The formula: the greater of a percentage or a floor
Minimum payment due is calculated as whichever is larger: the outstanding balance multiplied by a minimum percentage (commonly around 5%), or a small fixed floor amount set by the card issuer.
A typical example: ₹50,000 balance
With a 5% minimum and a ₹200 floor: 5% of ₹50,000 is ₹2,500, which is well above the ₹200 floor — so ₹2,500 is the minimum payment due.
A small balance, where the floor takes over
For a ₹3,000 balance with the same 5% rate and ₹200 floor: 5% of ₹3,000 is only ₹150, which is less than the ₹200 floor — so the floor amount, ₹200, becomes the minimum payment instead of the percentage figure.
Why the minimum is deliberately small
The minimum payment is designed to keep an account in good standing, not to meaningfully reduce the balance — it's a small fraction of what's owed. Paying only this amount every month leaves the vast majority of the balance outstanding, continuing to accrue interest, as the companion article on the true cost of paying only the minimum demonstrates.