New Delhi: A day after the Reserve Bank of India’s (RBI) moratorium on Yes Bank, fintech startups including payment firms PhonePe and BharatPe were badly affected. Unified Payments Interface (UPI) based transactions came to a halt, ever since the central bank superseded the Board of Directors of Yes Bank Ltd for a period of 30 days. Also Read - Goldman Sachs Lowers India's GDP Growth to 1.6% Amid COVID-19 Lockdown, Predicts RBI Will Cut Interest Rates by 50 Bps
“We are temporarily unavailable. We are going through an unscheduled maintenance activity. We apologize for any inconvenience this may cause. We’ll be back soon”, the PhonePe support said on Twitter. Also Read - COVID-19 Lockdown: RBI Extends Overdraft Facility For States, UTs
Responding to the customers on the micro-blogging site, Sameer Nigam, CEO of PhonePe said “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. We hope to be live in a few hours.” Also Read - RAI Writes to RBI, Seeks 4% Interest Subvention For 9 Months For Retail Sector
Speaking to a leading business portal, fintech partners which use Application Programming Interface (API) Banking confirmed that they have suffered after the RBI’s moratorium. (API Banking is a set of routines, protocols or tools that allows access to a bank’s services to other financial institutions or third-party platforms like Cashfree).
Besides, several other startups like CRED, Udaan and Swiggy have also been hit.
Yes Bank Crisis
Yes Bank was on Thursday placed under a moratorium, with the RBI capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.
The 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.