Odisha News Hour

Getting Back Your Trust? Ex-Sebi Chief Leads Paytm Forms Panel To Address Regulatory Issues

<p>The Paytm brand is owned by the fintech company One97 Communications, which also announced on Friday that it has formed a group advisory council led by former Sebi Chairman M Damodaran. This comes as the company’s affiliate payments bank unit is being investigated by regulators for failing to comply with RBI regulations.</p>
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<p>As per a stock market filing, the committee is expected to provide guidance to the firm about regulatory problems and ways to enhance compliance.</p>
<p><strong>Members of the Paytm Advisory Committee</strong></p>
<p>The panel, which is presided over by Damodaran, includes former chairman and managing director of Andhra Bank R Ramachandran as well as M M Chitale, the former president of the Institute of Chartered Accountants of India (ICAI).</p>
<p>The board and the Group Advisory Committee will collaborate closely. As needed, the group will welcome new members, according to the application.</p>
<p>Additionally, Chitale has been a member of the Banking Codes and Standards Board of India’s governing council, having been appointed by the Reserve Bank of India (RBI).</p>
<p>According to the petition, among his other duties, Damodaran has led powerful committees for the Union government, the RBI, and the International Organization of Securities Commission (IOSCO). He had also been chosen Chairman of the EMC.</p>
<p>The committee was established at a time when the RBI was looking into Paytm Payments Bank Ltd., which is mostly controlled by Vijay Shekhar Sharma, the founder and CEO of Paytm.</p>
<p>The RBI gave the Paytm Payments Bank instructions on January 31 to cease taking deposits or top-ups in consumer accounts, wallets, FASTags, and other devices on or before February 29.</p>
<p>According to RBI, the entity’s ongoing non-compliance with regulatory norms prompted the move.</p>
<p>The regulatory action is against Paytm Payment Bank Ltd (PPBL), according to the RBI’s statement on Thursday, and it would not have any effect on the Paytm App.</p>
<p>“To be clear, this action is not related to the Paytm app; rather, it is directed at Paytm Payments Bank.Following the bimonthly Monetary Policy Committee (MPC) meeting, RBI Deputy Governor Swaminathan J told the media that the app will not be affected by this move.</p>
<p>Recognizing that the general public has provided input, the RBI will be releasing a series of FAQs (commonly asked questions) in an effort to allay worries.</p>