The cancellation of certain inter-company agreements has been announced by One 97 Communications Ltd. (Paytm) and Paytm Payments Bank Limited (PPBL). The move is a component of a larger initiative to simplify processes and lessen interdependencies between the two organizations.
The news, which was released jointly by Paytm and PPBL, represents a major change in the companies’ corporate policy about supporting PPBL’s autonomous governance structure and increasing its autonomy. By the agreement, both parties have agreed to end several inter-company agreements, which is a critical step in each of their journeys.
Moreover, PPBL’s shareholders have overwhelmingly decided to streamline the Shareholders Agreement (SHA), demonstrating their dedication to sustaining PPBL’s governance separate and apart from its shareholders. On March 1, 2024, the Board of One 97 Communications Ltd. authorized the change of SHA and the termination of agreements, so formalizing the decision’s execution. This action comes after Paytm previously declared that it was forming new alliances with other banks and taking steps to guarantee smooth operations for its sizable merchant and consumer base. On February 1, 2024, Paytm made a hint about the possible financial effects of these strategic realignments in a statement to stock markets.
One 97 Communications Limited guarantees its consumers that services including the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines will continue to operate without any problems despite these structural changes. The business reiterates its dedication to providing its devoted clientele with industry-leading innovation and technologically advanced solutions.