File image of Paytm app in opposition to a background of the brand
| Photo Credit: Reuters
Amid RBI’s motion on its affiliate agency, One 97 Communications on Friday stated the board has authorised the discontinuation of inter-company pacts with Paytm Payments Bank to reduce dependencies.
The transfer assumes significance as Paytm Payments Bank Limited (PPBL) is below the RBI’s lens over persistent non-compliance and continued materials supervisory considerations.
In a statutory submitting on Friday, One 97 Communications (which owns and operates Paytm) stated the corporate and its affiliate entity, Paytm Payments Bank Limited (PPBL), have launched further measures to strengthen their strategy in direction of unbiased operations of PPBL.
“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,” the BSE submitting stated.
Also, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to help PPBL’s governance, unbiased of its shareholders, it added.
The Board of OCL authorised the termination of agreements and modification of SHA on March 1, 2024.
Paytm had introduced earlier that it will enroll new partnerships with different banks and take measures to present seamless companies to its prospects and retailers. In its intimation to inventory exchanges on February 1, 2024, the corporate had indicated the doable monetary impression.
“As informed earlier, One 97 Communications Limited (OCL) and its services that include the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines will continue to work uninterrupted. Paytm is committed to uphold the highest standards of market-leading innovation and technology-enabled solutions for its customers,” the corporate added.
It could also be recalled that in a regulatory motion in January, the RBI barred PPBL from accepting contemporary deposits or top-ups in buyer accounts, wallets, FASTags, and different devices after February 29 – a deadline that was later prolonged to March 15.
On Monday, Vijay Shekhar Sharma stepped down as part-time non-executive Chairman of Paytm Payments Bank Limited and the board of the financial institution was reconstituted. PPBL will begin the method of appointing a brand new Chairman.
