Discover the shocking decision Paytm just made to break free from banking ties and the RBI’s grip. Uncover the hidden motives and potential fallout in this exclusive expose!
Paytm’s Strategy Shift: Cutting Ties with Paytm Payments Bank
In a recent company filing, One 97 Communications, the parent company of Paytm, disclosed a significant decision. The board of directors has opted to terminate the inter-company agreements with Paytm Payments Bank, a move aimed at reducing dependencies. This strategic shift comes in the wake of regulatory actions by the Reserve Bank of India (RBI) targeting the payments bank.
Paytm Payments Bank Limited (PPBL) has been under regulatory scrutiny from the RBI for several months. The central bank has set a deadline of March 15 for the firm to cease its credit transactions and deposits.
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Strengthening Independence
One 97 Communications emphasized its commitment to bolstering the independent operations of PPBL. The company stated that it, along with its associate entity PPBL, has implemented additional measures to reinforce this approach.
As part of the strategy to diminish dependencies, Paytm and PPBL have mutually agreed to terminate various inter-company agreements with Paytm and its group entities. This decision reflects the company’s determination to streamline operations and enhance autonomy.
Despite these changes, Paytm reassured stakeholders that its core services, including the app, QR, soundbox, and Card machines, will continue without interruption. The company reiterated its commitment to delivering innovative and technology-driven solutions to its customers.
In response to the regulatory challenges, the fintech giant had previously announced plans to forge new partnerships with other banks. The company aims to ensure seamless services for its customers and merchants. In a communication to stock exchanges on February 1, 2024, One97 Communications hinted at the potential financial ramifications of these developments.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and One97 Communications have contributed to the above story
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