Paytm forms 3-member advisory panel headed by former Sebi chief
Hit by the Reserve Bank of India’s (RBI’S) regulatory action, the board of One 97 Communications Ltd, which owns the Paytm brand, has formed a three-member group advisory committee chaired by former Sebi Chairman M Damodaran, to work with the board in further strengthening compliance and regulatory matters.
The panel will work closely with the board and will induct additional members if necessary.
The other committee members will be: Mukund Manohar Chitale, who is the former president of Institute of Chartered Accountants of India (ICAI), former chairman of the National Advisory Committee on Accounting Standards (NACAS), a former governing council member of Banking Codes and Standards Board of India nominated by the RBI, and a member of the Primary Advisory Market Committee of Sebi, and Ramachandran Rajaraman, who is the former chairman and MD of Andhra Bank, a former director of Syndicate Bank and a member of the advisory board at the Central Vigilance Commission. Damodaran brings extensive experience in corporate governance, restructuring and regulatory leadership.
He has previously served as chairman of the Sebi, and has 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).
On January 31, the RBI barred Paytm Payment Bank Ltd (PPBL) from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTAGS and NCMC card after February 29, 2024 in the wake of persistent non-compliances and material supervisory concerns. The action was taken due to non-compliance of various regulatory guidelines including those related to know-your-customer (KYC) and not maintaining a Chinese wall with the group company, One97 Communications.
The RBI on Thursday said that the action on Paytm Payments Bank was taken due to persistent non-compliance and that there is no worry at the systematic level.