India Paytm terminates some ties with troubled banking unit

Amid RBI’ action on its associate firm, One 97 Communications said the board has approved the discontinuation of inter-company pacts with Paytm Payments Bank to reduce dependencies.

RBI has imposed restrictions on the financial transactions of Paytm Payments Bank Limited (PPBL). RBI ordered to stop all credit transactions and deposits in PPBL. The deadline for that is March 15. In this context, Paytm has decided to reduce its reliance on Paytm Payments Bank. As part of that, Paytm has canceled all inter-company agreements with Payments Bank.

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One 97 has told BSE that Paytm and Paytm Payments Bank Ltd have mutually agreed to terminate various inter-company agreements with Paytm and its group companies as part of a move to reduce dependencies . Even after March 15, One 97 Communications Limited (OCL), Paytm App, Paytm QR, Paytm Sound Box and Paytm Card machines will continue to function without any disruption, the company said. Paytm has made it clear that it is committed to maintaining the highest standards of market leading innovation and technology driven solutions for its customers.

Paytm has previously announced that it will enter into new partnerships with other banks and take all necessary measures to provide uninterrupted services to its customers and merchants in order to avoid any disruption in the financial operations of Paytm.