Paytm cuts ties with Paytm Payments Bank, ends inter-company pacts after RBI's crackdown

Paytm has cut company ties with Paytm Payments Bank

Paytm’s parent company One 97 Communications said in a company filing on Friday that the firm’s board has decided to discontinue the inter-company pacts with its banking service Paytm Payments Bank to reduce dependencies. This move by the company comes after the RBI crackdown against the payments bank.

Paytm Payments Bank Limited (PPBL) has remained under the lens of the Reserve Bank of India for a couple of months now. The apex bank has issued a deadline of March 15 to the firm to halt its credit transactions and deposits.

One 97 Communications said during a statutory filing on Friday that the company and its associate entity, Paytm Payments Bank Limited (PPBL), have introduced additional measures to strengthen their approach towards independent operations of PPBL.

“As part of this process to reduce dependencies, Paytm and PPBL have mutually agreed to discontinue various inter-company agreements with Paytm and its group entities,” the firm told BSE in the filing.

Paytm further said, “As informed earlier, One 97 Communications Limited (OCL) and its services that include the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines will continue to work uninterrupted. Paytm is committed to uphold the highest standards of market-leading innovation and technology-enabled solutions for its customers.”

“Paytm had announced earlier that it would sign up new partnerships with other banks and take measures to provide seamless measures and services for its customers and merchants. In its intimation to stock exchanges on Feb 1, 2024, the company had indicated the possible financial impact,” One97 Communications said.

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