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One 97 Communications discontinues inter-company agreements with Paytm Payments Bank

Economic Times

Economic Times · 1y ago

One 97 Communications discontinues inter-company agreements with Paytm Payments Bank

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.

Related News

Paytm shares rally 4% on cutting dependency on payments bank

Economic Times

Economic Times · 1y ago

Paytm shares rally 4% on cutting dependency on payments bank

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 discontinues inter-company agreements with its Paytm Payments Bank

Livemint

Livemint · 1y ago

Paytm discontinues inter-company agreements with its Paytm Payments Bank

Paytm, the Indian fintech giant, has announced the termination of various inter-company agreements with its payments bank unit, Paytm Payments Bank (PPBL), in order to reduce dependencies. The move is aimed at enhancing the governance of Paytm Payments Bank and making it more independent. This comes after the Reserve Bank of India imposed restrictions on PPBL, directing it to cease further deposits, credit transactions, and top-ups on customer accounts due to non-compliance with banking norms and KYC requirements. Paytm CEO, Vijay Shekhar Sharma, recently resigned from his positions at PPBL.

Paytm Jumps 4% After It Discontinues Inter-Company Agreements With PPBL

Inc42 · 1y ago

Paytm Jumps 4% After It Discontinues Inter-Company Agreements With PPBL

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 Discontinues Inter-Company Agreements With PPBL To Reduce Dependencies

Inc42 · 1y ago

Paytm Discontinues Inter-Company Agreements With PPBL To Reduce Dependencies

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 To Move Its Point Of Sale Terminals To RBL Bank

Inc42 · 1y ago

Paytm To Move Its Point Of Sale Terminals To RBL Bank

Fintech company Paytm plans to transfer its point of sale (PoS) terminals, used for processing card payments at merchant establishments, to RBL Bank. The parent company, One 97 Communications, will continue to operate and manage the terminals under the Paytm brand, while transaction processing will be handled by RBL Bank. This move follows Paytm's recent shift of its nodal account to Axis Bank after the RBI barred Paytm Payments Bank from certain activities. Paytm also recently obtained a TPAP license from the National Payments Corporation of India.

‘Paytm was like a daughter to me…. who met with an accident,’ Vijay Shekhar Sharma

Livemint

Livemint · 1y ago

‘Paytm was like a daughter to me…. who met with an accident,’ Vijay Shekhar Sharma

Paytm founder Vijay Shekhar Sharma compared the current crisis at the company to a daughter being in the ICU after an accident. He acknowledged that the company could have performed better and stated that they have learned their lesson. Paytm parent company, One 97 Communications, reported a decrease in revenue and an increase in losses due to writing off an investment in Paytm Payments Bank Ltd. The Reserve Bank of India had directed Paytm Payments Bank to restrict its operations after February 2024 due to non-compliance with KYC norms and money laundering concerns.

Paytm Senior VP Praveen Sharma Resigns To Pursue ‘Other Opportunities’

Inc42 · 1y ago

Paytm Senior VP Praveen Sharma Resigns To Pursue ‘Other Opportunities’

Praveen Sharma, senior vice president of business at Paytm's parent company One 97 Communications, has resigned after over four years. His resignation comes shortly after Paytm founder Vijay Shekhar Sharma stepped down from the board of Paytm Payments Bank. Paytm is also planning to transfer its point of sale (PoS) terminals to RBL Bank. In January, the RBI issued a directive that prevented Paytm Payments Bank from carrying out certain transactions. Since then, Paytm shares have plummeted and several mutual funds have divested their holdings in the company.

Paytm terminates inter-company agreements with payments bank unit

Entrackr

Entrackr · 1y ago

Paytm terminates inter-company agreements with payments bank unit

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).

Deependra Singh Rathore is new CTO for payments at One 97 Communications

Economic Times

Economic Times · 10m ago

Deependra Singh Rathore is new CTO for payments at One 97 Communications

- One 97 Communications, the parent company of Paytm, has appointed Deependra Singh Rathore as its Chief Technology Officer (CTO) for payments. - Rathore previously served as a Senior Vice President in charge of technology at Paytm Payments Bank Ltd since 2016. - Manmeet Singh Dhody, the previous CTO of payments, will now serve as an AI Fellow. - Paytm is known for its innovations in mobile payments and inclusive financial service distribution. - The Reserve Bank of India (RBI) previously instructed Paytm Payments Bank to stop basic banking services from March 15. - Paytm reported an operational revenue of Rs 9,977.8 crore in FY24, but also a net loss of Rs 1,423 crore.

Enforcement Directorate seeks overseas transaction details from Paytm Payments Bank

VCCircle

VCCircle · 1y ago

Enforcement Directorate seeks overseas transaction details from Paytm Payments Bank

The Enforcement Directorate in India is requesting overseas transaction details from Paytm Payments Bank, a unit of the payment operator One 97 Communications. This request comes as a part of a probe into possible violations of foreign exchange rules. Paytm has denied the allegations. The Reserve Bank of India has previously ordered Paytm Payments Bank to wind down a significant portion of its business due to regulatory concerns. Since then, Paytm has experienced a significant drop in market value.

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