<p>India's Paytm and its payments bank unit have mutually agreed to discontinue various inter-company agreements in the process to reduce dependencies, the embattled payments firm said on Friday.</p><p>Paytm, formally known as One 97 Communications, did not specify what agreements were being terminated.</p><p>The payments bank agreed to simplify the shareholders' agreement to "support (Paytm Payments Bank's) governance, independent of its shareholders," the company said.</p> .<p>Paytm CEO Vijay Shekhar Sharma owns a 51% stake in Paytm Payments Bank while Paytm owns the rest.</p><p>The move came days after Sharma stepped down as non-executive chairman and board member of the payments bank unit, as part of a major overhaul that follows a central bank clampdown.</p><p>The Reserve Bank of India had asked Paytm Payments Bank to wind down operations by March 15 due to persistent compliance issues and supervisory concerns, triggering a meltdown in Paytm's stock.</p><p>The action against the unit followed concerns including inadequate customer identity checks and a lack of arms-length distance from parent company Paytm, sources previously told Reuters.</p>
<p>India's Paytm and its payments bank unit have mutually agreed to discontinue various inter-company agreements in the process to reduce dependencies, the embattled payments firm said on Friday.</p><p>Paytm, formally known as One 97 Communications, did not specify what agreements were being terminated.</p><p>The payments bank agreed to simplify the shareholders' agreement to "support (Paytm Payments Bank's) governance, independent of its shareholders," the company said.</p> .<p>Paytm CEO Vijay Shekhar Sharma owns a 51% stake in Paytm Payments Bank while Paytm owns the rest.</p><p>The move came days after Sharma stepped down as non-executive chairman and board member of the payments bank unit, as part of a major overhaul that follows a central bank clampdown.</p><p>The Reserve Bank of India had asked Paytm Payments Bank to wind down operations by March 15 due to persistent compliance issues and supervisory concerns, triggering a meltdown in Paytm's stock.</p><p>The action against the unit followed concerns including inadequate customer identity checks and a lack of arms-length distance from parent company Paytm, sources previously told Reuters.</p>
