New Delhi: India's Paytm and its payments bank unit have mutually agreed to discontinue various inter-company agreements in the process to reduce dependencies, the embattled payments firm said on Friday. Paytm, formally known as One 97 Communications, did not specify what agreements were being terminated.


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The payments bank agreed to simplify the shareholders' agreement to "support (Paytm Payments Bank's) governance, independent of its shareholders," the company said. (Also Read: RBI Revises Bill Payment Rules: Key Changes, Effective Date, All You Need To Know)


Paytm CEO Vijay Shekhar Sharma owns a 51 percent stake in Paytm Payments Bank while Paytm owns the rest. (Also Read: BIG Bonanza To Farmers Ahead Of Kharif Season! Centre Clears Rs 24,400 Crore Fertiliser Subsidy)


The move came days after Sharma stepped down as non-executive chairman and board member of the payments bank unit, as part of a major overhaul that follows a central bank clampdown.


The Reserve Bank of India had asked Paytm Payments Bank to wind down operations by March 15 due to persistent compliance issues and supervisory concerns, triggering a meltdown in Paytm's stock.


The action against the unit followed concerns including inadequate customer identity checks and a lack of arms-length distance from parent company Paytm, sources previously told Reuters.