Yes Bank got into trouble, Flipkart, FonPy and Sweegy got into trouble

The Reserve Bank of India (RBI) on Thursday suspended Yes Bank, after which a Yes Bank customer can withdraw only Rs 50,000 per month. The sudden news has affected not only Yes Bank account holders, but also many third party applications and Fintech startups in India. One of the most damaging apps is PhoneP, which began to face a complete embarrassment with the announcement of Yes Bank’s suspension. Not only that, but the impact of the news has been felt on food distribution app Suigi and e-commerce giant Flipkart.

On social media, many PhoneP users have complained about the problem of not transacting. PhonePay confirmed the breach in a tweet posted late Thursday night, describing it as a “scheduled maintenance activity.”

However, the matter has been confirmed due to the issue bank update on Friday by Samir Nigam, founder and CEO of PhoneP.

PhoneP is one of the many start-ups that the bank has as a takeover bank or payment service provider (PSP). Suigi also has Yes Bank on its list of banks that support UPI payments, so Swiggy has removed the option to order food using a UPI account from the app. Similarly, Flipkart has removed the payment option using PhoneP. Payment gateway RazorPay also uses Yes Bank in its backend. The agency said that while payment gateway services are not currently affected, some of Gateway’s other services may be affected by Yes Bank’s news.

Companies like Airtel Payments Bank and CRED have made it clear on social media how the news will affect their operations.

Yes Bank is one of the leading private banks in India that provides many solutions to power startups. In November last year, Mumbai-based bank launched Yes Fintech Developer Platform as an AIPI sandbox with more than 50 virtual APIs to test banking integration for startups and individual developers for their applications.

In addition to the impact of this news on third-party apps and payment platforms, Yes Bank’s own apps and netbanking services have also been affected and access to them is currently closed. This means that if you have a yes bank account, you will not be able to transfer your funds to another bank. Other than that you can’t use NetBanking to make payments anywhere. Although there is no need to panic, hopefully the situation will return to normal soon.

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