Yes Bank loses 50% of its stock value and shuts down digital payments across India
Consumers and businesses in India have reported difficulties in processing digital transactions. The issues arose since the country’s Central Bank took control of Yes Bank on March 5.
Yes Bank is India’s fourth largest creditor. According to the authorities, it has been struggling with stabilizing its finances and marching the necessary requirements for independent operations. As a result, the bank has been temporarily taken over, the power of the board and all withdrawals and outgoing transactions have been limited. The situation has dealt a heavy blow to the Yes Bank shares - in less then a day the stock lost over 50% of its value.
Yes Bank is both financial and technical partner for a number of Indian fintech startups. Many of them relied on the bank’s infrastructure to steadily carry out operations like QR codes payments, UPI-based payments and the functioning of point-of-sale terminals. Needless to say, that the takeover and new restrictions caused many outages and system failures in their work.
One of the “victims” of the takeover is PhonePe - a large e-commerce platform, owned by Walmart. Tens of millions of users lost access to the service. The company has reported, that it is currently working on the issue and has managed to restore access for some of the vendors.