The moratorium imposed by the Reserve Bank of India (RBI) on Yes Bank for a month has affected third-party fintech companies.
Payments company PhonePe CEO Sameer Nigam tweeted: “We sincerely regret the long outage. Our partner bank (Yes Bank) was placed under moratorium by the RBI. The entire team’s been working all night to get services back up asap. We hope to be live in a few hours.”
RBI’s intervension
As Yes Bank was unable to raise sufficient equity to maintain viability of its banking business, RBI had to intervene.
“RBI came to the conclusion that in the absence of a credible revival plan, and in public interest and the interest of the bank’s depositors, it had no alternative, but to apply to the Central Government for imposing a moratorium,” said the bank in a public notification.