Following recent sanctions from the Reserve Bank of India (RBI), Paytm, has announced the formation of a committee to strengthen its compliance and regulatory practices.
This move comes after the RBI barred Paytm Payments Bank, a subsidiary of One97 Communications Ltd, from onboarding new customers and offering certain banking services due to non-compliance issues.
The newly formed panel, chaired by industry veteran N Damodaran, former chairman of markets regulator SEBI, will guide Paytm on navigating the regulatory landscape and ensuring adherence to all relevant guidelines.
Mr. Damodaran will be joined by other distinguished members, including MM Chitale, former president of ICAI, and R Ramachandran, former chairman and managing director of Andhra Bank.
This proactive step by Paytm highlights its commitment to operating within a robust regulatory framework and addressing the concerns raised by the RBI. "The company's management is committed to drive sustainable business growth, while adhering to a regulatory and compliance framework," Paytm stated in an exchange filing.
Prior to the sanctions, Paytm faced accusations of violating regulations related to KYC (Know Your Customer) norms, anti-money laundering measures, and maintaining financial independence from its parent company. The RBI initiated its scrutiny in 2018 and imposed a penalty of Rs 5.39 crore last year for KYC non-compliance.
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