Paytm Ecommerce has renamed itself as ‘Pai Platforms’, according to the company’s filings with the Registrar of Companies.
The company had requested approval for the rebranding a few months ago, and received the same on Wednesday. PTI reported the development first.
The news agency also reported that Paytm has acquired Innobits Solutions Private Limited (Bitsila), an four-year-old ONDC seller. Paytm, however, has refuted the reported acquisition.
“We firmly deny the news of Paytm’s proposed acquisition of Bitsila. The said news is entirely misleading,” a Paytm spokesperson said in a statement.
Meanwhile, Shinjini Kumar and Manju Agarwal have reportedly quit Paytm’s payments bank board. Kumar is a former Bank of America and PricewaterhouseCoopers (PwC) executive, whereas Agarwal is a former managing director at State Bank of India.
These key developments come at a time when Paytm is facing one of its biggest crises so far with the Reserve Bank of India (RBI) barring Paytm Payments Bank (PPBL) from taking fresh deposits and continuing banking services after February 29 over non-compliance.
The move taken under section 35A of Banking Regulation Act, 1949 also affected Paytm’s other services such as FASTags.
“No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime. Withdrawal or utilisation of balances by its customers from their accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, National Common Mobility Cards, etc. are to be permitted without any restrictions, upto their available balance,” the central bank said in a notification on January 31.
Recently, RBI deputy governor Swaminathan J clarified that the crackdown on Paytm’s payments bank was not sudden but followed several conversations and giving the company ample time to take corrective measures.
“When constructive engagement doesn’t work or when the regulated entity does not take effective action, we go for imposing business restrictions,” Das is quoted as saying.
Paytm has said it is working with the authorities to resolve the matter. According to reports, Paytm founder Vijay Shekhar Sharma held meetings with Finance Minister Nirmala Sitharaman over the crisis faced by the company’s banking vertical. But it appears there will be no immediate relief for the company.
Following the RBI notification, Paytm’s shares have taken a big hit. At the time of writing this story, Paytm’s shares are trending at Rs 420 a piece.
Correction: 20:50PM IST: Headline and contents of the story has been updated to reflect that Paytm Ecommerce has made the rebranding.
