About the October 15, 2026 MDR Rule
What is the 0.4% MDR Rule?
The regulatory authority introduced a 0.4% Merchant Discount Rate on Person-to-Merchant (P2M) UPI payments with transaction values greater than ₹2,000. Transactions equal to or below ₹2,000 continue to attract zero MDR charges. The fee is capped at ₹300 for transactions of ₹75,000 and higher, and cannot be surcharged directly to consumers.
How does ChotaPay help?
By splitting a larger bill into multiple individual QR codes of ₹1,999 or less, each payment is processed below the ₹2,000 threshold, allowing merchants to save the fee completely. For example, on a ₹50,000 electronic sale, a merchant saves ₹200; on ₹75,000+, they save ₹300 per purchase.
Is my data private?
Yes. ChotaPay is an entirely client-side, zero-server web tool. None of your sales amounts, UPI IDs, or customer details are ever transmitted or saved on any server.
Disclaimer: ChotaPay is an educational and independent calculation tool. It is not affiliated with NPCI, RBI, or any bank/payment service provider. No payments are processed or held by this website. Please refer to your respective merchant aggregator agreements.