Paytm Cuts Ties With Payments Bank Arm:
Fintech leader Paytm announced steps to sever certain operating agreements between its parent entity One97 Communications and the group’s payments bank arm Paytm Payments Bank (PPBL).
- As part of governance changes, the two firms will function with greater independence going forward.
- 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 shares informed stock exchanges that after mutual evaluation, the company boards decided to terminate previous arrangements between One97 and PPBL across technology services, software licensing and brand sharing.
- Earlier, One97 provided managed services and infrastructure support to PPBL besides licensing its payment processing platform and the Paytm brand for usage by the payments bank.
- These agreements had attracted some regulatory concerns about conflict of interest between the promoter group entities.
- Hence, both companies agreed to advance an arm’s length relationship by stopping the inter-company arrangements.
