Paytm Forms Advisory Committee on Compliance, Regulatory Matters Under Former SEBI Chief Damodaran

Paytm Forms Advisory Committee on Compliance, Regulatory Matters Under Former SEBI Chief Damodaran

The board of One97 Communications Ltd, the company behind the Paytm payments app, has established a committee led by M. Damodaran, a former chairman of India’s markets regulator SEBI. The purpose of this committee is to guide Paytm Payments Bank Ltd regarding compliance and regulation. This decision comes after the Reserve Bank of India (RBI) criticised the bank for repeated non-compliance with rules.

The committee, headed by Damodaran and including two other members, will collaborate with the board of One97 Communications to enhance compliance and address regulatory matters, as communicated by the company to the exchanges.

The committee comprises M.M. Chitale, a former president of the Institute of Chartered Accountants of India (ICAI) and a former governing Council Member of the Banking Codes and Standards Board of India, along with banker R. Ramachandran, a former Chairman and Managing Director of Andhra Bank, as stated by One97 Communications.

On January 31, the RBI took significant action against Paytm Payments Bank. The RBI directed the Paytm Payments Bank to stop accepting deposits or top-ups in any customer accounts, wallets, FAST Tags, and other instruments after February 29.

The formation of the panel occurred immediately following the RBI’s criticism of the payments bank operations due to repeated non-compliance with prudential regulations. These regulations include know-your-customer norms (KYC) and anti-money laundering rules.

In its statement, One97 Communications stated its commitment to sustainable business growth while adhering to a regulatory and compliance framework.