Paytm Ecommerce has changed its name to “Pai Platforms,” as per the documents submitted by the company to the Registrar of Companies.
The company got approval on Wednesday for the rebranding, which it had requested a few months prior. The development was first reported by PTI.
The news agency added that Innobits Solutions Private Limited (Bitsila), a four-year-old ONDC seller, has been acquired by Paytm. Paytm, though, has denied the rumored purchase.
“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.
Manju Agarwal and Shinjini Kumar are said to have left Paytm’s payments bank board in the interim. Agarwal is a former managing director of State Bank of India, while Kumar was an executive at PricewaterhouseCoopers (PwC) and Bank of America.
These significant developments coincide with one of Paytm’s worst crises to date, as the Reserve Bank of India (RBI) has prohibited Paytm Payments Bank (PPBL) from accepting new deposits or providing banking services following February 29 due to non-compliance.
Other services offered by Paytm, like FASTags, were also impacted by the action taken under section 35A of the Banking Regulation Act of 1949.
“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.
The RBI deputy governor, Swaminathan J., clarified recently that the shutdown of Paytm’s payments bank was not an abrupt action, but rather the result of multiple discussions that gave the company enough time to implement 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 stated that it is assisting the authorities in resolving the issue. Reports state that Vijay Shekhar Sharma, the founder of Paytm, met with Nirmala Sitharaman, the minister of finance, to discuss the problems facing the company’s banking division. However, the company doesn’t seem to be getting any relief anytime soon.
Paytm’s stock has dropped significantly since the RBI announcement. Paytm’s shares are currently trending at Rs 420 per share as of the time this story was written.
