Fintech company Paytm has rebranded its e-commerce platform amid the crisis engulfing the banking unit. After this rebranding, Paytm e-commerce has been named Pai Platforms. Paytm e-commerce will now be known by this name and identity.
Paytm Payments Bank in all-round trouble
The new name of Paytm E-Commerce has been given at a time when the group’s banking unit Paytm Payments Bank is facing difficulties. Reserve Bank has recently taken strict action against Paytm Payments Bank. If reports are to be believed, the banking permit of Paytm Payments Bank is also in danger and the Reserve Bank may cancel the permit in the coming days. After the action of RBI, shares of parent company One97 Communications have fallen by 50 percent.
RBI found many flaws
The Reserve Bank has found many compliance related flaws including KYC in Paytm Payments Bank. Such cases were also revealed in the audit, in which more than 1000 bank accounts were linked to a single PAN card. This week, RBI Governor Shaktikanta Das said that action has been taken against Paytm Payments Bank for non-compliance even after being given sufficient time.
Work on rebranding has been going on for 3 months
In a report by news agency PTI, quoting insider sources, it has been said that the rebranding of Paytm e-commerce platform was started 3 months ago. If this is true, then it can be assumed that Paytm e-commerce platform getting a new name and new identity has nothing to do with the recent crisis of Paytm Payments Bank.
Elevation Capital has the most shares
The Registrar of Companies approved the name change on 8 February. ROC said that after the certificate issue, Paytm Payments Bank Private Limited will be known as Pai Platforms Private Limited. Elevation Capital is the largest shareholder in Pi Platforms. Just a day ago, Paytm has acquired e-commerce startup Innobits Solutions Private Limited, which operates on ONDC under the name Bitsila.