Last Updated: March 01, 2024, 08:49 IST
In March 2022, the RBI barred PPBL from onboarding new prospects with instant impact. (Representative picture)
Paytm has introduced that it has mutually agreed to discontinue varied inter-firm agreements with Paytm Payments Bank
Paytm has introduced that it has mutually agreed to discontinue varied inter-firm agreements with Paytm Payments Bank (PPBL). Paytm mentioned the corporate and its affiliate entity, PPBL, launched extra measures to strengthen their strategy in direction of unbiased operations of PPBL.
“One 97 Communications Ltd (Paytm) would like to inform that the Company and its associate entity, Paytm Payments Bank Limited (PPBL), have introduced additional measures to strengthen their approach towards independent operations of PPBL,” Paytm mentioned in a regulatory submitting.
Paytm Payments Bank has been instructed by the Reserve Bank of India to halt its primary banking companies from March 16. Earlier this week, on Monday, Vijay Shekhar Sharma – the founding father of Paytm – introduced his resignation from the board of Payments Bank, which changed its administrators with new inductees, principally from the banking and bureaucratic fraternity.
Paytm had introduced earlier that it will enroll new partnerships with different banks and take measures to supply seamless companies for its prospects and retailers. In its intimation to inventory exchanges on Feb 1, 2024, the corporate had indicated the doable monetary influence.
As knowledgeable earlier, One 97 Communications Limited and its companies that embody the Paytm app, Paytm QR, Paytm soundbox and Paytm Card machines will proceed to work uninterrupted. Paytm is dedicated to uphold the very best requirements of market main innovation and expertise enabled options for its prospects.
The transfer to diassociate choices and cut back dependency will see each Paytm and Payments Bank discontinue inter-firm agreements. Paytm had earlier introduced that it will enroll new partnerships with different banks and take measures to supply seamless companies for its prospects and retailers.
“As part of this process to reduce dependencies, Paytm and PPBL have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities. Further, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support PPBL’s governance, independent of its shareholders. The Board of OCL approved the termination of agreements and amendment of SHA on March 1, 2024,” mentioned the submitting.
Paytm additionally clarified within the submitting that its companies would proceed to function seamlessly amid scrutiny, saying it was “committed to uphold the highest standards of market leading innovation and technology-enabled solutions for its customers.”
