ICICI Bank to charge payment aggregators for UPI transactions

[Avinash.Mishra]

ICICI Bank, the country’s second-largest private sector lender, will from August 1 start charging a fee from payment aggregators (PAs) for handling Unified Payments Interface (UPI) transactions that these PAs facilitate on merchants’ platforms.

The bank will charge PAs that maintain an escrow account with the bank 2 basis points (bps) per transaction, capped at ₹6. For PAs that do not have an escrow account with the bank, the charge will be 4 bps, capped at ₹10 per transaction.

However, the bank will not levy any charges on PAs if the UPI transactions are settled directly into an ICICI Bank account held by the merchant, as the bank will have the opportunity to earn a float on these funds.

 

[ccdc]

this is india...where ppl want extreme revdi...ppl will stop using upi if they have to pay charges...they'll go back to good old cash...

 

[Avinash.Mishra]

this is india...where ppl want extreme revdi...ppl will stop using upi if they have to pay charges...they'll go back to good old cash...

Lower class and lower middle will certainly stop using upi.

This move will kill payment aggregators banks will get all the UPI customers

 

[drvirag]

Now every bank will do the same and pa eventually pass this charge to customer. And customer will start paying with cash. And we ll see rise in eclairs market again.

 

[Avinash.Mishra]

Now every bank will do the same and pa eventually pass this charge to customer. And customer will start paying with cash. And we ll see rise in eclairs market again.

Yes, once PA will start passing the charges to customers, customers will switch to banks but banks will also start passing the charge to customers seeing an opportunity to earn money and this will lead to revival of cash market.

 

[ccdc]

It's very unfortunate if we go back to cash again....coz cash payments cannot be tracked... digital payments can be tracked easily.... previously one section of ppl used to love cash...we call them terrorists...

 

[akiratoriyama]

It's very unfortunate if we go back to cash again....coz cash payments cannot be tracked... digital payments can be tracked easily.... previously one section of ppl used to love cash...we call them terrorists...

Unfortunately the people who track the transactions are tax terrorists.

 

[vine]

Essentially it means if I have, say Airtel payment bank account, no charges for airtel account holders if using Airtel upi.
..
Wait, won't this benefit neo banks like Jio payments Bank, Airtel payments Bank, Paytm payments Bank, etc.

 

[Avinash.Mishra]

It's very unfortunate if we go back to cash again....coz cash payments cannot be tracked... digital payments can be tracked easily.... previously one section of ppl used to love cash...we call them terrorists...

Only tax paying people are paying more taxes as everything is getting traced but people who evade taxes are still evading taxes. Look at Bangalore for example businesses are avoiding upi and accepting only cash to avoid tracking