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Paytm Payments Bank instructed by FIU to address discontinued business segment

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Paytm Payments Bank receives FIU 'direction' over a discontinued business segment

New Delhi, March 1 (IANS) Paytm Payments Bank Limited (PPBL) has been imposed with a penalty of Rs 5.49 crore by the Financial Intelligence Unit-India (FIU-IND) for issues within a discontinued business segment. The company’s associate entity faced the penalty, leading to restructuring measures.

Paytm Payments Bank spokesperson stated, “The penalty pertains to issues within a business segment that was discontinued two years ago. Following that period, we have enhanced our monitoring systems and reporting mechanisms to the Financial Intelligence Unit (FIU).”

One 97 Communications Ltd and PPBL have decided to discontinue various inter-company agreements according to a BSE filing. The parent company of Paytm announced this move as the Reserve Bank of India (RBI) ban on the bank’s operations looms closer, signifying a strategic shift.

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As part of the restructuring process to lessen dependencies and enhance governance, Paytm and PPBL have mutually agreed to terminate various inter-company agreements with Paytm and its group entities. Additionally, the shareholders of PPBL have decided to simplify the Shareholders Agreement (SHA) to support the bank’s governance, independent of its shareholders.

In response to the penalties and impending regulatory actions, the company has announced plans to sign new partnerships with other banks and implement measures to ensure uninterrupted service for its customers and merchants. Paytm aims to navigate through the challenges and uphold its commitment to providing seamless financial services to its users despite the setbacks.–IANS na/sha

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IANS, established in 1986, is India's largest independent news service, offering 24x7 news from India and South Asia, and a preferred source for diverse content across six business verticals.

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