Banking: This big private bank has changed the rules from August 1, know who will be affected by it..

ICICI Bank UPI charge: Nowadays, from the vegetable vendor to the shopping mall, we make quick payments everywhere through UPI. It is so easy and free that now the habit of keeping cash in the purse has been lost. But will this "free service" always remain free? It does not seem so, because another big private bank in the country has announced that it will charge for UPI transactions. After Yes Bank and Axis Bank, ICICI Bank has also joined this list. The bank has decided to charge processing fees on certain types of UPI transactions from August 1, 2025. But the biggest question in this is whether it will affect your pocket? Will you now have to pay money for every UPI payment? Come, let's know everything about it in very simple language.

So will the common man have to pay a charge for UPI payment?

First of all, take a sigh of relief. This charge of ICICI Bank will not be directly levied on the general customers (End Customers). That is, when you scan a QR code at a shop or send money to a friend, you do not have to pay any extra charge. This charge will be levied on payment aggregators.

What are payment aggregators?

Simply put, when you make a payment on Swiggy, Zomato, Amazon, or any online shopping website, your money reaches the shopkeeper or company through these payment aggregators. Companies like Razorpay, PayU, and Cashfree are the biggest examples of this.

Why is the bank levying this charge?

Banks say that the UPI facility they are providing for free costs them money to run. They have to pay a fee to the National Payments Corporation of India (NPCI) to process every transaction. Till now, the banks have been bearing this cost themselves. Now, ICICI Bank has imposed this fee on payment aggregators to recover this cost.

Recently, the RBI governor also indicated that it is difficult to keep UPI free forever, and steps may have to be taken to make it financially sustainable.

How much will the bank charge?

ICICI Bank has fixed two types of charges for payment aggregators:

Those who have an escrow account in ICICI Bank:

Such payment aggregators will be charged 0.02% per transaction. This charge will be a maximum of Rs 6 per transaction.

Those who do not have an account in ICICI Bank:

Such aggregators will be charged 0.04%, which will be a maximum of Rs 10 per transaction.

The bank has also clarified that there will be no cost for merchants who have an active account with the bank.

Frequently Asked Questions (FAQs)

Question 1: Will I now have to pay extra money for making a payment through QR code at a shop?

Answer:

No, not. This charge has not been imposed directly on common customers. You can send money to any shop or to a friend through UPI for free, as before.

Question 2: Then, on whom and why is this charge being imposed?

Answer:

This charge is being imposed on
Payment aggregators. These are companies (like Razorpay, PayU) that manage payments for websites and apps like Amazon and Swiggy. The bank is imposing this charge to recover the cost of running the UPI system.

Question 3: If this charge is not on me, can it have any effect on my pocket?

Answer:

Yes, it can have an

indirect

Impact. It is possible that payment aggregators put the burden of this increased cost on merchants, and merchants increase the price of their goods or services marginally to recover that cost.

Question 4: Is only ICICI Bank doing this?

Answer:

No. Before ICICI Bank,

Yes Bank

and

Axis Bank

have also announced to impose such charges on payment aggregators. This is an indication of a new trend in the industry.

Question 5: When will this new rule come into effect?

Answer:

This new rule of ICICI Bank will come into effect from

August 1, 2025.

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