State Bank of India blocks its customers from loading money to wallet services, using net banking

State Bank of India is actively blocking its users from transferring money using net banking to mobile wallet services and some e-commerce websites. This comes a week after a report by Business Insider where SBI had blocked its customers from loading money on Paytm.

According to the exclusive coverage by CNBC-TV18, SBI is preventing its users from using its Internet banking portal from loading money on Paytm, FreeCharge, Mobilkwik, Jio Money and Airtel Money. The reasons pointed out at this ban include the security issues plaguing these services according to SBI.

EXCL @TheOfficialSBI blocks several E-Wallets. @PriyaSheth7 gets us the details. pic.twitter.com/pRAr8lQfux

— CNBC-TV18 (@CNBCTV18News) January 4, 2017

Phishing attacks in recent past are another reason of why SBI has blocked the facility. RBI has demanded an explanation from SBI on this move given that these e-wallet services are the primary source of transactions during the ongoing demonetisation and lack of cash in the market. According to the report, protecting its customers from these attacks and any losses that may occur from the attacks is SBI’s primary goal here. One important thing to note is that SBI customers can still use their debit and credit cards to load the money to these services. Internet Banking is the only method that has been blocked by SBI at the time of writing.

EXCL SBI blocks E-Wallets. Bipin Preet Singh, Founder and CEO, Mobikwik shares his views here. pic.twitter.com/rDQ1MM9D35

— CNBC-TV18 (@CNBCTV18News) January 4, 2017

One interesting thing to note here is that SBI customers can still transfer their money to SBI’s e-wallet by the name of ‘SBI Buddy’ app. Mobikwik asked SBI to reconsider all payment options. Mobilkwik CEO Bipin Preet Singh pointed out that this is not new and its been almost six months since the bank started banning its users from loading money on its services.