Standard Merchant UPI — ₹10,000
Customer Pays
₹10,000
MDR (0.4%)
₹40
GST on MDR
₹7.20
Total Deduction
₹47.20
Merchant Receives
₹9,952.80
Effective fee: 0.472% · Without GST: Merchant receives ₹9,960 (fee: 0.400%)
How UPI MDR on ₹10,000 Is Calculated
For a standard merchant UPI (Person-to-Merchant) payment of ₹10,000, the MDR calculation follows the current applicable framework:
Transaction Amount = ₹10,000
₹10,000 > ₹2,000 → MDR applies
MDR = min(₹10,000 × 0.4%, ₹300)
MDR = min(₹40, ₹300)
MDR = ₹40
GST on MDR = ₹40 × 18% = ₹7.20
Total Deduction = ₹40 + ₹7.20 = ₹47.20
Merchant Settlement = ₹10,000 − ₹47.20 = ₹9,952.80
₹10,000 > ₹2,000 → MDR applies
MDR = min(₹10,000 × 0.4%, ₹300)
MDR = min(₹40, ₹300)
MDR = ₹40
GST on MDR = ₹40 × 18% = ₹7.20
Total Deduction = ₹40 + ₹7.20 = ₹47.20
Merchant Settlement = ₹10,000 − ₹47.20 = ₹9,952.80
Without GST: If GST is not included, the merchant receives ₹10,000 − ₹40 = ₹9,960. The exact GST treatment depends on your merchant category and acquiring bank.
MDR Breakdown by Merchant Category
| Merchant Category | MDR Rate | MDR on ₹10,000 | GST (18%) | Merchant Receives |
|---|---|---|---|---|
| Standard Merchant UPI | 0.4% | ₹40 | ₹7.20 | ₹9,952.80 |
| Essential / Thin-Margin Sector | ₹5 flat | ₹5 | ₹0.90 | ₹9,994.10 |
| Capital Market | 0.02% | ₹2 | ₹0.36 | ₹9,997.64 |
| Small Merchant / Zero MDR | Zero | ₹0 | ₹0 | ₹10,000 |
| P2P Transfer | N/A | ₹0 | ₹0 | ₹10,000 |
Key Points for ₹10,000 UPI Transactions
- ₹10,000 is above the ₹2,000 threshold, so MDR applies for standard merchants
- The ₹300 cap is not reached at ₹10,000 (0.4% × ₹10,000 = ₹40, well below ₹300)
- The MDR cap of ₹300 kicks in at ₹75,000 for standard merchants
- MDR is deducted from the merchant settlement — the customer pays ₹10,000
Use the Calculator for ₹10,000
Use the interactive calculator to check MDR for ₹10,000 across different categories:
Calculate MDR on ₹10,000 →Related Amounts
Frequently Asked Questions
No. The customer pays exactly ₹10,000. The MDR (₹40) and GST on MDR (₹7.20) are deducted from the merchant's settlement — not charged to the customer. The merchant receives ₹9,952.80.
Yes. The zero-MDR threshold for standard merchants is ₹2,000. Since ₹10,000 is above ₹2,000, MDR of 0.4% applies for standard merchants.
No. The ₹300 cap is reached at ₹75,000 (0.4% × ₹75,000 = ₹300). For ₹10,000, the MDR is ₹40 — well below the cap.
Calculations shown are estimates based on the applicable framework as of 18 September 2026. Actual settlement may vary depending on your merchant agreement, acquiring bank and payment provider. View official sources →