Paytm appoints advisory panel led by former SEBI chief, here's why

New Delhi: In response to regulatory challenges faced by its subsidiary, Paytm Payments Bank, leading Indian fintech company Paytm has formed an advisory panel to collaborate with its board. The panel, spearheaded by former SEBI chairman M. Damodaran, aims to address the recent actions taken by the Reserve Bank of India (RBI) against Paytm Payments Bank, which is set to cease operations after February 29, 2024.

Steering through regulatory turbulence

One97 Communications, the parent company of Paytm, announced the establishment of a group advisory committee to navigate the regulatory landscape. M. Damodaran, the former chairman of SEBI, will lead the committee, which will provide strategic counsel to ensure compliance with regulatory standards.

The role of the advisory committee

The primary objective of the advisory committee is to advise Paytm on bolstering its compliance framework and addressing regulatory concerns. Comprising eminent figures such as M. M. Chitale, former President of the Institute of Chartered Accountants of India, and R. Ramachandran, former Chairman and Managing Director of Andhra Bank, the committee is poised to offer invaluable insights into regulatory intricacies.

Collaborative governance approach

The advisory committee will collaborate closely with Paytm's board to devise effective strategies for navigating regulatory challenges. The committee remains open to expanding its membership as deemed necessary to address evolving regulatory landscapes.

PayTM seeking expertise, experience

M. Damodaran, renowned for his contributions to financial regulation, has chaired several high-powered committees for the Indian government and the RBI. Additionally, he has played a pivotal role as Chairman of the EMC of the International Organisation of Securities Commission (IOSCO), underscoring his expertise in global regulatory frameworks.

Responding to RBI scrutiny

The establishment of the advisory panel comes in the wake of regulatory scrutiny faced by Paytm Payments Bank. The RBI's directive, issued on January 31, mandates the cessation of deposit and top-up services, including wallets and FASTags, by February 29, citing persistent non-compliance with regulatory guidelines.

Navigating regulatory compliance

As Paytm endeavors to navigate the evolving regulatory landscape, the formation of the advisory panel signifies its commitment to regulatory compliance and governance. By leveraging the expertise of seasoned professionals, Paytm aims to address regulatory concerns and uphold industry standards.