As Yes Bank crisis hits PhonePe, an invite from Paytm

Sameer Nigam, the founder-CEO of PhonePe, confirmed in a tweet that the outage was a result of the Yes Bank crisis.

Walmart India's payment services provider PhonePe suffered an outage after the Reserve Bank of India (RBI) on Thursday put Yes Bank under moratorium.

The RBI on Thursday placed Yes Bank under a moratorium for 30 days and capped the withdrawals at Rs 50,000. It also superseded the board of directors of the private lender for 30 days and appointed former SBI CFO Prashant Kumar as the bank`s administrator.

PhonePe tweeted on Thursday that its services were temporarily unavailable as it was going through an unscheduled maintenance activity.


"We are temporarily unavailable. We are going through an unscheduled maintenance activity. We apologize for any inconvenience this may cause. We’ll be back soon." it said in a tweet.

Sameer Nigam, the founder-CEO of the company, confirmed in a tweet that the outage was a result of the Yes Bank crisis.

"Dear @PhonePe_ customers. 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. We hope to be live in a few hours. Thanks for your patience. Stay tuned for updates," he said in a tweet.


Later, the company asked users to use "Debit & Credit cards and PhonePe Wallet to make payments now."

The crisis also triggered a tongue-in-cheek remark from Paytm Payments Bank.

In a tweet on Friday, as the Flipkart-owned payment service was struggling to get back on its feet, Paytm tweeted, "Dear @PhonePe_, Inviting you to @PaytmBank #UPI platform. It already has huge adoption and can seamlessly scale manifold to handle your business. Let’s get you back up, fast!"

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The offer was politely shot down by PhonePe, which said in reply, "Dear @PaytmBank, Inviting you to consider that if your #UPI platform was so 'seamlessly scalable', we'd have called you ourselves. 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.