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Image Source : PTI/FILE PHOTO Paytm founder and CEO, Vijay Shekhar Sharma.
In response to regulatory actions from the Reserve Bank of India (RBI), One 97 Communications, the parent company of Paytm, has announced plans to discontinue inter-company agreements with its associate entity, Paytm Payments Bank Limited (PPBL). The move aimed to lessen dependencies and strengthen the independent operations of PPBL, which has come under scrutiny for non-compliance and supervisory concerns.
Board approves discontinuation of agreements
The decision to terminate inter-company pacts and simplify the shareholder agreement (SHA) was approved by the board of One 97 Communications on March 1, 2024. This strategic shift underscores the company’s commitment to enhancing governance and operational autonomy for PPBL.
Paytm explores new partnerships
With the discontinuation of inter-company agreements, Paytm is poised to explore new partnerships with other banks, signaling its commitment to providing seamless services to customers and merchants. Despite regulatory challenges, Paytm remains steadfast in its mission to deliver innovative and technology-enabled solutions to its user base.
Vijay Shekhar Sharma steps down
In a related development, Vijay Shekhar Sharma, the founder of Paytm, has stepped down as part-time non-executive chairman of Paytm Payments Bank Limited. The bank’s board is undergoing reconstitution, with plans underway to appoint a new chairman as PPBL navigates through the regulatory landscape.
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