Spice Route Legal is representing Yes Bank (one of India’s leading acquiring banks) in a complex dispute involving a global card network, a prominent payment aggregator and other major acquiring banks concerning the allocation of Merchant Category Codes (“MCCs”) to merchants serviced through payment aggregators and the resulting Interchange Reimbursement Fee (IRF) exposure. The firm is acting as lead counsel for the bank before the Delhi High Court. 

The Reserve Bank of India has applied to be impleaded in the matter. 

At the heart of the dispute is the question of which party bears responsibility for incorrect MCC allocation and the resulting IRF liability – the payment aggregator or the acquiring bank. The matter also raises questions concerning the application of the RBI’s Regulation of Payment Aggregators Directions, 2025, Payment and Settlement Systems Act, 2007, the global card network’s rules and the contractual allocation of responsibilities between the parties.

The matter raises important and potentially precedent-setting questions for India’s digital payments ecosystem, with the outcome having broader implications for the allocation of regulatory and financial responsibility among payment aggregators, acquiring banks and payment networks.

Spice Route Legal’s team is led by Partners Mathew Chacko (Lead – Strategy), Ankita Hariramani (Lead – Regulatory), and Karthik Somasundram (Arguing Counsel), with support from Associates Anandita Rajesh, Akshith Sainarayan, Sukeerti Mishra, and Rishika Verma.