These third-party apps could be leaking your Info
By Vamsi Krishna N : 16-Jan-2017
Many third party applications introduced for Unified Payments Interface (UPI) platform are revealing information related to bank’s customers, which has become a major concern for the large banks like ICICI and SBI.
One such example with the above stated concerns is the PhonePe UPI application which has been blocked by the ICICI bank for its customers from accessing their accounts using the app.
PhoePe app is owned by Flipkart and facilitated the UPI through a partnership with Yes Bank. Flipkart has provided its customers another way of making payments through the integration of UPI payments on its website. Alas, the customers of ICICI could not add their bank account to the PhonePe UPI app.
Sameer Nigam, CEO, PhonePe has raised concerns over this unavailability of the ICICI bank accounts to its customers in the app, through his Twitter account saying that, “We have received no communication from them nor Yes Bank. We are clueless as to why this has been done.”
In response, the ICICI bank said that these third party applications are following certain restrictive practises that are keeping the confidential information related to the bank accounts of their customers in danger.
The ICIC bank responded saying that, “Some banks, including us have raised security related concerns at appropriate forums about the access to UPI data to a non-banking application. Further, this entity is following restrictive practices allowing users to make payments with only its UPI handle, which is in contravention to the UPI guidelines of interoperability and choice that empowers a customer to choose any app to make payments through UPI.”
Manju Agarwal, deputy director of SBI responded in a similar way saying that, “As per UPI, only bank applications can be used by customers. We will have to take up with the RBI and NPCI to get non-banks blocked.”