Paytm Payments Bank Ltd announced on Friday that it is restricting transaction settlements, including UPI, into Yes Bank accounts to "safeguard users’ money". Paytm said in its press release that the step has been taken in order to ensure that Paytm users' money does not get stuck in Yes Bank accounts.
Satish Gupta, MD & CEO of PPBL said, “Safety and security of our users’ money are of utmost importance to us. We have stopped all transactions to YES bank accounts so that the money doesn’t get blocked. We are also requesting users to change their primary bank account to some other bank. However, these restrictions are temporary in nature till the time we get more clarity on the situation.”
Paytm said that payments banks by nature, do not have problem of NPAs as they are not allowed to lend and have to invest 75 per cent of customers' money into government securities making them safe.
Meanwhile, Shares of Yes Bank tanked over 55 per cent after the Reserve Bank of India (RBI) placed the lender under a moratorium, capping deposit withdrawals at Rs 50,000 per account for a month and superseding its board.
The bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.
The unusual move late Thursday evening came hours after finance ministry sources confirmed that State Bank of India (SBI) was directed to bail out the troubled lender.
(With PTI inputs)
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