The Board of Directors of One 97 Communications Ltd (Paytm) on Friday approved the discontinuation of its various inter-company agreements with its associate entity Paytm Payments Bank Limited (PPBL).
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Paytm and PPBL have introduced additional measures to strengthen their approach towards independent operations of PPBL, said a Paytm filing with stock exchanges on Friday.
The discontinuation of various inter-company agreements were approved at a board meeting on Friday through circulation of resolution, it added.
“As part of this process to reduce dependencies, Paytm and PPBL have mutually agreed to discontinue various inter company agreements with Paytm and its group entities. Further, the shareholders of PPBL have agreed to simplify the shareholders agreement to support PPBL’s governance, independent of its shareholders. The Board of OCL approved the termination of agreements and amendment of a shareholder agreement on March 1, 2024”, said the stock exchange filing.
Paytm had announced earlier that it would sign up new partnerships with other banks and take measures to provide seamless services for its customers and merchants.
In its intimation to stock exchanges on February 1, 2024, the company had indicated the possible financial impact.
One 97 Communications also reiterated in its exchange filing that the company and its services that include the Paytm app, Paytm QR, Paytm Sandbox and Paytm card machines will continue to work uninterrupted.