The
Paytm board
has given its approval for the discontinuation of several
inter-company agreements
with its associate entity,
Paytm
Payments Bank Limited (
PPBL
), the company informed the same to stock exchanges on March 1.
The company statement to stock exchanges further said that shareholders of PPBL have mutually agreed to simplify the Shareholders Agreement (SHA) to support PPBL’s governance, independent of its shareholders, One 97 Communications (OCL). For those unaware, OCL owns the Paytm brand.
Here's Paytm's statement to Bombay
Stock Exchange
:
Dear Sir/ Ma’am,
Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that, the Board of Directors of the Company on March 01, 2024, at 07:28 A.M. (IST), through circulation, have approved the discontinuation of various inter-company
agreements with its associate entity, Paytm Payments Bank Limited (PPBL).
We are enclosing herewith an update in this regard. This disclosure will also be hosted on the Company's website viz. www.paytm.com.
Kindly take the same on record.
Thanking you
Yours Sincerely,
For One 97 Communications Limited
Sunil Kumar Bansal
Company Secretary & Compliance Officer
Ban on Paytm Payments Bank
The announcement comes in the backdrop of the ongoing regulatory action against the Paytm Payments Bank by the Reserve Bank of India (RBI) citing compliance issues. On January 31, the RBI imposed restrictions on the Paytm Payments Bank citing prolonged history of non-compliance. These include violations related to KYC and norms Earlier, Paytm anounced that it would sign up new partnerships with other banks and take measures to provide seamless services for its customers and merchants.
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