Audit firm Price Waterhouse Chartered Accountants has resigned as auditor of Paytm Payments Services Limited with immediate effect, Paytm said in a regulatory filing.
In its resignation letter, PwC has cited the change of auditors at the holding company level and Paytm's practice to align the auditor of the holding company and subsidiaries to bring in synergies in the audit process.
"Price Waterhouse Chartered Accountants LLP Statutory Auditors of material subsidiary i.e. Paytm Payments Services Limited (PPSL) have resigned with effect from August 7, 2023," One97 Communications, which operates under Paytm brand name, said in the filing.
PPSL has been barred by banking regulator RBI from onboarding new customers online till the time the firm is granted an Online Payment Aggregator (PA) license.
Paytm said that PwC has "not raised any concern or issue".
PWC said, "As per the communication received from you vide letter dated August 2, 2023, we understand that there has been a change of auditors at the holding company level."
"Consequently, keeping in mind your understandable practice to align the auditor of PPSL, being a material subsidiary, with the auditor of the holding company in order to bring in synergies and maintain consistency in the audit process of the Group, we hereby tender our resignation as the Statutory Auditors of PPSL."