One97 Communications, the mum or dad entity that operates model Paytm, is totally dedicated in the direction of constructing its enterprise in keeping with regulatory compliances and prudent operations danger insurance policies, its founder and chief Vijay Shekhar Sharma stated in a shareholder letter, as a part of its annual monetary filings.
The firm together with its group entities might be specializing in higher regulatory engagement and better give attention to compliance, each in letter and spirit, the corporate stated on Wednesday.
“We are fully committed towards building our business according to regulatory compliances and prudent operations risk policies,” stated Sharma. ”We are additionally taking varied steps to strengthen the governance framework throughout our group entities (particularly regulated entities) by appointing material specialists as advisors or impartial administrators, reviewing varied processes and so on. I’m guaranteeing that we’ve higher regulatory engagement and have a better give attention to compliance, in letter and in spirit.”
These specialists will present priceless insights and steering to make sure that Paytm’s governance practices are strong and in keeping with finest business requirements. The firm can be conducting impartial validation to make sure transparency and equity in its operations. This method goals to create a compliance-first tradition throughout all group entities, notably these which can be regulated.
Over the previous months, Paytm has taken vital steps to bolster its governance framework, emphasizing its dedication to compliance, danger administration, and regulatory engagement. To improve the governance construction throughout its group entities, Paytm had fashioned a Group Advisory Committee chaired by a former SEBI chairman M Damodaran. This committee has been tasked with evaluating present governance practices and making suggestions to the board, which is able to resolve on an implementation and validation plan for these suggestions.
Paytm’s dedication to enhancing its governance framework extends to its affiliate entity, Paytm Payments Bank Limited (PPBL). On March 1, 2024, Paytm and PPBL disclosed further measures to strengthen PPBL’s impartial operations. As a part of this course of, Paytm and PPBL have mutually agreed to discontinue varied inter-company agreements with Paytm and its group entities. This transfer is designed to cut back dependencies and help PPBL’s governance, impartial of its shareholders. The shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to additional improve PPBL’s governance framework.
Earlier, the board of One 97 Communications Ltd (Paytm) accredited the termination of inter-company agreements and the modification of the SHA. This strategic choice underscores Paytm’s dedication to making sure strong governance and compliance throughout its operations.
These adjustments mirror the corporate’s unwavering dedication to development, profitability, and sustaining the very best requirements of governance and compliance. By investing in danger and compliance capabilities and guaranteeing higher regulatory engagement, Paytm continues to place itself as a pacesetter within the monetary companies business, devoted to innovation and excellence.
Paytm had beforehand introduced its intention to determine new partnerships with different banks to supply seamless companies for its prospects and retailers, sustaining the excessive requirements of innovation and technology-enabled options that Paytm is understood for.
It has partnered with – Axis Bank, HDFC Bank, State Bank of India (SBI), and Yes Bank and has began transitioning its UPI customers to those banks. In February, the corporate partnered with Axis Bank for the nodal account and escrow account to proceed seamless service provider settlements.
