In response to regulatory actions from the Reserve Bank of India (RBI), One 97 Communications, the father or mother firm of Paytm, has introduced plans to discontinue inter-company agreements with its affiliate entity, Paytm Payments Bank Limited (PPBL). The transfer aimed to reduce dependencies and strengthen the impartial operations of PPBL, which has come below scrutiny for non-compliance and supervisory considerations.
Board approves discontinuation of agreements
The resolution to terminate inter-company pacts and simplify the shareholder settlement (SHA) was accepted by the board of One 97 Communications on March 1, 2024. This strategic shift underscores the corporate’s dedication to enhancing governance and operational autonomy for PPBL.
Paytm explores new partnerships
With the discontinuation of inter-company agreements, Paytm is poised to discover new partnerships with different banks, signaling its dedication to offering seamless providers to prospects and retailers. Despite regulatory challenges, Paytm stays steadfast in its mission to ship revolutionary and technology-enabled options to its consumer base.
Vijay Shekhar Sharma steps down
In a associated growth, Vijay Shekhar Sharma, the founding father of Paytm, has stepped down as part-time non-executive chairman of Paytm Payments Bank Limited. The financial institution’s board is present process reconstitution, with plans underway to appoint a brand new chairman as PPBL navigates by the regulatory panorama.
