- ByStartupStory | February 9, 2024
Paytm has rebranded its e-commerce division as ‘Pai Platforms’, as confirmed by the company’s filings with the Registrar of Companies. The request for approval for this rebranding was made several months ago and was granted on Wednesday. PTI was the first to report on this development.
Regarding reports of Paytm’s acquisition of Innobits Solutions Private Limited (Bitsila), a four-year-old ONDC seller, Paytm has refuted the claims. A Paytm spokesperson stated, “We firmly deny the news of Paytm’s proposed acquisition of Bitsila. The said news is entirely misleading.”
In other news, Shinjini Kumar and Manju Agarwal have reportedly resigned from Paytm’s payments bank board. Kumar, a former executive of Bank of America and PricewaterhouseCoopers (PwC), and Agarwal, a former managing director at State Bank of India, have stepped down from their roles.
These developments come amidst a significant crisis for Paytm, as the Reserve Bank of India (RBI) has barred Paytm Payments Bank (PPBL) from accepting fresh deposits and continuing banking services after February 29 due to non-compliance. The central bank’s action under section 35A of the Banking Regulation Act, 1949, has also affected Paytm’s other services, including FASTags.
According to RBI deputy governor Swaminathan J, the regulatory measures against Paytm were not sudden but followed extensive discussions and opportunities for corrective action. He stated, “When constructive engagement doesn’t work or when the regulated entity does not take effective action, we go for imposing business restrictions.”
Paytm has stated its cooperation with authorities to address the situation. Reports suggest that Paytm founder Vijay Shekhar Sharma has met with Finance Minister Nirmala Sitharaman regarding the crisis faced by the company’s banking arm. However, immediate relief for the company seems unlikely.
In the wake of the RBI notification, Paytm’s shares have experienced a significant decline. As of the time of reporting, Paytm’s shares are trading at Rs 420 each.
