What Is a UPI Settlement Amount?
The UPI settlement amount (also called net settlement) is the amount a merchant actually receives in their bank account after MDR and GST on MDR are deducted from the customer payment.
Settlement Formula
Net Settlement = Customer Payment − MDR − GST on MDR
Examples
- ₹2,000 payment (standard): Settlement = ₹2,000 (zero MDR)
- ₹10,000 payment (standard): Settlement = ₹9,960 without GST, ₹9,952.80 with GST
- ₹1,00,000 payment (standard): Settlement = ₹99,700 without GST, ₹99,646 with GST
Settlement Timing
UPI settlements are typically T+1 (next business day) for most merchant categories. Some high-frequency merchants may have same-day or T+0 settlement arrangements with their acquiring banks. Verify your settlement schedule with your bank or PSP.
Settlement Components
Your bank statement will typically show: gross transaction amount, MDR deduction, GST on MDR deduction (if applicable), and net credit. Some PSPs may show a combined deduction.
Settlement Calculator →Information verified as of 18 September 2026. View sources →