Paytm has officially renamed its e-commerce branch as ‘Pai Platforms’, a change confirmed by documents submitted to the Registrar of Companies. This rebranding, which had been in the pipeline for some time, received the green light this Wednesday, with PTI being the first to break the news.

In a related development, despite reports by PTI claiming Paytm’s acquisition of the four-year-old ONDC merchant Innobits Solutions Private Limited (operating under the name Bitsila), Paytm has categorically denied such claims. “The rumours surrounding Paytm’s acquisition of Bitsila are completely unfounded and misleading,” clarified a representative from Paytm.

In the midst of these changes, Paytm’s payments bank board has seen the departure of two prominent figures, Shinjini Kumar and Manju Agarwal. Kumar, with a background in Bank of America and PricewaterhouseCoopers, and Agarwal, a former managing director at the State Bank of India, have stepped down from their roles.

These developments come at a challenging time for Paytm, as the Reserve Bank of India (RBI) has placed restrictions on Paytm Payments Bank, citing non-compliance issues. From February 29 onwards, the bank is prohibited from accepting new deposits or continuing its banking services, a decision made under section 35A of the Banking Regulation Act, 1949. This decision also impacts Paytm’s ancillary services such as FASTags.

The RBI’s stringent measures are not without prior warning, as deputy governor Swaminathan J elaborated that Paytm had been given multiple opportunities to rectify its compliance issues before the imposition of business restrictions. “We resort to imposing business restrictions when engagement fails or when the entity in question does not undertake corrective measures,” stated Das.

Paytm is actively seeking to resolve these regulatory challenges, with its founder Vijay Shekhar Sharma engaging in discussions with Finance Minister Nirmala Sitharaman. Nevertheless, there seems to be no immediate solution on the horizon for the fintech giant.

Following the RBI’s announcement, Paytm’s stock has suffered significantly, currently trading at Rs 420 per share.

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