Today I tried to use Paytm with state bank account. I was making payment for a merchant online and I decided to use Paytm as there was some funds in it and rest was to be used from my SBI account. But to my surprise, my debit card failed, I tried twice but still failed. Then I opted for Freecharge as there was some cash back if I pay using Freecharge but alas, again it failed, this time I tried SBI netbanking but under netbanking, there was no State Bank.. surprised, I check through Mobikwik, and again there was no SBI as netbanking in the list of banks.
Being suspicious, I searched "State Bank of India netbanking issue with Paytm / Freecharge" and found that state bank has disabled netbanking through all these wallet provider.
From BusinessInsider :
One of India’s biggest banks, the State Bank of India (SBI), has blocked its customers from transferring money to their Paytm wallets, rather recommending they use the banks own wallet, the State Bank Buddy, according to Mashable.
This is likely a move to capitalize on changing digital payment habits in the country — digital payments have grown by over 400% since demonetization — which is a result of the country removing 500- and 1,000-rupee banknotes from circulation in early November.
There have been more than 5 million SBI buddy app downloads after it but what the hell SBI is trying to do by this stupid moves ? This is totally against ethics of fair business. I am sure next time I am not going to use my SBI account to hold my money as it won't let me choose the way I want to spend it.
They can capture some of the market of digital wallet because of massive customer base but it will not work for long, atleast I am done with SBI for now. Seriously, they think they can compete with Paytm, no they can't, paytm is far superior and aggressive than their buddy app. I know about SBI buddy from long but still I have not taken trouble to make it my day to day digital payment wallet because I don't find it useful. SBI, please don't force user to use SBI buddy, rather give good reasons, offers to attract people. Blocking paytm or freecharge is utterly stupid.