Friday, 1 August, 2025
Govt Cuts UPI Subsidy for Small‑Value Payments, Banks May Start Charging Fees
India’s finance ministry has reduced subsidies for low-value UPI transactions (under ₹2,000) at small merchants from 0.25% to 0.15% per payment, as part of a sharp budget cut—from ₹3,500 crore to ₹1,500 crore annually. Banks say the move squeezes margins and may force them to pass on processing costs to payment aggregators and large merchants. ICICI Bank has already begun implementing such charges from August 2025.
Read full story at Economic Times