Paytm Payments Bank curbs Yes Bank transactions

Paytm Payments Bank curbs Yes Bank transactions

Paytm Payments Bank Ltd (PPBL) on Friday restricted transaction settlements, including those done through UPI platform, into cash-strapped Yes Bank’s accounts.

The decision by PPBL follows the Reserve Bank of India’s move to cap withdrawals from Yes Bank accounts at Rs 50,000 per depositor for a month and imposed strict limits on operations at the country’s fourth-largest private lender that faced ‘regular outflow of liquidity’ after an effort to raise new capital failed.

‘Paytm Payments Bank Ltd (PPBL) today (Friday) announced that they are restricting transaction settlements, including UPI, into Yes Bank accounts to safeguard their users’ money,’ PPBL said in a statement.

Yes Bank has been seeking funding since last year to bolster its financial ratios and quell questions about its stability due to its exposure to the non-banking financial company sector entangled in a prolonged crunch in the local credit market.

‘While third-party apps that rely on Yes Bank have also been affected, the UPI ecosystem has been designed in a way where customers can continue using other UPI apps to transact on UPI. Paytm customers continue to use Paytm UPI and wallet service without any interruption as before,’ the statement said. — PTI

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