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Does MDR apply to me?

Three questions. One straight answer - yes or no.

All UPI payments added up, for a typical month

2Does the money arrive over QR straight into your personal (savings) bank account?

If it lands in a current or merchant account, or comes through a PSP, choose "No".

Answer all three questions

How the decision is made

Your UPI collectionsDoes the money come over QRstraight into a personal account?YesNoAre monthly UPI collectionswithin ₹1,00,000?YesNoNo MDR (P2PM) · Q23, Q24MDR applies (P2M) · Q26, Q320.4% above ₹2,000never more than ₹300 a payment₹2,000 or less is free for everyone
Does MDR apply - how the decision is madeDecision diagram. First question: does the money arrive over QR straight into a personal account? If no, MDR applies. If yes, second question: are monthly UPI collections within ₹1,00,000? If yes, MDR does not apply (P2PM, FAQ Q23 and Q24). If no, MDR applies (P2M) at 0.4% above ₹2,000, capped at ₹300 per transaction. Payments of ₹2,000 or less are free for everyone.
Two questions decide your category. Once the category is settled, so is the answer.

How to use this

  1. In the first box, type how many rupees reach you over UPI in a typical month - for example 80000. Add up all your UPI payments.
  2. For the second question, press "Yes" or "No". Choose "Yes" only if the money comes over QR straight into your personal savings account.
  3. Pick your line of business from the third list.
  4. As soon as all three are filled in, the answer appears - green means MDR does not apply to you, red means it does. A one-line reason comes with it.

A worked example

A kirana shop takes ₹80,000 a month over UPI, straight into the owner’s savings account via QR, general line of business. Filling that in gives a green answer: "MDR does not apply to you" - because ₹80,000 is inside the ₹1,00,000 limit.

How this is calculated

The small-merchant exemptionFAQ question FAQ Q23, Q24, Q26, Q25

Small merchants (P2PM) receiving up to Rs 1,00,000 per month over UPI QR straight into a personal account pay zero MDR - mandatorily.

Category decides, not the amountFAQ question FAQ Q26

MDR follows how your account is categorised, not the size of the payment. A P2PM merchant pays nothing even on a transaction above Rs 2,000.

Nothing for you to changeFAQ question FAQ Q25

No change to your QR code, no change to your soundbox, no re-registration. Your bank or PSP categorises you automatically.

If the exemption does not applyFAQ question FAQ Q26

0.4% of the full transaction amount, on P2M transactions above Rs 2,000. The Rs 2,000 is a threshold, not a deduction - a Rs 5,000 payment is charged on all Rs 5,000.

Read the official NPCI/DFS FAQMerchant Discount Rate (MDR) on Select UPI (P2M) Transactions - Frequently Asked Questions — NPCI / Department of Financial Services (DFS), Ministry of Finance

Read the full explainer

Does the new UPI MDR apply to my shop? A step-by-step check

Who pays UPI MDR from 15 October 2026, and who does not? Three questions decide whether you are exempt as a P2PM merchant - with four worked shop examples.