PhonePe Resumes Services, Replaces Yes Bank With Nation’s Second Largest Private Sector Lender ICICI Bank

After its services were disrupted following the Reserve Bank of India (RBI)'s decision to impose a moratorium of Yes Bank for a period of 30 days, digital payments major PhonePe resumed its services on Saturday (7 march), reports Economic Times.

The United States (US) based Walmart owned PhonePe relied exclusively on now beleaguered Yes Bank to process its payments requests. The same had been hit after RBI decreed that users of the bank would not be able to withdraw more than Rs 50,000 for a month.

After the development, PhonePe coordinated with National Payments Corporation of India (NPCI) and got into a partnership with nation's second largest private sector lender ICICI Bank to supplant the role of Yes Bank in supporting its payments infrastructure. PhonePe's chief executive officer (CEO) has expressed gratitude to the ICICI Bank and NPCI for making the turnaround possible in such a short span.

Meanwhile, it should be noted that as many as 15 firms are said to have been dependent on Yes Bank for services. These are believed to have been impacted since the RBI's decision in different capacities.