 "Reserve Bank of India, RBI")
The Reserve Bank of India is scrutinising payment fintechs for allegedly misclassifying merchants to exploit credit card fee structures, said people familiar with the matter. This, it’s been learnt, has already triggered adjustments in interchange rates by major card networks.
Several payment aggregators are said to have misclassified merchants, typically in the retail category, under utility — a segment that traditionally draws lower interchange rates. Such a move allowed payment firms to allegedly pocket the difference between what merchants were charged and what issuing banks received.
“For many, this is the business model,” said a senior executive of a private
