Paytm and PPBL terminate inter-company agreements in pursuit of independent futures

One 97 Communications Ltd (Paytm) and Paytm Payments Bank Limited (PPBL) have announced the discontinuation of various inter-company agreements. The decision comes as part of a broader effort to streamline operations and reduce dependencies between the two entities.

The announcement, made jointly by Paytm and PPBL, signals a significant shift in their corporate strategy towards enhancing the autonomy of PPBL and fostering its independent governance structure. As per the agreement, both parties have mutually consented to terminate several inter-company agreements, marking a pivotal step towards their individual trajectories.

Furthermore, the shareholders of PPBL have unanimously agreed to simplify the Shareholders Agreement (SHA), underscoring their commitment to supporting PPBL's governance independent of its shareholders. The Board of One 97 Communications Ltd approved the termination of agreements and amendment of SHA on March 1, 2024, solidifying the decision's formal implementation.

This move follows Paytm's earlier announcement of forging new partnerships with other banks and implementing measures to ensure seamless services for its vast customer and merchant base. In a disclosure to stock exchanges on February 1, 2024, Paytm hinted at the potential financial implications of these strategic realignments.

Despite these structural adjustments, One 97 Communications Limited assures its users that services such as the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines will continue to function seamlessly without interruption. The company reaffirms its commitment to delivering market-leading innovation and technology-enabled solutions to its loyal customer base.