The owner of fintech firm Paytm, One 97 Communications Limited, on Friday announced the formation of an advisory committee chaired by former Securities and Exchange Board of India (SEBI) chairman M Damodaran. The committee will work closely with the Board of Directors to further strengthen compliance and regulatory matters.
The three-member committee includes former president of the Institute of Chartered Accountants of India (ICAI) MM Chitale and former chairman and MD of Andhra Bank R Ramachandran.
“The Board of One 97 Communications Limited announces formation of a Group Advisory Committee chaired by former SEBI Chairman Mr. M. Damodaran, to work with the Board in further strengthening compliance, and regulatory matters,” said the company in its BSE filing on Friday.
The announcement came after the Reserve Bank of India’s (RBI) action against Paytm’s banking arm. In January, the RBI ordered Paytm Payments Bank to suspend its deposits or top-ups in customer accounts, wallets, FASTags and other instruments after February 29. Since the announcement, Paytm stock has lost around 40% of its value in the last one month.
Recently, the Employees Provident Fund Organisation (EPFO) also restricted deposits and credit transactions in Paytm Payment Bank accounts.
About the members of the advisory group committee
The committee will be headed by retired IAS officer, Meleveetil Damodaran. Earlier, he served as the chairman of SEBI. Moreover, he has chaired high-powered committees for the Government of India and the RBI. Mukund Manohar Chitale has served as the president of the Institute of Chartered Accountants of India (ICAI). The third member of the committee, Ramachandran Rajaraman is the former chairman and managing director of Andhra Bank.
About RBI order against PPBL
The RBI on January 31 issued an order directing Paytm Payments Bank to stop onboarding new customers with immediate effect. The action was taken in response to non-compliance revealed in audit reports.
The RBI also prohibited any further deposits or credit transactions or top-ups on any customer accounts after February 29, 2024, other than any interest, cashbacks or refunds which may be credited anytime.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
