ICICI Monetary establishment will begin charging payment aggregators for processing UPI transactions, marking the first such switch by a primary Indian lender as a result of the banking commerce pushes once more in opposition to the related payment burden of free digital funds.
Starting August 1, 2025, the private-sector monetary establishment will implement a differentiated cost building, of us close to the developments confirmed with YourStory.
Price aggregators (PAs) that preserve an escrow account with the monetary establishment might be charged 2 basis elements (bps) per transaction, capped at Rs 6. These with out such a relationship will face a 4 bps cost, capped at Rs 10 per transaction.
The costs will apply solely when funds aren’t being settled proper right into a service supplier account maintained with ICICI Monetary establishment, the parents talked about, asking to not be acknowledged because the information won’t be public.
ICICI Monetary establishment’s decision to start out charging payment aggregators for UPI transactions stems from rising costs associated to know-how infrastructure, transaction processing, and completely different operational parts amid evolving monetary circumstances.
The Head and Story was the first to report that the private-sector lender will introduce a cost building starting August 1, 2025.
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Moreover Study
RBI Guv Malhotra warns free UPI model may not be sustainable
UPI transactions in India keep absolutely free for every retailers and prospects, because the federal authorities has eradicated the Service supplier Low price Price (MDR)—a processing cost typically paid by retailers that’s charged as a proportion of transaction price for card and digital funds. Banks and payment strategies are barred from charging retailers straight or indirectly, in accordance with the Income Tax Act, 1961.
An authorities at a giant payment aggregator, speaking on state of affairs of anonymity, talked about the company is planning to cut back its reliance on ICICI Monetary establishment nonetheless is anxious that completely different banks may shortly adjust to with comparable prices.
ICICI Monetary establishment acts as a Payee Price Service Provider inside the UPI ecosystem, serving to service supplier or aggregator accounts get hold of and settle funds. It’s the third-largest Payee PSP in India after Positive Monetary establishment and Axis Monetary establishment, having settled 1.7 billion UPI transactions in June 2025 alone.
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