rules for credit products, not the 0.4% UPI rate FAQ question FAQ Q36. If your report shows such payments with a higher fee, check your PSP's rate card before treating it as an overcharge. More on this in UPI vs debit card vs credit card: what a merchant actually pays now.
Checking a whole month in one go
Going line by line works for a handful of payments. For a month of them, use the settlement check:
- Choose your CSV. It is read inside your browser and never uploaded - the tool even works offline.
- Confirm which column is the amount, the date, the fee and, if there is one, the type and reference. The tool guesses; you correct it.
- Pick your category (P2M or P2PM) and your line of business.
- Read the verdict - overcharged, matches or undercharged - with totals for collections, charged payments, deducted and due, and a table of every mismatched row with the difference.
- Download the PDF summary. It is written in English so your CA can use it directly.
How to raise a wrong deduction
- Keep the original report file and the PDF from the settlement check.
- Note the reference number (RRN/UTR) and date of each wrong row.
- Contact your PSP or bank through their support channel, attach the PDF, and list the rows.
DFS has said charges will be monitored daily from 15 October. Keeping your own reports means you have the evidence whatever route opens up.
Before and after 15 October
It is worth downloading your September and early-October reports now. They show what "no MDR" looks like on your statement, so the first charged lines after 15 October are easy to spot FAQ question FAQ Q5. If you are unsure whether MDR applies to you at all, check first: Does the new UPI MDR apply to my shop? A step-by-step check. For the cap in detail, see How the ₹300 UPI MDR cap works, with examples at ₹5,000, ₹50,000 and ₹1 lakh, and for mandates, Why AutoPay and SIP payments carry no UPI MDR.
The whole picture of the new rules is in UPI charges from 15 October 2026: the complete guide for merchants.
Common questions
Is a fee on a ₹2,000 UPI payment correct?
No. Payments of ₹2,000 or less carry no MDR (FAQ Q26).
My PSP took ₹400 on a ₹1 lakh payment. Is that right?
No. MDR is capped at ₹300 per payment for payments of ₹75,000 and above (FAQ Q32).
Can MDR be charged on payments before 15 October 2026?
No. The MDR framework takes effect from 15 October 2026 (FAQ Q5).
Does my settlement file get uploaded when I use the settlement check?
No. The file is read and calculated entirely inside your browser; it is never sent anywhere.
Everything in one place: the complete guide to UPI charges →
upicharges.in editorial desk — Checks every article against the NPCI/DFS FAQ of 15 September 2026
Every fact in this article comes from the NPCI/DFS FAQ of 15 September 2026. Read the official NPCI/DFS FAQ