A payment confirmation, a fee entry and a bank credit answer different questions. When preparing for the announced UPI MDR change, build a record that lets you connect them without assuming they always appear together.
The framework is scheduled from 15/10/2026, according to the official FAQ, question 5. Use the time before implementation to confirm your recorded merchant category and your provider's statement format.
Confirm the category before estimating
The Finance Ministry's announcement distinguishes qualifying P2PM recipients, ordinary covered merchant payments and concessional categories. For covered ordinary bank-account merchant payments above ₹2,000, it announces 0.4% MDR with a ₹300 cap. Customers are not to bear that merchant charge.
Ask your acquiring bank or payment provider which classification is recorded for your business. The P2PM eligibility guide explains why calling yourself a small shop is insufficient. Also ask where fees will appear: alongside a transaction, in a separate report or through another documented billing arrangement. Do not assume one provider's answer applies to all providers.
Build one working sheet
Start with these columns, using synthetic data while setting it up:
| Record | Purpose |
|---|---|
| Order and transaction references | Connect the sale to the payment |
| Payment date and gross amount | Preserve the original receipt |
| Instrument and merchant category | Check which rule was used |
| Expected MDR and assumption | Keep the calculation reviewable |
| Actual fee entry and statement reference | Compare against provider evidence |
| Refund or other adjustment reference | Track later changes separately |
| Bank credit date and unresolved difference | Follow up without guessing |
For a business with several branches or payment providers, add an outlet and provider column. Keep their statement references distinct so matching totals do not conceal a missing sale. Assign one person to each unresolved difference.
Store the working sheet with appropriate access restrictions. A public example should never contain a real customer's UPI address or account information.
Test the sheet with a small batch
Assume two future payments of ₹3,000 and ₹50,000, both within the ordinary covered bank-payment category, with no exemption or concession. The estimated MDR is ₹12 plus ₹200: ₹212 against gross receipts of ₹53,000.
Subtracting only that MDR gives ₹52,788. This is an arithmetic check, not a promised bank credit. Taxes, separately documented charges, refunds and the provider's billing arrangement need their own evidence. The MDR calculator helps check the fee assumption without establishing settlement timing.
For a discrepancy, write a specific query: “These two transaction references total ₹53,000. Please identify the fee and adjustment entries used in this statement.” Include the relevant statement period through the provider's secure support route.
Finish reconciliation when every difference has an explanation or an assigned follow-up. Do not hide an unexplained deduction inside a generic expense line merely to make the totals match.