Paytm and Paytm Payments Bank mutually agree to discontinue various inter-company agreements
Mar 01, 2024
New Delhi [India], March 1 : In an official filing to the BSE and the NSE, One 97 Communications Ltd (Paytm) has informed 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. 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 One 97 Communications Ltd approved the termination of agreements and amendment of SHA on March 1. 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.
In its intimation to stock exchanges on February 1, the company had indicated the possible financial impact.
The filing also clarified that, 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.
The filing added that Paytm is committed to uphold the highest standards of market leading innovation and technology enabled solutions for its customers.
Earlier on February 26, One 97 Communications Ltd (OCL) had said that its associate bank Paytm Payments Bank Limited, has reconstituted its Board of Directors. It appointed Ex-Central Bank of India Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former Executive Director of Bank of Baroda Ashok Kumar Garg, and Retd. IAS Rajni Sekhri Sibal.
In the same exchange filing, it said the Company has been separately informed that founder Vijay Shekhar Sharma has also resigned from the Board of Paytm Payments Bank to enable this transition.
