Paytm Cuts Ties With Paytm Payments Bank Ends Inter Company Pacts After RBI Crackdown
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Paytm has cut Company ties with Paytm Payment Bank.
The board of Paytm's parent company, One 97 Communications, decided to cancel the inter-company agreements with its banking service, Paytm Payments Bank, in order to lessen reliance, the business announced in a filing on Friday. The company's action follows the RBI's crackdown on the payments bank.
The Reserve Bank of India has been keeping a close eye on Paytm Payments Bank Limited (PPBL) over the past few months. The company has been given till March 15th by the apex bank to stop making deposits and credit transactions.
In a statutory filing on Friday, One 97 Communications stated that it and its affiliated company, Paytm Payments Bank Limited (PPBL), have strengthened their approach to PPBL's independent operations by implementing new safeguards. The company informed BSE in the filing that "Paytm and PPBL have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities as part of this process to reduce dependencies."
"One 97 Communications Limited (OCL) and its services, which include the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines, will continue to work uninterrupted," Paytm added in a statement. Paytm is dedicated to maintaining the greatest caliber of technologically advanced solutions and industry-leading innovation for its users.
"Paytm has previously declared that it will form new alliances with other banks and take action to offer its users and merchants seamless services and solutions. One97 Communications stated that the business had disclosed the potential financial impact in its notification to stock exchanges on February 1, 2024.
