PhonePe, Flipkart, Swiggy Also Affected By the Moratorium, Flipkart, PhonePe and Swiggy are in trouble if Yes Bank is fined

The Reserve Bank of India (RBI) has proposed a moratorium on Yes Bank on Thursday, after which now a Yes Bank customer can withdraw only Rs 50,000 per month. This sudden news has affected not only Yes Bank account holders but also many third-party apps and fintech startups in India. One of the most affected apps is PhonePe, which started experiencing complete outage as soon as Yes Bank’s announcement of the moratorium became public. Not only this, the impact of this news has also been visible on food delivery app Swiggy and e-commerce giant Flipkart.

Many PhonePe users on social media have complained about the problem of not being able to make transactions. PhonePe confirmed the outage in a tweet posted late Thursday night, calling it an “unscheduled maintenance activity.”

However, PhonePe founder and CEO Sameer Nigam confirmed on Friday that the issue is due to an update from Yes Bank.

PhonePe is one of the many startups that has Yes Bank as its acquirer bank or payment service provider (PSP). Swiggy also has Yes Bank in the list of banks supporting UPI payments, hence Swiggy has removed the option to order food using UPI account from the app. Similarly, Flipkart has also removed the option to make payments using PhonePe. Payment gateway Razorpay also uses Yes Bank in its backend. The company has said that payment gateway services are currently unaffected, while some other services of the gateway may be affected due to the news of Yes Bank.

Companies like Airtel Payments Bank and CRED have clarified on social media how this news will impact their operations.

Yes Bank is one of the leading private banks in India that is providing many solutions to power startups. In November last year, the Mumbai-based bank launched the Yes Fintech developer platform in the form of an API sandbox with over 50 virtual APIs to let startups and individual developers test banking integrations for their apps.

Along with the impact of this news on third-party apps and payment platforms, Yes Bank’s own app and netbanking services have also been impacted and access to these has been halted for the time being. This means that if you have a Yes Bank account, you will not be able to transfer your funds to any other bank. Apart from this, you will not be able to use net banking to make payment anywhere. However, there is no need to panic, hopefully the situation should become normal soon.