In a hilarious tweet, Paytm invited PhonePe to work on its bank platform to restore its services and added that Paytm can “seamlessly scale manifold” to handle the latter’s business. PhonePe rebuked the former saying that they would have contacted them if their UPI platform was “so seamless.”
No point getting back up faster, if we have to desert our long term partners when they’re down. Form is temporary, class is permanent.
— PhonePe (@PhonePe_) March 6, 2020
The Twitter confrontation happened after PhonePe was forced to temporarily suspended its services, following the moratorium imposed by the Reserve Bank of India on YES Bank. The popup reads, “We are going through an unscheduled maintenance activity. We apologise for any inconvenience this may cause.”
— Rahul Chari (@rahulchari9) March 6, 2020
The regulator has imposed a cap of ₹50,000 on withdrawals from accounts in the Yes Bank for a month. In case of medical expenses, higher education or marriage or other ceremonies in the family, or in any unavoidable emergencies, the limit will be extended to ₹5,00,000.
The YES Bank was the acquiring bank of PhonePe.The bank has been prohibited from granting or renewing any lean or advance, making any investment, incur any liability after March 5. The bank can make payment for regular expenses like salaries, rents, taxes, printing and stationery, premium payment etc, but will need RBI approval for any other expenses.
RBI has also suspended the Board of Directors of Yes Bank Ltd. for a period of 30 days “owing to a serious deterioration in the financial position of the Bank”. Prashant Kumar, ex-DMD and CFO of State Bank of India, has been appointed as the administrator of the bank.