Delhi HC asks RBI to mediate PayU’s interchange-fee dispute with banks and Visa

The Delhi High Court has directed the RBI to mediate PayU’s dispute with YES Bank, ICICI Bank and Visa over merchant-code interchange fees. Past claims are frozen and further settlement deductions barred while the RBI-led process runs, with mediation due within 30 days.

— Source publishedTue, 15 Sept, 2026, 18:37 IST·First seen Tue, 15 Sept, 2026, 18:42 IST·Source Inc42

What happened

PayU Payments · Delhi High Court asked RBI to mediate PayU’s merchant-code interchange-fee dispute with banks and Visa, freezing past-transaction claims and

Key facts

  • ₹5.95 crore
  • ₹6.88 crore
  • 18% annual interest
  • ₹5.26 crore
  • ₹27.3 crore

What changed

Delhi High Court asked RBI to mediate PayU’s merchant-code interchange-fee dispute with banks and Visa, freezing past-transaction claims and barring further settlement deductions while mediation proceeds.

Why this matters

PayU gets a 30-day cash-flow reprieve as disputed interchange deductions are frozen, but payment operators should review merchant-code controls and bank/Visa exposure ahead of RBI mediation.

What to watch

  • Whether RBI appoints a mediation framework and completes the process within the court-directed 30-day window.
  • Any RBI clarification on merchant category code assignment, interchange liability or payment-aggregator responsibilities.
  • Disclosure of the disputed amount, PayU's provisioning, or changes in its settlement cash balances.
  • A negotiated resumption of deductions, a waiver of past claims, or a phased recovery agreement.
  • Signs that banks extend coding-related reviews to other payment aggregators or merchant portfolios.

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