Yes Bank update impacts fintech start ups and app based services
Mumbai/IBNS: Several fintech startups and apps are facing problems in their operations after Yes Bank was put under moratorium by the Reserve Bank of India on Thursday.
In a major crisis for Yes Bank, the government on Thursday imposed a withdrawal limit of Rs 50,000 for depositors of the beleaguered private bank.
A notification, issued by the finance ministry on Thursday evening, said the limit will stay in effect till Apr 3, 2020.
According to media reports, Phone Pe faced a complete outage soon after the RBI's announcement. Shortly, Swiggy and Flipkart also faced difficulties.
Phone Pe is one of the many fintech start ups that have Yes Bank as the acquiring bank or payment service provider (PSP). Following the disruption, Flipkart has removed Phone Pe as a payment option while Swiggy, which had Yes Bank as the supporting bank for UPI payments, has also removed the option.
Initially, Phone Pe tweeted that its users were facing problems due to “unscheduled maintenance activity”, but later, its CEO Sameer Nigam tweeted that the issue was due to RBI restriction on Yes Bank.
Payment gateway RazorPay, which also uses Yes Bank at the back end, said its payment gateway is working but some of its services are affected.
Airtel Payments Bank and CRED have clarified that their services will continue uninterrupted post Yes Bank update.
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