Paytms parent company, One 97 Communications, announced in a regulatory filing on Friday that its board has decided to discontinue inter-company agreements with its banking arm, Paytm Payments Bank Limited (PPBL). This move comes on the heels of recent crackdowns by the Reserve Bank of India (RBI) against the payments bank.PPBL has faced increased scrutiny from the RBI over the past couple months, with the central bank issuing a March 15th deadline for the firm to halt its credit and deposit operations.In the filing, One 97 Communications stated it and PPBL have introduced additional measures to strengthen the payments banks independent operations and reduce dependencies. As part of this process, Paytm and PPBL have mutually agreed to discontinue various inter-company pacts between Paytm, PPBL, and other Paytm group entities.As informed earlier, One 97 Communications Limited (OCL) and its services that include the Paytm app, Paytm QR, Paytm soundbox, and Paytm Card machines will continue to work uninterrupted. Paytm is committed to upholding the highest standards of market-leading innovation and technology-enabled solutions for its customers, the company statement said.Paytm had previously announced it would forge new bank partnerships and implement seamless measures to serve customers and merchants following the RBI crackdown. In its February 1st stock exchange filing, the company indicated the potential financial impacts of the regulatory actions.While maintaining normal operations, Paytm pledges compliance with RBI directives as the payments bank faces ongoing scrutiny. The end of inter-company agreements signifies an effort to enforce separations between Paytms commercial and banking services.
