Fintech firm One97 Communications, which owns Paytm brand, on Friday announced setting up of a group advisory committee headed by former Sebi Chairman M Damodaran, amid its associate payments bank entity facing regulatory action for non-compliance with RBI norms.

The interface of Indian payments app Paytm.(REUTERS)

The committee will advise the company on strengthening compliance and on regulatory matters, according to a stock exchange filing.

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Former President of the Institute of Chartered Accountants of India (ICAI) M M Chitale and former Chairman and Managing Director of Andhra Bank R Ramachandran are part of the panel chaired by Damodaran.

“The Group Advisory Committee will work closely with the board. The committee will induct additional members, as necessary,” the filing said.

Chitale has also served as a governing council member of banking codes and standards board of India nominated by the Reserve Bank of India (RBI).

Among other responsibilities, Damodaran had chaired high-powered committees for the Union government, RBI and was also elected Chairman of the EMC of the International Organisation of Securities Commission (IOSCO), the filing said.

The setting up of the committee comes at a time when Paytm Payments Bank Ltd, majorly owned by Paytm Founder and CEO Vijay Shekhar Sharma, has come under scrutiny of RBI.

On January 31, RBI directed the Paytm Payments Bank to stop accepting deposits or top-ups in customer accounts, wallets, FASTags and other instruments after February 29.

RBI, on Thursday, said the action was taken due to persistent non-compliance by the entity with regulatory guidelines.

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