"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)," said a Paytm Payments Bank spokesperson.
Earlier in the day, One 97 Communications Ltd, the parent company of Paytm, and PPBL announced to discontinue various inter-company agreements, as the Reserve Bank of India (RBI) ban on the bank's operations inches closer.
In a BSE filing, the company said that as part of the process to "reduce dependencies", Paytm and PPBL have "mutually agreed to discontinue various inter-company agreements with Paytm and its group entities."
Further, the shareholders of PPBL have agreed to simplify the Shareholders Agreement (SHA) to support PPBL's governance, independent of its shareholders.
The company had announced to sign up new partnerships with other banks and take measures to provide seamless services for its customers and merchants.
