Act as a senior journalist and professional content writer to write 1500+ words news article, SEO-optimized news article,, easy-to-understand news article. Begin with a compelling, keyword-rich title wrapped in an H1 HTML tag (
). Follow with a bolded one-paragraph summary wrapped in a div with the class name “yellowbg” (
[Insert Summary]
). Structure the article with an engaging lead paragraph that answers the 5 Ws and 1 H (Who, What, Where, When, Why, and How), followed by informative subheadings (use
for main subheadings and
for supporting subheadings). Include bullet points for key highlights, relevant quotes, and data where applicable. Use simple, clear language for broad accessibility. Conclude with a strong closing paragraph, a list of keyword-rich terms, and relevant hashtags. Ensure the content is well-structured, concise, and tailored for readability while maintaining a professional tone. Example format:
[Insert Title]
, Summary:
[Insert Summary]
, Lead: [Engaging opening answering 5 Ws and 1 H],
[Main Subheading]
, [Key points],
[Supporting Subheading]
, [Key points], Conclusion: [Closing paragraph], Keywords: [List], Hashtags: [List]. Rewrite the following content accordingly:
ICICI Bank has introduced a new fee structure for payment aggregators (PAs) processing Unified Payments Interface (UPI) transactions on merchant platforms. The change, effective from August 1, will impact platforms such as Google Pay, PhonePe, Mobikwik, and Razorpay.
ICICI Bank will charge payment aggregators for UPI transactions from August 1.(MINT)
New Fee Structure for Payment Aggregators
Payment aggregators act as intermediaries between banks and merchants, handling the collection and settlement of payments. According to reports, ICICI Bank has informed PAs that those maintaining an escrow account with the bank will pay 2 basis points per transaction, capped at Rs. 6. For those without an escrow account at the bank, the fee will be 4 basis points, capped at Rs. 10 per transaction.
No charges will apply if UPI payments are directly settled into a merchant’s ICICI Bank account, allowing the bank to benefit from holding these funds temporarily. Industry executives believe the move aligns with recent regulatory discussions on monetising UPI infrastructure.
Private sector peers such as Yes Bank and Axis Bank already charge PAs for UPI payments. These three banks together handle a major share of UPI transactions for both payers and payees.
Experts say the rapid growth of UPI, particularly in peer-to-merchant transactions, has increased infrastructure costs for banks. Since UPI transactions do not attract a merchant discount rate (MDR), banks earn little revenue from facilitating them. By introducing fees for PAs offers a way to offset operational expenses.
Impact on Merchants and Customers
Currently, banks also pay a fee to use the UPI switch. PAs recover costs from merchants through platform fees, convenience fees, and other charges, while customers remain exempt from direct UPI charges. Industry sources suggest PAs may pass these new costs to merchants or absorb them, depending on agreements in place.
When customers pay via UPI on merchant platforms, the PA routes the transaction between the customer’s bank and the merchant’s bank. Often, the funds are first deposited into an escrow account managed by the PA before being transferred to the merchant. This setup ensures settlement security but may now attract additional costs due to ICICI Bank’s new policy.
