Paytm Cuts Ties with Payments Bank Subsidiary to Foster Independence

New Delhi : Paytm, the prominent Indian digital payment platform, has severed its inter-company agreements with its subsidiary, Paytm Payments Bank (PPBL). This move comes amidst ongoing regulatory action by the Reserve Bank of India (RBI) against PPBL.

The decision to terminate the agreements was approved by the board of directors of One97 Communications, the parent company of Paytm. According to a regulatory filing, this step aims to promote operational independence for PPBL.

One97 Communications emphasized that Paytm's services will continue uninterrupted despite the termination of the agreements with PPBL. The company also stated that it and PPBL are taking additional steps to ensure the independent functionality of the payments bank.

This news comes as PPBL faces restrictions from the RBI, including a ban on accepting new deposits and top-ups starting March 15th, 2024. It is important to note that this development does not directly impact Paytm's core digital payment services.