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Monday, July 13, 2020

This is why PhonePe is down

It can be noted that the bank's own net banking facilities have not been operational since last evening. Other fintech operators who rely on Yes Bank to settle their transactions are also down.

By: PTI | Mumbai | Updated: March 6, 2020 7:41:12 pm
A logo of Yes Bank Ltd sits on the bank’s branch in Mumbai, India. (file photo, source: Bloomberg)

After Yes Bank was placed under moratorium, digital payments were impacted as PhonePe, which depends on the cash-strapped lender for its transactions, could not operate.

It can be noted that the bank’s own net banking facilities have not been operational since last evening. Other fintech operators who rely on Yes Bank to settle their transactions are also down.

“We sincerely regret the long outage. Our partner bank (Yes Bank) was placed under moratorium by RBI. Entire team’s been working all night to get services back up asap (as soon as possible),” the app’s chief executive Sameer Nigam tweeted early in the morning.

PhonePe, one of the country’s largest digital payment platforms, is dependent on Yes Bank to process its transactions.

He added that the app hopes to be live in a “few hours”.

Yes Bank placed under a moratorium Thursday evening, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.

Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

For the next month, Yes Bank will led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.

He added that the app – one of the most popular interfaces for UPI transactions – hopes to be live in a “few hours”.

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