New Delhi, March 1 (IANS) One 97 Communications Ltd, the parent company of Paytm, and Paytm Payments Bank Limited (PPBL) have decided to discontinue various inter-company agreements as the Reserve Bank of India (RBI) ban on the bank’s operations approaches.
According to a BSE filing, Paytm and PPBL have mutually agreed to discontinue various inter-company agreements to reduce dependencies. The shareholders of PPBL have also simplified the Shareholders Agreement (SHA) to support PPBL’s governance, independent of its shareholders. The termination of agreements and amendment of SHA were approved by OCL’s Board on March 1, 2024.
Paytm had earlier announced plans to sign up new partnerships with other banks and take measures to ensure uninterrupted services for its customers and merchants. Services like Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines will continue to function seamlessly beyond the RBI’s March 15 deadline.
Late last month, Paytm’s Founder and CEO Vijay Shekhar Sharma stepped down as Non-Executive Chairman and Board Member of Paytm Payments Bank. PPBL’s future business will be overseen by a reconstituted Board by OCL following the RBI’s ban on the bank’s operations from March 15.
In its commitment to uphold market-leading innovation and technology-enabled solutions for its customers, Paytm reassures its customers of uninterrupted services despite the impending RBI ban on PPBL’s operations. The company aims to continue providing seamless services through partnerships with other banks and ongoing technological advancements.
As Paytm and PPBL navigate through the challenges posed by the RBI ban, their focus remains on ensuring minimal disruptions for their customers and merchants. With the termination of various inter-company agreements and the simplification of the Shareholders Agreement, the companies aim to streamline their operations and governance for a more resilient and independent functioning.
