Paytm to form advisory committee for compliance, regulatory matters

Paytm parent One97 Communications is set to form a group advisory committee on compliance and regulatory matters, the company said on Friday.

The development comes on the backdrop of the Reserve Bank of India halting onboarding for Paytm Payments Bank, the bank arm of the listed fintech.

Helmed by former chairman of the Securities and Exchange Board of India Meleveetil Damodaran, the committee "will be responsible for working closely with the board, Paytm stated.

M Damodaran is a retired IAS officer, having served in the Tripura Government in 1976. Notably, he was also an OSD for the RBI in 2000. With experience in corporate governance, restructuring, and regulatory leadership, he has also chaired high-powered committees for the Government of India and Reserve Bank of India (RBI), and was also elected Chairman of the EMC of the International Organisation of Securities Commission (IOSCO).

Other members in the committee of three include Mukund Mohan Chitale and Ramchandran Rajaraman. The Committee will induct additional members, as necessary, Paytm also stated.

MM Chitale was previously the President of the Institute of Chartered Accountants of India (ICAI), and has also been a former governing Council Member of Banking Codes and Standards Board of India nominated by the RBI. 

R Ramachandran, on the other hand, is former Chairman and Managing Director of Andhra Bank. He is a member of the Advisory Board at Central Vigilance Commission.

RBI had in its monetary policy review on February 8 also addressed the reasons for the stern action, pinning it on “persistent non-compliance.”  Paytm Payments Bank has been directed as per a last week order to wind down its business of deposits, credit products and digital wallets by the end of the month.

The Company’s management is committed to drive sustainable business growth, while adhering to a regulatory and compliance framework, Paytm said.

After the Paytm Payments Bank directive, Paytm has said it will focus on compliance, and work with third-party banks and financial services institutions.