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One 97 Communications discontinues inter-company agreements with Paytm Payments Bank
Economic Times · 1y ago
Medial
Indian payments company Paytm, operated by One 97 Communications, has announced that it is discontinuing various inter-company agreements with its payments bank unit. The move comes as part of an effort to reduce dependencies within the company. Paytm and the Paytm Payments Bank (PPBL) have mutually agreed to terminate these agreements. Last month, the Reserve Bank of India (RBI) prohibited PPBL from accepting fresh deposits or top-ups in customer accounts. As a result, the Chairman of Paytm Payments Bank, Vijay Shekhar Sharma, stepped down and the bank's board is being reconstituted.
Paytm Discontinues Inter-Company Agreements With PPBL To Reduce Dependencies
Inc42 · 1y ago
Medial
Paytm and Paytm Payments Bank (PPBL) have mutually agreed to terminate various inter-company agreements to strengthen PPBL's independent operations, according to an exchange filing. In addition, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support the bank's governance, separate from its shareholders. The move comes after Paytm's founder and CEO, Vijay Shekhar Sharma, stepped down from the board of PPBL. Last month, the Reserve Bank of India imposed restrictions on the payments bank for non-compliance and supervisory concerns.
Paytm Jumps 4% After It Discontinues Inter-Company Agreements With PPBL
Inc42 · 1y ago
Medial
Shares of One97 Communications, the parent company of Paytm, rose 4% to INR 423 apiece on Friday, following the announcement that the company has discontinued various agreements with its payments bank unit, Paytm Payments Bank Limited. Paytm shares opened at INR 413.55. The move is an effort to strengthen the independent operations of the payments bank. Founder Vijay Shekhar Sharma recently stepped down from the board, and a newly-reconstituted board has been appointed. The company ensured that services like the Paytm app, Paytm QR, and Paytm Card machines will continue uninterrupted. At 1:15 pm on Friday, Paytm shares were trading at INR 421.85 apiece.
Paytm shares rally 4% on cutting dependency on payments bank
Economic Times · 1y ago
Medial
Shares of One 97 Communications, the parent company of Paytm, surged by 4% after the company announced the discontinuation of various inter-company agreements between Paytm and Paytm Payments Bank. Paytm stated that this move was made to strengthen the independent operations of the payments bank. The shareholders of Paytm Payments Bank have also agreed to simplify the Shareholders Agreement to support the bank's governance, separate from its shareholders. SoftBank Group, a major investor in Paytm, has recently sold a 2.2% stake in the company due to growing uncertainty in India's regulatory environment.
Paytm Payments Bank MD, CEO Surinder Chawla steps down
Entrackr · 1y ago
Medial
Surinder Chawla, the managing director and chief executive officer of Paytm Payments Bank, has stepped down from his position on April 8, according to the disclosure filed by the associate entity One97 on the National Stock Exchange. The resignation was submitted for personal reasons to explore better career prospects and Surinder Chawla will be relieved from Paytm Payment Bank (PPBL)on June 26, the filings added. Chawla joined Paytm Payments Bank in February last year. Before this, he was the head of branch banking at RBL Bank for more than nine years and also spent more than 11 years at HDFC Bank as head of retail liabilities product group and senior executive vice president. The development comes after actions by the Reserve Bank of India (RBI) against Paytm Payments Bank. In late January, RBI had imposed restrictions on the company due to concerns regarding breach of and compliance with regulatory norms. While RBI later granted brief relaxation to Paytm, the latter discontinued inter-company agreements between the company and Paytm Payments Bank Limited (PPBL). The move was taken to ensure the independent operations of PPBL. Meanwhile, Vijay Shekhar Sharma also stepped down from his position as part-time non-executive chairman and board member of Paytm Payments Bank. The company also announced that it has reconstituted its board of directors with five new directors.
Paytm Confirms Exit Of Manju Agarwal From Paytm Payments Bank’s Board
Inc42 · 1y ago
Medial
Fintech giant Paytm has confirmed the resignation of independent director Manju Agarwal from the board of Paytm Payments Bank due to personal commitments. The departure of Agarwal and another independent director, Shinjini Kumar, comes after the Reserve Bank of India imposed fresh restrictions on the trouble payments bank. Paytm is currently under scrutiny as it seeks approval for an investment in its payments gateway arm, Paytm Payments Services, while an inter-ministerial committee examines foreign direct investment from China into the company.
What’s In Store For Paytm Beyond The March 15 Deadline?
Inc42 · 1y ago
Medial
Paytm Payments Bank is facing restrictions imposed by the Reserve Bank of India (RBI) that will come into effect on March 15. Customers will no longer be able to make deposits or transfer funds to their accounts, but they can still withdraw money or transfer funds to other accounts. Subsidies, direct benefit transfers, and auto payments linked to Aadhaar will also be unavailable after the deadline. Paytm wallet holders can withdraw and transfer funds but cannot top up their wallets or receive funds after March 15. Merchants accepting payments using Paytm QR codes or other devices will not be affected. The RBI's restrictions were a result of failure to address internal risk management issues and concerns over due diligence for onboarding politically exposed persons. Paytm has taken steps to comply, including board reconfigurations and discontinuing inter-company agreements with Paytm Payments Bank. Paytm has also been granted a Third Party App Provider license by the National Payments Corporation of India, allowing it to continue operating as a payment system provider through partnerships with other banks. The RBI's restrictions on Paytm Payments Bank have impacted Paytm's stock price, which has halved since the announcement of the restrictions. Paytm estimates that its annual EBITDA will take a hit of INR 300-500 crore ($40-68 million) as a result.
Paytm Payments Bank slapped with Rs 5.49 Cr fine for flouting money laundering norms
Entrackr · 1y ago
Medial
The Financial Intelligence Unit-India (FIU-IND) has imposed a fine of Rs 5.49 crore on Paytm Payments Bank Ltd over violations of the money laundering regulations, the Ministry of Finance said in a press release on late Friday. “FIU-IND initiated a review of the Paytm Payments Bank Ltd on receipt of specific information from law enforcement agencies in respect of few entities and their network of businesses engaged in a number of illegal acts, including organising and facilitating online gambling,” the release added. “Further, the money generated from these illegal operations, i.e. proceeds of crime were routed and channelled through bank accounts maintained by these entities with the Paytm Payments Bank Ltd.” After considering the written and oral submissions of the PPBL, the FIU-IND found the charges against Paytm were substantiated. Consequently, it imposed a penalty of Rs 5.49 crore under section 13 of PMLA. Paytm Payments Bank spokesperson said, ”The penalty pertains to issues within a business segment that was discontinued two years ago. Following that period, we have enhanced our monitoring systems and reporting mechanisms to the Financial Intelligence Unit (FIU).” This morning, Paytm announced severing inter-company agreements between the company and Paytm Payments Bank Limited. Earlier this week, Vijay Shekhar Sharma stepped down from his position as part-time non-executive chairman and board member of PPBL. The company also announced the reconstitution of its board of directors and plans to soon appoint a new chairman. The developments come in the wake of the Reserve Bank of India (RBI) imposing a set of business restrictions on Paytm Payments Bank over non-compliance and regulatory concerns. The business restrictions are set to impact Paytm’s business verticals related to the payments bank, though the RBI has granted a few temporary reliefs.
Paytm gets NPCI nod to become third-party app provider for UPI
Entrackr · 1y ago
Medial
Paytm has received permission from the National Payments Corporation of India (NPCI) to participate in UPI through the Third-Party Application Provider (TPAP) under the multibank model, as per the fintech company’s filings on the exchange. In a separate release, NPCI stated that four banks – Axis Bank, HDFC Bank, State Bank of India, and Yes Bank – will act as Payment System Providers (PSP). “Yes Bank will also serve as the merchant acquiring bank for existing and new UPI merchants for OCL. The “@Paytm” handle shall be redirected to Yes Bank,” the agency said. This move will enable Paytm users and merchants to continue using UPI services, including autopay mandates, without interruption. OCL (Paytm-parent One 97 Communications) has been advised to complete migration for all existing handles and mandates, wherever required, to new PSP banks as soon as possible. The announcement comes weeks after the central bank announced a set of additional steps as a follow-up to its actions against Paytm Payments Bank. The steps also included an advisory to NPCI to consider OCL’s request to become a TPAP for the UPI channel. Recently, Paytm discontinued inter-company agreements between the company and Paytm Payments Bank Limited (PPBL). The new move aimed to ensure the independent operations of PPBL, the company added. Earlier, Vijay Shekhar Sharma stepped down from his position as part-time non-executive chairman and board member of PPBL. The company also announced the reconstitution of its board of directors and plans to soon appoint a new chairman. The developments came in the wake of the Reserve Bank of India (RBI) imposing a set of business restrictions on Paytm Payments Bank over non-compliance and regulatory concerns.
Paytm terminates inter-company agreements with payments bank unit
Entrackr · 1y ago Medial
Paytm has discontinued inter-company agreements between the company and Paytm Payments Bank Limited (PPBL), according to a filing by the parent company, One97 Communications, on the stock exchange. The new measures aim to ensure the independent operations of PPBL, the company added. “Further, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support PPBL’s governance, independent of its shareholders. The Board of OCL approved the termination of agreements and amendment of SHA on March 1, 2024,” One 97 Communications said [pdf]. The company reiterated its commitment to entering into new partnerships with other banks and taking measures to ensure uninterrupted services to its customers and merchants. Earlier this week, Vijay Shekhar Sharma stepped down from his position as part-time non-executive chairman and board member of PPBL. The company also announced the reconstitution of its board of directors and plans to soon appoint a new chairman. The developments come in the wake of the Reserve Bank of India (RBI) imposing a set of business restrictions on Paytm Payments Bank over non-compliance and regulatory concerns. The business restrictions are set to impact Paytm’s business verticals related to the payments bank, though the RBI has granted a few temporary reliefs. Meanwhile, SoftBank has divested its stake worth Rs 580 crore in Paytm. This marks the fifth instance of SoftBank’s disposal of its shares in the company in the ongoing fiscal year. Now, the VC’s stake in Paytm has reduced to nearly 3%. During this disinvestment, SoftBank disposed of its 2.17% stake which contracted its shareholding from 5.01% to 2.83%, according to regulatory filings. SoftBank has already disposed of Rs 3,800 crores of worth shares in the current fiscal year ( May, July, December, and January). The disposal sums up to Rs 4,380 crore (as per the share price on the date of transactions).
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