? What is MDR on UPI Payments?
MDR (Merchant Discount Rate) is a fee charged to merchants for accepting digital payments. Since September 14, 2026, the Indian government levies a 0.4% MDR on UPI transactions above ₹2,000, while transactions up to ₹2,000 remain exempt. This applies to all UPI-based payments including QR code scans and UPI ID transfers. The MDR is mandated under Section 10A of the Payment and Settlement Systems Act, 2007, as notified by the Ministry of Finance.
Source: Ministry of Finance notification, September 14, 2026; NPCI circular on UPI MDR implementation.
How Much is the MDR Fee?
Transactions up to ₹2,000
Personal QR, P2P transfers
Transactions above ₹2,000
Merchant QR, P2M payments
Source: NPCI UPI circular, September 2026. The 0.4% rate was announced after the zero-MDR period ended.
With MDR vs Without MDR
| Transaction | With MDR (0.4%) | Without MDR |
|---|---|---|
| ₹5,000 | ₹4,980 | ₹5,000 |
| ₹10,000 | ₹9,960 | ₹10,000 |
| ₹20,000 | ₹19,920 | ₹20,000 |
| ₹50,000 | ₹49,800 | ₹50,000 |
| ₹1,00,000 | ₹99,600 | ₹1,00,000 |
Note: MDR is calculated on the transaction amount. The merchant receives the amount minus MDR.
How Much Can You Save?
| Total Amount | QR Codes Needed | Amount Saved |
|---|---|---|
| ₹5,000 | 3 | ₹20 |
| ₹10,000 | 6 | ₹40 |
| ₹20,000 | 11 | ₹80 |
| ₹50,000 | 26 | ₹200 |
| ₹1,00,000 | 51 | ₹400 |
Savings = 0.4% of total amount. Each QR code is for ₹1,999 (below the ₹2,000 threshold).
How Payment Splitting Works
Enter Amount
Enter the total amount you want to receive (e.g., ₹20,000).
QR Codes Generated
The tool splits the amount into ₹1,999 chunks and generates individual QR codes for each.
Customer Scans & Pays
Show each QR code to your customer. They scan and pay ₹1,999 via their UPI app.
Tap "Done" → Next QR
After each payment, tap "Payment Done → Next" to show the next QR code. Repeat until complete.
Is This Legal?
According to reports from September 14, 2026, the Indian government imposed a 0.4% MDR on UPI transactions above ₹2,000. The notification states that transactions up to ₹2,000 remain exempt under Section 10A of the Payment and Settlement Systems Act, 2007.
Legal basis: Section 10A of the Payment and Settlement Systems Act, 2007 (as amended 2026)
Notification date: September 14, 2026 (Ministry of Finance)
MDR rate: 0.4% on transactions above ₹2,000
Exemption threshold: ₹2,000 and below
Sources: Economic Times, September 14, 2026; NPCI circular; Ministry of Finance notification.
Industry Data & Statistics
The following data points are sourced from NPCI, RBI, and news reports. This is publicly available information.
13.1B+
Monthly UPI transactions (August 2026)
Source: NPCI monthly report
₹20.3L Cr+
Monthly UPI value (August 2026)
Source: NPCI monthly report
500M+
Monthly P2M transactions
Source: NPCI data
0.4%
MDR on transactions above ₹2,000
Source: Ministry of Finance, Sept 2026
Note: Data figures are approximate and based on publicly available NPCI reports. Verify with official NPCI publications for the latest numbers.
Frequently Asked Questions
What is MDR on UPI payments?
MDR (Merchant Discount Rate) is a 0.4% fee charged on UPI transactions above ₹2,000 since September 2026. Transactions up to ₹2,000 remain free.
How to avoid MDR charges on UPI?
Split large payments into ₹1,999 QR codes using NoMDR. Each transaction stays below ₹2,000 and is MDR-free.
Is splitting UPI payments legal?
Yes. The government notification (September 14, 2026) states UPI transactions up to ₹2,000 are exempt under Section 10A of the Payment and Settlement Systems Act, 2007.
How much can I save with NoMDR?
The full 0.4%. On ₹50,000 you save ₹200. On ₹1,00,000 you save ₹400. See the savings table above for detailed calculations.
Is my UPI ID safe?
Yes. All processing is local in your browser. Nothing is sent to any server. The tool is 100% client-side.
Which UPI apps work with NoMDR?
All UPI apps: Google Pay, PhonePe, Paytm, BHIM, Amazon Pay, WhatsApp Pay, and any UPI-enabled app.
Does the customer need to do anything special?
No. The customer scans each QR code like any normal payment. They pay ₹1,999 per scan using their regular UPI app.
What if a customer can't pay ₹1,999 at once?
The customer pays each ₹1,999 amount separately. They scan and pay one QR at a time until the full amount is covered.
Cookie & Privacy Policy
Data Storage
NoMDR uses only localStorage on your device to remember your UPI ID for convenience. This data never leaves your browser.
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What We Collect
Nothing. We have no servers, no databases, and no way to collect any data about you.
Terms & Conditions
Read full Terms & Conditions →
Educational Purposes Only
NoMDR is an educational tool designed to demonstrate how UPI payment splitting works. It is not financial advice. Users should consult with their bank or financial advisor before making any decisions.
No Financial Advice
The information provided on this website is for general informational purposes only. It should not be construed as professional financial, legal, or tax advice. Always consult with a qualified professional for advice specific to your situation.
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News articles, statistics, and regulatory information referenced on this page are attributed to their respective sources. NoMDR does not claim ownership of third-party content. All trademarks, registered trademarks, product names, and logos are the property of their respective owners.
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Users are solely responsible for ensuring their use of NoMDR complies with all applicable laws and regulations. NoMDR is not responsible for any consequences arising from the use of this tool.
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Disclaimer
No Affiliation: NoMDR is not affiliated with, endorsed by, or connected to NPCI, UPI, any bank, or any government entity. UPI is a registered trademark of NPCI.
Educational Only: This tool is provided for educational and informational purposes only. It is not intended to be used as financial, legal, or tax advice.
No Responsibility: NoMDR shall not be held responsible for any loss, damage, or liability arising from the use of this tool or the information provided herein.
Regulatory Changes: MDR rates and regulations may change. Users should verify current rates and regulations with their bank or the NPCI website.
Third-Party Sources: News articles and statistics referenced are attributed to their respective sources. NoMDR does not guarantee the accuracy of third-party information.
No Harm Intended: This tool is not intended to harm, defame, or disrespect any government body, financial institution, or regulatory authority. It is purely an educational resource.
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