BENGALURU: Paytm on Friday confirmed that it has mutually agreed with payments banks to discontinue various inter company agreements to reduce dependencies.
Paytm also known as One 97 Communications, did not specify what agreements were being terminated.
The payments bank agreed to simplify the shareholders’ agreement to “support (Paytm Payments Bank‘s) governance, independent of its shareholders,” the company said.
Paytm CEO Vijay Shekhar Sharma owns a 51% stake in Paytm Payments Bank while Paytm owns the rest.
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.
( with input from agency)