Archive · 31 Jul 2025
ICICI Bank to Charge UPI Fees: Impact on Users?
ICICI Bank is starting to charge payment companies, like RazorPay and PayU, a small fee for each UPI transaction they process, beginning August 1st.
This is because ICICI Bank has to pay the National Payments Corporation of India for the use of its payment systems.
The fee is very small, depending on whether the payment company has an account with ICICI Bank or not, and will not affect everyday customers or merchants who use their bank account.
This is part of a trend where digital transactions might not be free forever.
ICICI Bank will charge payment aggregators for UPI transactions starting August 1.
The fee is 2 basis points, capped at ₹6, for aggregators with an escrow account.
Aggregators without an ICICI Bank account will be charged 4 basis points, capped at ₹10.
The charges aim to cover costs payable to the National Payments Corporation of India.
End users and merchants with active bank accounts will not be affected by the fee.
- Who
- ICICI Bank, payment aggregators (e.g., RazorPay, PayU), and end users.
- What
- ICICI Bank will start charging payment aggregators for UPI transactions.
- When
- Starting August 1.
- Where
- N/A
- Why
- To cover costs payable to the National Payments Corporation of India for UPI transactions.
Payment Aggregators
ICICI Bank
Fees
Payment Aggregators
Increased costs.
ICICI Bank
Banks need to cover costs
- Bank
- ICICI Bank
- Transaction Type
- UPI
- Fee with Escrow Account
- 2 basis points, capped at ₹6
- Fee without Escrow Account
- 4 basis points, capped at ₹10
- Start Date
- August 1
