The State Bank of India (SBI) is in hot water after being accused of blocking customers from topping up their mobile wallets using internet banking. The bank is being accused of trying to monopolise the digital payments market.

SBI has gone on the defensive, claiming that there are security issues with the platforms involved, including Paytm. According to Inc24, it has been systematically blocking payments firms and directing users towards its own application, State Bank Buddy. All of this is a temporary measure, says the bank, and customers can still top up their wallets from credit and debits cards. Despite this, the Reserve Bank of India, the country’s financial regulator, has asked SBI for clarification.

Digital payments in India have seen a boost in recent times following the government’s demonetisation announcement. Paytm, meanwhile, has been given a licence to set up a new payments bank, so might be giving SBI a run for its money by the end of the year.

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by Alex Hamilton
Alex is Senior Reporter at IBS Intelligence, follow him on Twitter or contact him at: alexanderh@ibsintelligence.com
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