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Wednesday, April 24, 2024

Paytm and PPBL agree to discontinue various inter-company agreement

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New Delhi: Within days of reconstituting the Board of Directors, One 97 Communications Ltd (Paytm) on Friday said 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 company informed the stock exchanges.

Further, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support PPBL’s governance, independent of its shareholders.

The Board of OCL approved the termination of agreements and amendment of SHA on March 1, 2024. Paytm had announced earlier that it would sign up new partnerships with other banks and take measures to provide seamless services for its customers and merchants.

Earlier this week, Paytm Payments Bank chairman Vijay Shekhar Sharma had resigned from his position and also from the Board. A new Board was reconstituted.

The new Board was constituted with the appointment of Ex-Central Bank of India Chairman Mr. Srinivasan Sridhar, retired IAS officer Mr. Debendranath Sarangi, former Executive Director of Bank of Baroda Mr. Ashok Kumar Garg, and Retd. IAS Mrs. Rajni Sekhri Sibal.

In its intimation to stock exchanges on Feb 1, 2024, the company had indicated the possible financial impact. As informed earlier, One 97 Communications Limited 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.

Last month, the Central Bank RBI had barred PPBL from accepting fresh deposits or top-ups in customer accounts, wallets, FASTags and other instruments after February 29, a deadline which was extended till March 15, due to non-compliance of regulations and corporate governance related issues.

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