Delhi HC Asks RBI To Mediate PayU’s Dispute With Banks, Visa

The Delhi High Court has tasked the Reserve Bank of India (RBI) to mediate a disagreement involving the fintech company PayU Payments, along with financial institutions YES Bank, ICICI Bank, and Visa. The issue is centered around interchange reimbursement fee (IRF) claims, which have arisen from the possible misclassification of merchant category codes (MCCs).

The court demanded that all parties preserve their current positions on claims stemming from past transactions and forbade acquiring banks from further deductions from PayU's settlement amounts during the mediation. Moreover, Visa was barred from concluding final determinations on pending IRF claims regarding past transactions. This decision came after the court heard arguments for four days in a row concerning the suit's maintainability and the plea for interim relief.

The RBI was instructed to dispatch a senior officer with expertise in the payments sector to assist the parties in reaching a resolution within 30 days. The matter is slated to be heard again on October 27. This development was initially reported by Bar & Bench.