RBI's moratorium on Yes Bank disrupts digital payments, PhonePe hit hardest

Since YES Bank is PhonePe's exclusive UPI partner, the latter's users have been affected the most

With the Reserve Bank of India (RBI) placing YES Bank under moratorium, digital payments associated with the bank have been affected. And PhonePe, the Walmart-owned payments platform, seems to have been hit hardest.

On Friday, Sahil Kini, co-founder of application program interface (API) infrastructure company Setu, tweeted that digital payments such as  National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) and Unified Payments Interface (UPI) that depend on YES Bank at the backend were not going through.

The ease of UPI, which was developed by National Payments Council of India (NPCI), comes from the fact that