PhonePe, Yes Bank’s Other Digital Partners Face Heat of RBI’s Moratorium
Mumbai (News 18): After Yes Bank was placed under moratorium, digital payments were impacted as PhonePe, which depends on the cash-strapped lender for its transactions, could not operate.
It can be noted that the bank’s own net banking facilities have not been operational since Thursday 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 RBI. Entire team’s been working all night to get services back up asap (as soon as possible),” the app’s chief executive Sameer Nigam tweeted early Friday morning.
PhonePe, one of the country’s largest digital payment platforms, is dependent on Yes Bank to process its transactions. He added that the app hopes to be live in a few hours.
Yes Bank was placed under a moratorium Thursday evening, with the RBI 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 SBI.
Just for the record, the ongoing Yes Bank saga is yet another fruit from the UPA era which despite everyone being aware it, the BJP government did nothing in the last 6 years. All the key people such as Raghuram Rajan, Urjit Patel, Bhandary knew about this but our dear leader Modi-G couldn’t care less, instead he replaced them all with stooges. Now let the BJP government deal with the mess somebody else had created.
Selling tea may make someone an able leader but that does not automatically make him an expert on everything. A good leader listens. The economy is collapsing in front of our eyes, banks are on life support, stock market is crashing. Only low oil price is keeping a lid on the simmering turmoil. Now some idiot close to him will advice him to raid the bank lockers. And then you watch the fun unfolding in front of your eyes.
Ever since BJP came to power Modi has gone on a spending binge using borrowed money (mudra yojana etc.). He was effectively doing banks’ job without employing due diligence. It’s easy to throw away somebody else’s money. Banks have a well-established process while ascertaining the creditworthiness of the borrower but UPA used shoulder-twisting techniques to lend to their cronies while Modi by-passed the system altogether. Now the taxpayer is ****ed.
The writing is almost on the wall, he will be forced to turn himself into Erdogan or a Mussolini. You can not rule a country of 1.2 billion when the system is crashing. Sad to see it because in other areas of administration he has done a commendable job. I am not questioning his intentions – I am sure he cares about the poor people but so does everyone else. But when there is no money, from where are you going to help the poor? On one hand he wants digital economy (cash ban) and at the same time people can not get to their money due to the banks collapsing. Why is he not getting the point? A little bit of common sense and economic knowledge would have helped but he and those close to him are too stubborn to listen.
Yathaa raaja, thathaa prajaa. Now sit back and enjoy.
SBI is buying the shares worth 2450 crore Rs equal to 49% of shares.
That might allow it to recover. People are desperate.
Does any one know the future of merged banks?
PS: Is it true that mattresses are in demand again?
It’s like rearranging the deck chairs on the sinking Titanic. SBI bailout may buy a couple of years but the poison will still remain in the banking sector. Might delay the inevitable by a little more. It’s like cancer cells.
Until the government brings in a stringent criminal law to imprison those convicted under the financial misconduct for at least 25 years (i.e. the “chakki peesing” punishment) Indian economy hasn’t got a bat’s chance in hell of prospering. PMC’s Joy Thomas, PNB Shetty, Rana Kapoor et. al. should be sent away for at least 25 years. Then we may have some hope. In fact it’s the punishment of that kind that has maintained the reputation in the American financial system. But in India we have the English/Common law system but with the worst of both worlds where the accused gets more rights than those affected. And the never ending system of appeals pulls wool over everyone’s eyes. Why hasn’t Modi figured out about this?
If there are 2 people who I want to point a finger at, then it is MMS and Chidambaram. Modi comes a distance 3rd. In fact if it were personally up to me, I would **** both MMS and PC with their own mundaas and lungi publicly. I still struggle to fathom with what decency they are criticising the current government about the current banking crisis when they were the chief architects.
YES Bank has grown under the BJP’s watch as follows: FY2014: Rs 55,000 crore, FY2015: Rs 75,000 crore, FY2016: Rs 98,000 crore, FY2017: Rs 1,32,000 crore, FY2018: Rs 2,03,000 crore and FY2019: Rs 2,41,000 crore,” Chidambaram said.
Anil Ambani and Subash Chandra, two billionaires close to Modi and the BJP, are on Yes bank’s list of biggest defaulters.
BJP wants SBI to buy Yes bank’s shares at Rs 10 per share when Yes bank’s value is probably zero. The most probable reason BJP is using taxpayer money to bail out Yes bank is to protect its billionaire cronies from having to pay thousands of crores in loans immediately to Yes bank.
This is where I blame the Modi government because he used the “extend and pretend” approach by going for the debt rollover when the poison should have been liquidated back in 2014-2016 itself. Now it’s easy for PC to blame BJP as it has muddied the waters significantly and no single person can be fully apportioned the blame.