Updated: March 7, 2020 2:04:11 pm
The Yes Bank crisis has heavily impacted PhonePe’s UPI services, given it was relying on the bank’s UPI platform to process all of the payments its users were making. Yes Bank was placed under a moratorium by RBI on Thursday evening. RBI has currently, implemented a cap of deposit withdrawals at Rs 50,000 per account for a month and suspended the current board of directors.
It has also put in place a stop on granting or renewal of loans or advance, making investments and incurring any liability or agree to disburse any payment. Due to this, it has also hindered a lot of its partners that relied on its UPI infrastructure. One of the major hit was taken by PhonePe, whose transactions are managed by Yes Bank’s UPI payments infrastructure.
PhonePe is the top UPI app in India, and the Yes Bank crisis made it inaccessible to tens of millions of its users. PhonePe founder and CEO Sameer Nigam, in a tweet, said that they regret the long outage and are currently working on getting services back up as soon as possible. He added that the app will be back live within a few hours. The company has announced that merchant disbursals have been fixed and the company is currently working on enabling UPI services for its users.
PhonePe is not the only entity that has been affected by this moratorium. Many other brands like Flipkart, MakeMyTrip, Myntra, Jabong, Cleartrip, Airtel, Swiggy, Redbus, Hungerbox, MudraPay, Udaan, Microsoft Kaizala and PVR all are facing issues as they use Yes Bank’s UPI platform.
All teams @PhonePe_ working round the clock to get our services going. Wallet and cards enabled for purchase. Next stop is your favourite UPI service. Once again thank you for standing by us! https://t.co/xErUTADSSi
— Rahul Chari (@rahulchari9) March 6, 2020
Many companies like Bharti Airtel and Myntra have said that there has been no impact to their businesses due to the development as they use multiple other payment gateways and are not dependant on a single platform.
BharatPe, the company behind the BHIM app is also facing outages according to users on Twitter. However, due to the company using other partners like ICICI Bank, it is not facing as many problems as PhonePe, which relies only on Yes Bank.
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PhonePe has put out a statement saying that its services have been partially restored, customers can now use credit card, debit card and wallet payment options. However, its UPI services are yet to be restored.
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