Yes Bank crisis hit Phone Pe not amused - Form is temporary, class is permanent.' That is how digital wallet PhonePe rejected an 'offer' from its rival PayTm to come onboard a platform operated by the latter. The 'offer' was made after Yes Bank, which is used by PhonePe to conducts its transactions, was placed under moratorium by the Reserve Bank of India. The RBI placed a withdrawal limit of Rs 50,000 per Yes Bank account for the next one month.
The cascading effect of the RBI's move, made due to the cash-starved Yes Bank's precarious financial condition, was that several of the bank's systems, including internet banking and ATM servers, went down Friday morning. It also impacted PhonePe, which relies on Yes Bank to settle its transaction, with the digital wallet going down.
As of early evening, PhonePe's UPI services were still down while debit and credit card payments were back online.
Earlier in the day, digital payments platform PayTm, which also operates a payments bank platform, made a cheeky offer to its rival. "Dear PhonePe, Inviting you to PayTm Bank's UPI platform. It already has huge adoption and can seamlessly scale manifold to handle your business. Let's get you back up, fast!" PayTm said in a tweet posted by its payments bank account.
The offer did not go down well with PhonePe, which refused to desert its 'long term partner' when it was down. The company also made dig at PayTm's claim that its UPI platform was "seamlessly scalable".