The parent firm of paytm, One97 Communications, said on friday that it had chosen to end a number of inter-company arrangements with payments banks. This is done in advance of the Reserve bank of India's (RBI) march 15 deadline for the paytm Payments bank to cease operations.
 
"Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that, the Board of Directors of the Company on march 01, 2024, at 07:28 A.M. (IST), through circulation, have approved the discontinuation of various inter-company agreements with its associate entity, paytm Payments bank Limited (PPBL)," the business stated in a statement.
 
Following the RBI's assault on the paytm Payments bank, paytm, a significant fintech company in india, ran into issues because of continuous substantial supervisory concerns and non-compliance. paytm Payments bank Limited was recently prohibited by the central bank from receiving new deposits or top-ups in client accounts, wallets, FASTags, and other instruments after february 29. The deadline was subsequently extended to march 15.
 
Paytm founder vijay shekhar sharma resigned from his position as chairman of paytm Payments bank Limited on february 26. The bank's board was then reassembled.
 
With the appointment of former Central bank of india Chairman Srinivasan Sridhar, retired IAS officer Debendranath Sarangi, former bank of Baroda Executive director Ashok Kumar Garg, and former IAS officer Rajni Sekhri Sibal, the PPBL has reformed its Board of Directors.
 
Owner of the paytm brand One97 Communications owns 49% of the paid-up share capital both directly and through a PPBL subsidiary. At the bank, vijay shekhar sharma has a 51% share.
 
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G GOWTHAM

01/03/2024 09:41 AM