For those of you wondering, why the #Yesbank moratorium has messed up fintech's and their clients - a short thread:
1. Yes bank had one of the best banking APIs allowing API based banking. The moratorium hence is "Losing the API".
1. Yes bank had one of the best banking APIs allowing API based banking. The moratorium hence is "Losing the API".
2. Until today, I did not know that I had a Yes bank account b/c I used @Razorpay to generate a virtual account and linked it w/ POS vendors like PayTm, ezeTap etc.
3. Now all settlements from POS vendors are locked, till I move it to other bank accounts.
3. Now all settlements from POS vendors are locked, till I move it to other bank accounts.
4. So in essence the cost to fintech's multiplies because their API should now work w/ not-so-great-API, semi-automated processes of other banks.
5. It also points to the folly of using direct banking APIs. If you had linked your ERP to Yes bank APIs, you are toast.
5. It also points to the folly of using direct banking APIs. If you had linked your ERP to Yes bank APIs, you are toast.
6. I thought I was being clever in using RazorPay APIs and not dealing w/ bank APIs, but as this episode indicates, a critical API dependency failure, has cascading impacts and no one can escape it.
7. I don't think RBI understands this API driven payments landscape at all.
7. I don't think RBI understands this API driven payments landscape at all.
8. And when tech like this freezes over, it worsens the economic scenario.
And as @andymukherjee70 pointed out, you don't come from third man to slips and drop catches.
This shit show is fully on RBI.
#
And as @andymukherjee70 pointed out, you don't come from third man to slips and drop catches.
This shit show is fully on RBI.
#
