Merchant & QR
What is P2PM?
Person-to-Person-Merchant (small QR merchant) · छोटा QR मर्चेंट (P2PM)
Bank tag for small UPI QR shops. Up to ₹1 lakh/month they stay at 0% MDR from 15 Oct 2026, even on bills above ₹2,000.
P2PM is the small-merchant QR class used by acquiring banks. Street vendors and neighbourhood shops that collect through UPI QR into their account, up to ₹1 lakh a month, stay in the zero-MDR net when the VPA is tagged this way. A single bill above ₹2,000 does not by itself end the exemption.
GSTIN is not required. Coverage of the NPCI FAQ said three consecutive months of inward UPI above ₹1 lakh typically moves the account into chargeable P2M. This site cannot see the tag from a VPA — ask the bank or app, then tick the box on the MDR calculator only if they confirmed it.
P2PM: quick answers
Is every shop under ₹1 lakh/month automatically P2PM?
No. Volume is the band; the acquiring bank or PSP still has to classify the VPA. Confirm in writing.
Do I reprint my QR if I am P2PM?
No. MDR is a settlement rule. Existing standees keep working.
Use it right now