Yes Bank’s Digital Partners Hit By Moratorium
The PhonePe mobile app, on a smartphone, and a point of sale device are demonstrated during a product unveiling in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)

Yes Bank’s Digital Partners Hit By Moratorium

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

It can be noted that the lender’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 the RBI. Entire team’s been working all night to get services back up as soon as possible,” PhonePe Chief Executive Sameer Nigam tweeted early in the morning. He said the app expected to be live in a few hours.

Yes Bank was placed under a moratorium on Thursday evening, with the Reserve Bank of India 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 State Bank of India.

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