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ICICI Bank to charge fees on UPI payments: Here's why
Heads up: From August 1, ICICI Bank will add fees to UPI payments made through apps like Google Pay and PhonePe.
If the payment app has an escrow account with ICICI, the fee is up to ₹6 per transaction; without one, it's capped at ₹10.
Paying directly into an ICICI merchant account? No extra charge.
Other banks are also doing this
This isn't just an ICICI move—Yes Bank and Axis Bank have started similar fees as UPI usage keeps growing.
With rising costs and no extra charges allowed on UPI for merchants, banks are looking for ways to keep things sustainable.
Payment apps might pass these new fees onto businesses or cover them themselves, so you could see some changes in how online payments work soon.